Journal of Financial Supervision and Audit
The Journal of Financial Supervision and Audit is a peer-reviewed academic journal dedicated to exploring the key issues and practices surrounding financial supervision, auditing, and regulatory oversight in the financial sector. Published by the Fakultas Sosial Ekonomi & Humaniora, Universitas Nahdlatul Ulama (UNU) Purwokerto in collabration with the Indonesian Society for Governance and Public Finance (ISGOV), this journal aims to contribute to the development of robust research on the evolving landscape of financial governance, transparency, and accountability. This journal encompasses a wide range of topics related to financial supervision and audit, including regulatory frameworks, auditing standards, financial risk management, internal controls, and compliance within the public and private sectors. It also delves into the role of auditing in ensuring financial integrity, preventing fraud, and maintaining trust in financial reporting and financial institutions. As a double-blind peer-reviewed journal, Journal of Financial Supervision and Audit ensures that all submissions undergo a rigorous evaluation process, guaranteeing the highest academic standards in its published content. The journal is published biannually, with issues released in January–June and July–December. It welcomes contributions from scholars, researchers, practitioners, and policymakers working in the fields of financial supervision, auditing, and regulation. The journal seeks to publish a diverse range of manuscripts, including empirical research, theoretical papers, case studies, and policy analyses, with a focus on improving practices in financial auditing and oversight to support better governance and decision-making processes. The Journal of Financial Supervision and Audit serves as an important platform for advancing knowledge in financial oversight and audit practices, providing critical insights for researchers and professionals seeking to understand and address the challenges of financial management, regulation, and auditing. Authors are expected to adhere to the journal's submission guidelines, and manuscripts that do not comply with these requirements will be returned without review. Only manuscripts meeting the journal’s formatting and content criteria will be considered for further editorial evaluation and peer review. With a commitment to excellence and transparency in academic publishing, the Journal of Financial Supervision and Audit aspires to be a leading journal in the field, driving innovation, knowledge exchange, and policy development in financial supervision and auditing practices globally.
Fakultas Sosial Ekonomi & Humaniora, Universitas Nahdlatul Ulama (UNU) Purwokerto
Auditor Professional Skepticism Under Intense Regulatory Oversight
This study examines the role of auditor professional skepticism in sustaining audit quality under conditions of intense regulatory oversight. Using a systematic literature review approach, the study synthesizes peer reviewed research on regulatory pressure, behavioral reinforcement mechanisms, firm level culture, and technological transformation in auditing. The findings indicate that regulatory inspections and enforcement mechanisms significantly influence auditors’ risk assessments and evidence evaluation strategies, encouraging more conservative and rigorous judgments. However, professional skepticism is not solely driven by external pressure. Internal organizational practices, including structured training and supportive learning environments, strengthen auditors’ critical thinking and questioning mindset. The review also reveals that technological advancements, such as data analytics and blockchain based procedures, reshape evidence processing and require heightened vigilance in interpreting system generated information. Overall, professional skepticism emerges as a dynamic capability shaped by regulatory intensity, institutional support, and digital innovation, serving as a strategic safeguard that enhances audit effectiveness and public trust.
Assessing the Effectiveness of Financial Supervision in State-Owned Enterprises
This study examines the effectiveness of financial supervision in state owned enterprises through a systematic literature review approach. State owned enterprises play a strategic role in national economies but face complex governance challenges arising from their dual mandate of public service provision and commercial performance. The review synthesizes empirical evidence on how governance structures, audit oversight, accountability mechanisms, and institutional environments interact to influence transparency, financial discipline, and organizational sustainability. The findings indicate that board independence, professional expertise, and clear ownership functions significantly enhance financial reporting quality and operational efficiency. High audit quality, supported by structured accountability systems and effective audit committees, strengthens monitoring capacity and reduces managerial opportunism. However, supervisory effectiveness is contingent upon strong legal frameworks and independent regulatory enforcement that limit political interference and agency conflicts. The study concludes that integrated governance, rigorous audit mechanisms, and supportive institutional environments collectively determine the sustainability and accountability of state owned enterprises.
