State Finance Perspective on the Governance and Legal Standing of Regional Grants and Social Assistance in Indonesia
Year: 2026
Type: article
Abstract: This article examines how Indonesia’s state finance perspective structures the governance and legal standing of regional grants (hibah) and social assistance (bansos) within subnational public financial management. Anchored in constitutional mandates and the State Finance and Regional Government Laws, it clarifies classification, budgeting, execution, control, and accountability across the budget cycle. The analysis maps institutional roles (regional heads, budget users, treasurers, internal auditors, and supreme auditors), identifies risks (political capture, moral hazard, and fragmentation of compliance), and reviews safeguards (fiscal rules, internal controls, transparency, and performance oversight). It proposes a decision framework aligning eligibility, valuation, and reporting with materiality and public value tests. Findings suggest that precise classification and ex?ante controls mitigate discretion-driven vulnerabilities while preserving social protection functions and intergovernmental coordination. The study contributes a normative-operational linkage that can guide local bylaw design, audit criteria, and program management standardization.
Authors: Didik Setiawan, Muhammad Zen Masruri
Language: Indonesian
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7215674239