Adaptive Capacity in Regional Budget Execution and Administration at the Regional Financial and Asset Management Agency of Polewali Mandar Regency

Abstract

Budget expenditure realization in Polewali Mandar Regency remained relatively high from 2023 to 2025, reaching 92.71%, 95.92%, and 95.31%, respectively. However, performance varied considerably across regional government agencies amid updates to the Regional Government Information System of the Republic of Indonesia (Sistem Informasi Pemerintahan Daerah Republik Indonesia, SIPD-RI), the implementation of the 2025 expenditure efficiency policy, and an increasing number of spending units. This study aimed to examine the adaptive capacity of the Regional Financial and Asset Management Agency (Badan Pengelolaan Keuangan dan Aset Daerah, BPKAD) of Polewali Mandar Regency in regional budget execution and administration. The analysis employed four dimensions of Connolly and York's adaptive capacity framework: monitoring change and performance, assessment and evaluation, responsive and flexible planning, and networking, collaboration, and knowledge sharing. A qualitative approach with a single-case study design was employed. Data were collected through in-depth interviews with 13 informants, comprising seven key informants from the regional government and BPKAD and six treasurers from agencies with the highest and lowest budget realization rates. Additional data were obtained from budget realization reports and relevant administrative circulars. Data were analyzed using the interactive model developed by Miles, Huberman, and Saldaña. The findings revealed uneven adaptive capacity across organizational functions. BPKAD demonstrated relatively strong adaptability in procedures within its direct control, including identifying administrative delays through system timestamps and audit trails, conducting preliminary verification of disbursement documents, establishing service time standards through the Regional Financial Management Information System (Sistem Informasi Pengelolaan Keuangan Daerah, SIPEKDA), and accelerating administrative processes while maintaining regulatory compliance. However, budget realization monitoring remained delayed and insufficiently differentiated across agencies, organizational learning had not been fully institutionalized, budget adjustments lacked procedural transparency, and horizontal coordination networks remained predominantly informal. The study concluded that adaptive capacity in regional financial management was primarily manifested through relational and procedural flexibility supported by frontline administrative discretion. Strengthening this capacity required a balanced approach that integrated administrative efficiency, regulatory compliance, institutional learning, and public value creation.