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The effect of transglobal Inter-employee

trust as
leadership and organizational Moderating
Variable
culture on job performance -
Inter-employee trust as 319
Moderating Variable Received 1 November 2019
Revised 20 February 2020
2 May 2020
Bjardianto Pujiono, Margono Setiawan, Sumiati and Risna Wijayanti 29 May 2020
11 June 2020
Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia Accepted 15 June 2020

Abstract
Purpose – The objective of this study is to analyze the influence of transglobal leadership and organizational
culture on job performance with inter-employee trust as a moderating variable in Pusat Pelaporan dan Analisis
Transaksi Keuangan (PPATK) Indonesia.
Design/methodology/approach – The population was 308 staff members of PPATK, which consists of
regular and temporary employees; all of them have different backgrounds. Temporary employees are from the
Ministry of Finance, General Attorney, Police Department, Bank of Indonesia, Ministry of Communication and
Information and BSSN and National Bureau of Statistics. PPATK also hires some employees based on
employment contracts, for example: receptionists, security, drivers, cleaning services and technicians. This
group of employees did not participate as respondents in this study because they were not involved in financial
transaction reports or analysis.
Findings – Leadership style and organizational culture influence job performance. Inter-employee trust is
moderating the influence of transglobal leadership and organizational culture toward job performance.
Originality/value – In organizations, the implementation of culture on methods for developing behavior,
which means organizational culture, will affect the behavior of individuals who work in the organization.
Synergy between individuals and organizational culture will improve job performance, because the goals of
organizational culture are applied in a transglobal context, likely to produce positive performance and
organizational development outcomes. Facilitate the vision and mission of the organization and one of them is
developing human resource competencies.
Keywords Transglobal leadership, Organizational culture, Employee performance, Inter-employee trust
Paper type Research paper

