Progress and Institutional Challenges on Local Governments Performance Accountability System Reform in Indonesia

This study analyses, firstly, the achievement of local governments’ reform based on their Performance Accountability System (SAKIP) as part of the national administrative reform program in Indonesia. Secondly, this paper examines factors that have been affecting reform output. The study uses a mixed method perspective by analyzing the whole population of local governments from SAKIP data (2016–2019; quantitative) and applies the qualitative method of in-depth interviews with key informants. The study finds that, although there were improvements in the performance accountability system, the improvement processes have been slow and dominated by formalism at provincial and regency/city levels. Several determining factors affected the implementation of the local government performance accountability system, that is, the regulations’ arrangements, the norms, the cognitive culture, and management problems. Thus, this study confirms the theory of institutional change that considers cultural factors, political commitment, and organizational aspects that influence the dynamic of bureaucratic reform implementation.