Institutional Capacity Perspective in Evaluating the Implementation of KKPD to Face Human Resources and Infrastructure Challenges in Banyuasin Regency

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FORMOSA NEWS - Sumatera Selatan - Digital Cards Promise Cleaner Governance in Banyuasin, But Tech and Training Gaps Block Progress. Local government financial systems are undergoing a major digital evolution, yet the transition from paper to pixels faces significant real-world roadblocks. A study published in April 2026 by researchers Masyairoh, Lisdiana, and Deby Chintia Hestirinah from Stisipol Candradimuka evaluates how the implementation of Local Government Credit Cards (Kartu Kredit Pemerintah Daerah or KKPD) impacts financial operations in Indonesia's Banyuasin Regency. Published in the Formosa Journal of Applied Sciences, the timely research reveals that while digital payment systems dramatically boost transparency and curb budget manipulation, a severe shortage of technical training and inadequate internet infrastructure prevent regional offices from fully realizing these benefits. Understanding these institutional capacity gaps is vital as developing regions worldwide shift toward cashless public administration to eliminate corruption.

The Push for Cashless Public Wealth Management

Public financial management reform stands as a strategic pillar for building transparent and accountable local governments. In public administration, traditional cash-based transactions frequently expose regional budgets to human errors, slow bureaucratic processing times, and potential financial irregularities. To address these structural vulnerabilities, the Government of Indonesia introduced the KKPD policy as a non-cash payment tool designed to modernize the state's financial sector and minimize non-transparent spending. Adopting digital cards aligns directly with globally recognized principles of good governance, which prioritize efficiency, public accountability, and open resource management. However, technology-based policies cannot succeed on regulations alone; their triumph depends heavily on the readiness of local institutions. Banyuasin Regency serves as an important regional testing ground to observe how real-world infrastructure deficits and administrative readiness collide with high-tech policy ideals.

Evaluating Institutional Capacity Through Local Insights
To understand the core challenges of this digital transition, the research team from Stisipol Candradimuka utilized a qualitative descriptive research methodology. This approach allowed the investigators to gain a deep, practical understanding of how policy execution operates within local government bodies.
The researchers gathered primary data through three main channels: 

• In-Depth Interviews: Conducted purposively with local government officials and regional financial managers who directly handle day-to-day KKPD transactions.
  
• Field Observations: Direct on-site monitoring of the actual financial transaction workflows and system usage across various regional work units.
  
• Documentation: Thorough reviews of local regulatory guidelines, technical operational procedures, and financial reports.
  

The gathered information was analyzed using an interactive data model consisting of data reduction, data presentation, and conclusion drawing. To guarantee high validity and reliability, the researchers cross-verified all findings using source and method triangulation.

Key Findings: Enhanced Transparency Coupled with Tech Bottlenecks

The Stisipol Candradimuka study brought to light several critical insights regarding the state of digital governance in Banyuasin Regency: 

• A Secure Digital Footprint: The KKPD system has successfully established an automatic digital archive within the banking network. Every expenditure leaves an immutable trail, which simplifies internal and external audits while drastically lowering the opportunities for manual financial data manipulation.
  
• Accelerated Administration: Work units that fully master the credit card system report faster payment processing and fewer delays in executing public activity budgets compared to old manual methods.
  
• The Competency Gap: Individual capacity remains low, as a significant portion of government personnel lacks a fundamental understanding of KKPD mechanics. This lack of understanding stems directly from a shortage of technical training workshops and continuous institutional socialization.
  
• Infrastructure Deficits: A lack of stable internet access in various parts of Banyuasin Regency frequently stalls digital transactions. Furthermore, local application platforms are not yet fully integrated with central banking networks.
  
• Fragmented Execution: Due to weak organizational coordination, different regional offices interpret and practice the credit card guidelines inconsistently, causing highly uneven policy adoption across the regency. Faced with system lags or urgent situations, frustrated staff members frequently revert to old-fashioned cash methods.

Real-World Impact and Policy Implications

The findings from Stisipol Candradimuka offer a clear roadmap for policymakers, public sector leaders, and digital governance specialists across developing economies. The study demonstrates that rolling out software or issuing corporate cards is only half the battle. To prevent digital tools from being abandoned, local governments must pair policy rollouts with targeted funding for local technological infrastructure, ensuring stable connectivity reaches every regional office. Furthermore, the research underscores that human capital development is non-negotiable. For public sector modernization to be sustainable, institutions must move away from "one-off" informational meetings and instead establish continuous, hands-on technical training academies for accounting staff. By resolving these operational bottlenecks, municipalities can fully realize the financial security, cost efficiency, and corruption-resistant benefits promised by digital public wallets.

Author Profiles
Masyairoh is a lead researcher at Stisipol Candradimuka specializing in public administration and regional financial governance. 
Lisdiana holds an advanced degree in public sector management and serves as a researcher at Stisipol Candradimuka. 
Deby Chintia Hestirinah is a public policy analyst and researcher at Stisipol Candradimuka. 

Source

Masyairoh, Lisdiana, Deby Chintia Hestiriniah (2026), Institutional Capacity Perspective in Evaluating the Implementation of KKPD to Face Human Resources and Infrastructure Challenges in Banyuasin Regency, Formosa Journal of Applied Sciences (FJAS), Vol. 5, No. 4, Tahun 2026, Hal. 1087-1096
DOI: https://doi.org/10.55927/fjas.v5i4.51
URL: https://journalfjas.my.id/index.php/fjas