Financial and performance transparency on the local government websites in Indonesia

E-government in Indonesia started since the issuance of Presidential Instruction Number 3 Year 2003. Local Governments are expected to provide relevant information related to their finance and performance to the public through the media that is easily accessible in order to meet the principles of accountability and transparency. This study has two objectives, that are 1) to analyze the development of the implementation of Presidential Instruction Number 3 Year 2003 with a focus on the transparency of financial and performance information and 2) to analyze the factors that affect the transparency level of financial and performance information in local government websites. To achieve these two objectives, we calculate the level of financial and performance information transparencies based on checklist and analyze the results descriptively then perform multiple regressions to test the influence of economic factors and characteristics of local government on the level of financial and performance information transparency at local government's websites in Indonesia. Observation was conducted in mid-May 2013 until the end of July 2013. There are 429 of the total 491 government websites were successfully accessed and analyzed further. Based on the checklist made, the transparency level of financial and performance information just reached 15%. The most frequently disclosed information related to financial and performance information is in the form of news and Local Governments in Figures. Whereas the disclosure of main financial and performance informations that are in the form of regional budgets (APBD), financial statements, and performance reports are still below 10%. From the regression test of the 403 local governments, it confirms that size, level of dependency on the central government, and the local government society welfare have positive influence on the financial and performance information transparency level of Indonesia local government level.