Implications of the Principle of Transparency on the Managementof the Regional Revenue and Expenditure Budget (APBD) to Achieve Good Governance

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Medan, North Sumatra— Research conducted by Ervina Sari Sipahutar together with Muthia Syafa Ramadhani Lubis, Zahwa Soraya, Marsya Oktaviani Harahap, Sifa Maulida Bangun, and Niha Sry Asyh Gultom, students of Universitas Al-Azhar Medan, was published in the February 2026 edition of the Contemporary Journal of Applied Sciences (CJAS).

The study emphasizes that the principle of transparency is a key factor in the management of the Regional Revenue and Expenditure Budget (APBD) to achieve good governance.

APBD as a Legal and Policy Instrument

The APBD is often viewed as a technical financial document containing revenue and expenditure figures. However, from the perspective of state administrative law, it is a binding legal instrument that determines development priorities, public service delivery, and the allocation of regional resources.

Without transparency, budget management becomes vulnerable to data manipulation, inflated project costs, and procedural violations in procurement. The study emphasizes that open access to budget information allows citizens to monitor every stage—from planning and legislative approval to implementation and financial reporting.

Indonesia’s regulatory framework clearly mandates such openness, including:

• Law No. 14/2008 on Public Information Disclosure
• Law No. 23/2014 on Regional Government
• Government Regulation No. 12/2019 on Regional Financial Management

These regulations require local governments to disclose APBD documents through official publication channels.

Research Methodology

The research applied a qualitative approach using library-based analysis. The authors examined academic journals, legal texts, and statutory regulations related to regional financial governance.

This method enabled the researchers to systematically connect the principle of transparency with accountability mechanisms and the broader concept of good governance in Indonesia’s decentralized system.

Key Findings

The study presents several major conclusions:

1. Transparency functions as a legal obligation.
   It is embedded within the General Principles of Good Governance and binds public officials normatively.
2. It enhances public accountability.
   Open budget data compels officials to justify decisions and spending policies.
3. It minimizes corruption risks.
   Public access narrows opportunities for financial misconduct and maladministration.
4. It strengthens oversight systems.
   Transparency supports both internal supervisory bodies and external audits conducted by the Supreme Audit Board (BPK).

According to Ervina Sari Sipahutar and her team, transparency transforms the APBD into a publicly monitored instrument, reinforcing democratic control over regional finances.

Legal Implications for Corruption Prevention

One of the study’s most significant contributions lies in clarifying the juridical implications of budget transparency. When budget plans, realization reports, and financial statements are publicly accessible, irregularities can be detected earlier.

Obstructing access to budget information may constitute a violation of accountability principles and potentially trigger legal scrutiny. In this sense, transparency serves both as a preventive measure and as preliminary evidence in cases involving suspected financial misconduct.

Implementation Challenges

Despite a strong legal framework, the study identifies several obstacles in practice, including in urban centers such as Medan:

• Budget documents are often presented in highly technical formats that are difficult for ordinary citizens to understand.
• Public literacy regarding budget interpretation remains limited.
• Government transparency portals are not always user-friendly.
• Political commitment to openness varies among regions.

The researchers argue that administrative transparency must evolve into substantive transparency—information that is not only available but also accessible and comprehensible to the public.

Broader Impact on Society and Business

For citizens, transparent APBD management increases participation in local development and strengthens democratic oversight.

For businesses, clear budget disclosure creates a more predictable procurement environment and supports fair competition.

For policymakers and educators, the findings provide an academic reference for improving governance models in decentralized administrations.

Toward Stronger Local Good Governance

The research underscores that transparency is more than a bureaucratic slogan. It is a foundational pillar of clean, efficient, and democratic governance. By ensuring open access to regional financial information, local governments can strengthen public trust, improve legal compliance, and reduce corruption risks.

Sustainable improvement, the study notes, requires stronger digital systems, greater political commitment, and broader public education on budget literacy.

Author Profile

·         Ervina Sari Sipahutar - Universitas Al-Azhar Medan

• Muthia Syafa Ramadhani LubisAl-Azhar University Medan
• Zahwa SorayaAl-Azhar University Medan
• Marsya Oktaviani HarahapAl-Azhar University Medan
• Sifa Maulida BangunAl-Azhar University Medan
• Niha Sry Asyh GultomAl-Azhar University Medan

Source of Research

Sipahutar, Ervina Sari, et al. (2026). Implications of the Principle of Transparency on the Management of the Regional Revenue and Expenditure Budget (APBD) to Achieve Good Governance. Contemporary Journal of Applied Sciences (CJAS), Vol. 4 No. 2, February 2026, pp. 85–94.

DOI: https://doi.org/10.55927/cjas.v4i2.128

URL: https://ntlformosapublisher.org/index.php/cjas