the history of indonesian accounting in the golden age · web viewaccounting in the golden age of...

Accounting in the Golden Age of Singosari …

Accounting in the Golden Age of Singosari Kingdom: A Foucauldian Perspective

Eko Ganis Sukoharsonoand

Novrida QudsiDepartment of Accounting

Brawijaya University

Abstract

The aim of this study is to explore the history of accounting in Indonesia. In this case, a particular period of Indonesia history – the form and the existence of the accounting system in the Singosari Kingdom era – is the focus of the investigation. In the context of this study, accounting is not simply a method of calculation, but it is a discipline with complex phenomena in which it influences the individual, organizational, and social orders. In addition, the range of its aspects is from social, political and economic point of view.

This study is conducted by using a Foucauldian concept of the relation between the power and knowledge. The historical accounting researchers use the Foucauldian approach to show the accounting complexity of the power and knowledge structures within a society. This approach shows the accounting system as a valuable social science for disciplining the society and manifesting a comprehensive political power within the society. Then the major concern of the methodological analyses in the accounting research is to disclose how accounting becomes a disciplinary power and constitutive activity of knowledge.

The kingdom of Singosari (1222-1292) was historically closely related to the foundation of Majapahit kingdom, particularly in the field of public finance and administrative accountability. There was a fact that during Singosari and Majapahit kingdom, state-craft stressed the importance of a full treasury for successful governmental activities. Both kingdoms evolved a regular system of taxation. The taxation system, in some extent, was a complex system in which it provided the tax for merchandise in various tariffs and different types of levies based on the commodities and the problems occurred. The complex system of the taxation would not be possible without involving the accounting in term of calculability. One of the particular developments of the accounting system in form of writing during the Singosari kingdom was related to the mechanism in which writing was used for the purpose of administration and accountability of the tax collection in the royal court of the Singosari kingdom. The records of tax collection were reflected in simple forms. For instance, the Inscription of Turyyan mentions that the earning of the society in a year was equal to 1 kati and 3 gold swarna. Then it can be concluded that the development of accounting in Indonesia is not an instant process, but it emerged through a long and complex process of the history. The kingdom of Singosari used accounting as a technique to discipline the subjects under the kingdom’s territory. Through this study, it is clear that accounting had a significant role as a supporting means of the Singosari kingdom development. It did not merely provide the technical calculation, but also the diverse roles in social, economic, and political life.

I. INTRODUCTION


From the beginning of its emergence, accounting has shown its role and function in the

society as a system which processes and provides financial information. It develops continuously

in a line with the change in the society, especially in the business society. Furthermore, during

these days accounting is considered as a study concerning the money and number in which both

things are the main points in the calculation. Moreover, accounting cannot also be separated to

the time. We cannot stop and turn every event back; we cannot know the consequence of each

event before it is done or we cannot also know before the event happens. Then we call it the past,

the present, and the future time (Chambers, 1998). The past events in accounting are usually

called the history of accounting; the present time is the time where accounting exists; meanwhile

the future time is called prediction (Sukoharsono, 2005).

Then the focus of the research here has a close connection to the past time of accounting

or the history of Indonesian accounting. Therefore, it can be said that accounting exists in the

social dimension, from the smallest, an individual up to the biggest one, a company and country.

Even, it was started in the past continued to the present and the future time. The practice of the

accounting system is influenced by the surrounding factors (social, economic, and political) in

which accounting is run and passes a unique development on the basis of the economic, social,

and political development of a certain country.

Furthermore, the emergence of accounting system in Indonesia can be seen from the

recording of every event (Sukaharsono and Gaffikin, 1993). It can be seen in the inscription

recording financial transaction such as taxation or other transactions written in the old Javanese

form (Sanskrit). In Indonesia, Sukoharsono and Gaffikin (1993) study the accounting emergence

during the Dutch colonialism era (at the beginning of 17th century). On the basis of that research,

it can be inferred that the first token of the accounting system application in Indonesia was from

the implementation of the Dutch colonialism system. It can be proved by a surveillance of the

colonialism system in specifying the controlled individual in the social, economic, and political

life. Then accounting held a significant role during the Dutch colonialism era in relation to the

price, cost, and profit. However, it also has a different role in the social life of the society.

By the developing of the new perspective in the accounting research, the history of

accounting is not seen as a simple calculation anymore in which it was in form of chronological

evolution. Miller and Napier (1993) give the new perspective in viewing the development of

accounting such as viewing the external factor and stressing on the essential of the accounting


changing in responding to the factor – the internal factor is the knowledge of accounting itself.

Meanwhile, the history of traditional accounting, in the difference of its problematical matter

between external (organization, economy, and society) and internal (the accounting knowledge),

is seldom to ask accounting for its emergence and development as a power and discipline.

The pattern forming accounting in the Singosari era can be identified by the existing of

the recorded economic transaction. The conceptual problems having the important point on the

existing of the accountants refer to the kind of transaction which should be recorded and the kind

of monetary value which should be enclosed. The operational mechanism of the tax collection in

the Singosari kingdom shows the kingdom financial form and the administration accountability.

The kingdom arranged the taxation rules which obligatory paid to the kingdom. In addition, there

were also types of the tax rates and the kind of taxes which could be collected by the kingdom.

