Accelerating Transformation Program in Indonesian Regional Development Banks: The Importance of High Quality Information

Sylvia Fettry

Abstract


Purpose The role of Indonesia Regional Development Bank (RDB) as an agent of development in each specific operational area is expected to give a significant contribution on regional economic. The Transformation Program in Indonesia RDB started since 2015 is created to optimalize the RDB’s role. This study is aimed to gain some description about the level of information quality in Indonesia RDB, to obtain real situation on the implementation of Transformation Program in Indonesian RDB, and to test whether high quality information will accelerate the implementation of Transformation Program in Indonesian RDB.

Design/methodology/approach – The study was conducting using data from annual report of Indonesian RDBs and additional in-depth interview with RDB practitioners. The technique of purposive sampling is used in this study with the data availability criteria. The statistic analysis uses multiple regression with t-test and F-test to test the influence of information quality and some control variables on the implementation of Transformation Program in Indonesian RDB.

Findings – The Indonesian RDBs’ quality of information still can not be perceived in a high level. The implementation of Transformation Program in Indonesia RDBs has already run in the first phase of foundation building with various obstacles. The high quality information produced by financial reporting of RDB is proven can accelerate the implementation of Transformation Program in Indonesia RDBs.

Originality/Value – The area of implementation of Transformation Program in Indonesia RDBs has been insufficiently examined currently. Thus, this study contributes on this area by examine whether high quality information produced by financial reporting will accelerating the implementation of Transformation Program in Indonesian RDB.

Keywords Information Quality, Financial Reporting, Banking Transformation

Paper type Research Paper


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