Annual Report for Ministries/Institutions in Indonesia: Benchmark from Best Practices

The purpose of the study is to compare the content of annual reports prepared by Ministries/ Institutions in Indonesia with best practices from other countries and to provide a proposed information content in the annual reports in Indonesian Ministries/Institutions based on international reporting s...

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Bibliographic Details
Published in:Review of Integrative Business and Economics Research 2020-01, Vol.9, p.422-430
Main Authors: Setyaningrum, Dyah, Kisworo, Joko
Format: Article
Language:English
Subjects:
Accountability
Annual reports
Awards & honors
Best practice
Federal government
Financial statements
Public sector
Qualitative research
Regulation
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Summary:The purpose of the study is to compare the content of annual reports prepared by Ministries/ Institutions in Indonesia with best practices from other countries and to provide a proposed information content in the annual reports in Indonesian Ministries/Institutions based on international reporting standards. This research is a qualitative research with a case study approach. This study compares the content of the annual report from the Treasury of the Republic of Indonesia with the Treasury of New Zealand. The Treasury of the Republic of Indonesia was chosen because it is the Ministry/ Institution that has compiled and published the annual report and was awarded the Silver Award for the Annual Report at the 2019 Australasian Reporting Awards. Comparisons will be made by looking at the components reported in the two annual reports. The overall results from comparison show that New Zealand annual report is more concise because it uses a lot of tabulations and summaries and there is no repetition of information. The advantage of Indonesia's annual report is that information on the implementation of public governance is presented in a more complete and structured manner. The information content of the annual reports prepared by 19 Ministries/Agencies in Indonesia is very diverse. To increase the comparability of annual reports, a framework is needed which can be used as a reference. Two frameworks for preparing annual reports that can be used as references are the International Integrated Reporting Framework and the Criteria for General Award from the Australasian Reporting Awards (ARA). The International Integrated Reporting Council (IIRC) stated that an integrated report should contain the following eight content elements: (1) An overview of the organization and the external environment; (2) Governance; (3) business model; (4) Risks and opportunities; (5) Strategy and resource allocation; (6) Performance; (7) Outlook; and (8) Basis for report preparation and presentation. ARA Criteria for the General Award divides information into five topics: overview, review of activities, ethics and governance, human resource management, financial performance, and financial reports. The implication of this research is that the central government may encourage the publication of annual reports to replace redundancy in various reports. The central government needs to develop content guidelines and reporting formats following the best practices analyzed in this study. Before
ISSN:2414-6722
2304-1013