planning and budgeting reform in indonesia
TRANSCRIPT
PLANNING AND BUDGETING REFORM
IN INDONESIANATIONAL DEVELOPMENT PLANNING AGENCY
October, 6th 2011
Presentation OutlinePresentation Outline
• Introduction : Indonesia• Planning and Budgeting Reform• Example
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INTRODUCTION : IndonesiaINTRODUCTION : Indonesia
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Indonesian : BriefIndonesian : Brief
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o Indonesia is a republic with the total population of 237 million
o Last August, Indonesia celebrated the 66 years of independency
o This country has 33 provinces and 497 regencies / citieso The President is the Head of State / Head of Government
and directly elected by the peopleo The President appoints and dismisses cabinet ministero The parliament watches, holds the legislative function
and approve the budget.
o Indonesia is a republic with the total population of 237 million
o Last August, Indonesia celebrated the 66 years of independency
o This country has 33 provinces and 497 regencies / citieso The President is the Head of State / Head of Government
and directly elected by the peopleo The President appoints and dismisses cabinet ministero The parliament watches, holds the legislative function
and approve the budget.
Governmental System in IndonesiaGovernmental System in Indonesia
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President- Head of State - Parliament
Cabinet MinistriesCabinet
Ministries
Constitutional Court
Supreme Court
Executive FunctionExecutive FunctionLegislative Function
Legislative Function
Judicative FunctionJudicative Function
To watch ;To approve
state budget
To watch ;To approve
state budget
Independent Role
Appointed by President
Independent Role
Appointed by President
Appointed by
President
Appointed by
President
Planning,Budgeting, and Planning,Budgeting, and Evaluation in IndonesiaEvaluation in Indonesia
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FrameworkFrameworko Law No. 25/2004 : NATIONAL DEVELOPMENT
PLANNING SYSTEM• Policy Intervention• Budget Intervention
o Law No. 17/2003 : STATE-FINANCE• Unified Budgeting• Performance Based Budgeting• Medium-Term Expenditure Framework (MTEF)
o Presidential Decree 54/2009 : Presidential Work Unit for Development Control & Monitoring
• Finished within 5 years ( since Law 17/2003 established as stipulated under Govt. Regulation 21/2004
• Useful for the implementation of bureaucracy reform
• Finished within 5 years ( since Law 17/2003 established as stipulated under Govt. Regulation 21/2004
• Useful for the implementation of bureaucracy reform7
Planning, Budgeting, and Evaluation; The RolesPlanning, Budgeting, and Evaluation; The Roles
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Prepare the National Documents Plan Long-Term
Development Plan (RPJP)
National Medium-Term Development Plan (RPJM)
Prepare of Government Working Plan (RKP)
Hold National Development Forum (Musrenbang)
Collect and analyze the results of monitoring the implementation of each line ministry
Prepare the National Documents Plan Long-Term
Development Plan (RPJP)
National Medium-Term Development Plan (RPJM)
Prepare of Government Working Plan (RKP)
Hold National Development Forum (Musrenbang)
Collect and analyze the results of monitoring the implementation of each line ministry
• Develop fiscal and macroeconomic framework
• Draft state budget and its amendment
• Implement the collection of state revenue established with the parliament
• Carry out the functions of the state general treasurer
• Prepare financial statements as liability of the budget implementation
• Develop fiscal and macroeconomic framework
• Draft state budget and its amendment
• Implement the collection of state revenue established with the parliament
• Carry out the functions of the state general treasurer
• Prepare financial statements as liability of the budget implementation
BappenasBappenas
Responsible for assisting the President in carrying out supervision anddevelopment control
Conduct duties in capacity, effectiveness, acceleration, performance and accountability prescribed
Assist the President : in managing the implementation of synchronization and consistency planning, monitoring, control and accelerated program developments,
Responsible for assisting the President in carrying out supervision anddevelopment control
Conduct duties in capacity, effectiveness, acceleration, performance and accountability prescribed
Assist the President : in managing the implementation of synchronization and consistency planning, monitoring, control and accelerated program developments,
