| 258 | Keywords: Agency Theory; Budget gaming behavior; Goal-setting Theory Corresponding Author: SeTin: Tel. +62 22 201 2186 E-mail: setin2005@yahoo.com Jurnal Keuangan dan Perbankan, 23(2):258–269, 2019 http://jurnal.unmer.ac.id/index.php/jkdp Article history: Received: 2018-12-08 Revised: 2019-01-05 Accepted: 2019-03-28 ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print) This is an open access article under the CC–BY-SA license JEL Classification: M2, M40, M41 Kata Kunci: Agency Theory; Perilaku budget gaming; Goal-setting Theory Budget gaming behavior: Evidence in Indonesian manufacturing companies SeTin SeTin 1 , Roy Sembel 2 , Yvonne Augustine 3 1 Department of Accounting, Faculty of Economics, Universitas Kristen Maranatha Jl. Prof. Drg. Suria Sumantri No.65, Bandung, 40164, Indonesia 2 IPMI International Business School Jl. Rawajati Timur I No.1, Jakarta, 12740, Indonesia 3 Department of Accounting, Faculty of Economics and Business, Universitas Trisakti Jl. Kyai Tapa, No.1 Grogol, Jakarta, 11440, Indonesia Abstract Budget gaming behavior in the budgeting process has a serious impact on organiza- tional performance. This behavior continues to exist as a consequence of the preva- lence of traditional budgeting practices. This unsolved budget behavior needs seri- ous handling. Understanding this behavior through gathering evidence is the first step in controlling the practice of budget gaming. This study aims to obtain evidence about budget gaming practice in Indonesia. Data collection through interviews, sur- veys, and analysis of annual reports. Interviews were conducted on four managers of go public manufacturing companies. Survey through questionnaires to 31 managers. The analysis of the 2013-2017 annual report on directors’ reports and management discussion reports on three companies. This study concluded that budget gaming practice still occurs in manufacturing companies in Indonesia and is still an impor- tant problem that has not yet been solved. This study also found that budget gaming is related to the performance evaluation system. The study result provides impor- tant information for stakeholders and researchers in understanding budget gaming behavior and finding solutions to minimize budget gaming practice. Abstrak Perilaku budget gaming di dalam proses penganggaran berdampak serius bagi kinerja organisasi. Perilaku ini terus ada sebagai konsekuensi dari masih maraknya praktik tradi- tional budgeting. Perilaku anggaran yang belum terpecahkan ini sangat memerlukan penanganan serius. Memahami perilaku ini melalui pengumpulan bukti adalah langkah awal mengendalikan praktik budget gaming. Studi ini bertujuan untuk mendapatkan bukti tentang praktik budget gaming di Indonesia. Pengumpulan data malalui wawancara, survei dan analisis laporan tahunan. Wawancara dilakukan pada empat orang manajer perusahaan manufakturyang go public. Survei melalui kuesioner kepada 31 manajer. Analisis laporan keuangan tahun 2013-2017 dilakukan terhadap laporan direksi dan laporan management discussion pada tiga perusahaan manufaktur. Studi ini menyimpulkan bahwa praktik budget gaming masih terjadi di perusahaan manufaktur di Indonesia dan masih menjadi masalah penting yang memerlukan solusi. Studi juga menemukan bahwa budget gaming terkait erat dengan sistem evaluasi kinerja. Hasil studi memberi informasi penting bagi pemangku kepentingan dan peneliti di dalam memahami budget gaming behavior dan mencari solusi untuk meminimalkan praktik budget gaming. How to Cite: SeTin, S., Sembel, R., & Augustine, Y. (2019). Budget gaming behavior: Evidence in Indonesian manufacturing companies. Jurnal Keuangan dan Perbankan, 23(2), 258-269. https://doi.org/10.26905/jkdp.v23i2.2945