Audit Standard Convergence and Its Implications for Multinational Corporations
This article asks how audit standard convergence affects multinational corporations and whether formal alignment with International Standards on Auditing produces comparable audit outcomes across jurisdictions. Using a systematic literature review of peer reviewed empirical studies published from 2020 to 2024, the study synthesizes evidence on ISA adoption and implementation, expanded auditor reporting, and cross border oversight regimes. The results show that convergence improves reporting credibility and comparability mainly when it is reinforced by strong enforcement, inspection capacity, and consistent governance practices, rather than through adoption alone. The discussion integrates findings across institutional, audit production, and disclosure perspectives to explain how convergence reshapes group audit coordination, component auditor reliance, and transparency pressures in practice. Overall, the review finds that convergence can reduce information risk for globally exposed firms, but it may also reallocate compliance effort toward group level orchestration and oversight readiness, often materially. Future research should isolate mechanism specific effects and quantify multinational cost and benefit tradeoffs.
Whistleblowing Mechanisms and Audit Response: The Moderating Role of Audit Committees
Whistleblowing mechanisms are increasingly relied upon to surface misconduct signals that may reshape auditors’ risk assessments, yet the strength of audit response varies across firms. This article asks how whistleblowing system quality translates into observable audit responses and whether audit committees condition that relationship. Using a systematic literature review of peer-reviewed studies published between 2020 and 2024, the study consolidates evidence on reporting-channel design, audit outcomes (fees, effort, reporting, and internal control evaluations), and governance oversight. The synthesis indicates that credible and timely allegations are most consistently associated with risk repricing and targeted assurance expansion, while weak investigative follow-through dilutes report informativeness. The discussion organizes findings into an evidence pathway linking allegation credibility, investigation and remediation documentation, and audit committee information governance. Overall, engaged audit committees strengthen escalation and remediation processes, enabling more precise audit adjustments, whereas limited involvement increases uncertainty and encourages broader, conservative audit responses. Practical implications and research priorities are identified.
The Evolution of Risk-Based Supervision under Digital Financial Transformation
Risk-based supervision is being reshaped by digital financial transformation, raising a central question: how can supervisors preserve credible assurance when controls, decisions, and services are increasingly automated, data- driven, and outsourced? This study synthesizes evidence through a systematic literature review focused on financial supervision and audit implications. The reviewed studies show a reallocation of material risk from mainly balance- sheet vulnerabilities toward operational resilience, cyber governance, data integrity, model risk, and third-party dependencies. Findings also indicate that SupTech can strengthen risk-based supervision by enabling earlier risk sensing and targeted interventions, but only when supervisory analytics are governed with validation, explainability, and auditable decision trails. The article discusses these results through thematic synthesis linking supervisory risk taxonomies, technology-enabled supervisory cycles, and auditability of digital controls, including AI systems. Overall, the review concludes that digitally enabled supervision is constrained less by tool availability than by institutional capacity, data readiness, and assurance arrangements that align supervisors, firms, and auditors.
Transparency in Budgeting as a Key Driver of Public Trust in Financial Governance
Budget transparency serves as a fundamental pillar in fostering accountability and enhancing public trust in government financial management. Within the framework of modern democracy, disclosing information on the allocation, utilization, and reporting of public funds is not merely an administrative requirement but also a strategic tool to reinforce the legitimacy of government institutions. This research seeks to examine how budget transparency functions as a key factor influencing public trust in financial governance. A qualitative method is employed, using a literature review (library research) based on secondary data from books, academic journals, institutional reports, and other relevant sources. The findings reveal that transparency in budgeting strengthens public trust through three primary channels: improving accountability, curbing corruption, and promoting broader citizen participation. Nonetheless, obstacles such as limited public understanding of budget information, unequal access to data across regions, and disparities in institutional capacity present significant challenges to effective implementation. These insights highlight the need for consistent policies, stronger collaboration between government and civil society, and the integration of technology to maximize the positive effects of transparency on public trust.
