Hegemony construction of local government financial accountability in Indonesia

This paper purpose is to uncover the NPM hegemony construction of local government finance accountability in Indonesia. The f ormulation process of local government autonomy policy and financial management are used as an entry point to uncover the hegemonic practices in financial accountability of local governments. The accountability concept is closely related to democracy concept and legitimacy (Erkki lä, 2007). Democracy is represented by local autonomy and legitimacy is represented by local financial management under the legal umbrella of regulation. Regulation is an important instrument in accountability (Tower, 1993); it is seen as an entry point for the existence of NPM hegemony. This study uses qualitative research with Gramsci hegemony methodology approach. Data collection gives more attention to document review and regulation as well as in interviews with key informants. The interview technique used is planned unstructured with the data analysis methods is critical discourse analysis. The study results show that NPM adoption in Indonesia governance, especially in management of government finances, has opened up hegemony space for ruling class. But the perceived effect does not necessarily lead to improvements in financial accountability of local governments. This research has important meaning and contributes through the concept of local autonomy, local financial management and financial accountabil ity of local governments in Indonesia.