Administration system reform in Mie Prefecture :: Impacts on economic indicators and lessons for Indonesia

WIBOWO, Unang, Prof. Susumu Kuwahara

2009 | Tesis | S2 Magister Ekonomika Pembangunan

Triggered by fiscal scandal in Hokkaido Prefecture and management system policy reform at a national level, Mie Prefecture launched its administration system reform in 1995. The administration system reform adopted the principles of New Public Management or so-called new public governance. This reform was marked by the introduction of a policy measurement system in 1995 and the transformation from cash to accrual accounting for preparing the financial reports of Mie prefecture. This paper firstly describes the administration system reform in Mie Prefecture in Japan and analyses the impact of economic indicators such as investment and productivity of capital stock and labor. Lastly, this paper will identify the preconditions in Mie Prefecture for conducting administration system reform which are relevant to local governments in Indonesia. The administration system reform conducted by the Mie Prefectural Government increased the public sector transparency. Furthermore, this transparency contributes to the increase of private investment and the increased productivity of capital stock and labor. Through financial accounting and budget information, private sectors, especially investors, receive relevant and reliable information about the investing opportunities, laws and policies. Learning from the administration system reform in Mie prefecture, the paper concludes that agents, process and system have significantly contributed to this reform. Indonesia, as a developing country, has favorable circumstances for reform i.e. a decentralized system and transformation into modified cash basis accounting. Therefore, this paper recommends thatadministration system reform will be successful if all parties can contribute significantly in a manner suitable to their own roles i.e. as leaders, legislators, and members of society/citizens

Kata Kunci : Indikator ekonomi,Reformasi sistem administrasi,Transparancy sektor publik,