Proceedings of the 3rd International Conference on Administrative Science, Policy, and Governance Studies, ICAS-PGS 2019, October 30-31, Universitas Indonesia, Depok. Indonesia

Research Article

The Transformation of Budgetary Institution of Ministries/Agencies, The Perspective of Transaction Cost Analysis

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  • @INPROCEEDINGS{10.4108/eai.30-10-2019.2299395,
        author={Purwanto  Dirsun and Sudarsono  Hardjosoekarto and Roy Valiant Salomo},
        title={The Transformation of Budgetary Institution of Ministries/Agencies, The Perspective of Transaction Cost Analysis},
        proceedings={Proceedings of the 3rd International Conference on Administrative Science, Policy, and Governance Studies, ICAS-PGS 2019, October 30-31, Universitas Indonesia, Depok. Indonesia},
        publisher={EAI},
        proceedings_a={ICAS-PGS},
        year={2020},
        month={8},
        keywords={planning and budgetary institution transaction costs analysis institutional transformation soft systems methodology},
        doi={10.4108/eai.30-10-2019.2299395}
    }
    
  • Purwanto Dirsun
    Sudarsono Hardjosoekarto
    Roy Valiant Salomo
    Year: 2020
    The Transformation of Budgetary Institution of Ministries/Agencies, The Perspective of Transaction Cost Analysis
    ICAS-PGS
    EAI
    DOI: 10.4108/eai.30-10-2019.2299395
Purwanto Dirsun1,*, Sudarsono Hardjosoekarto1, Roy Valiant Salomo1
  • 1: Faculty of Social and Political Sciences, Universitas Indonesia
*Contact email: purwanto21@gmail.com

Abstract

As the Indonesian socio-political landscape has changed since 1998, budgetary institutional reform is necessary to strengthen the link between planning and budgeting. This paper aims to answer the question of how the planning and budgeting institution should be transformed, based on transaction costs analysis. Soft Systems Methodology-based Action Research was applied to explore five alternatives for planning and budgeting institutions. The integration of planning and financial institution is recommended supposing that bounded rationality, opportunism, asymmetric information, and uncertainty in planning and budgeting is high.