The document discusses planning and budgeting reform in Indonesia. It outlines Indonesia's national development planning system established through laws in 2004 and 2003. This system introduced unified budgeting, performance-based budgeting, and a medium-term expenditure framework. It also established the Presidential Work Unit for Development Control and Monitoring to assist the President in development supervision. The framework aims to improve fiscal discipline, allocative efficiency, and operational efficiency in planning and budgets. Reforms have been implemented through Indonesia's 2010-2014 National Medium-Term Development Plan to promote inclusive, just development through strategies like poverty reduction programs.

1. PLANNING AND
BUDGETING REFORM
IN INDONESIA
NATIONAL DEVELOPMENT PLANNING AGENCY
October, 6th 2011

2. Presentation Outline
• Introduction : Indonesia
• Planning and Budgeting Reform
• Example
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3. INTRODUCTION : Indonesia
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4. Indonesian : Brief
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 / cities
o The President is the Head of State / Head of Government
and directly elected by the people
o The President appoints and dismisses cabinet minister
o The parliament watches, holds the legislative function
and approve the budget.
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5. Governmental System in Indonesia
Constitutional President
Court - Head of State - Parliament
Supreme Court
Judicative Function Legislative
Executive Function Function
Independent Role Appointed
Appointed by by To watch ;
President President To approve state
budget
Cabinet Ministries
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6. Planning,Budgeting, and
Evaluation in Indonesia
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7. Framework
o 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
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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,
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9. Planning and Budgeting
Reform
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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  output
Notes: 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))
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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 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
12,0
POVERTY (%) 11,5 - 12,5 10,5 - 11,5 9,5 - 10,5 8,0 - 10,0
-13,5
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12. Scheme of Architecture Program and Activity
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13. Example
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14. Tasks 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

15. CONTINUED…
Cluster I Cluster II Cluster III Cluster IV
OUTCOME
OUTCOME OUTCOME Increasing OUTCOME
Achieving Cooperative and
Increasing people Small Medium
Increasing
equitable 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 INDICATOR
students 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
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16. Thank You
Dankie jy
Terima Kasih
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