Politics of Public Budgeting in Indonesiakumoro.staff.ugm.ac.id/file_artikel/Politics of Public...
Transcript of Politics of Public Budgeting in Indonesiakumoro.staff.ugm.ac.id/file_artikel/Politics of Public...
PoliticsofBudgetinginIndonesia:AQuestforTransparencyandAccountability
Wahyudi Kumorotomo, PhD
Dept of Public Policy and ManagementGadjah Mada University
Indonesia2018
TopicsofDiscussion
1. Indonesianbudgetprofiles
2. Reformsandthechangingbudgetpolitics
3. Fragmentedpower,fragmentedpolicy?
4. Transparency:forwhom?
5. Thequestforbudgetingaccountability.
BudgetVolume(2018)
• ExpenditureOutlays:Rp 2,220.7trillion($US165.7bn).à 17.9%oftheGDPNote:GDP:Rp 12,406T
• Revenues:Rp 1,894.7trillion($US141.4bn)
• Adeficitof2.19%• Financing:Rp 325.9Tfrom:borrowings(foreign&domestic)andinvestments.
USbudget:$4,352bn;Australianbudget:$464.8bn
EconomicGrowth(%)
WhathasbeenchangedafterReformasi…
• Underamore”legislativeheavy”and”semi-parliamentary”system,theroleoflegislativesonbudgetismoresignificant.
• Decentralizedbudgeting:around30%ofpublicbudgetappropriationisdeterminedbylocalleaders.
• FromT-accounttoI-account;muchmoretransparentcomparedtotheNewOrderregime.
• Incremental;LawNo.17/2003stipulatesbudgetdeficitmaximum:3%ofdomesticrevenues.
• Challenge:expansionary?(Byconstitution:20%ofspendingmustgotoeducation;subsidiesonfuel; limitedfinancialdiscretion).
FiscalDecentralization:APBNvs.APBD
SignificantportiontransferincreasedtoLocalGovernmentinthestateBudget
2000
2010
TheBudgetCyclesPhase Period Substance
1 January Nationalpolicyandpriority
2 March Resource envelopes
3 May Indicativeplans&budgetceilingsforministries
4 July Technicalconsultationsamongministries
5 August Budget ceilingsappropriation
6 16thAugust PresidentialaddressonBudgetDraft(RAPBN)
7 November Legislativemeetingsonbudgetallotments
8 December Budget documentsratification
TheRoleofBadan Anggaran(BudgetingBoard)
• Badan Anggaran (Banggar)hasbeenintrusiveinmakingstrategicprioritiesintheministries.
• ConstitutionSupremeCourt(Mahkamah Konstitusi)No.35/2013ruling:Banggar shouldnotgointodetailsofSatuan Tiga (budgetdetailing).
• Parliamentaryendorsementon“pork-barrel”budgetallocation:DanaPenyesuaian (contingencyfund),DanaTransfer,etc.
• ThepublicisgenerallyskepticalontheroleofBanggar invariousgovernmentstrategicprojects.
CriticismsDuringSBYPresidency:“Negeri Auto-Pilot”
1. Thenationalbudget(APBN)contributeslittletopeople’sprosperity;onlyabout8,9%iscapitalspending(Radhi,2012)
2. Leakagesandcorruptionatbothsides;revenues andexpenditures.
3. National(APBN)andsub-nationalbudgets(APBD)arenotsynchronized.
4. Muchofthestatebudgetsareallocatedforoperationalexpenditures(salaries,routines).
5. Developmentprioritiesarenottouchedonpeople’sbasicneeds.
6. Manyallocatedfundsaresimplyundisbursed,toomuchmisstargeted programs,accountabilityissues.
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www.chappyhakim.com
Facts:
Ø ICW: Rp 300 trillion of potential taxes are leaked.
Ø Trials on taxation (2002-2009): 22,105 cases; tax payers won 61% of the trials. What does this mean?
Ø In the last 10 years, tax coverage means accounted only 65%, In 2011 the tax effort was 13.3% of GDP (the lowest among ASEAN five).
Gayus Bahasyim Dhana
Tax Mafia
PoliticalandBureaucraticCorruption
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Ø The DPR members frequently ask for fee to private companies that would be given a contract.
Ø Governors and district heads uses a portion of the APBD for personal interest with a collaboration with the private “partners”.
Ø The DPRD members ask for kickbacks for any projects approved, ask for “success fee” to the candidates of governors, bupatis and mayors.
GlobalBudgetTransparencyIndex
89
7774
6764
48
40
15
10
10
20
30
40
50
60
70
80
90
100
NewZealand
UnitedStates
Australia
Philippines
Indonesia
India
TimorLeste
Vietnam
SaudiArabia
LocalBudgetParticipatoryChannels
Source:Putra&Farhan,2011
ConcludingRemarks• Althoughtransparencyhasbeenrelativelyimproved,themainissueis
budgetingaccountability.(Openbudgetsurvey2017:transparency-64;oversight-85;publicparticipation-22).
• Aheadstartinperformancebudgeting,butvariousfactorsarehinderingitsfullimplementation.(LackofenforcementonGovernmentRegulation90/2010;NocommonunderstandingsbetweenMoF andtheBappenas;Incrementalparadigminbudgeting).
• Democraticgovernancehasresultedinpublicscrutinyinbudgetmisappropriation.However,morepublicengagementonbudgetingprocessisneededforimprovingaccountabilityandpreventingvariouspatternsofmisappropriationinthefuture.
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