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Evidence-Based Development

06
Mar
2013

“The change in budgeting system is from focusing on input into focusing on results”

The nature of national development is Indonesian human development completely and Indonesian society development entirely. Meanwhile, Sumsedi Andoyo Mulyo from Bappenas said that the essence of development was to improve human capability in realizing human dignity and create a better system of life, fair, safe and comfortable. According to his statements, there were three changes in development; they were globalization, democratization, and decentralization. Globalization involves the standardization of public services, education and health. The essence of democracy is of the people, by the people and for the people, but now those statements change into from people, by parties and for parties. “Parties become the winner of democracy,” said alumnus of FEB UGM. Sumedi added that the essence of democracy should be restored in the improvement of people’s welfare.

Furthermore, decentralization is how the local uniqueness and local cultural values become an important part in planning and budgeting. As based on the experiences in other countries, Sumedi said that there was a relation between culture and development. Social relation such as kinship and social solidarity motives village is still mostly found in parts of Indonesia, such as Papua, Maluku and Java. Bureaucracy and the ability of science and technology is an important concern for local governments, both city and country. The main issues in the current development changes were globalization, democratization and decentralization. The issues related to globalization is about competition, cooperation, and shocks so that it needs market opportunities utilization by increasing competitiveness and need to strengthen international cooperation network. Meanwhile, democratization issue is related to democracy consolidation and uncertainty. The consolidation involves recruitment, ethics, and behavior, even democratists are starting to become a public concern. Furthermore, the issue related to decentralization that involves coordination, competition, and cooperation is coordination problem and synchronization of national and local policies in order to quicken development process.

High quality of economic growth is followed by decreasing the amount of poverty and unemployment, as well as the prevention of environmental damage. Revitalizing districts and villages is needed to support the high quality of economic growth. “Sub-district is created as a service center and growth center, such as in Japan,” said Sumedi. The steps in revitalizing sub-districts and villages are authority delegation from SKPD to Chief of Sub-district administration and village chief; also strengthening human resources in the district. The excellence of those steps is a better, faster, higher quality, easy and cheap community service.

Transformation of planning and budgeting development in supporting development planning, national and local government undertakes the budgeting. Development planning and budgeting are two related things. In the process of forming the plan always undertake budgeting process. Traditionally, forming government budget based on input-oriented and budget focused on the amount of funds input to undertake the activities. The lack of input-oriented is it does not provide the flexibility to follow the changing situation, so the budget orientation only spent allocation at the end of the year (use it or lose it). Besides, the lack of sufficient information for decision- making allows the misallocation and inefficiency. According to Hari Purnomo from The World Bank, it is a trend changing where the communities demand the government to ensure good value for money based on performance and budgeting that should be much helpful for public. “The change in budgeting system is from focusing on input into focusing on results,” he said.

Meanwhile, the OECD defines budgeting performance as budgeting that links between the allocated funds and measurable results. Evidence based planning/budgeting (evidence-based) is forward planning and budgeting based on evidence of progress in implementation in the past which is generated through a clear monitoring system and measurable evaluation method. According to Hari, it takes an IT system and a good data base for realizing this plan. In addition, the monitoring and evaluation system should support planning and budgeting. Indonesia planning and budgeting system has changed from an input-based system into an output and outcome-based system. All ministries and institutions of central government have set target and indicator performance as a basis for the preparation and evaluation programs next year. The target on each indicator is included on Government Work Plan and State Budget. From the achievements of outputs and outcomes then they conducted monitoring and evaluation. Hari Purnomo presented the result of monitoring and evaluation in the diagnosis of central government. The first is complex monitoring and evaluation with overlapping cross-unit of implementing monitoring and evaluation. Second, the absence of share data among ministries/institutions. Third, there are too many indicators to be monitored and evaluated. Fourth, high workload without real incentives and without strict sanctions. Fifth, there is no credible qualified and relevant data due to the absence of quality control.

The central government built State Budget and exchequer system to overcome the compartmentalized of the existing system of budget planning through implementation. Monitoring and evaluation system in SPAN was compiled to support evidence-based planning. Measurement, monitoring and evaluation of budget and performance is one that is absolute due to the use of performance-based budgeting, establishment of ministries and institutions state budget, establishment of drafting state budget with performance-based, and the application of rewards and sanctions (reward-punishment system). The future challenge in the application of SPAN is the integration of regional and central government data. [Prast]




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