The decision of the kingdom to collect the tax was not a trifling matter, but it was a foundation of

accounting.

Based on the description above, it is clear that the focus of this research is to disclose the

accounting form used in the Singosari kingdom era by using etnoarcheology approach in

collecting the historical object and applying a Foucauldian perspective concerning the idea

history in which it is used as a means in analyzing the creation of accounting form.

II. ACCOUNTING AND THE PERSPECTIVE OF FAUCOLDIAN

a. The Conventional Understanding of the Accounting History Research

The history of accounting is mostly understood only as a reflection of the evolution in

economical issue and industrial development. This kind of understanding explains that the

economical and technical analysis still dominate the overall aspects in accounting research.

Indeed, the social and political influence in the development of accounting are often ignored

(Tyson, 1993). Moreover, accounting is considered as something which is independent and

whether in the past or at the present it is regarded the same. This is a very narrow-minded

viewpoint and tends to consider the accounting practices as a technical phenomenon without any

influence from the environmental factor (Laughin and Lowe, 1985).

The conventional analysis of accounting history which sees accounting atheoretically

tends to ignore the related problems in the quest of the social understanding concerning

accounting activity (Hopwood, 1983). It has changed along with the emergence of a new


phenomenon which sees that human interest also influences the accounting activity. This new

phenomena gives a scope to analyze the relation between accounting and many organizational

issues also with the social relation (North, 1985).

b. The History of Accounting and The Development of Its Thoughts

Mattesich (1994:5) states that the writing culture (recording) was recognized since 8000-

3000 BC. Therefore, it is not surprising that the existence of accounting can be traced back to the

time of the Greek and Roman Empire. The historical record proves that there was a work of

Roman architecture at the beginning of the Christian era of which the existence was along with a

certain records. The records showed that the value of the work was not only determined by the

costs but also the costs after it were reduced by one-eighteenth of it. This practice was continued

every year since the work (wall) had been built (Costouras, 1979 in Sukoharsono, 1995:62).

Obviously, those records and concepts are not enough to study the development of accounting

thoughts and concepts. The study needs other relevant evidences so that the accounting history

can be discovered and understood well.

In the middle Ages, the first record concerning double entry book keeping system was

found in the records of the merchants from Genoa, Italy. During these years (1340s) the centre of

trade such as Genoa, Venice, and Bologna had already used the system. Therefore, no wonder

that Luca Pacioli, an Italian intellectual, wrote the oldest treatise about double entry book

keeping system by applying his math analysis to explain the system. Luca Pacioli’s book, which

was published in 1494 entitled “Summa de arithmatica Geomatria Proportioniet et

Proportionalita”, discusses the double entry book keeping system in detail for the first time.

c. Foucoult and Accounting History Research

The result of Foucoult’s thoughts is a huge concern in the critical tradition of accounting.

Walsh and Stewart (1993) explore the practices of managerial accounting by using Foucoult’s

perspective to compare two groups of people. The first group came from the 1700 and another

was from 1800. The research supports Foucault’s argument concerning the idea that human is an

individual creature who comes from the emergence of disciplinary mechanism. In a wider

context, before the end of the 18th century there was no effort to study an individual especially

the relation between the accounting calculation and the measures of an individual and group


works.

If Walsh and Stewart (1993) focus their research on the factory system in the past to

support Foucault’s perspective, Miller and O’Leary (1987) study another period of time to see

why the application of standard cost determination and budgeting became very popular in the

United States during the turnover of the 20th century. Their findings support Foucault’s

perspective and they also discover the specific dimensions of the period studied at once in which

they may be gone through the researchers’ attention.

Faucauldian perspective gives more understanding toward the accounting phenomena as

a disciplinary power form and constitution activity in which it gives an alternative perspective in

viewing the emergence and the role of accounting in relation to the organizational scope and the

accounting social. Accounting is not considered as a matter getting through the evolutionary

development anymore based on the positivistic point of view. However, it tries to study the

changing of accounting on the basis of the history condition at that time proven as an activity

which has a specific interest. Furthermore, it does not merely reflect its context, but also

influences the context.

d. The Existence of Accounting Practice

The history of accounting is not considered as a simple calculation in chronological

evolution anymore. Its changing has a wide social scope between its essence and its form. Ste

Croix (1956), in Sukoharsono (1995:61), conclusively gives the evidence showing the existence

of accounting practice in the Old Greek although it was not clearly shown that they used double

entry book keeping since there was no Hindus-Arabic numbering system, and zero number in

arithmetic. In addition, the meaning of the number was not yet started. However, in another side

currency creating system had been begun in the early of Roman Empire (Morgan, 1965 in

Sukoharsono 1995:62). The development of money as a medium of exchange was not followed

yet by the adopting of a systematically modern system in term of debit-credit double entry

tabulation. It was because of the lack of Hindus-Arabic numbering system (especially zero

number). Hoskin and Macve (1986) who used Foucault perspective in their study state that

accounting showed the continuation development when Hindus-Arabic numbers allowed a new

relationship between the writing of the sentence and number portrayed as alphanumeric system.

