Application and Development of Public Sector Accounting

Application and Development of Public Sector Accounting

One form of the application of accounting techniques in the public sector is state-owned organizations. In 1959 the government of the old order began to policies such as the nationalization of foreign companies be transformed into state-owned enterprises (SOEs). But because it is not managed by professional managers and the number of 'politicization' or government intervention, resulting in the company is only used as 'cash cows' by the bureaucrats. So that history does not show the presence and the good results are not encouraging.
This condition persisted in the new order. More contrast again at the issuance of Government Regulation No. 3 Year 1983 on the functioning of the state. By considering some of these functions, the consequences must be borne by the state as a public company is the highlight of its existence as an agent of development rather than as a business entity. In spite of it all, the existence of public sector accounting practices in Indonesia with a clear legal status has been there since many years rolling of legitimate government.