Development of Role Model: Empowerment for Capital Expenditure in Planning "KUA" and Determination "DPA" Work Unit of Government Regional

Abstract

Based on the title ―Is There Any Role of Theory of Agency and Institutional In the Planning and Realization for Capital Expenditures of Local Government (A Study on City and Districts Government in South Kalimantan), which the idea with this title, has been presented previously in The 1st Interntional Conference on Economics, Education, Business, and Accounting (ICEEBA 2016), October 18th-19th in Semarang 2016. The capital expenditures are part of direct expenditure in the regional budget. Elements other of capital expenditures are personnel expenditure, and spending on goods and services. Planning and realization for capital expenditure in the regional budget for each Work Unit of Government Regional is a part of policy regional financial management in fiscal decentralization policy which need be increased to achieve value significantly over time. Empowerment in planning and realization of capital expenditures is directly related not only to the amount of capital expenditure element, but also to relevant decision that strengthens physical infrastructure which would strengthen economic growth for social welfare, but also, refering to the Priority Integrating Sector in AEC (2015-2025), objectives number 7 and 8 of of MDGs (2015), and with objective number 15 of SDGs (2015-2030). This study has examined the role of agency theory and institutional theory in relation with planning and realization of capital expenditures of 82 (Eighty Two) Government Regional Work Units from 3 (Three) regional government, namely Banjarmasin City, Banjar District, and Tanah Laut District in South Kalimantan Province. This study contributes to the accounting literature to justify role of conceptual framework with agency theory and institutional theory, in relation with planning and realization for capital expenditure which support to achieve social welfare and for strengthening regional competitiveness in an era of ASEAN Economic Community (AEC). Appropriate review, and in accordance with the development of Role Model for Empowerment for Capital expenditure in planning "KUA" and Determination "DPA" Work Unit of Government Regional has been described with combination of regulatory framework, budget framework and conceptual framework which can empower the budget committe to take their relevant decision in capital expenditure refering to development for trade of Agro-Based products, Rubber Based products, Wood base products; Ensure environmental sustainability, and Develop a global partnership for development, and ‖Protection, restoring and promoting the sustainable use of ecosystems on land, sustainable forest management, fight against global warming, and to stop the decline of soil and prevent the loss of biodiversity‖.