1. Introduction
The objective of this study is to analyze the influence of transglobal leadership and
organizational culture on job performance with inter-employee trust as a moderating variable in
Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK) Indonesia. PPATK or Financial
Intelligent Unit (FIU) was established by the 2012 Decree number 15 about Money Laundering
and its amendment, the 2010 Decree no 8. These decrees state that money laundering is a
criminal act and discuss reporting processes, witness and whistle blower protections. In
addition, these decrees act as a collaboration effort between national or international
institutions to prevent or eradicate money laundering. PPATK is responsible for preventing
and eradicating money laundering, then managing data and information, while also monitoring
the compliance of whistle blowers and analyzing financial transactions that are alleged to
violate Decree No. 8 of 2010 concerning money laundering or other criminal acts.
Based on the 2010 Decree number 8, “stolen asset” refers to an asset an individual or
organization obtained from criminal act. Article 2 of the Decree explained “criminal act” as International Journal of Public
Leadership
corruption, bribery, narcotic and drug violation, human trafficking, people smuggling Vol. 16 No. 3, 2020
pp. 319-335
(including migrant workers), criminal act committed in banking sector, stock exchange, © Emerald Publishing Limited
2056-4929
insurance companies or custom and excise, illegal arms trade, terrorism, kidnapping, theft, DOI 10.1108/IJPL-11-2019-0071
IJPL embezzlement, fraud, counterfeiting money, gambling, prostitution, criminal act committed
16,3 in taxation, forestry, environmental sector, marine and fishery and/or other types of criminal
act. An Indonesian citizen who commits such criminal acts, either in Indonesia or other
countries, will be charged with at least 4 (four) years of imprisonment.
The 2010 Decree number 8 was established in order to meet 40 recommendations of
Financial Action Task Force on Money Laundering (FATF). Established in Paris in 1989,
FATF is an international pact between seven developed countries to eradicate money
320 laundering. In addition, the establishment of FIU is regulated by several conventions, for
example the United Nations Convention against Corruption (UNCAC). FATF requires all FIU
to meet the 40 recommendations by making ratification or validation and implementing the
recommendations into regulations on money laundering and other related regulations.
Money laundering has a tremendous negative impact, for instance financial sector
accountability and economic stability. To cover their tracks, money launderers will
frequently use certain companies that blur the lines between legal and illegal assets. These
companies will have a greater competitive advantage compared to other companies whose
operating activities consist of only legal assets. More particularly in developing countries,
government may lose control over their economic policy due to an excessive amount of illegal
assets in their economic system. Advanced technology, e-money and cyber space blur
territorial boundaries. As a result, the number of organized crime activities occurring across
borders is increasing sharply.
Countries across the world have come to an agreement that money laundering is an
extraordinary crime that can destroy the global economic system. PPATK uses an approach
called “follow the money” in preventing and eradicating money laundering. Based on this
approach, PPATK established Rezim Anti Pencucian Uang (APU) or an Anti-Money Laundering
Regime involving various institutions with significant roles and functions, namely Whistle
Blowers, Supervising and Regulatory Agencies, Law Enforcement and other institutions.
Experts have reported that positive managerial expectation manifests into managerial
behavior, such as conducting training and providing opportunity to participate in decision-
making (Liden et al., 1993). Such practices will increase trust between employees and
supervisors and the organization and help organizations achieve their goals.
In organizational culture, two important aspects are transglobal leadership and trust,
where trust is the key component that drives job performance which has high academic and
practical significance. Previous studies showed that trust has significant influence toward
productivity of organizations (Mayer and Davis, 1999; Prusak and Cohen, 2001).
Many studies are focusing on methods to develop and improve inter-employee trust
between employees, supervisors and the CEO. The number of studies suggests that trust has
a pivotal role within organizations. This finding is in line with Konovsky and Pugh (1994) that
states inter-employee trust and trust in managers positively influence social exchange. This
finding is also in accordance with Aryee et al. (2002) that there is a relationship between trust
toward organization and organizational commitment and job satisfaction. In conclusion, a
high level of inter-employee trust can lead to greater job performance.
In order to further their success, organizations should encourage employees to increase
their job performance. A high level of job performance is the key to achieve business goals.
Organizations should carry out human resource management practices that encourage
employees to improve their job performance. Thus, it is important to conduct this study in
order to obtain information on human resource management in PPATK.
The money laundering is occurring between employees with various backgrounds. The
important thing that is need to handle money laundering is trust between employees. Trust
between employees needs to be done because handling information about the crime received
by INTRAC will be carried out in synergy and continuity from one Work Unit to others. If
there is no trust between employees, work success is hampered because it will raise suspicion
between divisions and even between individuals. Therefore, trust between employees is an Inter-employee
interesting and important thing from this research. trust as
Employees at INTRAC often don’t trust each other. This lack of trust stems from the
employees’ various backgrounds, institutions, jobs and professions, thus, employee
Moderating
performance becomes suboptimal. This condition arises because of allegations from a group Variable
of employees or certain work units against other employees or work units, especially those
related to leakage of Analysis Results (AR) or the emergence of data for analysis material that
is often invalid. Analysis Results (AR) is a confidential document that is only submitted to the 321
investigator. Other forms of distrust are triggered by professional egoism that exists
between the analysts and law enforcement. Therefore, to achieve the vision and mission of the
organization, INTRAC needs to maximize the organizational functions by optimizing the
performance of its employees, specifically through efforts to increase trust between employees.
Several factors must be considered to determine job performance. These factors include:
organizational culture, leadership, professionalism and trust between employees. A method
to increase job performance is paying attention to culture of an organization. Culture refers to
the values and characteristics that distinguish one organization from another. Well-
developed organizational culture can have a positive influence toward employee behavior
and job performance.
The existence of inconsistent relationships raises the gap of research, as follows: First, on
the relationship between Leadership and Performance, Russell and Stone (2002), Hayward
(2005), Sabir and Khan (2011), Suparman (2007), Ardansyah (2013), Harwiki (2013), Pariaribo
(2014), Choudhary et al. (2014), McCann et al. (2014), Liden et al. (1993), Abid et al. (2015),
Tischler et al. (2016) showed a significant and positive influence. On the other hand, Leem
et al. (2015), Lisbijanto and Budiyanto (2014) showed that there was no significant influence.
The occurrence of an inconsistent relationship provides an opportunity for further research
or a gap that can be investigated. One of those researches is believed to require mediation
variables. In this study, professionalism and trust among employees are placed as mediation
of the relationship. Second, on the relationship between organizational culture and employee
performance, Abraham (2005), Robert (2009), Sohail and Al-Ghamdi (2012), Hameed et al.
(2014), Smits et al. (2016) showed a significant and positive influence. On the other hand, Mian
et al. (2017) showed that there was no significant influence. As in the previous description, one
of the inconsistencies is also believed to require mediating variables. There are two variables
in this research, professionalism and trust among employees, which are placed as a mediation
of the relationship.
In an organization, implementation of culture refers to a method to develop behavior,
which means organizational culture will influence behavior of individuals working in the
organization. Synergy between individual behavior and organizational culture will improve
job performance, since the objective of organizational culture is facilitating achievement of
visions and missions of organization and one of which is developing human resource
competence. Therefore, organizational culture is one of the important criteria that determines
growth and success of an organization. Organizational culture is defined as a series of value,
belief and behavior that affects identity of an organization and behavior of its employees
(Sharkey et al., 2012). Experts have argued that organizational culture becomes the basis for
adaptation and the key that determines the success of an organization and therefore,
numerous studies have been conducted to identify the value or behavioral norm that is the
major contributor of an organization’s success (Rashid et al., 2003).

