Government Functions and Future Development

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Discussion Note
World Bank Round Table Discussion on “The Role
of the Center of Government in Indonesia”
Jakarta, 26 June 2014

Published in: Technology, News & Politics

Government Functions and Future Development

  1. 1. Government Functions & Future Development Discussion Note World Bank Round Table Discussion on “The Role of the Center of Government in Indonesia” Jakarta, 26 June 2014 Tri Widodo W Utomo Deputy Chairman for Innovation of Public Administration National Institute of Public Administration
  2. 2. State Constitution 1945State Constitution 1945State Constitution 1945State Constitution 1945 Basic Missions: 1. Protecting the Citizens; 2. Enhancing Welfare; 3. Improving Nation’s Literacy; 4. Contributing to the global peace. The Structure of The State: 1. Center of Government 2. Local Government (Decentralization)
  3. 3. • Enacting Laws; • Allocating Norms; • Administrative Permits; • Promotional Policies; • Creating conducive business climate; • Connecting into global network, etc. • Distributing Resources (eg. Subsidies); • Delivering Services; • Transferring Knowledge; • Strengthening Partnership, etc. Balanced-functionsofGovt SHIFT OF PARADIGM from Regulatory State to Facilitating and Empowering State.
  4. 4. CurrentSituation Tendency to over-regulate?
  5. 5. 1. Re-arrangement of government functions/affairs: • Public-Private Partnership; • Privatization. 2. Organizational re-fitting: • Regrouping Ministries; • Streamlining Govt Bodies. 3. Managing government for result: • Refurbishing coordination system; • Simplifying business process; • Deregulating redundant policies; • Monitoring program focused on “outcomes and quality culture”. OptionsforIntervention
  6. 6. AreasofIntervention? Leveraging Factors • Policy Making Process • Planning & Budgeting • Human Resource Sectors Affected • Public Service • Infrastructure • Health • Education • Business / trade climate, etc.
  7. 7. 1. The policy of doing nothing Implementation failure; what will be will be ... 2. Policy Involution Good policy formulation, but not really needed … 3. Symbolic Policy Simplistic in its presentation, ignoring contextual features, benefiting only small groups of people … 4. Policy Divergence Conflicting policies among institutions … PolicyMakingProcess 4 Big Problems Faced
  8. 8. 1. Incompatible each other 2. Weak of tax-base as source of development funding Find other source of income such as export of SME products … 3. Reform in financial sector Leaving the “zero budget” system, acknowledging SILPA for CG-s bodies, introducing competitive government with incentive & disincentive mechanism … 4. Integrating planning & budget system 5. Making govt as revenue center instead of cost center. PlanningandBudgeting Situation & Possible Solutions
  9. 9. Law 5/2014 offering new promising personnel management: 1. More competent HR by better recruitment and competency test 2. More open competition to get certain position, and moving / redistribution of HR across regions and institutions HumanResources Challenges
  10. 10. 1. Coordination among central and local government is very weak. 2. Different development priorities among development plan (eg. National and Provincial Mid-term Development Plan) 3. Lack of financial resources Infrastructure Common Problems Identified
  11. 11. Thank You … Jakarta, June 26, 2014

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