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.