Introduction
Indonesia that has 33 provinces, 399 regencies (Kabupaten) and 98 municipalities (Kota) was implementing decentralization of government since the reform era. By this process, the local people expect will get higher benefit from their local administration through well managed projects and programs, also accountable, transparent, efficient and effective conduct of its financial system. The local stakeholders also hope responsiveness from their local government to fulfill their aspiration and real interests.
However, the reality in the ground is opposite with the public expectations. The level of selective governance indicators situated Indonesia in relatively low amongst countries in the world in the score of voice and accountability and rule of law (Kim, 2009, p.331). Klitgaard (1988 cited in Larmour, 2007, p.351) stated that corruption is happening because disappearance of accountability when officials have monopolies of power and high discretion to action. Furthermore, Larmour (2007, p.350) argued that corruption caused by bad individual, bad system and some combination.
