Andi Ratna Sari Dewi

This study aims to analyze how two different types of investments (local domestic and foreign direct investments at the provincial level) and revenues (booked by the provincial governments, general allocation funds, special allocation funds, local taxes, and retribution) affect investment loan decisions by local government banks in Indonesia. The study uses panel data applying ordinary least squares and multiple linear regression. Thus, 144 data were sampled from 2013 to 2021 from 16 local government banks out of Java Island in 21 provinces in Indonesia. The study found that local domestic investment at the provincial level affects investment loan decisions by local government banks. In contrast, foreign direct investment did not affect lending decisions, indicating that local domestic investment contributes to the real local economy at the provincial level. Different results were found in provincial revenues in the form of general and special allocation funds, which negatively affected loan investment decisions, possibly due to provincial revenues utilized to cover the financial deficit and capital expenditure spent chiefly on imported goods. Additionally, local taxes at the provincial level also negatively affect investment loan decisions, possibly due to fluctuations in local tax collection during COVID-19. However, the study found that local retribution contributes to predicting loan investment decisions, suggesting revenue collection by the governments considering local economic conditions. The study findings suggest that provincial governments should direct investments that can impact the local economy and spend their revenues on goods and services that can drive local economic growth.

Acknowledgment
The investment loan made by local government banks, which is associated with local investment and revenue, is part of a research grant project from the Economics and Business Faculty of Hasanuddin University. This project is a result of collaboration with national and international researchers. In carrying out this research, some inputs from people working in local government banks, financial service authorities, and provincial and regency governments are addressed.
Thanks to Ahmadi Usman for secondary data and Syahidah Ulhaq for some application programs enabling mapping literature, as well as Israa Natiq Jabar for supervising the result and applied some inputs in the section of research method.

This study aims to analyze the effect of political will and information technology on fraud prevention either directly or through the quality of financial reporting information. This study uses a survey method that intentionally targets five village officials responsible for village financial administration. The survey was conducted in Pangkep Regency, South Sulawesi Province, Indonesia. Data collection was carried out using a questionnaire with a total research sample of 325 respondents. Data analysis was conducted using partial least squares structural equation modeling with the help of the SmartPls 4.0 application. The results showed that political will had a positive and significant effect on fraud prevention (β = 0.198; t-value = 3.230 > 1.97) but had no effect on the quality of financial reporting information (β = 0.053; t-value = 0.696 < 1.97). Information technology had a significant negative effect on fraud prevention (β = –0.198; t-value = 3.019 > 1.97) and a significant positive effect on the quality of financial reporting information (β = 0.186; t-value = 2. 863 > 1.97). Fraud prevention has a positive and significant effect on the quality of financial reporting information (β = 0.161; t-value = 2.598 > 1.97). Political will has no significant effect on fraud prevention through the quality of financial reporting information (β = 0.009; t-value = 0.628 < 1.97), while information technology has a positive and significant effect on fraud prevention through the quality of financial reporting information (β = 0.029; t-value = 2.093 > 1.97).