Improving performance through public service reform<\/p>\n
Graeme Macmillan, Jakarta<\/p>\n
The Public Service in Indonesia is too big, too slow and too
\ndysfunctional. It is the huge anchor retarding progress towards
\nIndonesia's rightful place as a respected international and
\nregional leader.<\/p>\n
The structure of government is full of ministries and
\ndepartments that do not work effectively, people without real
\njobs and many who use the authority of public position for
\npersonal gain. A lot of processes and procedures within the
\npublic sector are unnecessary and do not add value or improve
\npublic services, provide better infrastructure or make regulation
\nstronger.<\/p>\n
Little advantage has been taken of the huge advances in
\ninformation technology. Where there should be good government
\npolicy there is often nothing -- and where there is no need for
\ngovernment intervention there is often conflicting and confusing
\nlegislation that shores up privilege instead of protecting
\npeople's rights. In short, it is a mess. Indonesia will remain
\nthe cellar dweller in Asian performance until the Public Service
\nproblem is fixed.<\/p>\n
Why should the Public Service reform itself now when it has
\nsuccessfully resisted change for so long? The reasons are both
\npolitical and economic, both based on achieving better
\nperformance. Firstly, if politicians want to get elected or re
\nelected, they must show how they will deliver a stronger economy
\nand a fairer society, summed up in creating more jobs.<\/p>\n
In the recent campaign for the first round Presidential
\nelections, all candidates were promising increased employment
\nopportunities. There was no close questioning of exactly where
\nthese new jobs would come from. Were they to come from increasing
\npublic sector employment, or by higher economic growth and an
\nexpanded private sector, or by just leaving it to chance? Voters
\ntend to decide along the lines of what is in it for them, and
\ndiscard politicians who talk much but deliver little.<\/p>\n
People who are hungry, without a job, have no permanent
\nshelter or cannot afford education for their children because
\ntheir money is diverted to corrupt officials will vote for
\npoliticians who can help them. The Economist (July 10 -- 16)
\ncover story, Indonesia's shining example, is about Indonesia's
\nsuccessful move to democracy -- the next step is to make that
\ndemocracy really work.<\/p>\n
The second reason for reforming the Public Service is straight
\neconomics. There are not enough resources available in Indonesia
\nto provide all the public services or infrastructure to those
\nthat need them most, therefore difficult decisions need to be
\nmade on how to allocate these resources. Governments usually deal
\nwith this allocation process through the Budget.<\/p>\n
Because decentralization of government is relatively new,
\nmethods of equalizing access to public services for all
\nIndonesians in the Budget need refinement. An immediate
\nimprovement would be achieved by increasing revenues through
\nhigher tax collections, and demanding economy, efficiency,
\neffectiveness and appropriateness in all public expenditures.
\nThese imperatives go straight to the heart of Public Service
\nreform -- the need to do more with less.<\/p>\n
Should Public Service reform be a gradual, participatory
\nprogram using extensive \"socialization\" and discussion of the
\nissues, or does it require a more rapid and direct \"top down\"
\napproach? Other countries, faced with very similar problems, have
\nused either approach depending on their circumstances and the
\nurgency for reform.<\/p>\n
The common feature of their reform programs was the focus on
\nimproving public sector management. If good public sector
\nmanagers can be obtained through whatever means -- buying,
\ncontracting, training or development -- performance of public
\nsector organizations will improve thereby contributing to higher
\neconomic growth and improved quality of life for all citizens.<\/p>\n
There are already excellent public sector managers throughout
\nIndonesia in central and regional governments who are forging
\nahead with creative activities and getting results. The
\ndifficulty is that these champions of change are in a minority
\nand their success stories are not widely known, plus they are
\noperating within a system of government that uses antiquated
\nadministrative procedures and confusing legislation to restrict
\nthinking outside the box rather than encouraging it.<\/p>\n
A whole-of-government initiative to improve public sector
\nmanagement across all levels and entities of government would
\nlead to better performance as a Nation. Addressing the
\nimprovement in quality of public sector managers is a long term
\nstrategy because it deals with changing minds and behavior, not
\njust introducing some new management tools or different Budget
\nforms. It would need to be addressed in an institutionally-
\nneutral manner in order to receive cooperation from all levels of
\ngovernment and public sector entities, including government
\nbusiness enterprises.<\/p>\n
The generally accepted principles used in public sector reform
\nprograms include using outputs, or results, to manage performance
\ninstead of just trying controlling inputs like cash payments;
\nletting the manager manage; using strategic planning as the
\ndriver; applying a customer focus; reducing the span of control
\nto manageable limits; requiring structure to follow strategy
\ninstead of the other way around and having managers apply good
\nvalues and ethics consistently in their dealings with the public.<\/p>\n
The task facing the incoming President is to lift the
\neconomic, social and environmental performance of Indonesia. The
\nonly way this will be achieved is through improving public sector
\nmanagement under a concerted, comprehensive long term strategy
\nwith bipartisan support from all governments. Many problems, such
\nas corruption, inefficiency and neglect, would be solved if there
\nare more good managers in the Public Service. The choice is with
\nthe leaders.<\/p>\n
The writer is Director, Public Management International
\nInstitute -- an international management training organization
\ninvolved in public sector reform in Indonesia and other Asian
\ncountries. He can be reached at Graeme.macmillan@ciptanet.com<\/p>",
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