PLANNING ANDBUDGETING REFORM   IN INDONESIA NATIONAL DEVELOPMENT PLANNING AGENCY            October, 6th 2011
Presentation Outline• Introduction : Indonesia• Planning and Budgeting Reform• Example                                  2
INTRODUCTION : Indonesia                           3
Indonesian : Briefo Indonesia is a republic with the total population of 237  milliono Last August, Indonesia celebrated t...
Governmental System in Indonesia Constitutional              President     Court                 - Head of State -     Par...
Planning,Budgeting, andEvaluation in Indonesia                          6
Frameworko Law No. 25/2004 : NATIONAL DEVELOPMENT  PLANNING SYSTEM    • Policy Intervention    • Budget Interventiono Law ...
Planning, Budgeting, and Evaluation; The Roles       Bappenas                         MoF                         UKP4 Pr...
Planning and Budgeting       Reform                         9
Framework of Planning and Budget Reform    Aggregate Fiscal Discipline                                                    ...
Reform Implementation (RPJMN 2010-2014)    Prosperity of                           Strengthening Four Track Strategy      ...
Scheme of Architecture Program and Activity                                         12
Example          13
Tasks of Poverty ReductionRemarks: with this program/activity-restructuring, there will be no overlap amongline ministries...
CONTINUED…Cluster I               Cluster II             Cluster III             Cluster IV                               ...
Thank You Dankie jyTerima Kasih               16
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Planning and Budgeting Reform in Indonesia

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Planning and Budgeting Reform in Indonesia

  1. 1. PLANNING ANDBUDGETING REFORM IN INDONESIA NATIONAL DEVELOPMENT PLANNING AGENCY October, 6th 2011
  2. 2. Presentation Outline• Introduction : Indonesia• Planning and Budgeting Reform• Example 2
  3. 3. INTRODUCTION : Indonesia 3
  4. 4. Indonesian : Briefo Indonesia is a republic with the total population of 237 milliono Last August, Indonesia celebrated the 66 years of independencyo 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. 4
  5. 5. Governmental System in Indonesia Constitutional President Court - Head of State - Parliament Supreme CourtJudicative Function Legislative Executive Function FunctionIndependent Role Appointed Appointed by by To watch ; President President To approve state budget Cabinet Ministries 5
  6. 6. Planning,Budgeting, andEvaluation in Indonesia 6
  7. 7. Frameworko Law No. 25/2004 : NATIONAL DEVELOPMENT PLANNING SYSTEM • Policy Intervention • Budget Interventiono 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 7
  8. 8. Planning, Budgeting, and Evaluation; The Roles Bappenas MoF UKP4 Prepare the National • Develop fiscal and  Responsible for assisting Documents Plan macroeconomic the President in carrying  Long-Term out supervision and framework Development Plan development control • Draft state budget and (RPJP)  Conduct duties in  National Medium- its amendment • Implement the capacity, effectiveness, Term Development collection of state acceleration, Plan (RPJM) performance and  Prepare of revenue established Government Working accountability with the parliament Plan (RKP) prescribed • Carry out the  Assist the President : in Hold National functions of the state managing the Development Forum general treasurer implementation of (Musrenbang) Collect and analyze the • Prepare financial synchronization and results of monitoring the statements as liability consistency planning, implementation of each of the budget monitoring, control and line ministry implementation accelerated program developments, 8
  9. 9. Planning and Budgeting Reform 9
  10. 10. Framework of Planning and Budget Reform Aggregate Fiscal Discipline 2010 2011 2012 MTFF: Medium Term Fiscal Framework ax ratio eficit ratio MTEF: Medium Term Expenditure Framework Allocative Efficiency ebt ratio (Allocation on Priority) Forward Estimates llocation on Priority PBB: Performance Based Budgeting rogram  outcomes Unified Budget ctivity  outputNotes: Performance Based Budgeting also include the authority’s separation of government -society/among government institutions/central-local Operational Efficiency Culture: (Spending Efficiency) - Performance Culture (PBB) - External Control - Efficiency through The Market Price (Robust Market) - Internal Control - Bidding - Management Accountability - Official Travel(at cost) *) 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)) 10
  11. 11. Reform Implementation (RPJMN 2010-2014) Prosperity of Strengthening Four Track Strategy People (Pro growth, pro poor, pro job, pro environment), inclusive and just development Democracy Consolidating democracy Justice Enhancing law enforcement, corruption eradication and reducing inequality 2010 2011 2012 2013 2014GROWTH (%) 5,5 - 5,6 6,0 - 6,3 6,4 - 6,9 6,7 - 7,4 7,0 - 7,7UNEMPLOYEMENT (%) 7,6 7,3 - 7,4 6,7 - 7,0 6,0 - 6,6 5,0 - 6,0 12,0POVERTY (%) 11,5 - 12,5 10,5 - 11,5 9,5 - 10,5 8,0 - 10,0 -13,5 11
  12. 12. Scheme of Architecture Program and Activity 12
  13. 13. Example 13
  14. 14. Tasks of Poverty ReductionRemarks: with this program/activity-restructuring, there will be no overlap amongline ministries, so that each function is in accordance with its task and function. 14
  15. 15. CONTINUED…Cluster I Cluster II Cluster III Cluster IV OUTCOME OUTCOME OUTCOME Increasing OUTCOME Achieving Cooperative and Increasing people Small Medium Increasingequitable access in Empowerment Enterprises housing provision education Performances ACTIVITY ACTIVITY The Assurance of Increased ACTIVITY ACTIVITY education services empowerment of rural The expansion of The provision of for elementary communities KUR low-cost housing student (PNPM-MP) INDICATOR INDICATOR INDICATOR The number of poor The scope of The number of SMEs INDICATORstudents who received implementation for which assisted and The number of scholarships PNPM - MP can access KUR housing(3.640.780 elementary (PNPM Core 5.020 (27.520 Small Medium (62.500 houses) students) Sub-Districts) Enterprises /UMKM) MoE MoHA SMEs Public Housing 15
  16. 16. Thank You Dankie jyTerima Kasih 16

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