INSTITUTIONAL INTEGRATION OF PLANNING AND BUDGETING TOWARD INDONESIA EMAS 2045
Abstract
The 2025-2045 Long-Term National Development Plan has established the Vision of Golden Indonesia 2045, which among other things targets per capita income equivalent to developed countries and poverty towards 0% by 2045. This target requires a minimum economic growth of 6% annually, but since the reform era, economic growth has never reached 6% even though the government budget has increased tenfold. One of the causes of the ineffectiveness of government spending is the lack of synchronization of planning and budgeting caused by the separation of planning and budgeting institutions after the issuance of Law No. 17 of 2003 concerning State Finance and Law No. 25 of 2004 concerning the National Development Planning System. Therefore, the purpose of this study is to find institutional patterns of planning and budgeting that can increase the effectiveness of government spending. The study was conducted using a qualitative approach with a literature review design. Data collection was carried out by searching for government policy data related to development planning and budgeting through books and journal articles, while data analysis through content analysis. The results of the study indicate that based on the analysis using William N. Dunn's policy evaluation theory and the principal agent and common pool theories, as well as political considerations, the integration of planning and budgeting institutions outside the Ministry of Finance is considered the most likely way to minimize deviations between planning and budgeting. Therefore, it is recommended that the Ministry of National Development Planning/Bappenas can propose a revision to PP No. 17 of 2017 concerning Synchronization of Planning and Budgeting Processes by adding articles related to institutional synchronization of planning and budgeting which is then followed up with a proposal to stipulate a Presidential Decree as the legal basis for the establishment of an institution or task force that integrates planning and budgeting.
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DOI: https://doi.org/10.30596/japk.v6i1.30698
Jurnal Ilmu Adminstrasi Publik dan Kebijakan (JAPK)
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Universitas Muhammadiyah Sumatera Utara
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