Map of Indonesia

Total area:1,919,317 Km2

Number of Islands:more than 13,000

The largest archipelago country in the world

About 300 ethnic groups and local languages

National language:Indonesia

Australia

Philippines

Malaysia

Singapore

Thailand

IndonesiaSumatera

Java

Irian Jaya

SulawesiKalimantan

Figure 1

Note:

MPR: Majelis Permusyawaratan Rakyat, DPR: Dewan perwakilan Rakyat, DPA: Dewan Pertimbangan Agung,

MA: Mahkamah Agung, and BPK: Badan Pemeriksa Keuangan

Dinas is local government service department, which Dinas I is responsible d irectly to

Governor and Dinas II is responsible d irectly to d istrict head/ mayor.

Bappeda Dati I and Bappeda Dati II are Local Development Planning Agency

at provincial level and d istrict level, respectively.

Both Dinas I and II have indirect link to the relevant central technical ministry

Kanwil and Kandep are provincial and sub-district level office of central government ministry

LKMD is village p lanning board

Non-Department Agencies

People's RepresentativeCouncil (DPR)

Supreme AdvisoryCouncil (DPA)

People's Consultative Assembly (MPR)

Supreme Court(MA)

Supreme Aud it Body(BPK)

President

Ministry ofHome Affairs

TechnicalMinistries

PROVINCEGovernor

Dinas IKanwil

Kandep Dinas II

SUB-DISTRICT

DISTRICTDistrict Head / Mayor

Bappeda Dati I

Bappeda Dati II

(Lurah)LKMD

Sub-d istrict Head(Camat)

VILLAGEVillage Head

(Bupati/ Walikota)

Figure 2. Structure of Indonesian Government

1945 Independence

1951 The Economic Urgent Program Initiated

1956-1960

The First Five Development plan Established

1966 The New Government Order

1967-1968

Foreign and Domestic Investment Act Established

1969/70 The First Five Year Development Plan and The First Long Term (25 years) Development Plan Initiated

Characteristics:- Highly Centralized Plan;- Top Down Oriented;- Technocratic Approach

1994/95 The Sixth Five Year Development Plan andThe Second Long Term Development Plan

Characteristics:- Mix Top-Down and Bottom Up Approach;- More Decentralized

1973-74Coordinating Board for Regional Investment and Regional Development Planning Agency Established

1st 25 YearDevelopmentPlan

2nd 25 YearDevelopmentPlan

2018/19

The OldGovernmentOrder

The NewGovernmentOrder:

Figure 3. Historical Perspective of Development Planning Policies in Indonesia

Structure of Production

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

1975 1985 1994

Year

Perc

en

tag

e o

f G

DP

Agriculture

Industry

Services

Figure 4

1976 1978 1980 1981 1984 1987 19901993

Urban

Rural

Urban+Rural

0

5

10

15

20

25

30

35

40

45

(%)

Year

Trend of Proportion of Population below the Poverty Line (1976-1993)

Source: Central Bureau of Statisitic (1995)

40.1%40.4%

38.8%

13.7%

Figure 5

1967-701976-79

1981-841986-89

1993

CDR

CBR

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Bir

ths/

Dea

ths p

er 1

,000

pop

ulat

ion

Year

Crude Birth Rate (CBR) and Crude Death Rate (CDR), 1967-1993

Source: Indonesia Demographic and Health Survey 1994, CBS, MoH, and SMP/NFPCB

Figure 6

Figure 7

0

20

40

60

80

100

120

140

160

180

200

1971 1980 1985 1990 1993

Year

Pop

ulat

ion

(in m

illio

ns)

0

0.5

1

1.5

2

2.5

Gro

wth

Rat

e (%

)

Pop u la tion

Grow th Rate

Population and Growth Rate, 1971-1993

Source: Indonesia Demographic and Health Survey 1994, CBS, MoH, and SMP/NFPCB

Figure 8. Age Structure and Dependency Ratio, 1971-1995

0

10

20

30

40

50

60

70

80

90

100

1971 1980 1990 1995

Year

Perc

en

tag

e

ages 0-14

ages 15-64

ages 65+

Dependency Ratio

Figure 9

0

10

20

30

40

50

60

70

80

90

100

1961 1971 1980 1990 1995

Year

Per

cent

age

0

100

200

300

400

500

600

700

800

900

1000

Pop

ulat

ion

Den

sity

(km

2)

Population Distribution (%) Java

Population Distribution (%) Outer Java

Population Density (per km2) Java

Population Density (per km2) Outer Java

Population Density (per km2) Indonesia

Population Distribution and Density in Java and Outer-Java, 1961-1995

Source: Welfare Indicators 1995, CBS

Figure 10. Life Expectancy at Birth by Sex and Infant Mortality Rate, 1971-1995

0

10

20

30

40

50

60

70

1971 1980 1985 1990 1993 1995

Year

Years

0

20

40

60

80

100

120

140

160

IMR

per

1,0

00

bir

ths

LE (Male)

