THE JOURNEY OF INDONESIAN GOVERNMENT ACCOUNTING

: From 1974 to today, Indonesia has undergone many periods of financial management reform. Financial management reform is necessary for a country to attain excellent governance. The crisis that happened in 1997 prompted the adoption of good Governance in Indonesia. The 1997 financial crisis revealed the inadequate management of public finances up until that point. Thus, the Indonesian government began to recognize excellent governance gradually. Government Accounting Standards are the first step towards achieving excellent Governance (SAP). In Government Regulation 71 of 2010, Accrual-based SAP is the proper SAP for implementing good governance. Government Regulation No. 71 of 2010 implements Law No. 17 of 2003 About the Financial Country. Using the accrual method is anticipated to enhance the transparency of financial reporting and the government's public accountability. This type of qualitative descriptive research seeks to comprehend how the transition from pre-reform to the post-reform application of Government Accounting Standards happened. Through a literature search, the data for this investigation were acquired.


INTRODUCTION
Public Sector Reforms occurred in the 1980s and were carried out by advanced industrial countries. Indonesia initiated reforms, especially in the public sector, in 1997. 1997 was a dark year for the Indonesian economy. The economic crisis in 1997 paralyzed the Indonesian economy, which is indicated by the increasing number of companies that are no longer operating/bankrupt, the number of unemployed workers, and the decline in the rupiah value (Tarmidi, 2003). The effects of the financial crisis were made worse by the Indonesian government's structural weaknesses and lack of transparency, which led to uncertainty and weakened the banking system when much foreign money came in. (Tarmidi, 2003). The many practices of KKN (Corruption, Collusion, and Nepotism) exacerbate the crisis, especially when KKN behavior takes refuge under the rules of the game, of course, making the business environment and the trust of the outside world to invest in a very alarming level (Mardiasmo, 2002).
Most individuals are unprepared for corruption, collusion, and nepotism. This circumstance motivates individuals to implement excellent governance inside government institutions. Corruption destroys societal trust, may impede national political progress, and lead to a fall in the economy (Yousaf et al., 2016). The Indonesian government has made advancements in State Finance Management as part of its attempts to foster good Governance (Suryanto, 2018 (Halim & Kusufi, 2017). In theory, PP 71 of 2010 is a form of government accountability as an institution to the community as a principal. The choice of agency theory to be associated with PP 71 of 2010 is a form of originality of this article. Society, as the principal, has an integral part in the reform of government financial management in Indonesia Reform of the Government of Indonesia's Financial Management has made significant progress in establishing a sound financial management system to achieve good governance. This study investigates changes in implementing government accounting standards before and after the reform. With this research, it is hoped that it can contribute to adding to the literature on the development of accounting in Indonesia.

LITERATURE REVIEW GOOD GOVERNANCE
According to Elahi (2009) (Heryanto, 2014). Public participation in the voting process in the election of a government is a condition of democracy (Yousaf et al., 2016).
The World Bank and IMF also believe participation is essential to good governance indicators (Uzzaman, 2010). Accountability refers to legal frameworks and reporting.
Any organization that utilizes public funds and makes decisions that impact people's lives must follow specific organizational structures, strategies, processes, and activities to ensure they can be held accountable for their actions. (Rufus & O, 2019).
Accountability becomes a fundamental value of the political system. Its existence is essential for the government because it provides a way for the government to understand how a program can fail and provide solutions to find a program that can work adequately (Rufus & O, 2019). The next pillar of good governance is transparency.
Transparency is an action that refers to the disclosure of information from public entities about what they do (Rufus & O, 2019).

BUILDING GOOD GOVERNANCE
Good governance is a significant social project. Building it requires several stages: implementing value for Money (Heryanto, 2014), adopting the New Public Management approach, and adopting Reinventing Government (Pack & Weimer, 1994). Value for money is a concept that refers to achievement, value, and the use of significant resources in programs and public policies (King & Allan, 2018). The evaluation framework for Value for Money consists of several dimensions: economics, effectiveness, efficiency, and equity (King & Allan, 2018). When value-for-money principles are used in the public sector, it is hoped to increase public service effectiveness, improve public service quality, and reduce public service costs (Heryanto, 2014). The next stage is the New Public Management (NPM).
Decentralization, delegating, and increasing local governments' authority are all necessary components of the performance management idea known as "New Public Management.". (Indrawati, 2010). The market economy is the paradigm for New Public Management's political and administrative relationships (Hope, 2001). The existence of NPM has caused a change in public sector management from a traditional, rigid, bureaucratic, and hierarchical management system to a flexible and more market-accommodating public sector management model (Mahmudi, 2003). This new approach has made a radical change in organizational culture. The development or application of methodology and methods make the functioning of government agencies more efficient and effective. (Islam, 2018). The subsequent phase entails recreating the government. The entrepreneurial mentality is transformed into the public sector by reinventing government (Lustiadi, 2016). According to Osborne and Ted Gaebler (1992) in Lustiadi (2016), the concept of reinventing government directs the government to focus more on the directing function, not on producing public services. The government gives authority to the community so that they can help themselves in the hope of reducing dependence on the government in providing services and must be able to compete with the private sector based on performance. The government must change the form of rewards and incentives towards results achieved, not inputs. The government must identify real customers to set service standards and communicate them to customers, and the government must use strategic planning, decentralized government, and be marketoriented.

