From SAKIP to PSSR: Assessing the Readiness Gap and Decoupling Risks in Indonesian Local Government Rahmad Hidayat1, Andi Chairil Furqan2
1 Accounting Department, Faculty of Economics and Business, Tadulako University
2 Accounting Department, Faculty of Economics and Business, Tadulako University
Abstract
The global push for the adoption of Public Sector Sustainability Reporting (PSSR) by IPSASB creates new institutional pressures for local governments in Indonesia. This research aims to analyze the readiness level of these local governments, diagnose structural barriers, and assess the risk of ceremonial adoption. Using the lenses of Institutional Theory and Contingency Theory, this study examines how local governments are responding to the pressure for PSSR adoption.
This study employs a deductive qualitative content analysis design, focusing on pioneer, high-performing local governments (Surabaya, D.I. Yogyakarta, Tuban). Readiness is measured by comparing the strategic rhetoric in planning documents (RPJMD), reflecting perceived institutional pressure, against the substantive resource allocation in performance reports (LAKIP), reflecting technical and HR readiness. This design is uniquely structured to test the phenomenon of decoupling.
The findings identify a fundamental and universal readiness gap. Key findings include: (1) Heterogeneous perceptions of institutional pressure (high in Surabaya, yet absent in DIY and Tuban)- (2) Universally low technical readiness, constrained by fragmented non-financial data and a financially-oriented IT architecture- (3) Absolutely low HR readiness, characterized by a competency trap where training remains focused on the existing SAKIP/WTP paradigm. Strong empirical evidence of classic decoupling (ceremonial adoption) was found in Surabaya, where strong strategic rhetoric was unsupported by substantive implementation.
This study concludes that PSSR adoption in Indonesia faces a high risk of substantive failure if forced through a Big Bang approach. Readiness is a matter of paradigm disruption, not mere compliance. The implication is that national regulators must prioritize a capacity-building-before-compliance roadmap, focusing on data architecture and HR competencies. Theoretically, this research identifies a competing institutional field (domestic SAKIP/WTP logic vs. global PSSR logic) as a driver for decoupling and confirms data architecture and HR competencies as critical internal contingency factors for successful PSSR adoption.
Keywords: Keywords: Public Sector Sustainability Reporting (PSSR)- Institutional Theory- Decoupling- Ceremonial Adoption- Adoption Readiness- Local Government- Indonesia- SAKIP- Contingency Theory.
