Figure Illustration AI
FORMOSA NEWS - Jambi-
A 2026 study by Wiwik Tiswiyanti of Universitas Jambi reveals that transparency plays a decisive role in improving the effectiveness of local government budgets. Published in the International Journal of Asian Business and Development (Metropolis), the research shows that while efficiency remains important, transparency significantly strengthens how well public budgets achieve their intended outcomes. The findings are based on data from the Jambi City Government and highlight urgent priorities for better financial governance in Indonesia.Local governments are under increasing pressure to deliver measurable results from limited public funds. Budget effectiveness—how well planned programs meet their targets—depends not only on how efficiently resources are used, but also on how openly financial information is shared. In many regions, gaps between budget planning and realization, along with cases of fund misuse, continue to undermine public trust. This study places transparency at the center of the solution.
Why Transparency Matters Now
Public sector financial management is no longer judged solely by compliance, but by outcomes that directly impact citizens. Inefficient spending can lead to wasted resources, while ineffective implementation limits public benefits. However, the study shows that even efficient systems can fall short if they lack transparency.
Limited access to financial information reduces public oversight and increases the risk of irregularities. Conversely, transparent systems allow citizens and stakeholders to monitor how funds are allocated and spent. This visibility strengthens accountability and improves decision-making within government institutions.
How the Study Was Conducted
The research used a quantitative approach based on primary data collected through questionnaires. A total of 81 respondents participated, representing 27 Regional Apparatus Organizations (OPDs) within the Jambi City Government. These respondents included financial officers, planners, and administrators directly involved in budgeting processes.
Data analysis was carried out using Partial Least Squares–Structural Equation Modeling (PLS-SEM), a method that examines both direct and indirect relationships between variables. The study focused on three key factors:
- Efficiency in resource management
- Transparency in financial reporting and access
- Effectiveness of budget outcomes
This approach allowed the researcher to identify not only how these factors interact, but also how transparency mediates the relationship between efficiency and effectiveness.
Key Findings: Transparency Has the Strongest Impact
The study presents several important findings:
Efficiency improves budget effectiveness
Better use of resources leads to stronger program outcomes.
Efficiency increases transparencyWell-organized systems produce clearer, more accessible financial information.
Transparency has the largest effect on effectivenessTransparency shows a stronger influence (coefficient 0.618) than efficiency (0.234).
Transparency acts as a partial mediatorNearly 45.6% of the impact of efficiency on effectiveness occurs through transparency.
These results confirm that transparency is not just a supporting factor—it is a dominant driver of successful budget management.
What This Means for Government Policy
The findings send a clear message: improving efficiency alone is not enough. Governments must also ensure that financial processes are open, accessible, and understandable to the public.
Wiwik Tiswiyanti of Universitas Jambi explains that efficient systems create order, but transparency builds trust and accountability. In practice, this means governments should:
- Publish budget documents online
- Provide regular financial reports
- Implement digital systems such as e-budgeting and e-procurement
- Enable public participation and feedback mechanisms
These steps not only reduce the risk of corruption but also ensure that public funds are used according to community needs.
Real-World Impact: Trust, Accountability, and Better Services
Transparency has broader implications beyond financial management. When citizens can access and understand budget information, they are more likely to trust government institutions. This trust encourages civic engagement and strengthens democratic governance.
The study also highlights that transparent budgeting leads to better alignment between government programs and public priorities. As a result, sectors such as education, healthcare, and infrastructure can benefit from more targeted and effective funding.
In the long term, combining efficiency with transparency creates a more sustainable governance model—one that delivers measurable results while maintaining public confidence.
Expert Insight
Wiwik Tiswiyanti emphasizes that transparency is a critical bridge between efficiency and effectiveness. According to her analysis at Universitas Jambi, “efficiency improves internal processes, but transparency ensures those processes remain accountable and aligned with public interests.” This perspective reinforces the idea that openness is essential for achieving meaningful policy outcomes.
Author Profile
Wiwik Tiswiyanti is a researcher and academic at Universitas Jambi, Indonesia. She specializes in public sector accounting, local government financial management, and governance transparency. Her work focuses on improving accountability, efficiency, and effectiveness in public budgeting systems.
Source
Tiswiyanti, Wiwik. 2026. “Transparency as Partial Mediation in the Influence of Efficiency on Government Budget Effectiveness.” International Journal of Asian Business and Development (Metropolis), Vol. 2 No. 2, pp. 17–30.
0 Komentar