'Regions not ready for new budget system'<\/p>\n
Oyos Saroso H.N., The Jakarta Post, Yogyakarta<\/p>\n
Local administrations will find it difficult to implement the new
\nconcept of budgeting stipulated in a decree issued by the
\nMinistry of Home Affairs as it upheld the principles of
\ntransparency and accountability, often anathema to local
\ngovernments, an analyst says.<\/p>\n
Masykur Wiratmo of the Center for Economic Studies at the
\nYogyakarta-based Gadjah Mada University said that the budgeting
\nsystem set out Decree No. 29\/2002 on 2003 Local Government
\nBudgets was an ideal one for local autonomous administrations as
\nbudgets would no longer be focused on achieving a balanced budget
\nbut rather on budget surpluses and deficits.<\/p>\n
Speaking during a workshop on the drafting of performance-
\nbased local budgets in Yogyakarta over the weekend, Masykur said
\nthat the new concept would reveal the respective performances of
\nlocal administrations for all to see.<\/p>\n
"Actually, the biggest hurdle local administrations have to
\ncross is the question of financial transparency as budgets are
\noften formulated based on the needs of officials. With the new
\nconcept, the public will be able to find out what the salaries of
\ntop government officials are," Masykur said.<\/p>\n
According to Masykur, local governments and legislators had
\nstill failed to comprehend the decree, which was issued last
\nJune, due to a lack of socialization.<\/p>\n
The decree is the final, condensed and amended version of
\nGovernment Decrees No. 105 - 110\/2000 on Local Financial
\nManagement and Accountability, and provides for the evaluation of
\nlocal government performance based on procurement standard
\nanalyses, work performance indicators and cost standards.<\/p>\n
Armen Yasir of Lampung Parliament Watch (LPW) said that the
\nperformance-based budget concept was well-suited to Indonesia as
\ncorruption was endemic here.<\/p>\n
"The new budgeting approach requires rational spending that is
\nin accordance with the workload and program costs," he explained.<\/p>\n
Armen, however, said that the opportunity for corruption would
\ncontinue to exist even though the decree required budget
\naccountability and transparency.<\/p>\n
"The indicators for performance assessment are clear enough
\nand accord with the public interest. However, although budgets
\nwill be more transparent, they will still be prone to corruption
\nas implementation will continue to depend on individuals," he
\nsaid.<\/p>\n
Armen emphasized the need to issue local bylaws governing such
\nareas as transparency and the freedom to access information.
\nThese would provide a legal basis for the public to exercise
\ncontrol over local budget implementation.<\/p>\n
Some 150 local administrations sent representatives to the
\nworkshop.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/regions-not-ready-for-new-budget-system-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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