MoFMoF UKP4UKP4
Planning and Budgeting Planning and Budgeting ReformReform
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Framework of Planning and Budget ReformFramework of Planning and Budget Reform
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Aggregate Fiscal DisciplineAggregate Fiscal Discipline
-Tax ratio-Deficit ratio-Debt ratio
-Tax ratio-Deficit ratio-Debt ratio
Allocative Efficiency(Allocation on Priority)
Allocative Efficiency(Allocation on Priority)
Allocation on Priority-Program outcomes-Activity output
Allocation on Priority-Program outcomes-Activity output
Operational Efficiency(Spending Efficiency)
Operational Efficiency(Spending Efficiency)
- External Control- Internal Control- Management Accountability
- External Control- Internal Control- Management Accountability
2010 2011 2012 MTFF: Medium Term Fiscal FrameworkMTFF: Medium Term Fiscal Framework
MTEF: Medium Term Expenditure FrameworkMTEF: Medium Term Expenditure Framework
Culture:- Performance Culture (PBB)- Efficiency through The Market Price (Robust Market)
- Bidding - Official Travel(at cost)
Culture:- Performance Culture (PBB)- Efficiency through The Market Price (Robust Market)
- Bidding - Official Travel(at cost)
PBB: Performance Based BudgetingPBB: Performance Based Budgeting
Unified BudgetUnified Budget
Forward EstimatesForward Estimates
*) The National Medium-Term Development Plan (RPJMN) (5 YEARS DEVELOPMENT PLANNING, WITH 3 YEARS ROLLING PLAN THROUGH GOVERNMENT ANNUAL WORK PLAN (RKP) AND STATE REVENUES AND EXPENDITURE BUGDET (APBN))*) The National Medium-Term Development Plan (RPJMN) (5 YEARS DEVELOPMENT PLANNING, WITH 3 YEARS ROLLING PLAN THROUGH GOVERNMENT ANNUAL WORK PLAN (RKP) AND STATE REVENUES AND EXPENDITURE BUGDET (APBN))
Notes: Performance Based Budgeting also include the authority’s separation of government - society/among government institutions/central-local
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2010 2011 2012 2013 2014
GROWTH (%)5,5 - 5,6
6,0 - 6,3 6,4 - 6,9 6,7 - 7,4 7,0 - 7,7
UNEMPLOYEMENT (%) 7,6 7,3 - 7,4 6,7 - 7,0 6,0 - 6,6 5,0 - 6,0
POVERTY (%)12,0 -13,5
11,5 - 12,5
10,5 - 11,5
9,5 - 10,58,0 - 10,0
Prosperity of People
Democracy
Justice
Strengthening Four Track Strategy (Pro growth, pro poor, pro job, pro environment), inclusive and just
development
Consolidating democracy
Enhancing law enforcement, corruption eradication and reducing inequality
Reform Implementation (RPJMN 2010-2014)Reform Implementation (RPJMN 2010-2014)
Scheme of Architecture Program and ActivityScheme of Architecture Program and Activity
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ExampleExample
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Tasks of Poverty ReductionTasks of Poverty Reduction
Remarks: with this program/activity-restructuring, there will be no overlap among line ministries, so that each function is in accordance with its task and function. 14
CONTINUED…CONTINUED…
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OUTCOMEAchieving equitable access in education
OUTCOMEAchieving equitable access in education
ACTIVITYThe Assurance of
education services for elementary student
ACTIVITYThe Assurance of
education services for elementary student
MoEMoE
INDICATORThe number of poor
students who received
scholarships(3.640.780 elementary students)
INDICATORThe number of poor
students who received
scholarships(3.640.780 elementary students)
Cluster I
OUTCOMEIncreasing
people Empowerment
OUTCOMEIncreasing
people Empowerment
ACTIVITY Increased
empowerment of rural communities
(PNPM-MP)
ACTIVITY Increased
empowerment of rural communities
(PNPM-MP)
MoHAMoHA
INDICATORThe scope of
implementation for PNPM - MP
(PNPM Core 5.020 Sub-Districts)
INDICATORThe scope of
implementation for PNPM - MP
(PNPM Core 5.020 Sub-Districts)
Cluster II
OUTCOMEIncreasing
Cooperative and Small Medium
Enterprises Performances
OUTCOMEIncreasing
Cooperative and Small Medium
Enterprises Performances
ACTIVITY The expansion
of KUR
ACTIVITY The expansion
of KUR
SMEsSMEs
INDICATORThe number of SMEs which
assisted and can access KUR
(27.520 Small Medium
Enterprises /UMKM)
INDICATORThe number of SMEs which
assisted and can access KUR
(27.520 Small Medium
Enterprises /UMKM)
Cluster III
OUTCOMEIncreasing
housing provision
OUTCOMEIncreasing
housing provision
ACTIVITYThe provision
of low-cost housing
ACTIVITYThe provision
of low-cost housing
Public HousingPublic
Housing
INDICATORThe number of
housing(62.500 houses)
INDICATORThe number of
housing(62.500 houses)
Cluster IV
Thank YouThank YouDankie jyDankie jy
Terima KasihTerima Kasih
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