2. Literature review
2.1 Transglobal leadership
Behavioral leadership theory states that the leadership style of a manager has a direct
influence toward the effectiveness of a team work (Kreitner dan Kinicki, 2005, p. 302). In an
IJPL organization, team work refers to a working unit and a manager is assigned to every working
16,3 unit. Leadership managers influence the performance of working unit, which in turn
influences the performance of the organization. Furthermore, the assumption of behavioral
leadership is that there has always been room for improving the leadership style of a
manager.
Leadership and leadership style are two inseparable components. Leadership style
refers to methods managers apply to influence on another person’s behavior. Until
322 recently, there are two types of leadership style that are frequently used in various
researches, namely transformational and transactional. Transactional leadership
emphasizes on transactional process between managers and employees. This allows
managers to give motivation and influence employees through several methods such as
exchange of information or job performance-based reward. Furthermore, Bass (1985,
p. 17) stated that transformational leaders are charismatic leaders who give individual
consideration and intellectual stimulus. Transformational leadership, according to (Yukl,
2012), is a type of leadership in which employees trust, respect, are loyal to and appreciate
their managers. As a result, employees are motivated to exceed their manager’s
expectation.
In the early stage, leadership style appeared in local version; some of which are transactional
and transformational leadership (Sharkey et al., 2012). Transglobal Leadership Theory is
derived from both transactional and transformational leadership; this is the most recent
continuum of the two leadership styles (Conger et al., 2000, p. 34).
Sharkey et al. (2012) explained that the previous leadership, either transactional or
transformational, has not yet been able to reach the global aspects. Transglobal leadership is
leadership style that affects various countries and culture (Sharkey et al., 2012). It is universal
and has major contribution toward human resource development. Transglobal leadership
creates a more interesting, meaningful, prosperous and dignified way of life.
Transglobal leadership is a visionary that aims to improve quality of life of all nations across
the globe. In many occasions, transglobal leaders are controversial but their leadership has
transformed a lot of people. Currently, the world needs leaders who have good economic, cultural,
legal and political standing. A leader should consider him or herself an open-minded global
citizen. Transglobal leadership is needed due to transglobal trading and global integration of
technology. Future managers should understand how to handle global production, marketing
and sales in order to achieve competitive advantage (Sharkey et al., 2012).
Based on leadership intelligence, Sharkey et al. (2012) defined six types of intelligence of
transglobal leadership:
(1) Cognitive intelligence, a leader should have high intelligence which is represented by
his or her IQ;
(2) Moral intelligence, a leader should have clear ethical guidance and understand global
impact of ethics;
(3) Emotional intelligence, a leader should be emphatic and be able to connect to other
people on social and emotional level. He or she should be aware of the pivotal role of
emotional intelligence toward an individual;
(4) Cultural intelligence, a leader should understand cultural value and customary of an
area or country in which he or she is assigned to. A leader with cultural intelligence
has always learned and practice his or her ability to use local culture to generate more
benefit for his or her organization;
(5) Business intelligence, a leader should understand components of successful business.
A leader who has high level of business intelligence is going to develop a framework
 that involves not only financial aspect but also functionality, process, data and Inter-employee
information and other perspectives; and trust as
(6) Global intelligence, a leader should understand law and regulation, government, Moderating
economic and procedural aspects in which he or she is assigned to. A leader with Variable
global intelligence always learns about different procedures from different countries
and makes some adjustment. He or she creates a balance between global
standardization and local interest. 323

2.2 Organizational culture

Organizational culture is a system of meaning, value and belief in an organization that
functions as reference for action and distinguishes one organization from another that
becomes the main identity or characteristics of organization. A strong culture is a useful
instrument for directing behavior because it helps employees to have higher job performance.
Therefore, at the beginning of his or her career, an employee should understand the culture of
his or her organization.
Furthermore, organizational culture plays a significant role in the growth of an
organization and satisfying knowledge-based products. Manage and understanding of
organizational culture are the keys to responsible leadership, to increase job performance and
to maintain shareholder value.
Working condition depends heavily upon organizational culture. Hofstede et al. (1990)
stated that culture is not a clear behavior or an observable object. Culture is neither a
philosophy nor a value system discussed or stated in the Articles of Association of an
organization. Organizational culture is an assumption that lies behind values that determines
individuals’ behavior, the atmosphere and how leadership is applied within an organization.
Having a certain culture, an organization attracts individuals with certain characteristics.
Organizational culture may be non-formal or unwritten but it has an important role in
dictating way of thinking, attitude and perspectives of its employees.
Organizational culture can be described as the values, norms and artifacts that are
accepted widely by members of organization; it will influence and be influenced by
organizational strategies, organizational structures and systems (Armstrong and Sweeney,
1994). Schein (1991) postulated that organizational culture is a pattern of common basic
assumptions learned by groups while solving external and internal integration issues that
have functioned well enough to be considered right and to be taught to new group members
as the right way to think, feel and behave.
An individual will behave according to the particular culture where he or she is at in order
to become a member of a certain community. The culture of an individual’s location
influences his or her characteristics. Positive attitudes and good behavior can be enhanced by
the condition of developing a set of values and norms that are widely accepted by certain
groups of people.