Mattessich (1994) develops an idea of accounting system happened from 8,000 up to


3,000 BC. He further explains that there was evidence related to the form and writing style that

made accounting as a writing root. On the basis of the archeology consideration toward the ideas,

it can be inferred that the writing development, in term of a science, can be useful to transform

abstract knowledge in the symbolic and recorded form. However, whatever the old writing form,

its effect toward the modern accounting system had ever delayed for a long time until the finding

of Latin letters (except Y and Z letter) in Cicero time (106-43 BC) (Hooker, 1990). Then by the

influence of upsilon and zeta in Greece pronunciation during the first century, the letters Y and Z

were added to the alphabetical order. The social impact of this alphabetical system was very

limited at that time. Nevertheless, it became more popular in the formal education at universities

in Europe during 11th and 12th century. As a consequence, there were many disciplines occurred

including the new perspective issued by a cathedral school in the middle ages. Today, the

Alphabetical system is widely known and becomes an integral part of the custom.

e. The Power of Accounting

To identify various preference as the basis of accounting, Burchell et al. (1980) gives a

special preference that support the accounting power. That kind of preference plays an important

role in strengthening our understanding toward accounting skill. Accounting institutional occurs

in the organization as well as in the social life as a consequence of the double entry book keeping

system (Yamey, 1978). Financial recording and other entry book keepings include all the

accounting practices in the private organization (e.g. companies) and public organization (e.g.

government and Institution) (Burchell et al, 1985). At the time when the accounting techniques

increase (e.g. the determination of budget and the financing standard, organization control,

planning and resources allocation), an accountant, individually, can give organizational

efficiency by arranging budget and financing standard. An accountant creates a new idea

concerning the efficiency of individual and organizational control in which it is related to the

private and public organization.

Hopwood (1987) states that accounting as a science has invested the knowledge

concerning social and economic life. Efficiency is a key word for the knowledge articulation. In

a company, accounting procedure is codificated systematically in the graphic form. The financial

and uncertainty risk are considered as the important aspect to make the managerial marking

measured. Then the decision making derives from the knowledge. Furthermore, the application


development of the budget determination, financing and planning standard has provided the

coordination of the department activities in the company. The social problem concerning social

environment efficiency has been considered as an accounting discipline.

f. Accounting as a Social Practice

The emergence of accounting cannot purely be seen as an organizational phenomenon

(Burchell et al., 1980), but it is attached in the society in which the individual and organization

are the part of it. Both phenomena (organization and society) have played the important role in

the accounting process since many important accounting innovations happen in the various social

processes. The success of the Japan Company occurs without having the same commitment

toward the management accounting practiced by the west culture (USA and UK). Horowitz

(19980) in his study: Top Management Control in Europe, finds that the controlling application

of management in England can give more emphasis toward financial techniques if it is compared

to German.

Accounting acts as a dynamic phenomenon. It is a new way to maintain integrity,

legitimacy, the effectiveness and strength of accounting in responding social practices.

Furthermore, it is needed to reach different goals. Various information intended to the activities,

processes, and organizational results create the environmental pattern within accounting

practices. Robson (1991) states that accounting has many roles in the social activities since its

emergence. Aligned with the time, accounting practices implicate the forming of the pattern in

the society.

III. RESEARCH METHOD OF THE HISTORY OF INDONESIAN ACCOUNTING: IN

THE SINGOSARI KINGDOM ERA

a. The Research of the History

The research of the history is a history science explaining about the elements of the

history. Hamilton (1993), in Berg (2004:233), states that generally the word history is used the

same as the word past time, or sometimes it refers to the concept of the past event that occurred a

long time a go. From the social perspective, the history is a report of the past time events or the


order of the events. The history science is a method to know, from the record and report, what

happened in the past time period (Marshall and Rossman, 1999 as quoted by Berg, 2004:233).

The Research Approach: Ethnoarcheology as a means to collect the Artifacts

The study of accounting history in the Singosari kingdom is a historical archeology study

since the main data source of this research is textual data which are inscriptions and documents.

Archeology can be divided into historical archeology and prehistoric archeology. According to

Sharer and Ashmore (1979:20), as quoted by Nastiti (2003:19), historical archeology refers to

the study supported by written data, while prehistoric archeology is not. The main approach of

this research is historical approach. The main data source of accounting history in the Singosari

kingdom era is begun by collecting documents taken from the Singosari kingdom era, especially

those contain the explanation of the trade in general and especially the accounting form.

The approach used in this research is ethnoarcheology approach, that is, an approach

which studies the behaviour and material culture taken from the society today (Bahn, 1992:162).

In addition, the use of ethnoarcheology study is to find out the compared knowledge from

accounting nowadays by giving the definition related to the meaning of accounting in the

Singosari kingdom era in which the data cannot be taken from archeological data, especially

written data.