Profitability, Solvency, and Sales Growth as Drivers of Stock Valuation in Real Estate and Construction
The property, real estate, and building construction sectors are crucial contributors to economic development, with company performance significantly influencing stock market valuation. Financial performance, reflected through profitability and solvency ratios, and sales growth are key indicators shaping investor decisions. This study aims to examine the effects of financial performance and sales growth on stock prices in these sectors. A Systematic Literature Review (SLR) approach was employed, analyzing secondary data from scientific publications, including national and international journals, conference proceedings, and research reports published between 2019 and 2023. The study synthesizes findings on how profitability, solvency, and sales growth interact with stock prices, considering sector-specific characteristics and external market conditions. Results indicate that high profitability and controlled debt levels positively affect stock prices by enhancing investor confidence, while sustainable sales growth signals long-term business potential. However, these effects can be moderated by economic fluctuations, operational efficiency, and market perceptions. The study concludes that a balanced integration of strong financial performance and consistent sales growth is essential for stock valuation, offering practical insights for investors and corporate decision-makers.
Assessing Energy Subsidies' Impact on National Industrial Productivity and Efficiency
Energy subsidies are a pivotal policy tool aimed at bolstering industrial competitiveness and economic growth by stabilizing energy costs for industries. In Indonesia, these subsidies significantly influence the industrial sector, a key driver of GDP and economic transformation. This study evaluates the effectiveness of energy subsidies in enhancing industrial productivity and energy efficiency, exploring their dual impact. While subsidies reduce production costs, foster investment, and support strategic sectors like manufacturing and mining, they may also lead to inefficiencies, market distortions, and dependency, hindering innovation and sustainable practices. Through a qualitative literature review, this research synthesizes findings from scholarly sources to assess how subsidies affect industrial output and efficiency metrics, such as Total Factor Productivity (TFP). The analysis highlights that poorly targeted subsidies can impede technological advancements and exacerbate fiscal burdens, while well-designed policies promote renewable energy adoption and long-term competitiveness. This study offers evidence-based recommendations for reforming energy subsidy policies to align with sustainable industrial development and national economic goals, contributing to the discourse on optimizing fiscal interventions for industrial growth in Indonesia.
When Trade Barriers Rise: Impacts of Developed Nations’ Protectionism on Developing Countries’ Exports
The resurgence of protectionist policies in developed nations has profoundly impacted the export competitiveness of developing countries. This study examines how trade barriers, such as tariffs, quotas, subsidies, and stringent regulations, affect exporters in developing economies. Through a qualitative literature review, drawing from academic journals, international organization reports, and credible media, the research explores the direct and structural consequences of protectionism. Findings reveal that these policies restrict market access, elevate production costs, and disrupt global supply chains, significantly undermining the competitiveness of developing countries’ exports, particularly in agriculture and textiles. Additionally, protectionism stifles innovation, widens global competitiveness gaps, and creates market uncertainties, challenging long-term economic planning. Developing nations face increased compliance costs and reduced bargaining power in trade negotiations, exacerbating economic vulnerabilities. The study also investigates adaptive strategies, such as market diversification and regional cooperation, to mitigate these impacts. By offering a nuanced understanding of protectionism’s effects, this research contributes to theoretical discourse and informs policy formulation, advocating for a fairer global trade system to support the economic resilience of developing countries in an increasingly restrictive trade environment.
The Impact of Internal Auditor Training Effectiveness on Enhancing Anomaly Detection Rates
This study investigates the critical role of internal auditor training effectiveness in improving the detection of organizational anomalies. High-quality training is essential for equipping auditors with the necessary skills, knowledge, and professional skepticism to identify irregularities, such as fraud or procedural violations, that can jeopardize organizational integrity. By conducting a qualitative literature review, this research explores how training quality influences auditors’ ability to detect anomalies, emphasizing factors such as curriculum relevance, teaching methodologies, and technological integration. The findings highlight that comprehensive, adaptive, and practical training significantly enhances auditors’ competence in recognizing complex irregularities, thereby strengthening internal control systems. This study addresses a gap in existing research by focusing on training as a primary determinant of audit effectiveness and offers practical insights for organizations to develop targeted training programs that bolster anomaly detection and governance.