2.3 Inter-employee trust

A leader should work to earn his or her follower’s trust because trust is an element that builds
and strengthens the connection between a leader and their followers. There is a positive
relationship between trust toward a leader and organizational membership behavior,
performance and satisfaction.
Trust is an important determinant of satisfaction toward leaders because trust comes
from affective circumstances (e.g. respect for leaders) and cognitive states (e.g. leaders have
high self-confidence because of their abilities or attributes) instead of behavior observed by
the leaders (Conger et al., 2000, p. 34). Trust can be interpreted as willingness to rely on an
IJPL organization or other individuals while hoping that the organization or other individuals will
16,3 do the same. Ability or competition is important for inter-employee trust between managers
and employees because it is impossible for employees to trust the managers unless they
believe that the managers are able to fulfill their leadership roles.
Recently, the definition of organizational commitment is no longer limited to willingness of
employees to carry out their responsibility or do more than they are expected to. Some factors
that influence individual commitment to an organization are whether or not organization is
324 able to meet or exceed individual expectations toward the organization. This expectation is to
employee’s trust toward his or her organization or company. When employees trust their
organization, they will care about the future and success of their organization, understand
and be compliance to their responsibility and work hard (Boe, 2002).
Trust consists of three dimensions: harmony, reliability and concern (Tzafrir and Dolan,
2004). Harmony is the idea of shared ownership and value. Reliability refers to consistency
between words and actions, while attention refers to the extent to which self-interest is
balanced with the interests of others. In other words, when an employee trusts his or her
manager and organization, he or she is motivated to work hard and make use of resources his
or her company provided.
Trust in organizations is derived from social exchange, in which employees interpret
managerial practices, procedures and actions and act based on their interpretation (Whitener,
2001). When management applies fair management procedures, it will foster trust between
employees and management because the procedure demonstrates respect toward individual
rights.
Trust is one of the foundations of relationships. According to Erikson et al. (2001), an
expert in psychology, trust is considered the most fundamental foundation of good
psychosocial development. To have good psychosocial development, a psychosocial person
should be given “basic trust.” PPATK is a place for individuals who share the same vision,
mission and goals, but come from different backgrounds and are vulnerable to relational
problems. Trust between employees can foster transparency and willingness to share
problems or obstacles at work. In addition, trust helps to develop a dynamic team work in
which team members understand each other’s feelings, needs and motivations. These
understandings will have a positive influence on job performance.
Transglobal leadership and organizational culture are able to improve both inter-employee
trust and job performance. Therefore, inter-employee trust is mediating the relationship
between transglobal leadership and organizational culture in improving job performance.

2.4 Job performance

Most theories on job performance are derived from psychological theory, which is individual
professional behavior or individual ability to meet objective of his or her job (productivity)
(Agustia, 2006, p. 104). Job performance or achievement can be measured based on the
following criteria: quality, quantity, time allotment, position, attendance and safety while
carrying out his or her professional duty. Wibowo (2013) stated that job performance is an
indicator to make comparison between job outcome and responsibility given to an individual
within particular amount of time or period. Job performance may also represent performance
of an organization.
Rivai and Basri (2005) stated that an employee has good job performance when he or she is
able to meet a particular set of standards. An organization that employs staff with high job
performance will have good performance and staff will have a high level of trust toward the
organization. According to Mangkunegara (2005), in terms of etymology, the term
performance is derived from job performance or actual performance, which is quantity
and quality of work an employee produces while carrying out his or duties and responsibility.
 Performance is defined as: individual ability to carry out a particular job or responsibility Inter-employee
successfully. Success is subjective and as the result, people may have different definition of trust as
success; therefore, success refers to individual achievement based on type of job she or he has
(Marier in Wayan, 2000). Performance is closely related to goals or results of individual work
Moderating
(Davis, 1985). Performance behavior can be traced to specific factors such as ability, effort Variable
and task difficulty (Timpe, 1988). Performance is the result of actions conducted to achieve
goals and meet certain standardization.
One of the indicators of how successful a manager is his or her ability in creating 325
conducive working atmosphere, for example giving opportunity for his or her staffs to
develop their potentials or give motivation to his or her staffs. His or her success is indicated
by his or her action, attitude and behavior in improving not only his or her own job
performance but also his or her staffs, co-workers or even CEO’s job performance. According
to a couple experts, performance can be defined as:
(1) Function of instruction between ability and motivation (Robbins, 2001, p. 52); and
(2) Ability of employees to meet their professional requirements (Simamora, 2002, p. 48).