Ethnoarcheology study is the branch of archeology which makes use of ethnographical

data as an analogy to solve archeological problems (Puslit Arkenas, 1999:188). Its position is to

give an example to interpret and to provide an early argumentation. According to Tanudirjo

(1987:8-9, 64), in Indonesia, ethnoarcheology plays double roles. First, it is used as a means to

explain and to predict archeology data. Second, it is also used as a medium to document the

aspects of traditional life which keep happening. Moreover, he mentions that Indonesian

traditional life is still able to survive even though in the process of modernization this kind of life

is feared of being extinct. If these aspects of life are not documented, there will be lots of dark

sides in the journey of Indonesian culture which cannot be explained in the future. There are two

models which serve as the basis for ethnoarcheological approach (Mundardjito, 1981) which can

be described as follows:

1. Direct historical approach (in United States) or Folk Culture (in United Kingdom)

Direct historical approach is based on the idea that the existing culture today is the


continuation of the past culture development. It means that the characteristic of today’s

culture reflects the formerly developed cultural inheritance. In doing this approach

there should be an observation towards the the society which has direct history in the

same area between the archeological data (object of study) and the ethnographical data

(object of comparison)

2. General comparative approach or also called new analogy

Actually, this approach is based on the perspective that the relation between

archeological culture which has lost its supporters and the existing culture today is the

relation of form. Therefore, this approach does not oblige the existence of historical

continuation in the same area. Nevertheless, it demands the sameness of cultural form

and the environmental background.

The result of the ethnoarcheological study does not show whether the hypothesis is true

or false since it is not a test of inductive conclusion drawing. This study is just an extension of

the induction process itself. As a result, the study of ethnography does not explain the current

observed symptoms (ethnographical data), but it gives a picture of a possible similarity between

the past and today’s culture symptoms, or as a connector argumentation. The ethnoarcheological

study tries to understand two aspects which are:

1. What aspect to do. It is understood by an observation. The purpose of the observation

of what aspect to do is to obtain knowledge about location, situation, transaction, etc.

2. The known aspect. This is done by interview to find out the social behaviour which

formed the accounting in the Singosari era.

Hopefully, the study of ethnography may give a picture of the existence and the form of

accounting in the social structure of Singosari kingdom. In addition, it may give a shape of the

social life practices to obtain the description of a more complex and richer nuances accounting.

b. Foucauldian Perspective as an Instrument of Analysis

This research uses Foucault’s thoughts as a model to analyze data. The thought is divided

into two chronological stages. The first stage is the historical studies or is called archeology. This

study analyzes the condition which may cause the emergence of modern humanities fields with

historico-power-knowledge relation as its archelogical project. The next stage is geneology

which develops more accounting history towards the emergence of human knowledge and

directly headed to a certain way to solve the historical analysis about the system of thoughts. In


the study, these two stages are similar and completing each other. Archeology focuses on the

existing historical condition while geneology questions the process of the history itself. In a more

precise way, geneology offers a process relation concerning the discourse network. On the other

hand, archeological approach gives a slice through the link of discourse.

In his viewpoint, Foucault is having a problem to differentiate archeology of science from

the excessively stable domain known as the history of ideas. The big theme of the history of idea

is the birth of ideas, its continuity of time, and its totality such as the spirit of the era. By refusing

the investigation of the origin or the birth of an idea, Foucault is interested in the difference and

the contradiction of an idea as well as the continuity issue, and in analyzing the detail statement

compared to global generalization of totality.

Faucault perspective concerning the relation between knowledge and power brings a

revolutionary effect to the social discipline and gives a unique contribution of reciprocal

relationship between knowledge and power. It is about the power articulated into knowledge, and

vice versa. Faucault concept brings a consequence in which if we want to know the power

production, we must also investigate the knowledge production of it or to be exact, we must

investigate the power itself.

c. Data Collection Method

To portray the accounting form in the Singosari era, the writers use written sources which

are inscriptions and documents. As the historical source, especially the old history, inscriptions

have an important role since they are one of contemporary historical sources. In addition if they

are studied thoroughly, the information taken from inscription parts can give a useful portrayal of

the kingdom structure, bureaucracy, social, religion, economy, and belief.

Texts used as the source of this study were taken from Singosari kingdom era in which

they were not really too much exist. From the existing texts, the historical main sources of

Singosari kingdom are Pararaton, written between 1478 and 1486, and Negarakertagama in 1365

besides several charters issued by Kertanegara and some others from the Majapahit kingdom era.

Mula Malurung inscription is the third oldest historical source. It can be trusted since it was

written in a detail explanation in 1255 in the Singosari era. Due to the fact, Mula Marung

inscription can be used to cross-check Pararaton and Negarakertagam explanation about

Singosari kingdom. Moreover, it can also be used as way to get the information concerning the


accounting form at that time.

IV. THE FOUNDATION OF ACCOUNTING KNOWLEDGE

a. The Information of Singosari Era Written Form

The data concerning the first written text in Indonesia were taken from the inscriptions

widespread in Indonesia, but it is still a mystery in which place the first text occurred for the first

time. A good news toward the development of the written form in Indonesia is the finding of

Pallawa letters on the pole of Mulawarman king Yupa from Kutai, west Borneo dated on 400 AC

(Hunter, 2002:12). Pallawa letters used were taken from Pallawa letters of South India that were

the descendant of the half syllabic letters from Brahmin in which the syllable was the foundation

unit of a language that could be uttered. Then the language used in that text was Sanskrit

(Hunter, 2002:12).

Singosari era is included in the last phase of kawi letters. The example of the letters can

be found in Simpang inscription (1289) in which the letters are carved on the Asana, a lining

pillar of Joko Dolog statue. The following part is the example of the letters (Suhadi, 2001:8):

The text written on Simpang inscription in 1289 AC indicates that the written form was used to

give and to keep the information derived from holy events. The text on the Joko Dolog statue

portrays Kertanegara, the last king of Singosari kingdom who was considered as the highest of

Aksobya, was the highest figure in Buddhist. Moreover, it is the only inscription stating about

the unification of Jengagala and Panjalu by Wishnuwardana king in which later on was under

Kertanegara king territory. The emergence of Jenggala and Panjalu was because of the political

kingdom separation done by Erlangga king in 1403. Actually, the separation of Singosari

kingdom after the death of Rejasa in 1227 followed that pattern (Slametmulya, 1979:76). This

illustration gives information that all texts contain the knowledge of religion, law, moral, and the

economic aspect of the society happening in the past. Therefore, it can be proved that there was

the existing of the past time information. Another evidence of the use of the letters is the type of


the Singosari letters developed and continued until Majapahit era including Sutasoma written by

Mpu Tantular (Darmosoetopo, 1993:57-57)

b. The Number System

The arrival of Islam in Indonesia brings a great opportunity toward the development of

science especially the use Hindus and Arabic number (1, 2, 3, 4, 5, 6, 7, 8, 9, and 0). Hindus-

Arabic classification system plays an important role in the use of quantitative symbol. According

to the history, the numbers of 1, 2, 3, 4, 5, 6, 7, 8, and 9 have been used in every parts of the

world and connected to nine letters of Sansekerta language used by Hindus in the past time

(Sukoharsono, 1995:119-120).

Before the arrival of Islam, the number system had been adopted in Indonesia in which it

derived from the modification of Javanese (Raffles, 1978). The numbers used in the Singosari

era can be displayed as follows (Surada, 2005:9):

The use of old Javanese numbers in the inscription shows the existing of transaction

recording, especially trading transaction in the market. In the Singosari era, the sellers only

arranged their account for the sake of their own documentation by using a language which was

easy to be understood. In addition, they used an easy written medium, so they could know the

cost and the profit easily. This kind of recording system makes them easier to make a decision in

relation to the future of their business.

c. Money: The Exchange Medium and The Transaction

In the Singosari era, people used money as an exchange medium in trading. However, it

is difficult to physically prove the local money used at that time. Meanwhile, in the old Java era,

people used gold and silver as the exchange media. Thus it can be inferred that people in the

Singosari era might use the same media as the old Java era. The following part is the terms and

the value of the currency used at that time (Christie, 1994:5, in Nastiti, 2003:100).

Gold money was called kati, suwarna, masa, and kupang

Silver money (atak) was called kati, dharana, masa, and kupang


The value of the money were:

o 1 kati = 20 Dharana/Swarna

o 1 Swarna= 16 masa

o 1 Masa= 4 kupang

The transaction mentioned in the inscriptions was trading transaction and land pawning.

The media used in the transactions were gold and silver money. From the explanation above, it is

obviously seen that both kinds of currency had high value, so it was impossible if they were used

to buy the goods which did not have a high value such as daily needs. It is proved by the

inscriptions stating that the numbers of gold and silver money were about tens, while coins were

about thousands (Nastiti, 2004:101).

One of the currencies used in the markets in the Singosari era was Chinese Copper Coins

in which it also had a significant role as the medium of transaction in Singosari and its

surrounding. According to Amelia (1986:92-95), Java imported Chinese Copper Coins which

were used as a legal currency at that time. It was because China imported pepper from Java, so

there were many Chinese copper coins in Java that caused the decreasing of coins stock in China.

The coins were from Tang (618-907); Song (960-1279); Ming (1368- 1644); Qing Dynasty

(1644-1911). From those the most coins found in Trowulan were from Song Dynasty. Therefore,

it can be said that the money used in the Singosari era was the coins from Song Dynasty (960-

1279). Furthermore, if it is seen from the shape, the size and the hole of the saving box, it can

also be said that there was a saving tradition in the Singosari era. It is strengthened by the

evidence that there was a hole in the saving box meaning that the saved money was the coins.

No. IDENTIFICATION SINGOSARI ERA1. THE SOCIAL OF THE

KINGDOMThe Social of East Java

2. THE GOVERNMENT/ THE KINGDOM

The name of the kingdom in Ken Arok era was Kutaraja. The changing of Kutaraja name became Singosari Kingdom happened in 1254 in the Wisnuwardhana King era.

3. THE LEADERSHIP 1. Ken Arok (1222-1227)2. Anusapati (1227-1248)3. Tohjaya (1248)4. Wishnuwardhana (1248-1268)5. Kertanegara (1268-1292)

4. THE HIERARCHY OF 1. The king was in the highest level in the


THE GOVERNMENT kingdom2. Rakyanamantri Katrini had a power as the

king advisor in which the king’s order was socialized for the first time. It consisted of:

Rakyan I Hino Rakyan I Halu Rakyan I Sirikan

3. Rakyan Para Tanda who had the duty as the executives of the kingdom in which the three of them led by Rakyan sang Ramapati.