Enhancing Financial Reporting Efficiency through Accounting Information Technology
The rapid development of digital technology has significantly transformed financial management, making the adoption of Accounting Information Technology (AIT) essential for organizations seeking efficiency and accuracy in reporting. This study aims to examine the role of AIT, including Accounting Information Systems (AIS), cloud-based platforms, and AI-based analytics, in enhancing financial reporting efficiency. Employing a qualitative approach through a literature review, the research analyzes secondary data from academic journals, textbooks, research reports, and credible institutional publications. Findings indicate that AIT accelerates report preparation, improves accuracy, reduces operational costs, and provides real-time access to data for strategic decision-making. It also supports compliance with accounting regulations and enables early identification of financial risks. However, successful implementation requires addressing challenges such as high initial costs, limited digital literacy, and data security risks, emphasizing the importance of organizational readiness and training. The study contributes theoretically by integrating insights on AIT’s efficiency benefits and practically by offering guidance for organizations, especially MSMEs, to optimize digital accounting systems and strengthen financial governance.
Strengthening Corporate Governance: The Interaction of Audit Committee and Company Characteristics in Fraud Prevention
Financial reporting fraud is a critical concern in corporate governance, emphasizing the importance of strong oversight by audit committees as well as an understanding of organizational characteristics that contribute to fraud risk. This study explores the impact of audit committee features independence, financial expertise, meeting frequency, and tenure alongside company traits such as leverage, firm size, managerial ownership, and growth rate, on the occurrence of financial reporting fraud. Employing the Systematic Literature Review (SLR) method, relevant studies were gathered, assessed, and synthesized from academic sources available through Google Scholar. The findings reveal that audit committees that are independent, financially skilled, and actively engaged play an important role in lowering fraud risk, although overly long tenure may compromise their independence. Furthermore, firms with higher leverage and rapid growth are generally more prone to fraud, while the effects of firm size and managerial ownership vary depending on the context. Ultimately, the integration of effective audit committee oversight with company characteristics that reinforce sound governance is essential to reducing financial reporting fraud.
Accountability, Transparency, and the Quality of Local Government Financial Reports: A Systematic Literature Review
The quality of local government financial reports represents an important measure of good governance. Among the key factors shaping report quality are accountability and transparency, which influence accuracy, timeliness, and compliance with accounting standards. Nonetheless, their effectiveness is often constrained by issues such as abuse of authority, weak internal controls, limited public financial literacy, and insufficient technological infrastructure. This study applies a Systematic Literature Review (SLR) to analyze how accountability and transparency affect the quality of financial reporting and to identify obstacles that hinder their implementation. The review shows consistent findings: accountability, through systematic monitoring and reporting, enhances compliance with accounting standards but is weakened by inadequate internal control mechanisms; transparency, through open disclosure and citizen participation, improves report reliability and fosters public trust, yet is challenged by low financial literacy and technological limitations. To strengthen these factors, governments are advised to improve oversight systems, promote financial literacy education, and invest in better information technology infrastructure. Future studies are encouraged to investigate context-specific strategies that can support more effective implementation of accountability and transparency in local government financial reporting.
Driving Transparency and Efficiency through E-Budgeting in Indonesia’s Regional Finance Governance
The implementation of e-budgeting in regional financial management represents a strategic innovation to promote transparency, efficiency, and accountability in local governance. Manual budgeting systems have often been vulnerable to errors, inefficiencies, and misuse of public funds, underscoring the need for digital transformation. This study aims to analyze how e-budgeting contributes to improving transparency and efficiency in regional financial management, focusing on its role in strengthening public accountability and optimizing budget utilization. Employing a qualitative approach with a literature review method, the study synthesizes findings from academic works, government regulations, institutional reports, and credible publications. The analysis reveals that e-budgeting enhances transparency by expanding public access to budget information and accountability, as demonstrated in cities such as Surabaya and Surakarta. In terms of efficiency, it accelerates budget preparation, reduces administrative costs, and improves inter-agency coordination. However, challenges remain in digital infrastructure, human resource capacity, and public literacy. Strengthening leadership commitment, technical readiness, and outreach is crucial for maximizing e-budgeting’s role in supporting good governance.
