The Influence of E-Government Dimensions in Transparency Fund

Management Transfer in East Kalimantan Indonesia

Indah Martati, Suminto, Besse Asniwaty

Business Administration Department of Politeknik Negeri Samarinda, East Kalimantan Indonesia

(indahmartati, suminto, besseasniwaty) @polnes.ac.id

Keywords: System Quality, Information Quality, Service Quality, Transparency, Transfer Fund.

Abstract: This article is meant to analyze and prove the influence of the dimensions of e-government which includes

system quality, information quality, and service quality in realizing transparency in the management of

transfer funds in East Kalimantan. The data used are primary data collected through questionnaires from 105

East Kalimantan community respondents. The questionnaire was designed with a Likert scale of 1 = strongly

disagree, 2 = disagree, 3 = neutral, 4 = agree, 5 = strongly agree. Multiple linear regression is used to process

the collected data. Simultaneously, the e-government dimension is proven to have a significant effect on

transparency in the management of transfer funds in East Kalimantan, and although partially the quality of

information does not have a significant effect on transparency. The application of e-government is able to

provide easy and speedy access to information on the management of fund transfers from the Central

Government to Provincial, Regency, and City Governments in East Kalimantan. The application of e-

government is able to increase transparency in public services. System quality, information quality, and

service quality represent dimensions of e-government that influence the realization of transparency in the

management of transfer funds. dimensions of e-government that influence the realization of transparency in

the management of transfer funds.

1 INTRODUCTION

Transfer funds are the main instrument of fiscal

decentralization policy in Indonesia, consisting of

balance funds, special autonomy funds, and regional

incentive funds sourced from the State Revenue and

Expenditure Budget which are then transferred to the

regions. Balanced funds are the largest component of

transfer funds provided by general allocations, special

allocations, and revenue sharing from tax revenues

and natural resources.

The Local governments play an important role in

providing public services (Sutopo et al., 2017), but in

reality, there are still some local governments that

have not played their roles optimally. In addition,

local governments are also expected to be able to

demonstrate their performance in transferring funds

effectively and efficiently. Furthermore, according to

(Listiyanto, 2018), it was revealed that financial

management and management in the regions were

still an obstacle in managing transfer funds to regions

and village funds, this was indicated by the low

realization of transfer funds to regions and village

funds. One of the solutions to overcome problems in

managing transfer funds is through e-government.

This method is an information and communication

technology approach that promises efficiency, speed

of information delivery, affordability, and

transparency.

Researcher (Dhevina, 2018); and (Septiani,

2020) revealed that the purpose of using e-

government is to improve government performance

in public services, increase effectiveness, efficiency,

transparency and convenience, as well as service

quality. Through e-government, it can prevent

corruption even though it cannot be generalized to all

local governments, this is revealed from research

(Rustiarini, 2019) but there is also corruption.

The purpose of this article is to analyze and prove

the effect of the e-government dimension on

transparency in the management of transfer funds

from the Central Government to Provincial, Regency

and City Governments in East Kalimantan. Through

this research, it is hoped that the e-government

dimension can be used as a tool to increase

transparency of fund management, and ultimately

improve public services, as well as a means of

realizing good governance.

Martati, I., Suminto, . and Asniwaty, B.

The Inﬂuence of E-Government Dimensions in Transparency Fund Management Transfer in East Kalimantan Indonesia.

DOI: 10.5220/0010531600003153

In Proceedings of the 9th Annual Southeast Asian International Seminar (ASAIS 2020), pages 72-77

ISBN: 978-989-758-518-0

2 LITERATURE REVIEW

2.1 E-Government

(Septiani, 2020) states that The application of e-

government in the era of globalization is needed to

ensure the realization of transparency, efficiency,

speed of information delivery, affordability of

government services to the public and

business.Therefore, it can be said that the role of e-

government in providing basic services to the

community is one of the indicators of development.

The advantages of implementing e-government are

the creation of a better business climate and have an

impact on improving the economy, transparency, ease

of access, local revenue, and better service delivery

(UNDESA, 2016).