Rakyan Patih held by Kebo Arema Rakyan Demung held by Mapanji

Wipaksa Rakyan Kanuruhan held by Mapanji

Anurida4. Five Pamegat did the kingdom duties which

were more specific. They consisted of Pamegat Tirwan Pamegat Kandamuhi Pamegat Nanghuri Pamegat Jamba Pamegat Pajangjiwa

5. Darmadyaksa was the official in law and religion. The two government bodies who took the charge of it were:

Darmadyaksa Ring Kasaewan for Hindus

Darmadyaksa ring Kasogatan for Buddist

5. THE GOVERNMENT ADMINISTRATION OFFICIAL IN THE SINGOSARI KINGDOM

Citralekha (office clerk) Panurung (managing the tax) Pratyaya (Managing the income) Parujar (spokesman)

6 LANGUAGE Sanskrit (People in Java usually called it the old Kawitan, but later on it became Kawi)

7. LETERS Pallawa-Kawi (Dewanagari letters)8. THE MEDIA OF

WRITING Palm Leaves, Palm Thatch Leaves Wood Bamboo Stone Copper Gold and silver sheet (they were usually

used to write magic formula)

9. NUMBER Pallawa-Kawi


10. CURRENCY Local currency made by gold, silver, and copper.

Chinese copper coins from Song DynastyThe following part are the terms and the value of the currency used at that time (Christie, 1994:5, in Nastiti, 2003:100):

Gold money was called kati, suwarna, masa, and kupang

Silver money (atak) was called kati, dharana, masa, and kupang

The value of the money were:o 1 kati = 20 Dharana/Swarnao 1 Swarna= 16 masao 1 Masa= 4 kupang

11. THE INCOME OF THE KINGDOM

Tax Tribute Fine of the criminal case

12. TAXATION The first information related to the levied tax on the inscription was found on the sentences in which they gave information about the determination of a region to become a sima. It was a special region freed from payment taxes given by the king to the kingdom official or inhabitant as a meritorious person toward the kingdom, or the place for sacred place.

There was a position which took a charge of the taxation (panurang)

The kinds of taxation such as land, plantation, agricultural produce, fishpond, and salt tax.

13. MARKET The market condition was near the river. The market physical form was a field.

14. TRADING COMMODITY Agricultural area Animal husbandry area Fishery area Industrial area

14 TRANSPORTATION SYSTEM

Land transportation: the merchants who brought a lot of goods used a cart, while those who brought little goods used a horse or cow.

River transportation: they used a boat.16. ARCHITECTURE IN THE

SINGOSARI ERA Temples. In the Singosari era, temples were

used as the the king family funeral.17. THE NTERACTION

WITH OTHER In the Kartanegara king era, Singosari was in the development and prosperity period. In order to


KINGDOMS stabilize and develop Singosari territory, and to unite the islands and other kingdoms under Singosari kingdom, Kertanegara did political archipelago unity by sending Pamalayu expedition in 1275 and wide spreading its influence in Pahang, Gurun, Bakulapura.

18. THE AUTHORITY REGION

In the Wisnu Wardhana era, the region included: Daha, Mening, Gelang-gelang, Lwa, Maura, Marono, and Lumajang. Meanwhile, in the Kertanegara era, the authority region became wider including Canggu, Tuban, Bali, Seram Island, Menjalin, Melayu, Darmasraya kingdom (Jambi), Pahang, Bakulapura.

V. CONCLUSION

a. Conclusion

This research is conducted to find out the accounting form in local Indonesia, especially

in the Singosari kingdom era. Language, writing, number, and calculation are very needed in

every accounting form. The letters used in the Singosari kingdom era were Pallawa-Kawi

(Dewanagari letter). It is proved by the existing of Singosari special letters which was developed

and continued in the Majapahit era including a book written by Mpu Tantular entitled Sutasoma

(Darmosoetopo, 1993:57-57). One of the facts of accounting development in the written form

during the Singosari kingdom era is that it is related to the mechanism used for administration

purpose and accountability in tax imposition.

Then in relation to the writing, there are many materials used to write (Gaur, 1987:35).

In the Singosari kingdom, the writing medium used were palm leaves, stones, copper, gold and

silver sheet. The speech of the king written in palm leaves was copied by using stones in which it

is known as the inscriptions. However, the physical evidence of the palm leaves used in the

Singosari era cannot be found by the researchers. It is because of the characteristic of palm

leaves in which they do not have a good tenacity as stones. Another reason is that the condition

of Indonesia, epecially in Eat Java, which is susceptible to natural disaster such as mountain

eruption, flood, and earthquake, makes the finding of the written evidence of writing medium

much more difficult. In addition, the long time condition is also the reason of the historical

disobedience. Thus it shows nothing about the written evidence.


Furthermore, the people in the Singosari kingdom era had known money as the exchange

medium in trading. Nevertheless, it is very difficult to find out the physical evidence of the local

currency used at that time. Meanwhile, in the old Java era, people used gold and silver as the

exchange medium. Thus it can be inferred that the local currency used in the Singosari era was

almost the same as it was found in the old Java era. In another side, Chinese Copper Coins could

be found in the Singosari kingdom era. Moreover, they took the important role as the transaction

media in trading in Singosari and its surrounding. The evidence of this finding is that Java had

imported Chinese Copper Coins that could be used as the legal payment media. Those coins

derived from Tang (618-907); Song (960-1279); Ming (1368-1644); and Qing Dynasty (1644-

1911). From all those coins, the most coins found in the Trowulan were from Song Dynasty.