Challenges and Effectiveness of Carbon Tax in Indonesia’s Industrial Sector
The rise of greenhouse gas (GHG) emissions from the industrial sector significantly contributes to global climate change. In Indonesia, this sector accounts for over 20% of the country’s total emissions, largely due to heavy reliance on fossil fuels. To address this, the government has introduced a carbon tax as a fiscal tool to internalize environmental costs and promote the shift toward a low-carbon industry. This study examines the effectiveness of the carbon tax in lowering GHG emissions in the industrial sector and explores challenges in its implementation. A qualitative method based on literature review was employed, using secondary data from journals and official reports. Findings indicate that the carbon tax can strongly encourage energy efficiency, the adoption of green technologies, and behavioral changes among industry actors. Nonetheless, several obstacles persist, including industry resistance, limited understanding of policies, technological constraints, and inadequate emission monitoring. Strengthening policy awareness and technological support is critical to maximize the carbon tax’s effectiveness in achieving a low-carbon industrial transition.
Strengthening the National Research and Innovation System as A Lever of National Industrial Competitiveness
This study emphasizes the strategic role of reinforcing Indonesia’s national research and innovation system to enhance the competitiveness of the domestic industry. Despite ongoing efforts, several challenges remain, including low levels of research commercialization, institutional fragmentation, and limited coordination between academia, government, and the industrial sector. Employing a qualitative approach through a literature review, the study analyzed data from scientific journals, policy reports, and publications from official institutions. The results demonstrate that a well-structured research system can significantly improve production efficiency, support the adoption of advanced technologies such as AI and IoT, facilitate the development of high-value and innovative products, and strengthen human resources through education and technical training. Institutional integration initiatives, notably the establishment of Badan Riset dan Inovasi Nasional (BRIN) and the implementation of the Making Indonesia 4.0 program, highlight the potential for transformative impacts on the national industrial landscape. Although obstacles such as low innovation rankings, coordination challenges, and uneven implementation persist, fostering structured and synergized research and innovation efforts remains the most effective pathway to sustainably increase Indonesia’s industrial competitiveness and support long-term economic growth.
The Role of Sustainable Agriculture Programs in Strengthening National Food Security
National food security remains a critical aspect of sustainable development, particularly in the face of climate change, land conversion, and dependence on imported food. Sustainable agriculture programs offer a strategy that combines ecological, economic, and social dimensions to maintain long-term food availability while preserving the environment. This study examines the impact of sustainable agriculture programs on national food security by exploring both their contributions and implementation challenges. A qualitative literature review approach is employed, analyzing secondary data from scientific journals and other relevant sources descriptively and analytically. Findings indicate that these programs enhance land productivity, maintain environmental stability, improve farmer welfare, and reduce carbon emissions. However, challenges persist, including limited access to advanced technologies, low farmer capacity, inequitable market structures, and restricted financing opportunities. To maximize benefits, integrated strategies are necessary, such as climate adaptation policies, supply chain reforms, farmer capacity building, promotion of food diversification, and strengthened research initiatives. These measures aim to reinforce the role of sustainable agriculture in achieving national food security.
Economic Development and Environmental Sustainability: Sectoral Impacts and Mitigation Strategies
Economic development frequently imposes pressure on environmental quality, particularly through activities in the industrial, transportation, and agricultural sectors. This study examines the link between economic growth and environmental sustainability, focusing on sector-specific impacts and strategies for mitigation to promote sustainable development. Employing a Systematic Literature Review (SLR), the research collects and synthesizes evidence from academic literature to identify key trends and findings regarding the environmental consequences of economic activities. Results indicate that the industrial sector generates solid, liquid, and gaseous waste, polluting air and water resources, while the transportation sector contributes to greenhouse gas emissions due to reliance on fossil fuel vehicles. The agricultural sector, although vital to the economy, leads to soil and water degradation through pesticide and chemical fertilizer use, as well as land conversion. The Environmental Kuznets Curve suggests environmental quality initially worsens during early development stages but can improve with awareness and policy interventions. The study highlights the importance of integrating environmental and economic policies, promoting green technologies, and enhancing public awareness to mitigate environmental pressures and achieve sustainable growth, while also identifying gaps for future research.