3. Methodology
The title of this study is The Effect of Transglobal Leadership and Organizational Culture on
Job Performance – Indonesia. Figure 1 shows the research model and explanation of each
operational variable can be seen in Table 1.

4. Findings and discussion

This study was a survey in which the instrument used to collect primary data was a
questionnaire which discussed social sector, activities, opinion and attitude (Bungin, 2011).
This study can also be categorized as explanatory research, a study whose objective is to
explain influence between variables through hypothesis testing (Singarimbun and
Effendi, 1995).
The population was 308 staff members of PPATK, which consists of regular and
temporary employees; all of them have different backgrounds. Temporary employees are from
the Ministry of Finance, General Attorney, Police Department, Bank of Indonesia, Ministry of
Communication and Information and BSSN and National Bureau of Statistics. PPATK also
hires some employees based on employment contract, for example: receptionists, security,
drivers, cleaning services and technicians. This group of employees did not participate as
respondents in this study because they were not involved in financial transaction reports or
analysis.

Inter-Employee
Trust
Transglobal
Leadership

Employee
Performance

Organizational Figure 1.
Culture Conceptual framework
IJPL No Variable Indicator Item Source
16,3
1 Transglobal Cognitive (1) Manager’s Cognitive Ability Sharkey et al. (2012)
leadership Intelligence (2) Manager’s Ability
Emotional (1) Manager’s Decision-Making
Intelligence (2) Manager’s Emotion State
(3) Manager’s Understanding
326 (4) Manager’s Influence
Culture (1) Manager’s Willingness
Intelligence (2) Risk-taking Attitude
(3) Respect toward Manager
(4) Manager’s Transparency
Business (1) Manager’s Strategic Ability
Intelligence (2) Understanding about organization
and all stakeholders
(3) Manager’s understanding about his
or her job description
(4) Method of Evaluation on
Performance of his or her
organization
Global (1) Solutions Manager Provides
Intelligence (2) Relationship between Managers
and Other Organizations
Moral (1) Responsibility
Intelligence (2) Willingness to Accept Other
People’s Opinion
(3) Sharing of Information
(4) Match between words and actions
2 Organizational Mission (1) Target of Organization Denison and Misra
culture (2) Objective and Vision of (1995)
Organization
Consistency (1) Cooperative Work between
Organization and Employees
(2) Match between Job Description and
Employment Contract
Adaptability (1) Organizational System
(2) Organization as Place to Learn
(3) Organization as Place to Earn
Position
Participation (1) Match between development and
resources
(2) Participation of all employees
(3) Team work
3 Kepercayaan Antar Ability (1) Co-worker Mayer et al. (1995)
Pegawai (2) Ability to work along with co-
workers
(3) Co-worker’s Competence
Benevolence (1) Attention to Co-worker
(2) Ability to share responsibility with
co-worker
(3) Ability to rely on co-worker to
finish a job
Integrity (1) Ability to trust co-worker’s
(2) Co-worker’s Honesty
(3) Co-worker’s Skills
Table 1.
Operational variables (continued )
No Variable Indicator Item Source
Inter-employee
trust as
4 Job performance Quality of Work (1) Appraisal Soedjono as cited in
(2) Accuracy Chapman et al. (2005)
Moderating
(3) Quality of Work Standardization Variable
(4) Mastery
(5) Quality of Work
Quantity (1) Ability to meet target 327
(2) Outcome
(3) Overtime
Responsibility (1) Importance of Work
(2) Disappointment due to inability to
meet target
Punctual (1) Spending time to work
(2) Being punctual
(3) Having to postpone work for any
issues
Effectiveness (1) Willingness to take extra work
(2) Error because of working with
organization
Independence (1) I accept all job responsibility
(2) I can finish my job without other
people
Commitment (1) Ability to work well
(2) Resignation
(3) Care about Organization Table 1.