PUBLIC SECTOR ACCOUNTING
An accounting information system assesses business activities, converts data into reports, and tells decision-makers what they show.s (Jusup, 2016). According to Sugijanto et al. (1995) in Halim and Kusufi (2017), accounting is divided into three main areas: Commercial Accounting, Government Accounting, and Social Accounting. According to Yuwono et al. (2015) in Komarawati (2010), Government Accounting or Public Sector Accounting provides quantitative financial information from government entities to process decisions from interested parties on various alternative directions and actions.

HOW IMPORTANT ACCOUNTING IS IN THE PUBLIC SECTOR
Accountability to the public, openness, and predictability of organizational performance are all achieved through accounting (Halim & Kusufi, 2017). In order to adopt NPM and achieve optimal organizational performance, there must be value for money, which includes effectiveness, economy, and efficiency. (Vries, 2010). Hence, public sector accounting with the notion of NPM and value for money is a remedy for the inadequate management of public enterprises that appear inefficient and responsible (Halim & Kusufi, 2017). Transparency and accountability are the people's wishes for a country to manage its state. The International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), and the World Bank all advised governments in 2010 to move away from conventional cashbased accounting systems and in the direction of accrual-based accounting systems (Halim & Kusufi, 2017 Accounting rules from the government are those used to compile and present financial reports for the government. In other words, SAP may function as a legal framework to enhance the quality of government financial reporting in Indonesia (Hariadi et al., 2013). A Government Accounting System exists to increase vigilance at the government level (Bracci et al., 2015).

ACCOUNTING BASED ON CASH AND ACCRUAL
Cash-based accounting is an accounting system where transactions are recorded when money from these transactions has been received or issued (Christofzik, 2019). Meanwhile, In an accounting system known as accrual-based accounting, transactions and other events are recorded as they happen rather than waiting for money to be collected or paid (Christofzik, 2019;Jr Harrison et al., 2012). In other words, cash-based accounting revenues, expenditures, and financing in the application of cash-based accounting are recognized when cash or cash equivalents are received.
In contrast, accrual-based accounting recognizes and records revenue, costs, financing, assets, liabilities, and equity as the transaction occurs. The implementation of the accounting basis is based on Standards for Government Accounting. There are two approaches to apply accrual-based Government Accounting Standards, namely: (Maimunah, 2016): (1)

RESULT AND DISCUSSION
The public sector must adhere to the principle of good governance. Accounting is a service activity that provides data to become the basis for decision-making. To be able to make the right decisions, accounting principles are needed (Mardiasmo, 2002).
Accounting Principles are the principles and concepts used to prepare financial statements. In addition, accounting principles result from developing research results, practices that apply to society, and remarks made by competent authorities (Jusup, 2016).
To make a financial report, we first know the purpose of financial reporting, which consists of (Mardiasmo, 2002): (1) With the existence of financial reports, it is hoped that they will be able to show the economic sources of a company transaction.
The three characteristics of the information above will become a guide in preparing financial statements in an organization or business entity. Therefore, from the description above, the relationship between public sector accounting and good governance is an instrument for elaborating good governance to a more tangible level.
This clarification can be achieved by managerial accounting, financial accounting, and auditing in the public sector. These three tools pay close attention to several pillars of Good governance, hoping to create an atmosphere of checks and balances (Mardiasmo, 2002).
The journey of accounting in Indonesia,
Guidelines are needed to explain the process of developing an accrual-based government accounting system in more detail (Suryanto, 2017).
In 2015, the accrual-based SAP system was implemented. Implementing this SAP application is not easy, and it requires supporting conditions for its implementation, which is also an obstacle faced at this time.
The following is according to Ritonga (2010) in Halim and Kusufi (2017) Resources support in financial management, (2) They need support from the examiner of financial statements, budgeting. (Ganjar, 2017). This guideline still has some finances, including the application of recording still using a single entry and cash basis (Halim & Kusufi, 2017 (Setiatiti, 2016). There are several general characteristics of the double accounting system adopted by SAPA, namely among others (Setiatiti, 2016): (1) Oriented to regional policies contained in government regulations related to regional financial issues, (2) Is a combination of financial accounting with government accounting, (3) Recording Granting autonomy to the regions is a step to provide opportunities for them to empower their potential and manage the development of their respective regions. Regional governments are given independence regarding regional finances that aim to improve community services. Local governments must consider several aspects in developing autonomy, namely (Amin, 2013): 1) The administration of regional finances and budgets is necessary for the growth of the Regional Government's capacity and effectiveness, 2) A healthy bureaucracy, having an entrepreneurial spirit and insight must develop by the Regional Government 3) The government's connection with the people, government institutions/officials, and third parties must maintain the principle of decency in government 4) The need for community participation in development so that local governments can know the community's requirements and preferences.
The change in the accounting system for the stages during the reform period was a shift from a single-entry and cash-based recording system to a double-entry and modified cashbased. (Halim & Kusufi, 2017). There are only two cash bases in accounting, namely, cash basis and accrual basis. The modified cash basis is the modified cash basis between the cash and accrual basis for the transition period (Halim & Kusufi, 2017;Suryanto, 2017). The hope to fully apply accrual-based accounting in this period is still very much hoped for because the benefits of implementing accruals are to produce better financial reports to increase transparency in regional financial management.
Transparency is needed to achieve good governance. However, accruals cannot be applied in this second stage due to complexity considerations and the unprepared state/regional apparatus to implement them. (Halim & Kusufi, 2017).

THIRD PHASE (2005-2010)
This third stage of reform is a continuation of the second stage. As is well However, the budget and its realization cannot be compared (Halim & Kusufi, 2017).

FOURTH PHASE (2010-Present)
This stage is part of the financial reform with its implementation on an accrual basis as mandated by Article 36 paragraph (1) of Law