"What if the use of accountability mechanism as a part of the national strategy to increase accountability and transparency of sub-national government in Indonesia, becomes a new “legal source” of corruption? There is a concern that Sistem Informasi Pemerintahan Daerah (SIPD) may be ineffective in curbing corruption, but rather subject to corrupt practices. SIPD is under the supervision of The Ministry of Home Affairs (MoHA) and the Corruption Eradication Commission (KPK) and every local government in Indonesia must use it to generate two essential annual documents - local government plans and local budgets. 

 

The principle-agent (PA) theory will be employed to examine information asymmetry between principles that could be national agencies (MoHA and KPK), high-level bureaucrats in sub-national governments in Indonesia, civil society organisations (CSOs), including Non-Governmental Organisations, ordinary citizens, academia, and the press, and agents (sub-national governments, middle/lower-level bureaucrats responsible for the SIPD). This research will examine the success/ failure of anti-corruption efforts in Indonesia.