Program Budgeting in the Health Sector in Indonesia

case-study-health-budget-programs-in-indonesia-ari-ibp-2018

The adoption of performance-focused budgeting and a program structure for expenditure has been evolving for some time in Indonesia. The transition to the practice of performance and program-based budgeting was intended to allow the public to see: 1) the relation between inputs (funding) with the expected outputs and outcomes; and, 2) the effectiveness and efficiency of programs and activities. However, as a staff member of the budgeting directorate in the Ministry of Finance admitted in an interview, the reform is yet to be fully implemented.

This case study examines program budgeting in the health sector in Indonesia. The authors examined Indonesian legislation and budget documents, and conducted several interviews with resource persons from relevant institutions to collect information on Indonesia’s implementation of program-based budgeting and all of its accompanying challenges.

CONTENTS

Glossary

Introduction

Methods & Scope

Program-Based Budgeting in the Health Sector

Transparency

Expenditure Prioritization

Oversight and Accountability

Design Questions

Program Number and Size

Program Type and Structure

Performance Indicators

Common Pitfalls

Organizational Structure

Cost Allocation

Process Considerations

Ministries

Oversight Actors

Conclusion

Annex 1 : List of Documents Referenced in This Study

Annex 2 : Interviews

Annex 3.1 : Flowchart of Planning and BUdgeting of State Ministries/Institutions

Annex 3.2 : The Budget Process

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