Understanding Budget Reality in The Perspective of Symbolic Interactionism

This study aims to interpret the meaning of budget on one of the State-
Owned Enterprises (SOEs) to minimize conflict between principal
and agent. Analysis is done using symbolic interactionism method
in interpretive paradigm. Data collection is conducted using in-depth
interviews with informants who are very familiar with budgeting in
PT Perkebunan Nusantara (PTPN). The results of this study reveal
that budgeting process involves the interaction and action between
the principal and the agent based on their own experiences in
preparing the budget. Decision making is sorely needed, especially
in a condition where an individual is able to free himself from the
crisis called epiphany. Epiphany is a moment of experience that
makes an impression on one’s life so as to form a character is called
epiphany. It could be said that epiphany is the most critical moment
ever experienced by someone that cannot be forgotten(Denzim, 1989)
Social fact describes that a capitalistic company ownership thinks of
itself with the purpose of fulfilling personal desires and prosperity,
so in implementing budget preparation consisting of the symbol of
numbers, it is always covered by passion of greed. Conflict of interest
is very noticeable when the preparation and adoption of the budget
is filled with a variety of interests. Regulatory system is becoming part
of legitimate stage of budgeting that has become the elements of
capitalist company ownership that eventually reap capitalist values in
the accounting information, in which the decisions and the economic
actions are also based on the capitalist values. The implication of this
research is expected to provide practical recommendations to the
good cooperation between the agent and principal in preparing the
budget
Keywords: budget, capitalist, symbolic interactionism, principal, agent