The system of planning and budgeting in Indonesia is undergoing a change, from an input-based system to one based on output and outcome. Information accountability in monitoring and evaluation is a must to support the implementation of a performance-based system as mandated by Law No. 17/2003 on State Finance, and Government Regulation No. 21/2004 on Formulating Ministerial/Institutional Work Plans and Budgets. An evaluation needs to be conducted on Government Regulation No. 39/2006 on Procedure of Monitoring and Evaluation of Development Plan Implementation to accommodate the output – and outcome –based planning and budgeting system.
This study presents snapshots of the monitoring and evaluation system of government programs which have been implemented in five selected ministries. The methods used include conducting in-depth interviews with staff members and collecting secondary ministerial-level data at both the Planning Bureau (BPKLN) and directorate general/program executing directorate; distributing questionnaires on budget absorption and achievement of targeted output/outcome indicators of selected programs; and conducting a field study on monitoring and evaluation systems and processes of data validation at the local level.
This study recommends that the monitoring and evaluation process should be placed parallel with the planning, budgeting, and implementation processes of the programs/activities. Therefore a regulation regarding monitoring and evaluation management in national and local level government agencies is needed. It should provide clear definitions of monitoring and evaluation and address the need for an independent monitoring and evaluation unit; reward and punishment mechanisms; a feedback mechanism; and simplification of forms, number of reports, and indicators of programs/activities.