The government is determined to increase national economic growth, including by accelerating government spending. Each ministry and agency therefore needs to take concrete steps to accelerate state spending from the start of the budget year.
“Regarding budget implementation, we see three issues that need attention,” said Ministry of Industry Secretary General Dody Widodo, representing the Minister of Industry at the 2022 Kick Off of Budget Implementation and Non-Tax State Revenue (PNBP) within the Ministry of Industry, Jakarta, on Friday (21/1).
The Secretary General said the first issue is public participation. “In a democracy, governance must make participation an integral part, because participation can positively influence policy performance and public satisfaction,” he explained.
Logically, Dody continued, performance improves when more people who experience or understand the problem are involved. Participation can also build public trust, as the public feels recognized and heard by the government and has enough space to express aspirations or opinions.
“The concept of public participation in manufacturing development therefore needs to be strengthened,” he stressed. This can take the form of collaboration among stakeholders such as universities, civil society organizations, associations and businesses in every policy-making process and manufacturing development program.
The second issue is accountability, comprising three aspects: state budget governance, organization and individuals. “On state budget governance, we have few concerns, as Kemenperin has achieved many proud accomplishments,” Dody said.
These include budget realization of 97.45% in 2021, the highest in nine years and up 4% from 2020; 13 consecutive Unqualified Opinions (WTP); and the Highest Standard Ministry/Agency Financial Report award from the Ministry of Finance.
Kemenperin also won First Place in the BMN Award, achieved Clean and Serving Bureaucracy Area (WBBM) status for four units and Corruption-Free Area (WBK) status for six units, and ranked fourth among ministries in the Integrity Index.
The next accountability aspect is organization, relating to transparency of Kemenperin's performance in inputs, processes, outputs and outcomes. “This is closely related to the third issue we want to raise, policy effectiveness,” Dody said.
According to the Secretary General, policy effectiveness must also be a central issue in budget implementation, as it should prevent state money from being used for programs that do not deliver adequate impact or benefit.
“The final aspect is individual accountability, concerning employees' commitment and responsibility for achieving results,” he said. Professionalism and capacity among employees therefore need to be strengthened so they apply scientific principles and experience in carrying out their duties.
“Starting this year, Kemenperin will hold an Executive Partnership Program, a capacity-building program for employees based on field experience and oriented toward solving problems in national manufacturing development,” he said.
The Secretary General hopes that in 2022 Heads of Work Units will maintain budget absorption performance while ensuring the achievement of outputs and outcomes in every program and activity. “On budget absorption, we will monitor first-semester 2022 absorption with a target of 50%, and goods/services procurement completed by June 2022,” he stressed.
To maintain Kemenperin's performance accountability, Dody also asked budget managers and Commitment-Making Officials (PPK) to act professionally and on time, deliver useful outputs and understand their responsibilities.
“Most important is continuous monitoring and evaluation so the budget is used optimally without losing sight of Kemenperin's targets and goals. It therefore needs oversight by the Inspectorate General so good accountability can be achieved,” he said.
On the same occasion, Kemenperin Inspector General Masrokhan said the budget kickoff meeting is very important to send a message to each work unit within Kemenperin on implementing effective and efficient activity strategies.
“So it can have a positive impact on achieving industrial development goals as set out in the indicators of the Ministry of Industry's Strategic Plan,” he explained.
Masrokhan added that, to support effective internal oversight, the Inspectorate General is developing a Supervision Information System called SI-Nga. “Through Singa, oversight is expected to be carried out not only traditionally but also online and in real time, so its purpose as an early warning system can truly be applied,” he said.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia