Title: Fraud detection in local government in Indonesia

Authors: Navira Erliani; Einde Evana; Lindrianasari; Rindu Rika Gamayuni

Addresses: Financial and Development Supervisory Agency, Republic of Indonesia, Master of Accounting Science, University of Lampung, 35145, Indonesia ' Accounting Department, University of Lampung, 35145, Indonesia ' Department of Accounting, School of Accounting, Bina Nusantara University, 11530, Indonesia ' Accounting Department, University of Lampung, 35145, Indonesia

Abstract: This study aims to test the influence of the hexagon fraud theory on fraud in local government. The sample for this study consists of districts and cities in Indonesia. The results indicate that all independent variables - pressure, opportunity, rationalisation, capability, arrogance, and collusion - significantly influence fraud in local government in Indonesia. This study is expected to evaluate and identify mitigation efforts for potential factors that contribute to the occurrence of fraud. Finally, we conclude that the Fraud Hexagon model developed by Vousinas is very effective for detecting fraud in government, especially in Indonesia.

Keywords: fraud; fraud hexagon; local government.

DOI: 10.1504/IJMEF.2025.148118

International Journal of Monetary Economics and Finance, 2025 Vol.18 No.2/3, pp.196 - 205

Received: 17 Aug 2023
Accepted: 30 Oct 2024
Published online: 25 Aug 2025 *

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