This research aims to understand the current development and condition of public sector accounting in Indonesia. The study employs a qualitative approach, using literature analysis to delve into complex and contextual phenomena that are often difficult to measure quantitatively. The research concludes that public sector accounting in Indonesia is highly dynamic and remains essential for measuring organizational performance. Despite various challenges, such as limited competent human resources and uneven technological infrastructure, the adoption of accrual accounting and the implementation of the Standards of Government Accounting (SAP) have been significant steps towards improving transparency and accountability. The study also highlights the importance of stakeholder demands and legal enforcement in driving reforms and enhancing public trust. Overall, public sector accounting is crucial for maintaining organizational performance, particularly in healthcare organizations.This research aims to understand the current development and condition of public sector accounting in Indonesia. The study employs a qualitative approach, using literature analysis to delve into complex and contextual phenomena that are often difficult to measure quantitatively. The research concludes that public sector accounting in Indonesia is highly dynamic and remains essential for measuring organizational performance. Despite various challenges, such as limited competent human resources and uneven technological infrastructure, the adoption of accrual accounting and the implementation of the Standards of Government Accounting (SAP) have been significant steps towards improving transparency and accountability. The study also highlights the importance of stakeholder demands and legal enforcement in driving reforms and enhancing public trust. Overall, public sector accounting is crucial for maintaining organizational performance, particularly in healthcare organizations.