World Bank Office Jakarta Indonesia Stock Exchange Building Tower 2, 12th Floor (62-21-5299-3000) Contact: In Jakarta:Randy Salim: (62-21) 5299-3 rsalim1@worldbank.org In Washington DC: Mohamad Al-Arief (1-202) 458-5964 malarief@worldbank.org
International seminar brings global best-practice options to Indonesian efforts to synchronize state budgets and planning with policy needs
JAKARTA, December 5, 2011 –After successfully improving its basic public financial management systems and procedures, Indonesia is now moving on to the next level of reforms. The focus now is on shifting its national planning and budgeting from a system based on inputs to one based on performance information. Performance data is obtained through effective monitoring and evaluation. The data is necessary for evaluating performance and making better budgeting decisions. Today, experts from around the world are gathering with the Indonesian public financial management community to share global best-practices on what works – how it works and what it takes to work – in linking performance evaluation to budget decisions.
“The Indonesian government is committed to maximizing the quality of spending for greater development outcomes, and performance-based budgeting is one of the strategies we will be fully implementing in 2012 to achieve this goal,” says Indonesian Finance Minister, Agus Martowardojo. “By learning from the experiences of our global peers, Indonesia can develop a budgeting and planning system best suited for our national context.”
“Performance based budgeting is expected to result in a more effective and efficient bureaucracy. To do so we need to enhance accountability mechanism by developing a good performance evaluation, and linking it to the planning and budgeting decision. This strategy requires us to have good stages of reform, since it requires institutional capacity to have it implemented. I do hope this seminar will contribute to our effort on improving the stages of our planning and budgeting reform,” says National Development Planning Minister Armida Alisjahbana.
“Over the past decade the Indonesian public has demanded greater credibility, accountability and control in the design of state budgets. Over the same period, the Indonesian government has made basic improvements to its public financial management systems and is now moving to more advanced reforms,” says Dr. Otaviano Canuto, World Bank Vice President for Poverty Reduction and Economic Management. “Credible performance data is key to ensuring that budgets are used to put policies into action, and produce the desired development outcomes.
Responding to developments in Indonesia, the two-day “International Seminar on Linking Performance Evaluation to Budget Decision” brings together the latest international experiences and thinking on monitoring and evaluation systems linked to budgeting. It is expected that this knowledge will then help resolve some of the most important reform issues faced by the Indonesian authorities. Four areas of improvement have been identified:
Overall framework of performance based budgeting and the implementation of Medium term expenditure framework
Fundamentals of monitoring and evaluation on how to design methodologies and processes to review and evaluate performance and feed it back into the budget allocation
How to develop incentives for performance
Using performance information to enhance the overall performance based budgeting decision process.
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