A Pandora Box Effect to State Asset Management Reform in DIY Yogyakarta

Indonesia’s public policy reform in state asset management ignited from the publication of unfavourable quarterly external audit results, in which many regional governments achieved low results. It is therefore interesting to observe that after the introduction of said reform in 2006 there is slow improvement of the quarterly external audit results, inducing increased concerns as to the level in which it new state asset management laws and principles are understood and implemented by regional government (Padirman 2009). Mardiasmo (2012) posed the question of ‘what are the influencing factors to implementation of reformed state asset management laws’; in which the ‘voices of reason’—bureaucratic culture, political history, and traditional culture—are identified as a potential explanation to stagnancy in reform. The purpose of this paper is to further analyse the potential role of ‘voices of reason’ in the conceptualisation, introduction, socialisation, and implementation of newly reformed state asset management laws and regulations; with the aim to determine whether or not ‘voices of reason’ does play a role, and if so, how. Mardiasmo’s (2012) work suggested as such, however its validity and in what form does such influence take shape, is not yet known. In achieving the above objective, this paper will provide an in-depth discussion and analysis of one of the main case studies in Mardiasmo’s (2012) work, DIY Yogyakarta Special Region, outlining their version of state asset management laws and regulations; and elements that influences the conceptualisation and implementation of said laws. Further this paper will draw upon qualitative data (available laws and reports, interview transcripts, and observation notes) collected during the period of June–July 2010. Through a meta-analysis and thematic approach this paper creates an ethnography of DIY Yogyakarta’s journey (thus far) in interpreting and moulding expected international and national standards to sit comfortably within its ‘voices of reason’.