LE (Female)

IMR

Figure 11. Health Care Delivery System in Indonesia

HEALTHCENTER

HEALTHCENTER

HEALTHCENTER

SUBHEALTHCENTER

SUBHEALTHCENTER

SUBHEALTHCENTER

POST HEALTHSERVICES

POST HEALTHSERVICES

POST HEALTHSERVICES

HOSPITAL HOSPITALHOSPITAL

REGIONALREFERRAL HOSPITAL

REGIONALREFERRAL HOSPITAL

REGIONALREFERRAL HOSPITAL

TOPREFERRAL

PROVINCE

DISTRICT

SUB-DISTRICT

VILLAGE

VILLAGE

CENTRAL

Figure 12. Budgetary Flows for Health, 1985/86 (in Rp.Billion)

CentralGovernment

ProvincialGovernment

DistrictGovernment

Total (620.3)

DIP INPRES DIK SDO SBBO

8.1

78.4

DIP DIK

14

81.8

DIP DIK

112.5 114.6 133.9 39.2 111.4 5.5 104.1

Regional block grant:1990/91

1992/93

Regional revenue 1990/91:

Figure 13. The Relationship between Regional Bock Grant per capita (1990/91-1992/93)and Regional Revenue per capita (1990/91)

0

20

40

60

80

100

120

1975/ 76 1980/ 81 1985/ 86 1990/ 91

Year

Per

cen

tage National Revenue

National Expenditure

Regional Revenue

Regional Expenditure

Fiscal Deficiency

Fiscal Surplus

Figure 14. National and Regional Government Budget Structure, 1975-1990/91

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Coe

ffic

ien

t

Indonesia (1990) Austalia (1987) Ind ia (1982-86) Malaysia (1984-88) Canada (1988) Germany (1988) United States (1988)

Country (Year)Source: Shah, Anwar et al (1994), p.2

Figure 15. Coefficient of Vertical Fiscal Imbalance for Selected Countries

Infant Mortality Rate (IMR) by Province (1980 and 1993)

-

25.0

50.0

75.0

100.0

125.0

150.0

175.0

200.0

225.0

250.0

275.0

300.0A

ceh

No

rth

Su

ma

tera

We

st S

um

ate

ra

Ria

u

Jam

bi

So

uth

Su

ma

tera

La

mp

un

g

Be

ng

kulu

Jaka

rta

We

st J

ava

Ce

ntr

al J

ava

Yo

gya

kart

a

Ea

st J

ava

We

st K

alim

an

tan

Ce

ntr

al K

alim

an

tan

So

uth

Ka

lima

nta

n

Ea

st K

alim

an

tan

No

rth

Su

law

esi

Ce

ntr

al S

ula

we

si

So

uth

Su

law

esi

So

uth

ea

st S

ula

we

si

Ba

li

We

st N

usa

Te

ng

ga

ra

Ea

st N

usa

Te

ng

ga

ra

Ma

luku

Iria

n J

aya

IND

ON

ES

IA

Province

De

ath

s p

er

1,0

00

liv

e b

irth

s

1980

1993

Source: Bappenas (1995)

National Average (1980)

National Average (1993)

Figure 16

13

2

13

45 22

23

24

27

26

2519

18

2021

16

17

15

14

13

11

7

6

8

10

9

Infant Mortality Rate in 1990:Province

1. DKI Jakarta;2.West Java;3. Central Java;4. D.I. Yogyakarta;5. East Java;6. Lampung;7. Bengkulu;8. South Sumatera;9. Riau;10. Jambi;11. West Sumatera;12. North Sumatera;13. D.I. Aceh;

13. D.I. Aceh;14. West Kalimantan;15. Central Kalimantan;16. South Kalimantan;17. East Kalimantan;18. Cental Sulawesi;19. North Sulawesi;20. South Sulawesi;21. Southeast Sulawesi;

22. Bali;23. West Nusa Tenggara;24. East Nusa Tenggara;25. Maluku;26. Irian Jaya;27. East Timor.

Figure 17. Infant Mortality Rate by Province in 1990

Availability ofhealth facilities:

Health Center in 1990

Sub Health Center in 1990

Health Center in 1993

Sub Health Center in 1993The difference betweenIMR in 1990 and 1993:

Figure 18. The Relationship between Improvement in IMR and Availability ofHealth Facilities, 1990-1993

The difference betweenIMR in 1990 and 1993:

Health budget per capita:

1990

1993

Figure 19. The Relationship between Improvement in IMR andHealth Budget Per Capita, 1990-1993

The difference betweenIMR in 1990 and 1993:

Immunization coverage(in percentage):

1990

1993

Figure 20. The Relationship between Improvement in IMR andImmunization Coverage, 1990-1993

Availability ofhealth facilities:

Health Center in 1990

Sub Health Center in 1990

Health Center in 1993

Sub Health Center in 1993

Infant Mortality in 1993:

