Local Governments’ Financial Accountability Responses in Critical Time: Reflection from Intergovernmental Management in Indonesia During the Early Covid-19 Pandemic

Abstract

The article aims to analyze the complexity of financial accountability initiatives at the local level during the Covid-19 pandemics. Research on government accountability during Covid-19 shows how covid-19 have laid bare the fragility of governance process in various countries including Indonesia. The pandemic reveals how several governments do not have sufficient accountability measures in handling critical times. One worthy cause of government lackluster accountability stems from the emergency nature of the Covid-19 pandemic in which governments immediately create short time policies to reduce the spread of Covid-19 on the expense of accountability measures. Our case study is derived from the experience of two local governments in Indonesia and is illustrative to show the weak coordination mechanism to ensure financial accountability during Covid-19 pandemic. We find that local governments have different mechanisms and capacities to conduct financial accountability measures. In place with larger administrative capacity, the financial accountability mechanism involves more mitigation process which eventually leads to more scrutiny and accountability. In contrast, those with lower administrative capacity and more political fragmentation faces challenges to enforce financial accountability measures due to low coordination among local government units.

Received: 16 November 2022 / Accepted: 31 December 2022 / Published: 5 January 2023