The sample is a part of the population that is used to generalize the population. Sekaran (2006)
stated that the sample is a part of the population and consists of particular members of the
population. Running an analysis on the sample allows researchers to draw conclusions or
generalizations about the population. Sampling refers to the process of selecting samples
from the population so that the researcher is able to understand characteristics of the sample
and use the sample to draw conclusion about the entire population.
The sampling technique in this study was probability sampling because the population is
finite and a sample framework is available. Sample framework refers to a list of PPATK
employees; this list allowed the researchers to conduct random sampling. This sampling was
proportional stratified random sampling because PPATK hires two types of employees with
the same task and responsibility (regular and temporary employees). These were considered
as strata. These employees became both sample and respondents in this study.
Involving representative samples allows researchers to apply their finding to not only the
sample but generalize their findings to the whole population. There are two criteria for
representative samples: accuracy and precision. Samples are said to be accurate when
statistical analysis of the sample can estimate the population correctly. Whereas precision is
the extent to which research findings based on samples can accurately represent the
population. Based on the Slovin Formula with 95% level of confidence, the total sample in this
study was 175 respondents. The following table shows the proportional stratified random
sampling method the researchers used to select samples from the whole population (the
PPATK staff).
The data collection method was survey. Questionnaires were distributed to the
respondents and they selected particular responses that matched their perception. The
questionnaires probed the respondents’ perception and opinion about organizational culture,
leadership style, professionalism, trust and job performance.
IJPL The questionnaire consisted of statements and used the Likert scale to gain information
16,3 from the respondents. Therefore, the data came in the form of interval data. Respondents
gave their responses based on 5-point Likert scale as follows:
(1) Strongly agree: 5
(2) Agree: 4
328 (3) Neutral: 3
(4) Disagree: 2
(5) Strongly disagree: 1
Data analysis method used in this study is partial least square, where the structural model as
the object of analysis has fulfilled the reflective or formative models (Solimun et al., 2017).
Structural model in WarpPLS consists of two: (1) outer model or latent variable data from its
indicators and (2) inner model or relationship between latent variables (recursive or non-
recursive).

5. Findings and discussion

5.1 General description of PPATK
The study was conducted in PPATK. Pusat Pelaporan dan Analisis Transaksi Keuangan
(PPATK) or Indonesian Financial Transaction Reports and Analysis Center (INTRAC) is an
independent institution responsible for prevention and eradication of money laundering. This
institution has an authority to carry out the policy on prevention and eradication of money
laundering as well as develop anti-money laundering regime and anti-terrorism in Indonesia.
PPATK helps efforts to maintain stability of financial system and eliminate a number of
predicate crimes. PPATK answers directly to the President of the Republic of Indonesia and is an
independent institution. PPATK is located in Jakarta, Indonesia. Structure of organization of
PPATK consists of director, vice director as well as other structural and functional positions.
Money laundering is international crime and has become current phenomenon in many
countries including Indonesia. Due to how much damage money laundering has caused and
can continue to cause on the economic system of a country, various countries and
organizations across the globe aim to prevent and eradicate money laundering.
PPATK was established on April 17, 2002 together with the issuance of the 2012 Decree
number 15 on Money Laundering. The establishment of PPATK marked Indonesian
participation in eradication of international-scale predicate crime such as terrorism and
money laundering.
Before PPATK was fully operational on October 18, 2003, Special Banking Investigation
Unit of Bank of Indonesia (Unit Khusus Investigasi Perbankan Bank Indonesia or UKIP-BI)
was responsible for investigating and analyzing suspicious financial transactions in the
Indonesian banking sector. On October 17, 2003, PPATK became responsible for
investigating suspicious financial transaction and collecting related documents.
The responsibility and authority of PPATK are stated in the 2002 Decree number 15 on
Money Laundering and its amendment, the 2003 Decree number 2005. Re-structure of
PPATK is stated in the 2010 Decree number 2010 on Prevention and Eradication of Money
Laundering issued on October 22, 2010.
In 2013, the House of Representatives passed the 2013 Decree number 9 on Prevention
and Eradication of Terrorism. The decree requires financial service agency to report
suspicious financial transaction related to terrorism to PPATK. Furthermore, the decree
also discusses confidentiality of PPATK responsibility and authority to block suspicious
bank accounts.
 Recently, PPATK has been drafting two decrees on asset recovery (since 2010–2014 Inter-employee
Prolegnas and 2015–2019 Prolegnas) and limitation of cash transaction (since 2015–2019 trust as
Prolegnas). The academic draft has been discussed and submitted to the Central Government.
In addition, the draft was submitted to the House of Representative in 2016.
Moderating
Responsibility of PPATK. Article 39 of the 2010 Decree number 8 on Prevention and Variable
Eradication of Money Laundering stated that PPATK is responsible for any effort to prevent
and eradicate money laundering.
Function of PPATK. In carrying out their duties, PPATK has a few functions according to 329
Article 40 of the 2010 Decree number 8:
(1) Prevent and eradicate of money laundering;
(2) Maintain data and information from PPATK;
(3) Supervise whistle-blower’s compliance; and
(4) Investigate and analyze suspicious financial transaction or reports that may be
related to money laundering or other sorts of predicate crimes.
Authority of PPATK. Article 41 of the 2010 Decree number 8 stated that PPATK is
authorized to:
(1) In carrying out the function of prevention and eradication of the crime of money
laundering as referred to in Article 40 number 1, the PPATK is authorized to:
 Collect data from public and/or private institutions responsible for data and
information processing, including public and/or private institutions that receive
report from particular profession;
 Establish guidance for identifying Suspicious Financial Transaction;
 Work together with other institutions in preventing Money laundering;
 Give recommendation to the government about programs to prevent Money
laundering;
 Represent Indonesian government in international organization and forum
discussing money laundering;
 Conduct anti-money laundering education and training; and
 Spread information about efforts to prevent and eradicate money laundering.
(2) Submission of data and information by agencies government and / or private
institutions to PPATK as referred to in paragraph (1) letter a excluded from the
provisions of confidentiality.
(3) Further provisions regarding the procedure for delivery data and information by
government agencies and / or private institutions as referred to in paragraph (1) letter
a is regulated by Government Regulation.

