Program Budgeting in the Health Sector in Indonesia

Nov 7, 2018

November 2018 | by Ari Nurman, Perkumpulan Inisiatif
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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.


Further Reading

IBP’s work on program budgets, in partnership with the World Health Organization (WHO), examines global practices related to budget program structure in health to shed light on how governments define program objectives as part of their broader quest to shift budgeting toward results that matter to citizens. The following publications are also part of this project: