A meso-level study of the adoption, implementation and internalisation of accrual accounting in Indonesian public sector asset management

  • Nafan Rafid

    Student thesis: Doctoral Thesis


    Despite considerable research in the literature surrounding the processes and impacts of the
    adoption of accrual accounting in the public sector, there is a growing interest in investigating
    the role of political, social and organisational settings, as well as agents, in the imposition of
    accrual accounting in the public sector. Such a trend inspired me to examine how accrual
    accounting was mobilised and institutionalised with respect to public sector accounting reform
    in Indonesia. In addition, to fill the existing literature gaps, I focused on the different locus: a
    subsequent phase where accrual accounting shifts from the macro level to a lower level.
    Therefore, I concentrated on the second-stage impacts of accrual accounting adoption in public
    sector asset management practices in Indonesia.
    To inform the study, I used strong structuration theory because it allowed me to gain a deeper
    understanding of the role of agents and structures in the context of public sector accounting
    reforms in the country. Through a case study building on social constructionism and collected
    data from document sources and in-depth interviews with 33 participants, I find that during the
    transformation process agents in the Directorate General of Public Assets in the Indonesian
    Ministry of Finance had to adjust their strategy to comply with the imposed structure of accrual
    accounting. Equally, with the presence of national government balance sheets showing the
    value of public assets, there was a structural pressure drawn from accrual accounting as an
    important tool in the private sector to utilise public assets as a revenue source. This allowed
    the Directorate General of Public Assets to be a significant contributor to the national budget.
    The research contributes to the literature by examining the transformation at three different
    phases—adoption, implementation and subsequent impact—juxtaposed by understanding the
    changing interactions between institutional forces (structures) and agents. The study also
    demonstrates that the theoretical approach used powerfully indicated an increasingly important
    and evolving role for the agents across the transition to accrual accounting reforms.
    Date of Award2020
    Original languageEnglish
    SupervisorHarun Harun (Supervisor) & David Carter (Supervisor)

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