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Purpose One of the strongest connections in politics in developing countries is through military links. This study aims to examine the auditor choice preference of the militarily-connected firms in Indonesia, an emerging country where there is a strong influence from the military on political decision-making. Design/methodology/approach The analysis used 3,473 firms-year observations listed on the Indonesian Stock Exchange spanning from 2003 to 2017 using regression and other statistical tests. Findings The results reveal that firms with a militarily-connected director are less likely to appoint one of the Big 4 auditors. Using the military reform as a natural experiment, the finding shows that militarily-connected firms did not change their auditor choice preference even after the military reform. Interestingly, I find that connected firms are associated with high earnings management. In addition, the different retirement position level and military affiliations of the connected directors generate different outcomes related to the auditor choice decision. Overall, the results indicate that militarily-connected firms were less likely to appoint one of the Big 4 auditors both before and after the military reforms. These results are robust, even after the author controlled for political connections, year fixed effects and industry fixed effects. Research limitations/implications Because of the limitations of the prior literature on military connections, this study is developed based on the assumption that the militarily-connected directors have identical behavior whether they serve in either public or private companies. However, this assumption could be invalid which potentially affects the interpretation of some of the results in this study. Originality/value This paper provides direct evidence of the auditor choice preference of firms with a military connection. The evidence builds on the existing literature on the difference in auditor choice preference between politically and militarily-connected firms.

This study examines the relationship between firm-level political connections and stock price crash risk in Indonesia. It employs the difference-in-difference design to deal with the self-selection bias issue regarding the choice of the firms to become a politically connected firm. We use the sudden resignation of the former President of Indonesia, Suharto, to show that politically connected firms are associated with lower stock price crash risk and that the risk for these politically connected firms increased after Suharto resigned. Furthermore, we found evidence that these negative associations are more pronounced in firms with more complex firm structures.

AbstractPolitical life concerns all those varieties of activity that influence significantly the kind of authoritative policy adapted for society and the way it is put into practice. We are said to the participating in political life when our activity relates in some way to the making and execution of policy for a society.Political decision making is one of the most important research domains in political psychology and rational choice theory is the most commonly use theoretical frame work to explain decision making processes.Basic assumptions (normative) rational choice theory are that individuals and choose action that are optimally related to their beliefs and values. Moreover, political decision making in particular voting is only weakly related to actual self interest.Democracy a system of government by the whole population or all the eligible members of a state, typically through elected representative, control of an organization or group by the majority of its members. If politic is perceived as consisting of those collectivized decisions. Naturally, while all the decisions of political nature are collectivized decisions are political.While a social demoracy and the reason that makes it entirely different from a socialist democracry from a policy enforced by a socialist state upon a society. Social democracy descend from the top down. While socialist democracy is above all away of governing.

Government Internal Auditor Apparatus (GIAA), as a professional organization of government internal auditors, consists of Indonesia's National Government Internal Auditor (BPKP) and Inspectorate on the level of local government and has a very important role in creating clean, fair, transparent, and accountable governance. Nevertheless, in running its responsibilities and functions, GIAA often faces audit conflicts that lead to a dilemma situation. The audit conflict will become an ethical dilemma when GIAA faces ethical and unethical choices that determine an auditor's decision-making (Windsor et al., 1995). GIAA as a professional organization is required to be able to make appropriate conclusion from the audit findings based on the applicable code of ethics in the constitution and profession. Ethical decision is a publicly acceptable conclusion, both legally and morally ( Jones, 1991; Trevino, 1986). Several previous studies suggest that there are significant individual and situational factors that influence a person in making decisions ethically (Trevino, 1986). The individual factor that influences one's determination in facing ethical dilemmas is spiritual and ethical orientation, whereas the situational factor that supports in ethical decision-making is personal ethical judgment. Based on the aforementioned explanation, this study aims to examine the effect of ethical orientation on ethical decision, either directly or through ethical judgement at GIAA of Financial and Development Supervisory Board (BPKP) and Inspectorate East Java Local Government. Test results show that ethical orientation has a significant positive effect on ethical decision; ethical orientation has a significant positive effect on ethical judgment; ethical judgment has a significant positive effect on ethical decision; and ethical judgment mediates the relationship between ethical orientation and ethical decision.

