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Assessment of Local Governance and Development Performance in Indonesia:

Current Models, Challenges and Future Perspectives

Dr. Astia Dendi Senior Advisor GTZ-DeCGG

IASIA International Congress, Bali 12-17 July 2010

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Structure and Scope of Presentation

Background

Overview of National Development Challenges, Goal and Priorities toward 2014;

Rational of Performance Measurement;

Structure and Instruments of Performance Measurement;

Main Issues and Problems of Performance Measurement System and Implementation;

Conclusions and Future Perspectives;

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Background

Indonesia is a unitary state consisting of 524 autonomous regions: 33 provinces, 398 districts, and 93 municipalities (MoHA, 2009);

10 years ago Indonesian population was reported 205 million peoples, and it is estimately more than 235 million peoples in 2010 (population census is undegoing);

Decentralisation is “unfinished agenda”, and further governance reform is undergoing;

Poverty and inter-regional disparity remain one of critical challenges;

These challenges and globalisation call for government’s role and coherence policies;

Indonesian Government has recently launched its National Mid-Term Development Plan for 2010-2014 (RPJMN 2010-2014);

International Donors, including German Development Cooperation align with the Partner’s Agenda according to the Paris Declaration and the Jakarta Commitment.

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Poverty by Province in 2007 and 2009 (% of Population)

Source: www.bps.go.id/

26,65

13,90

11,90

11,20

10,27

19,15

22,13

22,19

9,54

10,30

4,61

13,55

20,43

18,99

19,98

9,07

6,63

24,99

27,51

12,91

9,38

7,01

11,04

11,42

22,42

14,11

21,33

27,35

19,03

31,14

11,97

39,31

40,78

21,80

11,51

9,54

9,48

8,77

16,28

18,59

20,22

7,46

8,27

3,62

11,96

17,72

17,23

16,68

7,64

5,13

22,78

23,31

9,30

7,02

5,12

7,73

9,79

18,98

12,31

18,93

25,01

15,29

28,23

10,36

35,71

37,53

0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00 45,00

Nanggroe Aceh Darussalam

Sumatera Utara

Sumatera Barat

Riau

Jambi

Sumatera Selatan

Bengkulu

Lampung

Bangka Belitung

Kepulauan Riau

DKI Jakarta

Jawa Barat

Jawa Tengah

DI Yogyakarta

Jawa Timur

Banten

Bali

Nusa Tenggara Barat

Nusa Tenggara Timur

Kalimantan Barat

Kalimantan Tengah

Kalimantan Selatan

Kalimantan Timur

Sulawesi Utara

Sulawesi Tengah

Sulawesi Selatan

Sulawesi Tenggara

Gorontalo

Sulawesi Barat

Maluku

Maluku Utara

Irian Jaya Barat

Papua

2009

2007

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Human Development Index by Province*)

- 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0

Nanggroe Aceh Darussalam

Sumatera Utara

Sumatera Barat

Riau

Jambi

Sumatera Selatan

Bengkulu

Lampung

Bangka Belitung

Kepulauan Riau

DKI Jakarta

Jaw a Barat

Jaw a Tengah

DI Yogyakarta

Jaw a Timur

Banten

Bali

Nusa Tenggara Barat

Nusa Tenggara Timur

Kalimantan Barat

Kalimantan Tengah

Kalimantan Selatan

Kalimantan Timur

Sulaw esi Utara

Sulaw esi Tengah

Sulaw esi Selatan

Sulaw esi Tenggara

Gorontalo

Sulaw esi Barat

Maluku

Maluku Utara

Irian Jaya Barat

Papua

2008

2004

Indonesia HDI Rank: 111111 of 1 of 18080 countries countries (2007); (2007);

*) Source: www.bps.go.id/

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(% GNI per capita)(days)

Source: IFC (2009), cited from BKPM’s presentation 2010

Time and Cost for Starting Business in Indonesia

Source: IFC (2009) , cited from BKPM’s presentation 2010

Indonesia’s Investment Rank (out of 178 countries)

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National Long-Term Delevoment Stages

Restructuring the NKRI (Republic of Indonesia) to build a safe and peaceful, fair, democratic and more prosperous Indonesia

Mid-Term I 2005-2009

Strengthening NKRI, improve the quality of human resources, build the capacity in science & technology, strengthen the economic competitivenes

Mid-Term II 2010-2014

Enhance the overall development with emphasis on building economic competitive advantages based on available NR, qualified HR and Sc. & Tech.

