The Planning-Implementation-Reporting Gap of the Regional Development Accountability in Indonesia from Principal-Agent Theory

Muhammad Wajdy; Hardi Warsono; Widiartanto Widiartanto; Teguh Yuwono; Setyo Atdiwaluyo

Proceedings of the 5th International Conference on Indonesian Social and Political Enquiries, ICISPE 2020, 9-10 October 2020, Semarang, Indonesia

Research Article

The Planning-Implementation-Reporting Gap of the Regional Development Accountability in Indonesia from Principal-Agent Theory

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@INPROCEEDINGS{10.4108/eai.9-10-2020.2304713,
    author={Muhammad Faried Wajdy and Hardi  Warsono and Widiartanto  Widiartanto and Teguh  Yuwono and Setyo  Atdiwaluyo},
    title={The Planning-Implementation-Reporting Gap of the Regional Development Accountability in Indonesia from Principal-Agent Theory},
    proceedings={Proceedings of the 5th International Conference on Indonesian Social and Political Enquiries, ICISPE 2020, 9-10 October 2020, Semarang, Indonesia},
    publisher={EAI},
    proceedings_a={ICISPE},
    year={2021},
    month={3},
    keywords={accountability development planning principal-agent},
    doi={10.4108/eai.9-10-2020.2304713}
}

Muhammad Faried Wajdy
Hardi Warsono
Widiartanto Widiartanto
Teguh Yuwono
Setyo Atdiwaluyo
Year: 2021
The Planning-Implementation-Reporting Gap of the Regional Development Accountability in Indonesia from Principal-Agent Theory
ICISPE
EAI
DOI: 10.4108/eai.9-10-2020.2304713

Muhammad Faried Wajdy¹, Hardi Warsono¹^,*, Widiartanto Widiartanto¹, Teguh Yuwono¹, Setyo Atdiwaluyo²

1: Universitas Diponegoro
2: Regional Research and Development Planning Board of Tegal Regency, Central Java Province, Indonesia

*Contact email: hardie_wsn@live.undip.ac.id

Abstract

This research analyzes the dynamics of regional planning process in the framework of principal-agent theory. The primary purpose of public sector reform is a successfully implemented public accountability. In order to achieve the purpose, planning policy formulation plays a crucial role in a public institution. At the regional level, development planning is a process-oriented activity that exerts technocratic, political, participatory, top-down, and bottom-up approaches. However, moral hazard may occur in the planning process owing to information asymmetry. This paper identifies the actors involved in regional development planning, each of whom plays a role as a trustee (principal) and recipient of the mandate (agent). The output of principal-agent relationship mapping indicates that information asymmetry still prevails. The absence of reporting procedure and agent-to-principal liability mechanism demonstrates that the accountability of regional development planning has not been well conceptualized.

Keywords: accountability development planning principal-agent

Published: 2021-03-05
Publisher: EAI

: http://dx.doi.org/10.4108/eai.9-10-2020.2304713