Ratnawati Raflis

Type of the article: Research Article

Abstract
This study aims to examine the interrelation between public budgeting transparency, public participation, government regulation, local government financial capacity, and public trust in shaping local government accountability in heritage asset management. The study focuses on West Sumatra, Indonesia, where local governments play a crucial role in preserving cultural heritage assets. The sample included 250 local government employees actively engaged in heritage asset management. Data were collected using a structured questionnaire between March and June 2024, with responses analyzed using WarpPLS. The study rigorously adheres to ethical principles to protect the participants and ensure the integrity of the research process. Results indicate that public budgeting transparency (β = 0.165, p = 0.003) and local government financial capacity (β = 0.143, p = 0.004) both directly and indirectly, via mediating public trust, influence local government accountability (β = 0.193, p = 0.003). Government regulation (β = –0.012, p = 0.433) was not found to have any direct significant impact on accountability. On the other hand, public trust and government regulatory systems have a strong direct relationship with local government accountability but a weak indirect relationship through public trust, which makes governance mechanisms pretty complex. Public trust plays a vital role in connecting transparency, financial resilience, and accountability to the legitimacy of enforcement and effective governance. The findings underscore the significance of integrating trust-building measures, transparency, and financial capacity for governance frameworks to ensure equitable and sustainable heritage asset management.

Type of the article: Research Article

Abstract
Regional transfers are a key instrument of regional fiscal policy that promote balanced development and reduce disparities across districts, yet the behavioral responses of local governments to these inflows remain insufficiently understood. This study examines how regional transfer fund allocations influence government expenditure, unemployment, infrastructure development, and regional revenue in West Sumatra using quarterly data for 2014–2024. A Bayesian Vector Autoregressive framework is employed to address small-sample limitations and to capture the dynamic responses to transfer shocks. The results show that increases in regional transfers have limited, short-lived effects on unemployment, while capital expenditure on basic infrastructure declines, indicating potential crowding-out of certain government spending categories. At the same time, regional revenue responds positively, suggesting that transfers can support local fiscal capacity in the short term. These findings highlight that, although regional transfers can facilitate immediate fiscal stabilization, they may hinder long-term infrastructure investment unless accompanied by performance-based fiscal mechanisms. Improving transfer design and accountability is therefore essential to ensure that fiscal resources promote sustainable development outcomes.

Acknowledgments
This research is a grant from the Ministry of Higher Education, Science, and Technology of the Republic of Indonesia under the Impactful Leading Consortium Research Scheme (RIKUB Scheme) in accordance with research contract number 008/C3/DT.05.00/RIKUB/2025.