Figure 21. Infant Mortality Rate (1993) and Availability of Health Facilities (1990 and 1993)

Deconcentration Devolution toFunction to Ministry Filed Local Delegation Privatization

Office GovernmentLegislative - ** - -Revenue-raising * ** ** ***Policy-making - ** ** **Regulation - ** * -Planning and resource allocation ** ** *** ***Management

- personnel * ** *** ***-budgeting and expenditure ** ** *** ***-procurement of supplies * ** *** ***-maintenance * ** *** ***

Intersectoral collaboration * *** *** ***Interagency coordination * ** *** ***Training * ** *** ***

Note:*** Extensive responsibilities** Some responsibilities* Limited responsibilities- No responsibilitiesSource: Mills, A nne et al, 1990 p.26

Table 1. Decentralization of Functions in Different Types of Decentralized System

Indicator 1 2 3 4 5

A Continued delivery of services and benefitsA-1 Volume/ stability of actual and intended benefitsA-2 Efficiency of service deliveryA-3 Quality of services/ benefitsA-4 Satisfaction of beneficiariesA-5 Distribution of benefits among economic and social groups

B Maintenance of physical infrastructureB-1 Condition of physical infrastructureB-2 Condition of plant and equipmentB-3 Adequacy of maintenance proceduresB-4 Efficiency of cost-recovery and adequacy of operating budgetB-5 Beneficiary involvement in maintenance procedures

C Long-term institutional capacityC-1 Capacity and mandate of the principal operating agenciesC-2 Stability of staff and budget of operating agencyC-3 Adequacy of interagency coordinationC-4 Adequacy of coordination with community organization and beneficiariesC-5 Flexibility and capacity to adapt project to changing circumstances

D Support from stakeholdersD-1 Stability and strength of support from international agenciesD-2 Stability and strength of support from national governmentD-3 Stability and strength of support from provincial and local governmentD-4 Stability and strength of support at the community levelD-5 Ability of project to avoid becoming politically controversial

Note: rating code: 1=very poor, 2=poor, 3=average, 4=good, and 5=very goodSource: Valadeze and Bamberger, 1994, p.194

Rating

Table 2. An Index for Assessing Program Sustainability

Growth of Real GDP/Growth of Real GDP Per Capita, 1966-19951966-73 1974-90 1991-94 1994 1995 (estimate)

Indonesia 6.4 6.7 7.6 7.3 7.53.9 4.7 5.8 5.7 6

World 5.1 3.0 1.5 2.9 2.83.0 1.2 -0.1 1.3 1.4

High Income Countries 4.8 2.8 1.7 3.0 2.53.8 2.1 1.0 2.3 1.8

Low- and Middle Income Countries 6.9 3.6 1.0 2.5 3.94.3 1.6 -0.7 0.8 2.3

Source: Global Economic Prospects and Developing Countries, World Bank (1996)

Table 3

Trends of Government Expenditure on Health:

Central Government and Selected Provinves (1982/83-1987/88)

Expenditure (Rp. Billion) Central as

Province Central Province Total % of total

East Kalimantan1982/83 7.21 2.87 10.08 721983/84 5.88 2.11 8.00 741984/85 5.53 2.37 7.90 701985/86 5.96 2.84 8.80 681986/87 5.20 2.88 8.07 641987/88 4.14 2.36 6.50 64

West Nusa Tenggara1982/83 6.37 0.83 7.20 881983/84 6.37 0.65 7.02 911984/85 5.87 0.63 6.50 901985/86 6.48 0.84 7.32 891986/87 6.06 0.83 6.88 881987/88 4.77 0.77 5.54 86

Source: Ministry of Health and the World Bank

Table 4

Indicators West Nusa Tenggara East Kalimantan Indonesia

Area (km2) 20,177 202,400 1,919,497

Population Density per km2 (people) 173 10 97

Life Expetancy in 1980 (years) 39.1 53.8 52.2

Infant Mortality Rate (per 1,000 282 148 162live birth)

Regional Income per capita in 1993 285,573 3,232,750 744,751(Rupiah)

Table 5. Social, Economic, and Demographic Characteristics of West Nusa Tenggara Barat and East Kalimantan Provinces

Source: Ministry of Health and Bappenas

Revenue Share Expenditure Share Surplus/Deficit

Own Source and Shared Revenues National 94.3 83.1 11.2 Subnational 5.7 16.9 -11.2 Provincial 3.5 9.3 -5.8 Local (District) 2.2 7.6 -5.4 All Levels 100.0 100.0 0.0

Own Source, Shared Revenues and

Transfers National 82.2 83.1 -0.9 Subnational 17.8 16.9 0.9 Provincial 9.9 9.3 0.6 Local (District) 7.9 7.6 0.3 All Levels 100.0 100.0 0.0

Table 6. Vertical Fiscal Imbalance in Indonesia (Percentage), 1991

Source: Shah, Anwar et al (1996)