The characteristic implication of good corporate

governance is transparency in the management of

transfer funds. This is confirmed by research results

(Arwati & Latif, 2019) which state that financial

transparency through the implementation of e-

government affects trust and integration of public

service systems. Meanwhile (Alfiyah, 2019) stated to

create a more effective government. Further (Nurdi &

Nurdin, 2019); (Nurhakim, 2014); (Wirawan, 2020)

is intended to facilitate and encourage the creation of

a democratic, transparent and accountable

government.

The characteristic implication of good corporate

governance is transparency in the management of

transfer funds. This is confirmed by research results

(Arwati & Latif, 2019) which state that financial

transparency through the implementation of e-

government affects trust and integration of public

service systems. Meanwhile (Alfiyah, 2019) stated to

create a more effective government. Further (Nurdi &

Nurdin, 2019); (Nurhakim, 2014); (Wirawan, 2020)

is intended to facilitate and encourage the creation of

a democratic, transparent and accountable

government.

2.2 Good Governance

The characteristic implication of good corporate

governance is transparency in the management of

transfer funds. This is confirmed by research results

(Arwati & Latif, 2019) which state that financial

transparency through the implementation of e-

government affects trust and integration of public

service systems. Meanwhile (Alfiyah, 2019) stated to

create a more effective government. Further (Nurdi &

Nurdin, 2019); (Nurhakim, 2014); (Wirawan, 2020)

is intended to facilitate and encourage the creation of

a democratic, transparent and accountable

government.

The principles of good governance according to

UNDP in (Mardiasmo, 2004) include: community

participation, upholding the rule of law, transparency,

responsiveness, consensus-oriented, equality,

effectiveness and efficiency, accountability, and

strategic vision. Transparency is one of the principles

of good governance. Transparency is built on the

basis of the free flow of information, all government

processes, institutions, and information need to be

accessed by interested parties and the information

available must be sufficient to be understood and

monitored (Coryanata, 2012).

Transparency becomes the foundation of people's

hopes in managing transfer funds from the Central

Government to the Provincial, Regency, and City

Governments in East Kalimantan as a guarantee for

good governance practices. Therefore, to overcome

the constraints of the low performance of local

governments in providing public services in

managing transfer funds, researchers used the e-

government dimension as an independent variable,

while the dependent variable was good governance.

The e-government dimension is measured by system

quality (X1), information quality (X2), service

quality (X3). adopted from (DeLone & McLean,

2003). Meanwhile, one dimension that represents

good governance adopts part of (IGI, 2014), namely

transparency (Y). The problems to be resolved in this

article are: "Does the quality of the system, the quality

of information, and the quality of service partially and

or simultaneously have a significant effect on the

transparency of the management of transfer funds?".

Based on the results of previous research, the

hypothesis proposed in this study are:

H1: system quality, information quality, and

service quality partially have a significant

effect on the transparency of the

management of transfer funds to the

provincial, district, and city governments in

East Kalimantan.

H2: the quality of the system, the quality of

information, the quality of service

simultaneously have a significant effect on

the transparency of the management of

transfer funds to the provincial, district, and

city governments in East Kalimantan.

The Inﬂuence of E-Government Dimensions in Transparency Fund Management Transfer in East Kalimantan Indonesia

3 METHODOLOGY

3.1 Types of Data and Collecting

Methods

Types of Data and Collection Methods The data used

are primary data by distributing a random sampling

questionnaire designed in the form of a questionnaire

with a Likert scale (1,2,3,4,5) from a scale of 1 which

means strongly disagree, scale 2 disagrees, scale 3 is

neutral, scale 4 agrees. , and scale 5 strongly agree.

The population of this study is the people of East

Kalimantan, amounting to 3.6 million people.

Determination of the data sample refers to Slovin

(1967) in (Sugiyono, 2019) with a sample size of 105

respondents.

3.2 Analysis Method

The quantitative data from the collected

questionnaires were then analyzed through multiple

linear regression. The stages of testing are carried out

by testing the validity and reliability, test classic

assumptions, multiple linear regression analysis as

follows.