Therefore, it can be said that during the Singosari era, the currency used was Chinese Copper

Coins from Song Dynasty (960-1279).

The first information related to the levied tax on the inscription was found on the

sentences in which they gave information concerning the determination of a region to be a sima.

It was a special region freed from payment taxes given by the king to the kingdom official or

inhabitant as a meritorious person toward the kingdom, or the place for sacred place. The

determination of Sima was management changing decision of the kingdom wealth that was the

handover of tax levied in which at the beginning it was for the kingdom. Then it was changed to

fulfill Sima needs. This information included administration, social-economic activity, and every

part of exertion which had a close connection to the kingdom income.

b. The Limitation of the Research

The history of accounting in the Singosari kingdom era, especially in the portrayal of the

accounting form at that time, is not thoroughly studied. This research only intends to view one of

the actualization processes of accounting form from the basis of writing style, number, and

writing medium. Meanwhile, another activity that shaped accounting is only viewed from the

market and taxes levied by the kingdom. However, this research basically does not yet include

the real accounting form in the Singosari kingdom era toward the impact for the modern

accounting used nowadays.

The result of the accounting form used in the Singosari era cannot actually be proved yet

since the writers relate the research to the events which did not thoroughly happen in the


Singosari era. It means that during the writers did the research, the half of the findings got cannot

provide a ‘thing’ that portrays the accounting form in the Singosari era. Actually, these findings

had been predicted before by the development of ideas. This fact is due to the limitation of the

research time.

For the next researchers, it would be better if they could compare the accounting

development with other local regions. The comparison study is applied by viewing the similarity

and the difference of accounting practices which were different from one place to another place

in Indonesia. Thus it can develop a new perspective concerning the accounting role in the

organization and society.

c. The Implication of the Research

This study explains the accounting form in the Singosari era. This research has general

implication for the research and accounting practices in Indonesia. One of the most important

point is by viewing the knowledge, practice, and the existence of accounting, in which place the

accounting exists. Accounting as the knowledge and the practice science must be understood as a

social scope related to society. Then accounting is not merely known as unity of calculation

techniques. However, it has an influence toward social-economic activity mechanism. Therefore,

this study needs to point back to the history to know what happened in the past. Although this

study does not include the today period, at least it gives the readers enlightenment toward some

aspects in knowledge and the applications of the existing accounting in Indonesia. Perhaps, it can

be an agenda to conduct a further research in accounting. Thus it can widen the society

understanding toward accounting in the society and develop the knowledge in the social scope

where accounting formed.

Furthermore, this study uses Faucouldian concept concerning the relationship between

knowledge and power. Faucouldian concept, as a part of new historical research in accounting,

stands significantly in facing the discipline chalanging of accounting history in Indonesia. First,

this study is an evidence of the accounting history plurality focused on economic, social, and

political scope. The history of accounting is not viewed as a single story anymore which takes

much attention to the evolutionary history. Faucouldian concept provides a better understanding

in telling the history and asking for new questions about accounting. In addition, it also provides

the knowledge of how accounting is practiced. Second, Faucouldian concept brings a new


epistemology of how we can understand the past time. The emergence of accounting in

Indonesia is not understood as an evolutionary development; but it is the practice and knowledge

related to accounting scope formed. By using this scope, accounting in Indonesia is not merely

connected to the economic and technical facts, but it is also connected to the social and political

activities. Although Faucouldian concept, which is from the relation between the power and

knowledge, provides a rich portrayal in analyzing the development of accounting in Indonesia, it

is not the only way to analyze in order to provide a vivid explanation of how accounting is

practiced based on the history. The various approaches are also needed to make sure a non

dogmatic view of accounting history.

References:

Amelia. (1986). Mata Uang Logam Cina Dari Situs Trowulan. Skripsi Sarjana. Fakultas Sastra. Universitas Indonesia. Jakarta.

Bahn, Paul (Ed). (1992). Dictionary Of Archaeology. Glasgow: Harper Collins Publisher.Burchell, S.C., Clubb., And Hopwood, AG. (1985). Accounting In Its Social Context: Towards A

History Of Value Added In The Uk. Accounting, Organization And Society, 10(4): 381-413.

Burchell, S.C., Clubb., Hopwood, AG,. Hughes, J., and Nahapier. (1980). The Role of Accounting in Organisations and society. Accounting, Organization And Society, 5(1): 5-27.

Chambers, RJ. (1988). Time In Accounting. Collected Papers Of The Fifth World. Congress Of Accounting Historians. University Of Sidney.

Foucault, Michel. (1972). The Archeology Of Knowledge. Tavistok.Foucault, Michel. (1998). Power/Knowledge: Selected Interview And Other Writing 1972-1977.

