PERAN SISTEM PENGENDALIAN INTERNAL PEMERINTAH (SPIP) DALAM OPTIMASI ANGGARAN DI PEMERINTAH DAERAH DI INDONESIA

This study analyzes the role of SPIP, the internal control of Indonesia, within the broader framework of
Public Financial Management (PFM) and how it influences the appropriation of health budgets to achieve
Sustainable Development Goal 3 (SDG 3). In contrast to previous studies, which have predominantly
focused on the coverage of health budgets, SPIP emerges, theoretically, as a moderating variable
intervening between the relationship between expenditure on health and health results. Using JKN
coverage, Indonesia's National Health Insurance program and chief tool for pursuing universal coverage
for health, for tracking the realization of SDG 3, a dataset of 538 municipalities for a period of five years,
from 2018 until 2022 (2,690 observations), the study conducts Moderated Regression Analysis using
Generalized Least Squares, considering heteroscedasticity, as well as autocorrelation, for estimation. While
the results confirm that a greater appropriation of the health budget promotes the success of JKN, whose
impact is significantly boosted by SPIP due to the enhancement of transparency, accountability, and due
utilization of the budget, evidence exists that points towards a strong internal control, when complemented
with effective management of the budget, facilitating a catalyst towards SDG 3 realization. Furthermore,
it provides impetus towards another motivation for policymakers to increase sustainability, along with
greater inclusivity, for health developmental efforts, strengthen strategies for health budgeting, and realize
SPIP implementation strategies.