PROCEEDINGS : ARE THERE CONTINGENT FACTORS THAT AFFECT AND NOT AFFECT TOWARDS CORRUPTION LEVELS? (EVIDENCE FROM PROVINCES GOVERNMENT IN INDONESIA)

Abstract

This research was conducted to know the effect of contingent factors, such: audit opinion, audit findings, follow-up on audit, and the rank of Local Government Implementation Report ( LGIR) towards the level of corruption of the provincial government in Indonesia. The population of this research is local governments who have mandate to enhance good governance. Population target of this research is 34 Provinces in Indonesia, data that can be used for research are 30 Provinces witih 60 sampel. This research is an associative quantitative study to explain the effect of contingent factors of 4 (four) variables independent on dependent variable by using a statistical test the regression model. The results of this study indicate that audit opinion, audit findings, and follow-up on audit results do not affect towards the level of corruption in Provincial governments in Indonesia. Meanwhile, empirical fact, rank of the Local Government Implementation Report (LGIR), shows that it has a positive effect on the level of corruption in the provincial government in Indonesia. This proves that the Provincial government which obtained the Unqualified Opinion with audit findings and follow-up on audits by the Supreme Audit Board (BPK) did not contribute to the level of corruption of the provincial government in Indonesia. This is identified even though the formal performance of the provincial government is good but it does not mean that the level of corruption is decreasing. As additional finding, because corruption is a form of human failure type, it violates the rules, as part of fraud that can be identified, and can be identified as culture. Therefore, it requires combating corruption that is not only based on compliance for regulations, but it needs with fulfil ethical intelligence (reactive intelligence with values). As human development manner for the controlling of Individuals in organization from influence environment, implementation that more remain certain for accountability culture. It depends on contingent factors, such as, culture (power distance and individualism for ethical intelligence link with organizational intelligence) as trigger corruption (appear as artifact-culture). These aspects as contingent seem to be more decisive than the reserach variables that have been discussed.