Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Research Article: 2019 Vol: 23 Issue: 1

Student Perception of Accountability and Transparency of Financial Management Political Party in the Context of Local Election

Paulina Y. Amtiran, Universitas Nusa Cendana

Yohana F. Angi, Universitas Nusa Cendana

Abstract

This research was conducted with the aim to determine student perceptions of the financial statements of the political parties participating in the 2019 Election. The data used uses primary data by distributing questionnaires to students to find out the accountability and transparency of political party financial reports. The method used in this study is to use quantitative descriptive method with simple regression analysis. The results of this study indicate that student perceptions have a positive influence on the accountability and transparency of financial statements of political parties as indicators for choosing credible political parties.

Keywords

Accountability, Financial Reports, Political Parties, Perception, Transparency.

Introduction

Theoretically, from a public point of view, political parties are the canalization of the interests of the people to be fought for as state policies. Because the community is diverse, so its interests are also diverse, political parties also vary. It is the political parties that know the ins and outs of the struggle process so that the people's interests can be accommodated by the state or political system. Political parties are in the middle, between the state and society. He became a bridge between the two. The state needs people to know what policies should be made (Hanan, 2015).

Communities need a country so that their interests can be accommodated. Political parties function to build and facilitate relations between the state and the community. Successful political parties are parties that are close to the community while having the ability to be in a circle of power in order to direct state policy according to the wishes of the community. However, this has not become a reality in Indonesia. The community seems not to be close to political parties and tends to have negative views. Conversely, political parties often blame the community when they find the reality of negative perceptions of politicians or party institutions (Hanan, 2015).

In the current democratic era, students have a strategic role in building intelligent politics with integrity because students are students who already have the ability to convey brilliant opinions or ideas. This has also been proven in the history of this country where students have a big role as agents of change in the Tritura, Supersemar events, to the overthrow of authoritarian regimes (Candra, 2016).

Talks about political aspirations cannot be separated from two things, namely trust and commitment. Trust is a form of attitude that must be built by political parties when the constituents believe in their representatives in the legislative building as the people's representatives. Therefore the council must maintain trust so that the constituent loyalty and selfimage of board members are not polluted. Another aspect of political aspiration is commitment, which is a form of responsibility for what the contestants have promised when they campaigned (Kholmi, 2010).

The phenomenon of public distrust of political parties is evidenced by various community actions. One such action is in the form of a community that does not use their voting rights in the Election of Regional Heads (Pilkada) in several cities or regencies in Indonesia. This condition needs serious attention from officials in the executive, legislative, and judicial ranks. In the context of the country, this phenomenon is a problem in the continuation of the process of running a democracy in Indonesia, the problem of state life, and the quality of the implementation of democracy. This reality is very much determined by the gait of political parties participating in the election, which will later form a government (Kholmi, 2010). In addition, Political Funding has now become an important issue because many political finance funds seem to be not transparent and accountable, and are even suspected of using illegal funds originating from corrupt practices.

Students as one of the potential voters are targeted by the constituents for political parties to gain votes for their parties. This is because students have critical thinking about changes in social and political conditions that occur. The problem arises when students use their political rights wrongly using their political rights because they do not know and understand the accountability and transparency of political parties' political party financial statements, low student awareness of the importance of accountability in political party financial statements.

This is caused by several factors that is:

a. There is still a lack of student political awareness which causes them to lack participation in channeling their political aspirations.

b. Most of the voter participant students are millennial generation who are beginner voters who only want to exercise their right to vote for the first time but have not really accommodated their political choices.

c. Has a role as an agent of change in the political field but lacks understanding of the accountability and transparency of the use and management of political party finances.

d. Difficulty accessing financial reports from political parties.

Based on the description, it is necessary to conduct research on student perceptions of the accountability of the financial statements of regional political parties in East Nusa Tenggara.

Literature Review

Accountability

Financial management of political parties that are transparent and accountable, is one of the objectives to be created in Law No. 2 of 2011 concerning Political Parties (Political Party Law), Article 39 paragraph (1) that political party financial management is carried out transparently and accountably (National Legal Development Agency Ministry of Law and Human Rights, 2014). Political Party Funding has now become an important issue because many political finance funds appear to be not transparent and accountable, and are even suspected of using illegal funds originating from corrupt practices.

Accountability is a term originally applied to measure whether public funds have been used appropriately for the purpose in which the public funds were established and not used illegally (National Law Development Agency Ministry of Law and Human Rights, 2014). Johnston (2003) defines accountability as procedures requiring officials and those who seek to influence them to follow established rules defining acceptable processes and outcomes, and to demonstrate that they have followed those procedures. Meanwhile Kaihatu (2006) defines accountability as clarity of functions, structures, systems, and accountability of corporate organs so that company management is carried out effectively. Accountability is the obligation to manage entrusted resources effectively, efficiently and economically within the moral and legal limits and to provide reports on their actions (not just financial) to what is reported not only to someone, but to community groups and the general public (Kholmi, 2010).

