COERCIVE PRESSURE FOR THE IMPLEMENTATION OF THE INDONESIAN VILLAGE E-GOVERNMENT FOR PUBLIC ACCOUNTABILITY

Abstract

In Indonesia, digital financial management has reached the village level through applications such as the digital financial management system titled “Sistem Keuangan Desa,” also known as SISKEUDES, which is mandated by the central government to manage village funds. While e-government programs have generally been associated with improved public accountability, the mechanisms through which these systems are adopted and implemented, especially under institutional pressure, remain underexplored in the context of village governance. This study responds to this gap by examining how coercive institutional pressures shape the implementation of SISKEUDES. In the context of SISKEUDES, coercive pressure manifests through central government mandates, local government supervision, and strict monitoring of fund management and reporting practices. Despite its intention to promote digital governance and financial accountability, the application’s implementation faces multiple challenges at the village level. Specifically, this study investigates the motivations behind the central government’s requirement for SISKEUDES and explores how various institutional actors—including regulators (the Ministry of Home Affairs [MoHA]), supervisors (local governments), and executors (village officials)—interpret and respond to these coercive forces. It also highlights barriers such as limited technical capacity, infrastructural gaps, and misalignment with regulatory updates, which complicate effective implementation. By focusing on the institutional dynamics behind SISKEUDES, this research contributes to a deeper understanding of how coercive pressures operate in decentralized governance systems and offers insights into the uneven trajectories of digital transformation in rural settings.
Keywords: e-government, public accountability, coercive pressure, SISKEUDES.