The Impact of Global Trade Wars on Export Commodity Price Volatility in Developing Economies
International trade wars have emerged as a major global challenge in recent decades, particularly involving powerful economies such as the United States and China. Trade frictions through tariffs, quotas, and other non-tariff barriers disrupt global trade flows and intensify market uncertainty. For resource-dependent countries like Indonesia, these dynamics directly affect the price stability of key export commodities such as coal, oil, palm oil, nickel, and rubber. This study employs a qualitative method through literature review, relying on secondary data from journals, scholarly publications, and international institutional reports. Findings reveal that the impacts of trade wars are multifaceted and vary across commodities, often amplified by exchange rate depreciation, supply chain instability, and shifting investor sentiment. To mitigate these effects, adaptive strategies are required, including market diversification, industrial down streaming, and improvements in logistics systems. These efforts are essential for strengthening economic resilience and reducing vulnerability to global market turbulence, especially for developing economies heavily reliant on commodity exports.
The Role of Audit Frequency in Ensuring Corporate Financial Compliance
The frequency of external audits plays a significant role in strengthening financial oversight, particularly by ensuring higher compliance with accounting standards and regulatory requirements. This study explores the relationship between external audit frequency and financial compliance, positioning audits as an essential external control mechanism for organizations. Using a qualitative approach, the research relies on secondary data drawn from books, peer-reviewed journals, scholarly articles, and official reports. The findings indicate that increasing the frequency of external audits enhances the timeliness and accuracy of financial reporting, while also fostering stronger accountability and transparency in financial practices. These results are consistent with agency theory, which highlights the importance of independent oversight in reducing conflicts of interest between management and stakeholders. Empirical evidence further supports the positive correlation between frequent audits and compliance, though the degree of effectiveness is influenced by contextual factors such as organizational size, internal control systems, and the balance between benefits and associated audit costs. Consequently, the study emphasizes the need for adaptive, risk-based audit policies to ensure long-term financial integrity and sustainable compliance.
The Interplay of Investment and Inflation in Driving Economic Growth
Investment and inflation are two essential macroeconomic elements influencing the trajectory of economic growth. Investment enhances productive capacity, stimulates business activity, and creates employment, while inflation may limit growth by weakening purchasing power and creating uncertainty. Their effects vary according to the policy environment and overall economic conditions. This study employs a Systematic Literature Review (SLR) based on the PRISMA protocol to examine the relationship among investment, inflation, and growth. The process includes identifying relevant scholarly works, applying quality criteria to select studies, extracting key findings, and conducting thematic analysis to uncover patterns and knowledge gaps. The results emphasize that investment accelerates growth when directed toward productive sectors under a conducive climate. Conversely, high inflation constrains both consumption and investment, whereas moderate inflation can support growth by signaling strong domestic demand. Ensuring positive outcomes requires credible monetary frameworks, effective governance, and policies that promote fair investment distribution to sustain long-term development.
Optimizing Investment for Inclusive and Sustainable Development
Investment plays a fundamental role in driving economic growth, particularly in developing nations, by expanding production capacity, generating employment, and strengthening the economic foundation. Its effectiveness is shaped by internal factors such as political and economic stability, government policy, and institutional performance, as well as external dynamics including globalization and international markets. A deeper understanding of how these elements interact is essential to explain the link between investment and growth. This study explores the contribution of investment to economic development, identifies the main determinants of investment success, and evaluates the role of government and institutions in optimizing results. Adopting a Systematic Literature Review (SLR),with quality assessment based on the Critical Appraisal Skills Programme (CASP). The findings reveal that both domestic investment and Foreign Direct Investment (FDI) significantly contribute to GDP growth, technology transfer, and trade expansion. Stable governance, sound policies, and institutional quality are decisive, while globalization serves as an external driver.