Accountability is the first relationship between two sets of actors (actually, most are played not between individuals, but between organizations) where the first accepts to inform others, explain or justify their actions and submit to a pre-determined sanctions that can be enforced (Schmitter, 2007)

Transparency

The lack of transparency in the acquisition and use of political party funds is one factor that contributes to the occurrence of corrupt practices. Hood (2007) states that transparency is a concept that includes events or events that provide information openly related to inputs, outputs and outcomes. Meanwhile Johnston (2003) defines transparency as official business conducted in such a way that substantive and procedural information is available to and broadly understandable by, people and groups in society, subject to reasonable limits protecting security and privacy

In the Political Party Act No.2 of 2011 it is stated that Political Parties are obliged to report their finances to constituents every year and are carried out at each district or city level. In other words, the financial statements of each political party must be transparent so that it can be known by the public.

Transparency is an action taken by a political party related to its financial use. One form of transparency that needs to be done by political parties is by preparing and reporting financial reports to the public. Based on this understanding, regulations and policies are needed to create a healthy political democracy.

Political Parties

Political parties are one of the most important institutions of constitutional democracy. Their uniqueness lies in the fact that despite being a non-government, political parties participate in or directly or indirectly influence, exercise government power.

Political parties are political means that bridge political elites in an effort to achieve political power in a country characterized by independence in financial terms, have their own political platforms or directions, carry group interests in political affairs, and contribute to political development as a political superstructure (Sujatmika, 2015).

Political parties are formed by a group of people who are then called members of political parties, who seek to gain power in government and work in the interests of the members and the people who support it (Permadi, 2015). While according to Pinilih (2017) political parties are a necessity in modern democratic political life, where an organized group whose members have the same orientation, values and ideals.

Based on the notions of political parties, it can be said that political parties are institutions that bridge political elites based on the interests of groups that have the same orientation, values and ideals in an effort to achieve political power that works in the interests of members and people support it. From this definition, it is clear that the purpose of political parties is to gain power and position in the politics of a country. According to Pinilih (2017) the general functions of political parties are:

1. Political parties as a means of political communication.

2. Political parties as a means of political socialization.

3. Political parties as a means of political recruitment.

4. Political parties as a means of regulating conflict.

Research Methodology

The samples in this study were students of the faculty of economics and business at the University of Nusa Cendana in Kupang City. Determination of the sample of this study was carried out by purposive sampling, namely the type of sample selection that is not random whose information is obtained using certain considerations.

The data used in this study are primary data obtained through the distribution of questionnaires to students. The data measurement technique is done using ordinal scale, which is then quantified by quantitative descriptive method.

To obtain the validity of the data in the results of the study, then from the collected data two data instrument tests were carried out, namely testing validity and reliability with the aim of showing the level of validity and measurement consisting of an instrument used.

The data analysis technique used is a simple linear regression with general equations as follows:

Y=a+bX+e

Results And Discussion

Based on the results of data processing using a simple regression analysis method found the following results.

Descriptive Statistics Analysis

Descriptive analysis was conducted to determine the characteristics of the perception and accountability variables based on mean, minimum, maximum and standard deviation values (Table 1). The number of valid data is 51, this is in accordance with the amount of data studied. Thus, all data are ready to be processed and there are no missing values in inputting data. Perception variables have a standard deviation of 3.147 while accountability has a standard deviation of 2.901. This shows that student perceptions have an impact on the accountability and transparency of political party financial reports.

Table 1:  Descriptive Statistic
  N Minimum Maximum Mean Std. Dev.
Perception
Accountability
Valid
51
51
51
8.00
4.00
23.00
14.00
13.882
8.941
3.147
2.901

Test Validity and Reliability

Validity and reliability tests are carried out to determine whether or not a question is made based on the variables studied, while reliability tests are conducted to determine the reliability of the questions from the variables studied. From the validity and reliability test results are obtained as shown in Table 2 below.

Table 2 : Perception Validity Test
  P1 P2 P3 P4 P5 Total
P1
P2
P3
P4
P5
1
0.288*
0.240
0.073
-0.016
0.288*
1
0.283*
0.170
0.205
0.240
0.283*
1
0.396**
0.302*
0.073
0.170
0.396**
1
-0.051
-0.016
0.205
0.302
-0.051
1
0.570**
0.513**
0.769**
0.533**
0.527**
N 51 51 51 51 51 51

     Source: Data Analysis, 2018.

