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

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. 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. • 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. CurrentSituation
Tendency to over-regulate?

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. AreasofIntervention?
Leveraging
Factors
• Policy Making
Process
• Planning &
Budgeting
• Human
Resource
Sectors
Affected
• Public Service
• Infrastructure
• Health
• Education
• Business /
trade climate,
etc.

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. 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. 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. 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. Thank You …
Jakarta, June 26, 2014