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 AdministrationNational Institute of Public Administration

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 Government2. Local Government

(Decentralization)

• 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-fu

nctio

ns of Govt SHIFT OF PARADIGM ���� from Regulatory State to

Facilitating and Empowering State.

Curre

nt Situ

atio

n

Tendency to over-regulate?

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”.

Optio

ns for In

terve

ntio

n

Areas of In

terve

ntio

n?

Leveraging Factors

• Policy Making Process

• Planning & Budgeting

•Human Resource

Sectors Affected

• Public Service

• Infrastructure

•Health

• Education

•Business / trade climate, etc.

1. The policy of doing nothingImplementation failure; what will be will be ...

2. Policy InvolutionGood policy formulation, but not really needed …

3. Symbolic PolicySimplistic in its presentation, ignoring contextual features, benefiting only small groups of people …

4. Policy DivergenceConflicting policies among institutions …

Polic

y Making Process

4 Big Problems Faced

1. Incompatible each other

2. Weak of tax-base as source of development fundingFind other source of income such as export of SME products …

3. Reform in financial sectorLeaving 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.

Planning and Budgetin

g

Situation & Possible Solutions

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

Human Resources

Challenges

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

Infra

stru

cture

Common Problems Identified

Thank You …Jakarta, June 26, 2014