This study aims to investigate the impact of financial condition on public governance among provincial government in
Indonesia. Short-term solvency and financial flexibility were used as a proxy for financial condition. Meanwhile, public
governance was measured by The Index of Governance published by The Partnership for Governance Reform of
Indonesia. Local Government’s age was used as a control variable. Thirty three provincial governments indexed by The
Partnership for Governance Reform of Indonesia 2012were used as a sample. Results from multiple regression analysis
show that short-term solvency has a positive and significant association with the Governance Index (Public
Governance), but financial flexibility does not. Meanwhile, F-Test shows that financial condition variables
simultaneously affect public governance among provincial government in Indonesia. The result implies that a good
financial condition will make it easier for provincial government to implement good governance. Hence, good public
governance need a good financial conditions.