5.2 Analysis and discussions

Figure 2 showed that leadership style and organizational culture have influence toward job
performance. Inter-employee trust is moderating the influence of transglobal leadership and
organizational culture toward job performance (P < 0.05 indicate the significant relationship).
First, this research found that Transglobal Leadership Style (X1) influenced Interpersonal
Trust (Y2). Transglobal Leadership Style (X1) was high, which can be seen from the high
Cognitive Intelligence, Emotional Intelligence, Culture Intelligence, Business Intelligence, Global
IJPL Intelligence and Moral Intelligence which would have an impact on the high Interpersonal Trust
16,3 (Y2), which was reflected in the aspects of Ability, Benevolence and Integrity.
Leadership style is a way of leadership to influence other people or subordinates in such a
way that the person wants to do the will of the leader to achieve organizational goals even
though personally it may not be liked (Luthans, 2002, p. 575). Carneiro (2008) said that
leadership has a strong positive effect on performance and it also has a significant effect on
organizational learning. This finding signals that leadership style is very influential on the
330 performance of subordinates, in addition to getting good performance, it is also necessary to
provide good learning to subordinates. Leadership styles that tend to be informal emphasize
more exemplary patterns of leadership, but provide greater freedom for auditors to create
their work and greater responsibility. Therefore, it can be formulated that a good leadership
style will be able to increase trust between employees.
This study is in line with Goswami et al. (2016), this study aimed to examine affective
event theory (AET) by examining the mediating effects of positive influence on employees in
work in the positive use relationship of humor leaders with employee work involvement,
work performance and organizational citizenship behavior (OCBs) and moderated influence
on transformational leadership style to the relationship between the use of positive humor
and the influence of positive subordinates in the workplace. Data were obtained from 235
permanent employees who worked for information technology and large business consulting
companies. Mediation moderation was carried out to test the proposed model. Leaders’
positive humor findings were related to the creation of subordinate positive emotions at work
and work involvement. Positive emotions at work did not mediate the humor of performance
leaders or OCB. In addition, due to the use of transformational leadership styles by leaders,
the relationship between positive humor of leaders and positive emotions of employees in the
workplace was strengthened.
Trong (2012), his study aimed to bridge the gap in the literature by examining three
constructs – leadership, organizational trust and the level of unethical behavior in relation
to data from consumer goods companies in Vietnam. From responses by 214 pairs of sales
directors and sales managers for self-structured questionnaires, data were collected
and processed through variance analysis and structural equation models to test the
research hypothesis. The findings revealed that transactional leadership correlated with
calculus-based trust. Transformational leadership, on the other hand, formed identity and
knowledge-based trust, which correlated with lower levels of unethical behavior. Calculus-
based beliefs, in contrast, were associated with higher levels of ethical behavior. The direct
bridge between transformational leadership and the level of unethical behavior was also
detected.
Second, this study found that Transglobal Leadership Style (X1) influenced Employee
Performance (Y3), through mediating variable of professionalism and trust between
employees. Transglobal Leadership Style (X1) was high, which is evident from high

Inter-Employee
Trust
β: 0.232
Transglobal (P = 0.011)
Leadership β: 0.398 β: 0.250
(P = 0.001) (P = 0.005)