Y = a+b1X1+b2X.2+b3X3+ e (1)

This tool is used because in this study there is more

than one independent variable, namely:

Y = Good governance

a = constant linear relationship

b = regression coefficient

X1 = System Quality

X2 = Quality of Information

X3 = Quality of Service

e = error term

Next is the determination of the coefficient

correlation (R

) and hypothesis testing with the F test

and t tes. The F test is used to test the independent

variables X1, X2, and X3 simultaneously have a

significant effect on the dependent variable Y.

Measured by the two criteria significant values listed

in the ANOVA table <α 0.05 and or if the F-count>

F-table. The t-test is used to partially test the effect of

each of the independent variables X1, X2, and X3 on

the dependent variable Y measured by 2 criteria,

namely: if the value of significant <α 0.05; and or if

t-count> t-table.

4 RESEARCH RESULT AND

DISCUSSION

4.1 Respondent Data

Data of respondents based on gender were 62

respondents or 59% were male and 41% were female.

Work background, 72 respondents or 68% were civil

servants, 25 respondents or 24% were private

employees, the rest were self-employed and 4%

others. Based on age, most of them were aged 41-50,

namely 37% and 29% were 31-40 years old and 25%

were 20-30 years old. With a bachelor's education

background, namely 55%, 28% S2, and the rest have

doctoral, high school, junior high, and elementary

education.

4.2 Validity and Reliability Test

The pilot test was conducted on 30 samples to test the

validity and reliability of the e-government

dimension. Based on the correlation coefficient of

system quality dimensions 0.570, Information

Quality 0.574, Service Quality 0.709, and 0.782

transparency. All correlation coefficients > 0.30, this

means valid. These instruments are also reliable

because they each have a Cronbach alpha value>

0.60.

4.3 Classic Assumption Test

The results of the normality test with One-Sample

Kolmogorov-Smirnov Significant value (2-tailed) of

0.164 > 0.05, which means the data is normally

distributed. The value of variance inflation factor

(VIF) for the system quality dimension is 1.031, the

information quality dimension is 1.091, and the

service quality dimension is 1.083 where each

number is <10.00 which means there is no

multicollinearity between dimensions. There is a

linear relationship between system quality,

information quality, and service quality with

transparency, as evidenced by the ANOVA table the

Significant value is 0.391 where the value is > 0.05,

which means there is a linear relationship between the

dimensions of system quality, information quality,

and service quality with transparency.

4.4 Hypothesis Testing

Multiple Correlation Analysis. The results of

calculations using SPSS in the Model Summary Table

show that the R-value is 0.499, meaning that there is

a moderate-scale relationship between system

ASAIS 2020 - Annual Southeast Asian International Seminar

quality, information quality, and service quality

towards good governance.

Determination Analysis (R

). The R2 value of 0.249

or 24.9% indicates the percentage contribution of the

influence of the System Quality, Information Quality,

and Service Quality variables on transparency.t-test

A summary of the results of multiple linear regression

analysis is listed in Table 1 t-test. A summary of the

results of multiple linear regression analysis is as

listed in Table 1.

Table 1. Summary of Multiple Linear Regression Analysis

Variable Coefficient

ression

T-Count Sig

Constanta 4,187 9,291 0,000

X1 0,300 3,830 0,000

X2 0,087 1,430 0,156

X3 -0,414 -5,395 0,000

F-Count 11,142 0,000

R S

uare 0,249

Source: data processed by researchers 2020

The value of t table = ± 1.98. While the t-count

X1 = 3.830 where the t-count value is 3.830> t-table

± 1.98 and the Significant value shows 0,000 <α 0.05,

this condition indicates a significant influence

between the variables X1 (system quality) and Y. The

value of t count X2 (information quality) is 1.430

where this value is < t-table 1.98 and the significant

value 0.156 > α 0.05, which means that the variable

X2 has no significant effect on variable Y. The test

results on X3 (service quality) show the value of t-

count -5.395 which > t-table -1.98 and the significant

value of 0.000 < α 0.05, its means that the variable X3

has a significant negative effect on Y. Thus, partially

the dimension of e-government has a significant

effect on transparency except for information quality.

