Universitas Gadjah Mada
Faculty of Economics and Business

Master of Accounting Study Programme (MAKSI) UGM has released Financial Condition Index and Financial Transparency Index in a national seminar entitled Healthy and Transparent Regional Financial Management on Thursday (7/9) in Grha Sabha Pramana Hall UGM. MAKSI also awarded 75 regional governments that ranked well in the index.

“There are 55 of 75 regional leaders and representatives attending the event to receive the awards. The awards are granted to regions that rank the best in the Financial Condition Index and Financial Transparency Index based on regions and different categories,” said Secretary of the study programme, Irwan Taufiq Ritonga, Ph.D, CA, on Monday (11/9).

The ranking is based on financial condition index sourced from financial reports of provincial, regency and municipal governments in year 2015 that had been declared as Normal Without Exception by the National Financial Auditing Agency, and socio-economic data from Statistics Office in year 2015 as well as financial transparency index that was published by government in 2016.

Irwan said the seminar was based on research by lecturers and students on Regional Financial Condition and Financial Transparency that are considered not yet optimum.

Apart from unique indicators, different levels of development in various regions are also taken into consideration, for example Sumatera, Java, Kalimantan, and Sulawesi.

The awards, said Irwan, are planned to be granted each year with the aim to encourage the regional leaders and financial managers to continue improving services that are needed by the society.

The event was appreciated both by the university and the regional leaders. Dean of Faculty of Economics and Business UGM, Dr. Eko Suwardi, M.Sc., said the methodology to produce the index was made by competent assessors and it has been proven as valid, consistent, and practical, so it became the reference to know the performance of each region.

“The award is based on scientific methodology that is clear. Besides, the regional leaders that are present here are invited for free. By being here, they already participated and inspired other regions,” said Eko.