Di Edit Oleh Colin Gordon. New York: Pantheon Book.Gordon, R.W. (1981). Historcism In Legal Scholarship. Yale Law Journal. 90:1017-1056.Geertz, C. (1977). Penjaja Dan Raja: Perubahan Sosial Dan Modernisasi Ekonomi Di Dua Kota

Indonesia. Jakarta. PT Gramedia.Groeneveldt, WP. (1960). Historical Notes On Indonesia And Malaya Compilrd From Chiness

Sources. Jakarta. Bhratara.Herlingga, CM. (1991). Cina, Jawa Dan Madura Dalam Konteks Hari Jadi Kota Surabaya.

Surabaya: Antariksa.Hirst, PQ. (1985). Marxism and Historical Writing. London. Routledge and Kegan Paul.Hirth., F. Dan W.W. Rockhil. (1966). Chau Ju-Kua: On The Chinese And Arab Trade In The

Twelfth And Thirteenth Centuries, Entitled Chu-Fanchi. Translated From The Chinese And Annotated. Amsterdam. Oriental Press.

Hooker, JT. (1990). Reading The Past: Ancient Writing From Cuneifrom To The Alphabet . The British Meseum.

Hoopwod, AG. (1987). The Archeology Of Accounting System. Accounting, Organization And Society, 12(3): 207-234.

Hoopwood, AG. (1983). On Trying To Account For Accounting. Di Bromwich, M., And Hopwood, AG, (Eds), Accounting Standars Setting: An International Prespective. London: Pitman.


Horowitz, JH. (1980). Top Management Control In Europe. London. Mac Millan.Hoskin, KW., And Macve, RH. (1986). Accounting And The Examination: A Geneology Of

Disciplinary Power. Accounting, Organizations And Society, 5(1): 57-86.Hunter, TM, Jr. (2005). Bahasa dan Sastra. Indonesian Heritage. Edisi Bahasa Indonesia, Buku

ke-10. PT. Widyadara.Jones, AMB. (1984). Early Tenth Century Java From The Inscription: A Study Of Economy

Social And Administrative. Holland. Foris Publication.Laughin, R.C., and Lowe, E,A. (1985). The Design of Accounting System: Reason for Our

Ignorance. Presented at Interdisciplinary Prespectives on Accounting Conference. University of Manchaster.

Mattessich, R. (1987). Prehistoric Accounting And The Problem Of Presentation: Recent Archaeological Evidence Of The Middle-East From 8000 B.C. To 3000 B.C. The Accounting Historian Journal, Fall.

Mattessich, R. (1994). Archeology of accounting and schmandt-bassera’s contribution. Business and financial history. Vol 4(1):5-28.

Miller, P., And O’leary. (1987). Accounting And The Construction Of Governable Person. Accounting, Organization And Society, 12(3): 235-265.

Miller, P.,And Napier, C. (1993).Geneologies Of Calculation. Accounting, Organization And Society, 18(7/8): 631-647.

Mundardjito. (1981). Etnoarkeologi: Penerapannya Dalam Pengembangan Arkeologi Indonesia. Majalah Arkeologi. IV(1-2): 17-29.

Nastiti, TS. (2003). Pasar Di Jawa Masa Mataram Kuno Abad VIII-XI M. Jakarta. Dunia Pustaka Jaya.

North, D. (1985). Transaction Costs In History. Journal of European Economic History. 14(3 Winter):577-576.

Robson, K. (1991). On The Arenas Of Accounting Change: The Process Of Translation. Accounting, Organization And Society. Vol. 16. (5/6): 547-570.

Slametmulyana. (1979). Negarakertagama Dan Tafsir Sejarahnya. Jakarta: Bhatara.Sukoharsono, EG. (1995). A Power And Knowledge Analisis Of Indonesian Accounting History:

Social, Political And Economic Force Shaping The Emergence And Development Of Accounting. Unpublished Phd Dissertation, University Of Walonggong.

Sukoharsono, EG. (2005). Power/Knowledge On Accounting Discipline And Practice: The Foucauldian Prespektif. Proceding The First Postgraduate Concortium On Accounting. Universitas Brawijaya.

Sukoharsosno, EG., And Gaffikin, MJR. (1993). The Genesis Of Accounting In Indonesia: The Dutch Of Colonialism In The Early 17 Century. The Indonesian Journal Of Accounting & Business Society. 1(1): 4-26.

Surada, I Made. (2006). Pelajaran Bahasa Sansekerta. Surabaya. Percetakan Paramita.Suwardjono. (2005). Teori Akuntansi: Perekayasaan Pelaporan Keuangan. Yogyakarta:BPFE.Tanudirjo, DA. (1987). Laporan Penelitian Penerapan Etnoarkeologi Indonesia. Yogyakarta:

Universitas Gajah Mada.Tyson, T. (1993). Keeping The Record Straight: Foucauldian Revisionism And Nineteenth

Century Us Cost Accounting History. Accounting, Auditing And Accountability. 6(2):4-16.Walsh, EJ And Stewart, RE. (1993). Accounting And The Contruction Of Institutions The Case

Of A Factory. Accounting. Organization And Society, 18(7/8): 783-800.Yamey, B. (1978). The Historical Development Of Accounting: Selection Of Paper. New York.

Arno Press.

the history of indonesian accounting in the golden age · web viewaccounting in the golden age of...

Documents