This research’s objective is to discover the history of accounting in Indonesia i.e.

a certain era of
Indonesian History. The form and existence of the accounting system in the Singosari Kingdom
era is the main area of attention of the study. According to the view 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.

The research is done 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 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. The big reason 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, mostly in the area of public finance and administrative accountability. There
was a fact that during Singosari and Majapahi Kingdom, state-craft stressed the importance of a
full treasury governmental activities. Together these Kingdoms developed a regular system of
taxation.

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.

In a nutshell, it can be said that accounting development in Indonesia is not an immediate process,
but it started through a long and complex process of history. The Kingdom of Singosari used
accounting as a technique to discipline the subjects under the kingdom’s territory. Accounting had

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an important role as a supporting means of the Singosari kingdom development. It did not just give
the technical calculation, but also the diverse roles in social, economic, and political life this is
based on the study. Which processes and provides financial information.

INTRODUCTION

Accounting since the very early times, has displayed its role and function in the society as a system
.The change in society, particularly in the business society contribute to the continuous
development of accounting. However during these days accounting is viewed as a study that
includes money and number in which both things are the key points in calculation. The past events
in accounting are usually called the history of accounting, the present time is the time where
accounting exist; meanwhile the future time is called prediction (Sukoharsono, 2005)

The focus of the study here has a close connection to the past time of accounting or the history of
Indonesian accounting. Hence it can be concluded that accounting exists in the social dimension,
from the smallest, an individual to the biggest one, a company and country. 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.

The emergence of accounting in Indonesia can be seen from the recording of every event It can be
seen in the inscription recording of financial transactions such as taxation or other transactions
written in the old Javanese form (Sanskrit).

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.

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

ACCOUNTING AND THE PERSPECTIVE OF FAUCOLDIAN

The history of accounting is mostly understood only as a reflection of the evolution in economical
issue and industrial development. Moreover, accounting is considered as something which is
independent and whether in the past or at the present it is regarded the same. The conventional
analysis of accounting history which sees accounting a theoretically tends to ignore the related
problems in the quest of the social understanding concerning accounting activities (Hopwood,
1983).

THE HISTORY OF ACCOUNTING AND 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 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 center of trade such as Genoa, Venice, and Bologna had already
used the system.

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FOUCOULT AND ACCOUNTING HISTORY RESEARCH

The results of the 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 Foucault’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. Foucauldian
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.

THE EXISTANCE OF ACCOUNTING PRACTICES

The history of accounting is not considered as a simple calculation in chronological evolution any
longer. Evidence shows 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. 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.

THE POWER OF ACCOUNTING

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).

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ACCOUNTING AS A SOCIAL PRACTICE

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

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.

RESEARCH METHOD OF THE HISTORY OF INDONESIAN ACCOUNTING: IN THE

SINGOSARI KINGDOM ERA

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. The
main approach of this research is historical approach.

The Research Approach: Ethno archeology 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 and prehistoric archelogy. The main approach of this
study is historical approach. In Singosari the main data source of accounting history is begun by
collecting documents taken from the Singosari kingdom era, especially those that contain the
explanation of the trade in general and especially the accounting form.

The approach used in this research is athnoarcheology approach that is an approach which studies
the behavior and material culture taken from the society today (Bahn, 1992:162). Ethno archeology
study is the branch of archeology which makes use of ethnographical data as an analogy to solve
archeological problems (Puslit Arkenas, 1999:188). Indonesian traditional life is still able to

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survive even though in the process of modernization this kind of life is feared of being extinct.
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 ethno archeological approach (Mundardjito, 1981)
which can be described as follows:

1. Direct historical approach

2. General comparative approach

Foucauldian Perspective as an Instrument of Analysis

This study 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 archeological project. The next stage is genealogy 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.

Data Collection Method

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.

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).

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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. 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.

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

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). In the Singosari kingdom, the writing medium used were palm leaves, stones, copper, gold
and silver sheet. The people in the Singosari kingdom era had known money as the exchange
medium in trading. Chinese Copper Coins could be found in the Singosari kingdom era.

The Limitation of the Research

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.

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The Implication of the Research

Accounting as the knowledge and the practice science must be understood as a social scope related
to society. Accounting is not merely known as unity of calculation techniques. Hence, 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. 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