Validity test results for the perception variable that all questions used are valid with a value greater than 0.3 each. While for the results of the reliability test obtained Cronbach Alpha value of 0.53, meaning the level of the question posed has a level of reliability (Table 3).

Table 3: Perception Reliability Statistics
Cronbach’s Alpha N of Items
0.538 5

While for the accountability variable the validity test results are obtained as shown in Table 4 below.

Table 4: Accountability Validity Test
  A1 A2 A3 A4 Total
A1
A2
A3
A4
1
0.457**
0.070
0.172
0.457**
1
0.106
0.300*
0.070
0.106
1
0.367**
0.073
0.300*
0.367**
1
0.632**
0.722**
0.577**
0.703**
N 51 51 51 51 51

Validity test results for the perception variable that all questions used are valid with a value greater than 0.3 each. While for the reliability test results obtained Cronbach Alpha value of 0.56, meaning the level of the questions posed has a level of reliability (Table 5).

Table 5: Accountability Reliability Statistics
Cronbach’s Alpha N of Items
0.538 5

Simple Regression Analysis

The results of simple linear regression analysis are shown in Table 6 as follows.

Table 6 :  Analysis Regression Result
Parameter Coefficient t Sig
Constanta
Perception
2.617
0.456
1.607
3.980
0.115
0.000
R-squared
Adj R-squared
F-Stat
Prob (F-Stat)
0.244
0.229
15.839
0.000
   

Based on Table 6, a regression equation is obtained between student perceptions and the accountability of political party financial statements as follows:

Y=2.617+0.456X+e

The equation explains that between student perception variables and accountability and transparency variables of political party financial reports have a positive influence, which means that if student perceptions rise by 1 unit, it will increase accountability and transparent political party financial statements of 0.456 units.

From the results of statistical data analysis, it was revealed that the accountability and transparency of the financial statements of political parties need to be informed to all voting communities, especially students, so that they can determine which political parties can represent their political aspirations. Although the results of the regression analysis found that the influence of student perceptions on the accountability and transparency of political party financial reports was only 24%, this result could be a positive picture of student political learning of the existence of existing political parties, especially those who took part in the elections in Kupang City. This means that the perceptions of students in Kupang City are good enough on the financial statements of existing political parties, so what is needed now is to conduct socialization and literacy about accountability and transparency in the financial statements of local election political parties.

The low student participation shows that there is still a lack of awareness of student politics, where students should have an important role in various aspects including in the political field. Whereas as agents of change, moral controllers in the political field of students are required to play that role as proof that they are still able to show their existence in political events.

On the other hand political parties must also inform their financial statements to the public so that the public knows and understands the source of funds (funding needs) obtained by a political party. So that political parties as the spearhead of democratization in running the government can be independent and accountable, not even part of the representatives of the corporations that finance the parties concerned.

Openness to financial information can increase public confidence in a political party. From the results of the questionnaire, 60% did not know and understand the financial statements of the political parties. This is due to the lack of access for students to view financial statements from political parties so that they can determine which political parties are their political choices. In addition, most of the respondents only knew and knew old political parties that had already existed in politics in Indonesia such as PDI-P, Golkar, Democrats.

As many as 70% do not need financial statements as a basis for them to choose political parties participating in the election. This is due to the fact that most voters are beginner voters so that in their understanding, only political parties are familiar or which already exist in the political arena in Indonesia (Local Context). On the other hand, they argue that accountability and transparency of political party financial reports are needed with the number of respondents answering as much as 30%. Because they are not beginner voters and they have already praised that accountability from political party financial reports is indeed very necessary.

In the end they did not see the importance of the financial statements (accountability) reported by each political party, but in the perceptions of students, they would only choose to know and get to know political parties that already existed in politics, especially for novice voters.

The results of this study are in line with research conducted by Kholmi (2010) which states that students' perceptions of financial accountability of political parties are low. The low level of accountability is due to the law of political parties that are still weak towards the financial supervision of political parties, lack of human resources who understand reports and financial statements.

Conclusion

The influence of student perceptions has a positive influence on the accountability of political party financial reports. However, the low perceptions of students about the financial accountability of the political parties indicate that there is a need for financial information disclosure from political parties so that the public, especially students, can determine the choice of political parties they will elect at the time of the elections.

Openness to financial information can increase student confidence in a political party so they can choose political parties that can represent their political aspirations. Lack of access to see the financial statements of political parties will be an obstacle for students to determine the political parties that are their political choices.

The large number of voters from among students is a special note for political parties to implement strategies in increasing the number of their votes in general elections through choices given by students to election political parties.

References