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News & Event


Jakarta, March 23, 2016
Jokowi Wants Officials to Streamline Bureaucracy

The President gathered on Tuesday hundreds of high-ranking officials, including ministers and director generals, from various ministries and state institutions, at the Public Works and Public Housing Ministry’s office in an effort to reiterate his government’s development vision.

In his remarks, Jokowi told the officials to focus on introducing simpler paperwork procedures for development-related projects. This, Jokowi said, would allow the government to immediately adapt to the ever-changing global economic situations.

There are around 42,000 regulations, along with some 3,000 bylaws, which have been hampering the implementation of development-projects and policies, Jokowi said. “It is your task to simplify the regulations,” he said.

“Therefore, we can speed [things] up; a decision can be [made] faster and the implementation can also be quick.”
The government has pledged to allocate hefty spending to various infrastructure projects, including 30 priority ones, across the country that will finish within the next four years to help boost economic growth. The 30 priority projects alone will need a total investment of more than Rp 800 trillion (US$60.7 billion).

To attract investors, the government has also introduced the onestop integrated service (PTSP) at the Investment Coordinating Board (BKPM). The PTSP is expected to create a business-friendly bureaucracy by eliminating costly red tape for entrepreneurs and investors.

The President has also been seeking to introduce a new budget allocation model called “money follows programs” that will focus on priority projects to avoid unnecessary expenses. The budget allocation model will determine the budgets of ministries based on the government’s focus and priority projects, starting with the 2017 state budget.

The President has also recently criticized the existing government’s budget allocation model, called “money follows function”, which sets out projects based on budget allocation, instead of the other way around.

Under the existing mechanism, ministries would disburse the money into each of their subordinate organizations — directorates general, directors’ offices, subdivisions and sections — after the ministers received funds from the state budget.

Separately, Vice President Jusuf Kalla called on public officials to start scrapping unnecessary tabs, for example, seminars and working visits, saying that they should no longer think that a bigger budget means a better budget allocation.

Source: The Jakarta Post