Program Budgeting in the Health Sector in Indonesia

November 2018 | by Ari Nurman, Perkumpulan Inisiatif

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:


case study health budget programs in indonesia ibp 2018.pdf

pdf, 1.37 MB

Perkumpulan INISIATIF

Perkumpulan Inisiatif, or the Society Initiative, is an institute for innovation, participatory development, and governance in the Indonesian province of Bandung on the island of Java. Inisiatif was founded in 2005 to enhance the quality of life of marginalized people. The group has taken advantage of the opportunities that have resulted from local communities being empowered through Indonesia’s political decentralization. Inisiatif facilitates citizens’ demands for more responsive, accountable, and transparent governance through its four main initiatives – Public Policy Reform, Planning and Budgeting Reform, Community Development, and Knowledge Management As part of the Partnership Initiative, Inisiatif plans to deepen its ability to monitor budgets as part of its work to increase government accountability and transparency. Read Inisiatif’s Profile

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