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P. 4
Endorsement
from the Government Partnerships Fund1
The Government of Indonesia has embarked on a significant reform agenda in
introducing Performance Based Budgeting. The objectives of the reforms are to provide
better transparency in the allocation of budgetary resources, improved quality of budget
planning, better focus on policy priorities, and improved fiscal discipline and fiscal
sustainability.
Implementing the reforms will make a significant contribution to achieving the
Government of Indonesia’s economic and fiscal objectives. It will also make a significant
contribution in enabling organisation’s to achieve their goals and objectives.
A successful implementation of Performance Based Budgeting requires a major
change to the development and management of internal line ministry budgets so as to be
aligned with the transformations in the Indonesian budget framework. A great assistance
in embedding change is to develop and implement guidelines that succinctly identifies and
articulates good practice in executing the reforms.
The Better Practice Guide on Performance Based Budgeting was developed with
this in mind. It discusses a range of principles and techniques designed to embed internal
budgeting in an organisation’s planning and performance structure, and will greatly
enhance the Indonesian Ministry of Finance’s introduction of the reforms. On behalf of the
Government Partnerships Fund I would like to commend the Secretary- General’s Office
especially the Planning and Finance Bureau in the development of the guide.
Greg Feeney
Senior Adviser
Government Partnerships Fund
13 October 2014
1 The Government Partnerships Fund is a whole-of-govemment program that facilitates and iii
strengthens government-to-government partnerships and policy dialogue between Australia and
Indonesia, in the pursuit of economic and public sector development.
Biro Perencanaan Dan Keuangan
Sekretariat Jenderal Kementerian Keuangan
from the Government Partnerships Fund1
The Government of Indonesia has embarked on a significant reform agenda in
introducing Performance Based Budgeting. The objectives of the reforms are to provide
better transparency in the allocation of budgetary resources, improved quality of budget
planning, better focus on policy priorities, and improved fiscal discipline and fiscal
sustainability.
Implementing the reforms will make a significant contribution to achieving the
Government of Indonesia’s economic and fiscal objectives. It will also make a significant
contribution in enabling organisation’s to achieve their goals and objectives.
A successful implementation of Performance Based Budgeting requires a major
change to the development and management of internal line ministry budgets so as to be
aligned with the transformations in the Indonesian budget framework. A great assistance
in embedding change is to develop and implement guidelines that succinctly identifies and
articulates good practice in executing the reforms.
The Better Practice Guide on Performance Based Budgeting was developed with
this in mind. It discusses a range of principles and techniques designed to embed internal
budgeting in an organisation’s planning and performance structure, and will greatly
enhance the Indonesian Ministry of Finance’s introduction of the reforms. On behalf of the
Government Partnerships Fund I would like to commend the Secretary- General’s Office
especially the Planning and Finance Bureau in the development of the guide.
Greg Feeney
Senior Adviser
Government Partnerships Fund
13 October 2014
1 The Government Partnerships Fund is a whole-of-govemment program that facilitates and iii
strengthens government-to-government partnerships and policy dialogue between Australia and
Indonesia, in the pursuit of economic and public sector development.
Biro Perencanaan Dan Keuangan
Sekretariat Jenderal Kementerian Keuangan