The Impact of Regional Minimum Wage Policies on Formal Workers’ Welfare: A Literature Review
The welfare of formal workers serves as a crucial indicator for evaluating the effectiveness of employment policies in Indonesia. One key policy to safeguard this welfare is the Regional Minimum Wage (Upah Minimum Regional/UMR), designed to ensure that workers receive a living wage aligned with their basic needs. This study seeks to examine comprehensively the influence of UMR determination on formal workers’ welfare using a qualitative literature review approach. The data relied upon are secondary sources, including academic books, peer-reviewed journals, policy reports, and other relevant publications. The findings reveal that UMR has the potential to strengthen purchasing power, minimize wage exploitation, enhance productivity, and promote gender equality in wages. Nonetheless, several challenges remain, such as regional disparities, employer non-compliance, inflationary pressures, and limited parameters in defining Decent Living Needs (Kehidupan Hidup Layak/KHL), all of which hinder the optimal realization of UMR’s benefits. Hence, a reformulation of UMR policy is required, adopting a more holistic and adaptive approach to socio-economic dynamics, so that this policy can effectively serve as an instrument for sustainably improving workers’ welfare.
The Role of Sustainable Tourism in Strengthening Regional Economic Growth
Sustainable tourism has become increasingly acknowledged as a strategic instrument in regional economic growth. The tourism sector holds vast potential to generate employment, encourage local MSMEs, and enhance Regional Original Revenue (Pendapatan Asli Daerah/PAD). These contributions highlight the necessity of promoting destinations that are inclusive, environmentally sustainable, and socially beneficial. This study aims to examine how sustainable tourism development supports regional income and stimulates local economic progress. The research applies a descriptive qualitative design through literature review, relying on data from scientific articles, journals. The results demonstrate that sustainable tourism development strengthens regional revenue via sectoral taxes, job creation both directly and indirectly, as well as multiplier effects derived from infrastructure investment and community participation. Nonetheless, issues such as unequal benefit distribution and risks of environmental degradation remain pressing challenges. Therefore, collaborative efforts and regulatory frameworks are recommended to maximize the contribution of sustainable tourism toward inclusive, balanced, and sustainable regional development.
Economic Bureaucratic Reform and Its Role in Optimizing Development Budget Governance in Indonesia
Economic bureaucratic reform is considered a strategic measure to address inefficiency, ineffectiveness, and low accountability in the management of Indonesia’s development budget. This study is driven by the urgency to transform the bureaucratic system in order to establish more transparent, efficient, and results-oriented budget governance. The primary aim of this research is to examine the influence of economic bureaucratic reform on budget effectiveness, focusing on efficiency, accountability, acceleration of economic activity, and its contribution to national productivity. A descriptive qualitative method was employed, utilizing collected through literature studies from scientific journals. The findings are demonstrate that bureaucratic reform positively impacts administrative efficiency, licensing speed, and investor trust through improved governance practices. Nevertheless, issues such as fragmented authority, limited capacity of public officials, and resistance to change remain significant obstacles. Therefore, integrated, adaptive, and performance-based reform is crucial to optimizing the development budget, promoting public welfare, and sustaining long-term economic growth.
