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