Employee
Performance
β: 0.255
Figure 2. Organizational (P = 0.004)
Analysis result Culture
Cognitive Intelligence, Emotional Intelligence, Culture Intelligence, Business Intelligence, Inter-employee
Global Intelligence and Moral Intelligence which would have an impact on high employee trust as
performance (Y3) which was reflected in the aspects of Work Quality, Work Quantity,
Employee Responsibility, Timeliness, Effectiveness, Independence and Work Commitment.
Moderating
The most important thing that needs to be done by a leader is to constantly learn from Variable
experience, whether or not they are involved in the participation of a task force or team work,
interaction with superiors, colleagues or in contact with mentors or resource persons. The
success of a leader is an indication of being able to create a work environment that is 331
conducive to the environment, such as giving opportunities to subordinates to develop their
potential and achievements that lead to feelings of job satisfaction or in other words to
motivate their subordinates. Therefore, this leadership style of a leader can influence the
performance of employees.
Third, The analysis showed that organizational culture (X2) has influence toward inter-
employee trust (Y2). High organizational culture (X2), where mission, consistency,
adaptability and participation become the indicators, results in high inter-employee trust
(Y2), in which ability, benevolence and integrity become the indicators.
Organizational culture is an instrument that allows every individual to work together
simultaneously. Kreitner and Kreitner dan Kinicki (2005) postulated that organizational
culture is social entity that binds members of organization. This social entity enables people
from different background to work as a team. In conclusion, good organizational culture will
increase inter-employee trust.
This study is in line with Abraham (2005) who investigated the relationship between social
workers in the Israeli health care system through structured questionnaires. Regression
analysis was used for hypothesis testing. This study reported that organizational culture which
challenges employees reduces number of absence and eliminate intention to resign from work
or organization. Robert (2009), who used questionnaires from 156 permanent employees from
various organizations and correlation analysis, regression and structural equation modeling
(SEM) as data analysis methods, reported that socialization develops connection between need
of employees and organizational culture.
Keren and Shay conducted a survey of employees from pharmaceutical companies in
Israel, the United Kingdom and Hungary. The respondents totaled 205 employees. The
response rate of the questionnaire was good (61%). The relational and zero-order
confirmatory factor analysis showed that the two factors of trust are interrelated, but have
different construction, meaning employees can develop trust toward certain individuals (e.g.
supervisors) and general representatives (e.g. organizations).
The objective of organizational culture is to change the attitude and behavior of human
resources in order to increase productivity and prepare them to face challenges in the future.
The benefit of good organizational culture is that it can improve mutual cooperation,
togetherness, transparency and kinship as well as to develop better communication and
increase productivity and responsiveness toward the current trend in business sector.
The finding of this study is in line with Smits et al. (2016) discussion of the leadership role
of medical doctors in developing health care culture that restores, cares for and preserves the
components of traditional medication. Organizational culture and leadership are used to
describe structural interdependence and current dynamic complexity and to suggest the
methods the medical doctors take to strengthen the component of cultural health care. Based
on the findings, it can be concluded that the leader of an organization is able to influence
organizational culture and strengthen health care components.
The objective of the study conducted by Sejjaaka and Kaawaase (2014) is to determine
construction of professionalism, reward and job satisfaction. Using the pre-existing scale for
this construction, the authors collected data from 277 ICPAU license holders and conducted
factorial analysis to check their validity. Considering the significance of organization-
IJPL professional conflict (OPC) debates toward job performance in community and private sector
16,3 organizations, the authors used ANOVA to assess significant difference between certified
public accountants (CPA) in the private and public sectors. The finding showed that four
variables can be used as the right actions in the development of a market environment, even
with some modifications. In addition, there is no significant difference in professionalism,
awards and organizational commitment between personal values and CPAs.
Fourth, the finding showed that organizational culture (X2) has influence toward job
332 performance (Y3). High organizational culture (X2), represented by mission, consistency,
adaptability and participation, will improve job performance (Y3) of which indicators are
quality of work, quantity, responsibility, punctuality, effectiveness, independence and job
commitment.
One method to improve job performance is to pay close attention to organizational culture.
In this context, culture refers to value and characteristics of an organization that allows the
organization to stand out against its competitors. Organizational culture has positive
influence toward job performance. Well-developed organizational culture affects behavior of
employees and encourages them to have higher achievement.

6. Research recommendations
Based on the results of this research, several suggestions are recommended to the next
research and object of the research as follows: (1) All INTRAC employees and leaders can
apply the transglobal leadership style because it tends to be more suitable. This research
found that a good transglobal leadership style will be able to increase professionalism as well
as trust between employees directly or indirectly improving employee performance; (2)
Future research can enrich research results by adding relevant variables, such as employee
commitment, employee job satisfaction and others.

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Corresponding author
Bjardianto Pujiono can be contacted at: bjardianto.ub@gmail.com

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