Digitizing Public Expenditures through Government Credit Cards: Enablers and Barriers to Policy Implementation in Indonesia

Abstract

Digital transformation in public financial management has prompted the government to develop cashless payment mechanisms to improve efficiency, transparency, and accountability. One of the instruments used is the Government Credit Card (KKP); however, its utilization remains suboptimal despite the availability of supporting infrastructure and regulations. This situation indicates that the digitization of public expenditure is not only related to technology adoption but also to organizational implementation capacity. This study aims to analyze the implementation of the KKP in payments for operational goods at the Ponorogo Regency Statistics Agency (BPS) and to identify the conditions that support and hinder its implementation. The study employs a descriptive qualitative approach with a case study design. Informants were purposively selected from the Ponorogo Regency Statistics Agency (BPS) and the Madiun Regional Treasury Office (KPPN). Data were collected through semi-structured interviews and documentation, then analyzed based on the four dimensions of policy implementation proposed by Edwards III: communication, resources, disposition, and bureaucratic structure. The results indicate that the implementation of the KKP is supported by the commitment of implementers, the competence of financial managers, internal communication, and guidance from the KPPN. However, its utilization remains limited by information gaps, the scarcity of digital payment facilities, reliance on physical cards and specific providers, the absence of specific standard operating procedures (SOPs), and the need for cross-organizational coordination. The study concludes that optimizing the digitization of public expenditures requires integration among information updates, adequate resources, implementers’ commitment, clear procedures, and coordination among stakeholders.