In other words, H1 is not entirely proven.

Test F. The test results show that F-count is 11.142 >

F- table 2.69 and the sig value is 0.000, which shows

that the number is smaller than < α 0.05, which means

system quality, information quality, and service

quality simultaneously affect the transparency of the

management of transfer funds. This proves that H2

simultaneously has a significant effect on

transparency. Multiple linear regression equation is Y

= 4.187 + 0.300X1 + 0.087 X2 - 0.414 X3 + e. A

positive constant value of 4.187 indicates a positive

influence on the independent variables X1, X2, and

X3 on transparency. For every increase of one unit of

system quality, the transparency will increase by

0.300, likewise, if there is an increase in one unit of

information quality, the transparency will increase by

0.087. If there is an increase in one unit of service

quality, transparency will decrease by 0.414.

4.5 Discussion

The results of this study confirm that the availability

of e-government is one way of realizing transparency

in the management of transfer funds to the Provincial,

Regency, and City Governments in East Kalimantan.

The majority of the public's perceptions are men aged

40-51 years, have undergraduate education and work

as regional civil servants, and are internet literate

respondents who stated that the availability of quality

e-government systems and services is a form of

transparency in public services. Especially in the

conditions of the COVID 19 pandemic, people hope

that the implementation of e-government will make it

easier for people to access information, one of which

is information about the allocation and use of transfer

funds.

The public has considered the ease of access to

information that the public services provided by the

local government have a good quality system and

service quality so that they are perceived to be

transparent. Because the community can easily and

quickly access information about transfer funds, it is

the main source of income for those regional

government. The quality of information does not

have a significant effect on transparency, meaning

that the people of East Kalimantan perceive that the

ease and speed of access to information on transfer

funds are considered a form of transparency. In this

case, the perceived quality of information exists

together with the existence of quality systems and

services in e-government.

Service quality has a significant negative effect on

transparency, meaning that the higher the quality of

services provided by local governments through e-

government, the more transparent the management of

transfer funds in those regional government will have

an impact on reducing the potential for corruption. In

this respect, there is a relationship in the opposite

direction between service quality and transparency.

The novelty of this research is that the quality of e-

government technology innovation in realizing

transparency of public services is more perceived by

the public from the aspects of system quality and

service quality, while information quality is perceived

subjectively.

The implication of the results of this study is that

the community needs local government commitment

to continuously improve the quality of e-government

systems and services in realizing transparency in the

The Inﬂuence of E-Government Dimensions in Transparency Fund Management Transfer in East Kalimantan Indonesia

management of transfer funds. The benefits of

research results for local governments are used as the

basis for continuous improvement and evaluation of

e-government programs provided to improve the

quality of public services. The benefits of research

results for the community in the regions are an effort

to provide access and opportunities for community

participation in monitoring the financial management

of transfer funds. The benefit for future researchers is

as a basis for developing research by adding other

variables.

5 CONCLUSION

Based on the results of testing and discussion, it can

be concluded that:

1) The e-government dimension has a significant

effect on the transparency of the management of

transfer funds to local governments.

2) System quality and service quality partially have

a significant effect on transparency, except that

the quality of information

3) The high level of public awareness of the use of

e-government has an impact on the easier it is to

realize good governance in the management of

transfer funds scope area in East Kalimantan.

4) The scope of this research is limited to

discussing the influence of the dimensions of e-

government on transparency, which is one of the

dimensions of good governance. Suggestions

for future researchers are expected to expand the

variable dimensions of good governance that

have not been discussed regarding justice,

accountability, efficiency, participation, or by

adding another new variable.

ACKNOWLEDGMENTS

The author receives financial support for research,

authorship, and/or publication of this article from the

Directorate of Research and Community Service for

the 2020 fiscal year. This article is one of the basic

research outputs with contract number 2084 / PL.7 /

LK / 2020.

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The Inﬂuence of E-Government Dimensions in Transparency Fund Management Transfer in East Kalimantan Indonesia