Budgeting for a state or a country seems to be the most important part to handle administration and government policy in term of socio economic reason. In practice, a lot of government tends to subscribe a balance budget whereby it is striving to balance between revenues and expenditures accurately. Unfortunately, this balancing post uses a debt and foreign aid charged by interest to cover any shortage in revenues. In the real context, the budget deficit management based on debt is still controversial and considered inappropriate with developing country conditions which their economies are unstable and fluctuated. Unfortunately, many countries in the world including Muslim-populated countries subscribe budget deficit system whereby the sources of its fund are backed up by debt. The focus of this paper is to analyze two main sensitive issues of the Indonesian economy in the light of Maqasid Al Shariah. This study employs a method of literature review and combined with data analysis. Actually, Islam has a very rich literature legacy in administrating public sector economy and it becomes important theory and framework as a stance or point of view to analyze the prevailing system. The high interest rate payment is the main issue of public sector expenditure. Indonesian government seems no choices to resolve its public sector economy and relies too much on debt management. For social welfare expenditure there has been a misallocation in emphasizing budget expenditure whereby oil and petroleum subsidy consume almost majority of the total welfare expenditure in Indonesian public sector economy

Arikel ini bertujuan untuk memahami dinamika sosial politik masyarakat Desa Rias terkait kontestasi politik pemilihan legislatif tahun 2019. Khususnya tentang faktor-faktor yang mempengaruhi kegagalan Calon Legislatif dari Desa rias pada momentum pemilu tahun 2019. Penelitian ini menggunakan Metode Kualitatif model deskriptif dengan teknik pengumpulan data berupa wawancara, observasi dan dokumentasi. Hasil penelitian ini menemukan bahwa terdapat beberapa hal dan kondisi yang saling berkaitan yang melatarbelakangi kegagalan calon legislatif dari Desa Rias, yaitu; (1) Konstelasi politik masyarakat. (2) Perilaku politik masyarakat yang bersikap kritis kepada caleg dari dalam desa tetapi tidak kritis terhadap caleg dari luar desa. (3) Figur caleg dari dalam desa yang mendapatkan stigma negatif ketika mendekati pemilihan. (4) Tim sukses/relawan caleg yang tidak solid, tidak berpengalaman, hanya memanfaatkan uang para caleg dan tidak fokus memenangkan caleg dari dalam desa, dan terakhir (5) Biaya atau cost politik caleg yang kecil. Selain itu penelitian ini juga menyimpulkan bahwa aspek primordialisme dalam kontestasi politik desa telah kehilangan pengaruhnya. Pilihan politik masyarakat desa lebih ditentukan oleh konstruksi rasionalitas dari pada hubungan primordial dengan aktor politik.AbstractIThis study aims to understand the social and political dynamics of the Rias society related to the political contestation in the legislative elections in 2019. Especially the cause of the failure of the legislative candidates from Rias Village In the 2019 elections. This study uses a qualitative method with data collection techniques in the form of interviews, observation, and documentation. This research found several things and interrelated conditions that underlie the failure of legislative candidates from Rias Village, i.e; (1) The political constellation of society. (2) Political behavior is critical to candidates from within but not to candidates from outside the village. (3) A figure of candidates who get a negative stigma when almost an election. (4) Team and volunteer candidates who are not solid, inexperienced, take advantage of candidate's money and not focused on winning candidates, and finally (5) Political costs of candidates. The factors that caused society to vote outside candidates are (a) The Political Constellation, (b) a Figure of Candidates, (c) Team, and (d) Political Cost. Besides, the primordialism aspect of political contestation in the village has lost its influence. The political choices of rural communities are more determined by rational construction than primordial relationships with political actors.