Accounting As A Tool Of Legitimation Of Power: A Critical Study Of Financial Management In Indonesian Local Government

Abstract

This study examines the role of accounting as a tool of legitimacy of power in financial management in local governments in Indonesia through a critical study approach. The purpose of the study is to analyze how accounting is used by local governments as a tool to legitimize power and identify strategies used in presenting financial reports as a tool of legitimacy. By using literature studies and critical discourse analysis, this study understands the role of accounting as a tool of legitimacy of power in financial management of local governments in Indonesia. Data were obtained from academic literature, local government financial reports, audit reports of the Audit Board of Indonesia, and media analysis. The results of the study indicate that accounting in financial management in local governments in Indonesia not only functions as a financial administration tool, but also as a mechanism of legitimacy of power through the presentation of financial reports, audit results, accounting standards, and budgets. The strategies used in presenting financial reports as a tool of legitimacy include (1) highlighting audit opinions as an indicator of success, (2) using positive narratives in the notes to the financial statements, (3) justifying budget use through priority programs, (4) compliance with accounting standards as a tool of legitimacy, and (5) controlling public information through the mass media. This study also revealed that the transparency and accountability displayed were more symbolic than substantive.