Decentralisation, Bureaucratic Reform and Public Service Governance


Strategic Plan 2012 – 2016

  • To develop performance evaluation systems for civil servants that raise their professionalism, including the promotion of an accountable system based on merit
  • To increase public service delivery focused on strengthening the welfare of the wider community
  • To streamline investment permit and licensing systems in order to enhance economic competitiveness and promote integrity in the business community.


KEMITRAAN Intervention

Indonesia’s provincial administrations have multiplied rapidly under decentralization, faster than the regulatory framework to manage them, and faster than the human resource capacities to administer them. Because of this, Kemitraan’s support in this area focuses on unraveling complex and overlapping regulations while developing the skilled personnel to deliver essential public services.

Our Grand Design for Regional Arrangement has already become the accepted basis for Indonesia’s future provincial structure, and triggered the revision of Law 32/2004. To follow on from this and support the implementation of the Design, Kemitraan held several workshops with the Ministry of Home Affairs to develop the parameters and indicators for becoming a new region considering geography, demography, defense and security, as well as economic, social and cultural factors.

The central government allocates funds to each of the provinces, but there were no implementing regulations, leading to inadequate financial accounting. To improve the management of provincial budgets, Kemitraan worked with the Ministry of Home Affairs Directorate General to develop three Permendagri covering the procedures for the Governor’s working meetings, organizational structure and working guidelines through a series of focus group discussions involving academics and experts. Effective management of finances is critical if the benefits of the budget are to reach those who need it most and these regulations were identified by our 2011 Gap Analysis as necessary to remedy social injustice in remoter provinces.

Improving public service delivery is a major goal of bureaucratic reform and Kemitraan is also focusing on the demand side with the Kinerja Program, which builds the capacity of civil society and communities to demand higher standards from their administrations. The program has established minimum public service standards and is preparing to disseminate them across the nation.

Another sensitive area requiring special attention are Indonesia’s border areas, where perceived inequalities and increased mobility can lead to conflict. Kemitraan has worked with the BNPP to develop four pillars in the management of border areas, ie ministries, institutions, academics, and the private sector.

The quality of leadership has also become a priority in efforts to reform the bureaucracy. For this reason, Kemitraan and the Office of the Vice President promoted clean, effective and efficient administration through the Inspire program (Initiatives for Public Sector Reform). One of the emphases of the program is to encourage high rank officials to become reform champions in each of their respective institutions.

Corruption in the state bureaucracy has been the focus of many of Kemitraan’s programs over the past decade, and in recent years our emphasis is on developing activities that recognize and reward integrity. Currently, Kemitraan is working with the Ministry of State Apparatus and Bureaucracy Reform to implement a program called, reform the Reformers, funded by AusAID. This program includes the enormous tasks of analyzing the official functions and workload  of all ministries and institutions. The program is part of Kemitraan’s support to the Ministry in their efforts to establish integrity zones, or corruption-free zones. The final goal is to establish an island of integrity in each of the respective ministries or institutions.