Other Public Sector Study

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  • Publication
    Support to Civil Service Reform in Indonesia : Report from a Programming Mission to Jakarta
    (Washington, DC, 2009-05-07) World Bank
    Civil service reform in Indonesia is needed to sustain the important institutional reform results achieved over the last ten years in various sectors and policy areas and to further consolidate Indonesia as a progressing middle income country. This report summarizes a mission to Indonesia on February 2-13, 2009. The purpose of the mission was to i) map, describe and assess current approach and status of ongoing civil service reform initiatives in selected central government institutions; ii) make recommendations related to scope, focus and approach of continued reforms; and iii) propose to the Government of Indonesia (GOI) a World Bank program of assistance in support of the government's reform agenda. The report is intended to provide a basis for a decision within the Bank on whether and how to continue and scale up an engagement on civil service reform in Indonesia. Aligned with the three objectives, the mission report first provides an introduction to the political economy of civil service reform in Indonesia and an overview and profile of ongoing reform initiatives. It then analyses key civil service challenges, using the dimension in the draft framework for Actionable Governance Indicators as a point of departure. Finally, a possible program for donor support is presented in light of the analysis of key challenges and the political economy of reform.
  • Publication
    Preparatory Work for a World Bank Programming Mission on Civil Service Reform in Indonesia
    (World Bank, Washington, DC, 2008-12) Holfelt, Ingrid
    This report describes a mission to Indonesia, with the purpose of mapping Human Resources Management (HRM) Practices in three selected ministries: Finance (MoF), Foreign Affairs (MoFA), and Home Affairs (MoHA). The mappings within these ministries were intended to provide an input to a World Bank Programming Mission on Civil Service Reform scheduled for 2-13 February 2009 to determine what kind of support the World Bank could provide in helping the Government of Indonesia (GOI) develop its ongoing civil service reform program. This report is a summary of the information gathered and includes a comparison among the three ministries. The summary is organized in accordance with the HRM core areas: (i) human resources strategy, (ii) job classification, (iii) recruitment, (iv) career management, (v) performance management, (vi) ethics management, (vii) training and development, (viii) remuneration, and (ix) the organization of the HR divisions.
  • Publication
    Operationalizing the Central Government Transfer Intercept Mechanism
    (World Bank, Washington, DC, 2008-09) Oosterman, Andre
    In October 2004, the Government of Indonesia (GOI) issued law 33/2004 concerning the Fiscal Balance between the central government and the regional governments. Like its predecessor, law 25-1999, the law stipulates a series of administrative sanctions that the Government may impose on regional governments that do not comply with certain of its provisions. These sanctions will take the form of a deferment or cut, depending on the specific nature of the non-compliance, in the general allocation (Dana Alokasi Umum or DAU) or shared revenues (Dana Bagi Hasil or DBH) to which the region would otherwise be entitled. The Ministry of Finance (MoF) is currently preparing a decree to operationalize this so-called intercept mechanism, and has requested the Decentralization Support Facility (DSF) to provide advice on the development of an effective DAU and DBH intercept mechanism. This final report presents the findings of a consultant ("the Consultant") contracted by DSF to provide this advice. Chapter two discusses administrative requirements to decrees and regulations that govern the allocation of DAU and DBH to regional governments, to ensure that the intercept mechanism remains effective. Chapter three describes the key features of an accounting mechanism that directs intercepted funds to the treasury, and remits the balance of the transfer to the defaulting regional government. The annex to this report contains the results of simulations the consultant has performed at the request of DJPK since the publication of the interim report.
  • Publication
    Increases in Surpluses of Regional Governments in Indonesia: An Empirical Analysis
    (Washington, DC, 2008-06) World Bank
    The overall objective of the study is to identify potential causes to the rapid increase in regional government surpluses. It will be shown that regional government surpluses have rapidly increased because of a confluence of three factors: (i) higher than expected revenue, (ii) lower than expected expenditure, and (iii) limited investments in financial assets. The study will identify potential causes for each factor by analyzing differences in actual and budgeted amounts of revenue. This report was presented to representatives of the Ministry of Finance and Decentralization Support Facility (DSF) in a meeting held on 30 May 2008. Comments and corrections of the attendants are reflected in this version of the report.
  • Publication
    Sub-National Performance Incentives in the Intergovernmental Framework: Current Practice and Options for Reform in Indonesia
    (World Bank, Washington, DC, 2008-06) Lewis, Blane D.; Smoke, Paul
    This paper provides background for the Government of Indonesia as it considers if and how to introduce more robust local government performance incentives into the intergovernmental fiscal framework. The next section briefly examines the forces that have driven the recent national wave of interest in improving local government performance. This is followed by a review of the relatively limited set of local government performance incentives currently in force in Indonesia. The fourth section provides a conceptual overview of how to think about the possible expansion of local government incentive programs, outlining the potential role(s) of such programs in general and the key issues involved in designing and implementing them. The fifth section tentatively considers a number of options for additional local government incentives in Indonesia that the central government may wish to consider pursuing. The paper concludes with an outline of next steps for moving forward with the possible development of more purposeful and meaningful performance incentives in Indonesia's intergovernmental fiscal framework.