Tax Incentives and the Formalization of Informal MSMEs in Indonesia
Micro, Small, and Medium Enterprises (MSMEs) hold a vital role in Indonesia’s economy, contributing over 60% to GDP and employing 97% of the labor force. However, the majority still operate informally with restricted access to financing, legal protection, and market participation. To address this, tax incentives such as the 0.5% final income tax stipulated in Government Regulation (PP) Number 23 of 2018 are introduced to foster formalization and growth of informal MSMEs. This study explores the contribution of tax incentives in promoting formality, enhancing productivity, and uncovering barriers to implementation. Adopting a qualitative design through literature review, secondary data from academic journals, government reports, and official regulations were analyzed using content analysis and triangulation. Findings reveal that tax incentives improve liquidity, competitiveness, and employment capacity of informal MSMEs, while facilitating formalization through simplified administration. Nevertheless, limited tax knowledge, bureaucratic hurdles, and insufficient dissemination weaken policy outcomes. Integrated efforts involving training, mentoring, and infrastructure are required to optimize impact toward inclusive and sustainable economic transformation
Effectiveness of Tax Rate Reduction in Increasing National Private Investment
Tax rate reductions are often linked to the growth of private investment, since in theory they increase net profit after tax and create incentives for businesses to expand. This study examines the effectiveness of Indonesia’s Corporate Income Tax (CIT) reduction policy in stimulating national private investment. A qualitative descriptive approach was applied, relying on a literature review of scholarly sources and official government fiscal policy reports. The results show that while domestic investment experienced growth after the tax rate cut, the effect was not strictly linear. Investment performance was also shaped by structural elements such as legal certainty, political stability, and bureaucratic efficiency. Several studies further emphasize potential negative implications, particularly the risk of an expanding budget deficit that could weaken productive public financing. Therefore, the policy of reducing tax rates can only achieve optimal effectiveness if it is integrated with broad structural reforms aimed at creating a competitive and sustainable investment ecosystem capable of supporting long-term economic development in Indonesia.
Auditor Independence and Its Impact on Financial Reporting Quality
This study investigates the critical role of auditor independence in maintaining high-quality audits and ensuring the reliability of financial reporting. Employing a literature review method, the research identifies key threats to independence, such as the significance of major clients, the provision of non-audit services, extended auditor tenure, and close relationships between audit firms and clients. These factors, if not effectively controlled, can impair auditors’ objectivity, resulting in diminished audit quality and decreased trust in financial statements. The study emphasizes that compromised independence can negatively influence stakeholder confidence, as users of financial information depend on auditors’ impartial judgment and professional integrity. To mitigate these risks, the research recommends establishing independent oversight boards within large audit firms and enforcing mandatory auditor rotation policies. Implementing these strategies is expected to enhance auditor objectivity, preserve audit quality, and strengthen the credibility of financial reporting, thereby ensuring that stakeholders including investors, regulators, and the public can rely on financial statements with confidence.
Determinants of Financial Reporting Timeliness in Indonesian Capital Market
The accelerated growth of Indonesia’s capital market has heightened both investment interest and the complexity of financial activities, positioning financial statements as a critical source of information for investors. Timely submission of financial reports is vital for minimizing uncertainty, addressing information asymmetry, and sustaining investor trust, as mandated by the Indonesia Stock Exchange. Several factors are considered influential in determining reporting timeliness, including profitability, company size, institutional ownership, and the role of audit committees. This study seeks to examine the effects of these variables on the timeliness of financial reporting among firms listed in Indonesia and to provide useful insights for managers, regulators, and investors. Employing a Systematic Literature Review (SLR) method, the research identifies, reviews, and synthesizes prior findings to reveal how these determinants shape reporting timeliness. Results indicate that profitability and firm size significantly improve timeliness, while institutional ownership strengthens external monitoring and audit committees enhance internal governance. Sound corporate governance plays a central role in ensuring transparency and timely financial disclosure.
The Impact of Tax Planning and Good Corporate Governance on Firm Value
This study highlights the pivotal role of tax planning and Good Corporate Governance (GCG) in enhancing firm value and promoting long-term sustainability. The findings show that companies with well-structured governance frameworks and strategic planning are better positioned to increase profitability, attract investors, and sustain competitiveness in the global market. The Board of Directors is instrumental in developing policies and strategies aligned with organizational objectives, while the Board of Commissioners ensures oversight and accountability, supporting balanced decision-making. Effective governance mechanisms, including independent audit committees and transparent disclosures, help reduce agency conflicts and strengthen financial performance. Additionally, factors such as company size and audit committee effectiveness are shown to affect governance outcomes. Beyond financial returns, the study underscores the importance of sustainability, corporate social responsibility, and transparency as essential elements for cultivating investor trust and enhancing corporate reputation. Consequently, implementing sound corporate governance practices is critical not only for improving financial performance but also for fostering responsible and sustainable business operations.