The development of the public

sector accountant profession

◦ The development of the Indonesian public sector accountant profession is not yet as
advanced as in the UK even compared to other accountant professions.
◦ With the changing political orientation in the reform era IAI began to bring up the
public sector accountant component.
◦ The process of developing the public sector accounting sector is greatly influenced by
1. The capacity and objectives of economic policy, so that the cultural, socio-political
aspects of the economy become dominant
2. Management orientation, public sector organizations will change the direction of the
development of accounting organizations
3. The key to solving public sector accounting problems is a logical simplification to
create complexity in the field of public sector accounting
Public sector accountant profession
◦ An assurance service is an independent professional service to improve the quality of
information for decision makers.
◦ Attestation services provide considerations or statements about a business report in
accordance with financial accounting standards.
◦ Nonassurance services do not provide an opinion, negative belief, summary of findings,
or other forms of belief.
Ideological features in the
management of public sector
organizations
◦ Fundamentally public sector accounting can be distinguished in the operational flow
being funded.
◦ This difference is caused by different organizational goals
◦ These alternatives are usually based on the need for goods, services, politics, and
appropriate social attitudes
◦ Example; the department of health in charge of maintaining public health is financed
by APBN funds, in contrast to the regional revenue agency whose job is to collect local
revenue that is funded by the APBD.
◦ Divided into two concepts namely the concept of sectoral economy and the concept
of reinventing government
The concept of sectoral economy
Public sector organizations in Indonesia for the last fifty, have been treated as sectoral
economies. In the financial sector, initial funding is influenced by differences and
changes in objectives, for example in 1987, where the process of globalization of
telecommunications is beginning. The funds disbursed to the industry are abundant both
from government assistance funds or public funds directly through IPO in the capital
market. Or in other words, fulfillment through external financial sources is very dependent
on the process of determining service standards, or the safe limit of the service process
that must exist.
The concept of reinventing
government
The concept of reinventing government or also called rediscovering the government
began to be launched during the economic crisis. Reinventing government is indeed a
monumental concept. However, without other changes such as bureaucracy
reengineering, rightsizing, and improvement of reward and punishment mechanisms, the
concept of Reinventing Government will not be able to overcome the problems of
bureaucracy so far.
Changes in new order thinking to the
reform order
◦ Old Paradigm
1. Business Accounting -> accounting in government (United States)
2. Public sector accounting -> government accounting (Europe)
3. Public sector accounting -> public financial accounting (other opinions)
◦ New paradigm
◦ 1. Public sector accounting -> public fund accounting, which is the accounting
mechanism and analytical mechanism applied to the management of public funds.
Changes in new order thinking to the
reform order
In recent years the Indonesian people have experienced quite basic and substantial
changes. This change was marked by the increasing desire for accountability and
transparency in the performance of a culture of manipulation that had just begun with
the end of an era of government that prioritized stability. The term reform is a spark to re-
occupy the balance of physical development and value development. As a result, the
reforms emphasize the development of values revealed in good governance
Question
1. What influences the process of developing public sector accounting?
2. What do you know about the sectoral economic concept?
3. What do you know about reinventing government?
4. Write down the new paradigm and the old paradigm!
5. Give an example of public sector accounting can be distinguished in the operational
flow that is financed!