Publisher

UGMUGM

Journal Journal of Indonesian Economy and BusinessJournal of Indonesian Economy and Business Abstract

This study analyzes the legitimacy of Indonesias institutions for financial accounting standard-setting, focusing on stakeholders perspectives. The enactment of the Law on Development and Strengthening of the Financial Sector (UU P2SK) shifts authority from the private Institute of Indonesia Chartered Accountants (IAI) to a government body, potentially affecting independence and legitimacy. Using qualitative semi‑structured interviews with 16 stakeholders from various professional backgrounds, the research compares the perceived legitimacy—pragmatic, moral, and cognitive—of the private IAI versus the proposed government‑based Financial Reporting Standards Committee (KSLK). Findings indicate that while both institutions have positive and negative impacts, collaboration between government and private sectors enhances legitimacy more than sole government control.

Conclusion

The study shows that financial accounting standard‑setting institutions must build legitimacy to sustain authority.a collaborative model combining government oversight with private professional expertise is preferable over a single government body.Both pragmatic and moral legitimacy are strengthened when stakeholders—users, academics, regulators—perceive independence and competence, yet concerns about political influence and funding remain.Future policies should enhance transparency, diversify funding, and maintain professional involvement to safeguard independence and quality of standards.

Future Research

Penelitian lanjutan perlu meneliti bagaimana mekanisme kolaborasi antara lembaga pemerintah dan badan profesional memengaruhi persepsi independensi dan kualitas standar, dengan membandingkan penilaian pemangku kepentingan sebelum dan sesudah penerapan UU P2SK. Selain itu, studi empiris dapat dieksekusi untuk mengukur dampak real‑time perubahan struktur pendanaan—misalnya alokasi dana pemerintah dan kontribusi profesional—pada keconfidenan publik dan adopsi standar di sektor keuangan. Terakhir, penelitian kualitatif berkelanjutan sebaiknya memperluas partisipasi pengambil keputusan lembaga lain, seperti OJK dan PPB, untuk mengevaluasi sejauh mana regulasi dan transparansi proses pengambilan keputusan dapat meningkatkan legitimasi institusional dalam jangka panjang.

References

1. Sage Academic Books - Accounting Theory: Conceptual Issues in a Political and Economic Environment. sage... doi.org/10.4135/9781506300108Sage Academic Books Accounting Theory Conceptual Issues in a Political and Economic Environment sage doi 10 4135 9781506300108
2. Separating the Political and Technical: Accounting Standard‐Setting and Purification - Young... onlinelibrary.wiley.com/doi/10.1111/1911-3846.12046Separating the Political and Technical Accounting StandardyAAAaSetting and Purification Young onlinelibrary wiley doi 10 1111 1911 3846 12046
3. Analysis of Financial Accounting Standard-Setting Institutions: Government Versus Private | Journal of... doi.org/10.22146/jieb.v41i1.15008Analysis of Financial Accounting Standard Setting Institutions Government Versus Private Journal of doi 10 22146 jieb v41i1 15008

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