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Make sure funds are available to disburse when the planning starts and let the planning
process trigger disbursement;
Expect resistance--no one thinks villagers are smart enough to do what they can do so well and more cheaply than others;
Local government support will grow over time but provide evidence and promote the
programs achievements actively.
2.5 Lessons, what works well and less well and why in Indonesia
What is interesting or appears to work well
There appears to be a well-developed planning system with a long-term development plan, medium-term development plan and annual work plans, driven by a Ministry
responsible for planning and ME BAPPENAS and with founding legislation. Spatial planning is a key component.
There appears to be stronger legislative oversight than is the case in RSA, and the
legislature is able to change budgets.
The 11+3 national priorities are driven by a small Presidential Delivery Unit UKP4. They have focused on outputs from the national priorities rather than outcomes, and have
action plans for each which are monitored now around 400;
There is a strong verification system, including random sampling of physical projects
which are visited; They have specifically identified the function of debottlenecking and invest in this area;
UKP4 engages directly with the President, and he uses the reports in his assessment of
Cabinet performance;
The 3 coordinating super ministers dealing with social issues, economic issues and the regions appear to contribute to coordination but not when it crosses between them.
The Presidency has a situation room to track progress across the main priorities. Many Ministers have strong technical capability only 18 of 34 Ministers are politicians.
The IT component seems to be well established within the Presidency and the monitoring
of priorities is entered directly, as well as supporting documentation to provide evidence. The MOF appears to have been engaged in the reforms from the beginning.
There is a strong internal audit function, at least in MOHA which deals with the regions,
which audits both financial and performance information.
MENPAN has a different role to South Afria‟s DPSA and an explicit role of administrative reform. They came across as very professional, and their work relates closely to DPME,
eg around the BRISA bureaucratic reform self-assessment tool which includes both management performance as well as results. MENAPN also handles the main reporting
of administrative units quarterly reports, annual reports, rather than Treasury in our case.
Indonesia has a very interesting system of supporting subdistricts and villages through what used to be known as the Kecamantan Development Programme KDP but is now
called the MNPM which is operating at a large scale across Indonesia and directly funding local communities at scale, with extremely low levels of corruption.
What works less well The auditor general only monitors financial performance, not non-financial.
Various regulations and different systems of ME lead to different types and times of
reporting creating a burden for ministriesagencies, and a compliance culture on reporting.
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The Indonesian government indicated the system is also very fragmented and that coordination is a big problem, especially when issues cross the 3 coordinating ministers
dealing with social issues, economic issues and the regions. Failing to use the results of ME both by central and regional governments leads to low
quality of implementation. The legislative basis for certain areas is unclear, eg the budget.
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3 Malaysia
3.1 Background to the country
