The Analysis of Entrepreneurial Leader on Local Government Performance

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The Analysis of Entrepreneurial Leader on Local Government Performance

By: Mahmudi

Faculty of Economics Universitas Islam Indonesia


[Jurnal Akuntansi Sektor Publik – SNA 13]


This study examines the difference of performance between local governments led by entrepreneur and non-entrepreneur. The purpose of this study is to examine whether local governments led by entrepreneur have better performance compare to non-entrepreneur in terms of local government original revenue growth (Pendapatan Asli Daerah), economic growth, level of poverty, and Human Development Index. The samples of this study consist of 102 local governments in West Java, D.I. Yogyakarta, Central Java, and East Java.

The existing data classified into two groups based on the background of local government leader, 35 of them categorized as entrepreneur and 67 categorized as non-entrepreneur local government leader. The two-sample Kolmogorov-Smirnov test is used to analyze data. This study provides evidence that the performance between local governments led by entrepreneur and non-entrepreneur is significantly different. Local governments led by entrepreneur on average has better performance compared to non-entrepreneur measured by PAD growth, economic growth, poverty, and HDI.


Keywords: Entrepreneur, Performance, PAD growth, PDRB growth, Poverty, Human Development Index

It has been one decade public sector reform in Indonesia going on. Since the reformation movement in 1998 there are massive changes in management of Indonesian public sector organizations. The reformation agenda occurs in all aspects that called “total reform.” Bureaucracy system, legal and institutional, financial management, public sector audit as well as accounting are the most important aspect that has been reformed. All of those aspects are part of public sector reform to pursue good governance and clean government. Public sector reform in Indonesia may be still a new issue, but actually it has become main agenda in developed countries for last two decades. For example, United Kingdom has sponsored to reform its public sector by implementing the concept of New Public Management that later adopted by several countries in Europe, Africa, and Asia (Ferlie at el. 1997, Polidano, 1999). In United State of America, the movement of government reform conducted at the Bill Clinton administration era with the concept of Reinventing Government proposed by David Osborne and Ted Gaebler (1992).

Jurnal Akuntansi Lainnya:  Pengaruh Risiko Litigasi Dan Tipe Strategi Terhadap Hubungan Antara Konflik Kepentingan Dan Konservatisma Akuntansi

Public sector reform in Europe with the concept of New Public Management and in U.S.A with Reinventing Government principles directly or indirectly influence and inspiring public sector reform in Indonesia. New Public Management concept as proposed by Christopher Hood (1991) characterized by seven principles i.e. professionalism in public sector management, using performance measure and performance standard, emphasis on output and outcome control, split of organization unit or decentralization, adopting market mechanism into public sector, adopting private sector management technique into public sector, and discipline in using public resources.

Meanwhile, the concept of Reinventing Government as proposed by Osborne and Gaebler consist of ten principles i.e. catalytic government, community-owned government, competitive government, mission-driven government, result-oriented government, customer-driven government, enterprising government, anticipatory government, decentralized government, and market-oriented government.

Download Link Jurnal Akuntansi Sektor Publik – SNA 13


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