Mid-Term III 2014-2019

Creating an independent, modern, integrated and prosperous RI society through acceleration of development in all sectorsbased on solid ES& competitive advantages;

Mid-Term IV 2020-2024

National Long-Term Development Plan 2005-2025

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National Development Priorities

Investment & Businss Climate

Energy

Environment & Disaster Management

Culture, Creativity & Tech. Innovation

Least Dev. , Frontier, Outer and Post-conflict Areas

+ 3 Other Priorities (Politics; Economy; People’s Welfare)

Bureaucracy and Governance Reform

Education

Health

Food Resilience

Poverty Reduction

Infrastructure

National Priorities

2010-2014

Soft Infrastructure Social infrastructure Physical Infrastructure Creativity Development

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Rational of Performance Measurement

Performance measurement points to regular measurement of of the results (outcomes) and efficiency of services or programs (Hatry, 2006);

The globalisation calls for re-inventing government’s role in promoting market-friendly and coherence public policies;

Performance measurement is a connector between information and management decision making that benefits the public;

It strengthens good governance practices at all level;

Performance measurement provides elected officials relevance information and, thus, profound understanding on policy outcomes and constraints;

Strengthen evidence-based policy making and result-orientation;

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Impacts

Benefits

Outcomes

Outputs

Activities

MEANS-ENDS STRUCTURE (Extended IOO Model)

What social changes (quality of life) are expected?

What are relatively direct effects/ benefits of changes for customers/ specified population?

What immediate changes are expected to occure on customers/ specified population? What are goods and

services produced through the efforts?

What are the efforts/ Interventions by using the inputs?

Inputs (Resources)

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InputMeasures

ProcessMeasures

OutputMeasures

Outcome- Oriented Measures

Types of Performance Indicators

Efficiency

Cost Effectiveness

What Resources?

(Human, Money, Time)

Changes and Benefits/ Impacts of Changes

On Client’s System

Goods & Services Produced

How?

Ways, Compliance with Procedure & Standards

Effectiveness

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Overview of Instruments of Performance Measurement and Evaluation

Instrument and Arena Types of Indicators

LAKIP (Government’s Accountability Reporting)

Governmental agencies at all levels

EPPD (Evaluation of Reg./ Local Governance Performance)Policy-making Level & Imlementing Agencies Level

EPRPD (Evaluation of Reg./ Local Dev. Plan Implementation)Provincial, District/ Municipal Governments & Implementing Agencies

ENDP (Evaluation of National Dev. Plan Implementation)All Central Government’s Programmes implemented in regions

Input-Process-Output-Outcome-

[Benefit/ Impact]

Input-Process- Output-Outcome-Benefit/ Impact

Input-Process-Output-Outcome-Benefit/ Impact

Example textThis is an example text.

Input-Process-Output-Outcome-Benefit/ Impact

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Main Issues and Problems of Performance Measurement

Conceptual understanding & technical skill

Main Problems in Performance

Measurement

Availability and Quality of Data

Participation Deficit

Capacity Deficit

Regulatory Framework

Methodology

Performance Pillars

Incoherence, Overlapping, Disorientation

Desk Study-Centric

Baseline Data, Benchmarks,Milestones

Key Performance Indicators

Weighting and Treshold Values

Leadership

Frequent staff transfer/ rotation

Civil Society Organisations (CSOs)

Academia

Information & Cummunication System

Output and Outcome Indicators were frequently not defined clearly

Vague Link between Outputs and Outcomes

Regulation-CentricEnabling Incentives (Structure, Rewards/ Punishment & Capacity Building)

Enabling Incentives (Structure, Financial Resources & Capacity Building)Data

Inconsistency

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Arena and Number of Indicators for Measuring Regional/ Local Governance Performance (EKPPD)

Province Municipal District

Policy level

Implement- ation level

Policy Level

Implement-ation level

Policy Level

Implement-ation level

General Administration

28 28 28

Obligatory Functions

107 120 120

Discretional Functions

16 26 26

Total 63 151 74 174 72 174

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Concluding Remarks and Future Perspectives

Fundamental Concept of the Performance Measurement adopted by Indonesian Government is compatible with the widely accepted theory of performance measurement;

However, the established system is just not doable!

Strong political commitment and inter-ministrial collaboration are needed to design and re-assign doable and systemic performance measurement and evaluation;

Strengthen interlink among planning, performance measurement and performance-based budgeting;

Mobilize citizen’s satisfaction/ citizen’s complaint survey;

Cost effective and dynamic information and communication system of performance management;

Systemic capacity building;

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For further information please contact:

Senior Advisor- GTZ DeCGGKementerian Dalam Negeri Republik IndonesiaGedung Sasana Bhakti Praja 5th FloorJl. Medan Merdeka Utara No. 7, JakartaPhone: +6221 351 1584Email: Astia.Dendi@gtz.de

DR. Astia Dendi

Terima Kasih Atas Perhatian Anda! Thank You For Your Attention!