Agung Juliarto

This study aims to examine the impact of corporate social responsibility, budget surplus, and investment cash flow on capital expenditure budgeting within city government clusters in Indonesia. The population includes city governments recorded in the Ministry of Home Affairs. The samples were taken from data on corporate social responsibility and budget surplus, as well as investment cash flow for the fiscal year 2023 and capital expenditure budget for 2024 in 81 city governments in Indonesia. Empirical findings indicate that corporate social responsibility negatively affects capital expenditure budgeting across all city government clusters. The impact of budget surplus varies. On the one side, budget surplus has a positive effect on capital expenditure budgeting in Cluster A (highest) and a negative impact on capital expenditure budgeting in Cluster C (lowest). Conversely, in Cluster B (middle), budget surplus does not affect capital expenditure budgeting. Similarly, investment cash flow positively affects capital expenditure budgeting in Cluster A and negatively affects capital expenditure budgeting in Cluster C. Meanwhile, in Cluster B, investment cash flow does not affect capital expenditure budgeting.

Type of the article: Research Article

Education financing through the School Operational Fund (SOF) program significantly helps overcome challenges in achieving educational goals, both in terms of quantity and quality. In this context, governance mechanisms play a crucial role in evaluating the effectiveness of SOF management. This study examines how governance mechanisms – accountability, transparency, and internal control – influence the effectiveness of SOF management in public primary and secondary schools in Indonesia. Drawing on agency theory, this study addresses the limited empirical evidence on the governance of public education funds in a decentralized education system. Using survey data collected from 216 school principals across 459 public schools in Padang Pariaman Regency, Indonesia, this study applies multiple linear regression to test the proposed relationship. The sample size of 216 was calculated at 95% confidence with a 5% margin of error. The results of this study show that accountability (β = 0.187, p < 0.05), transparency (β = 0.128, p < 0.05), and internal control (β = 0.446, p < 0.05) positively affect the effectiveness of educational operational fund management (SOF). These results support the three proposed research hypotheses. The results of this study highlight the importance of governance mechanisms in mitigating agency problems in publicly funded education programs. This study expands the literature on public sector financial management by providing empirical evidence from a developing country context. It provides policymakers with practical insights to strengthen oversight mechanisms and improve the implementation of educational operational funding programs.