1. PROSEDUR OPERASI STANDAR (SOP) UNTUK PENYIAPAN ANGGARAN

2. Bertujuanuntukmengimplementasikan: DisiplinFiskal, yaituprinsipuntukmengontrolkebijakanfiskalsecarakonsisten EfisiensiAlokasi, yaituprinsipuntukmemastikananggarandialokasikanpadakegiatanprioritasdanmencapaimanfaat yang terbesardariketersediaandana yang terbatas EfisiensiteknisdanOperasionaluntukmemastikanpelaksanaananggarandenganmeminimalkanbiayauntukmencapaisasaran yang ditetapkan. ReformasiSistimPerencanaandanPenganggaran

3. PERUNDANGAN YANG MENDUKUNG REFORMASI PROGRAM DAN PENGANGGARAN PP-10 tahun 2010 tentangPenyusunanRenjadan RKA-K/L Per.Men. MenteriPerencanaan Pembangunan Nasional no.1/2011 tentang Tata Cara PenyusunanInisiatifBaru Per.Men. MenteriPerencanaan Pembangunan NasionaltentangPetunjukPenyusunanRencanaKerja K/L Per.Men. MenteriPerencanaan Pembangunan NasionaltentangKerangkaPemikiranReformasiPerencanaandanPenganggaran Per.Men. Keu- Dit.Jen. Anggaran: Anggarandan Medium Term Expenditure Framework Per.Men. Keu. Nomor 104 tahun 2010 Review PedomanPenyusunanRencanaKerjadanAnggaran K/L Undang-UndangNo.17/2003 tentangKeuangan Negara merupakantitikawaldariReformasidimanaPenganggaran yang sebelumnyafokuspadamengelolaan input menjadiPenganggaranberbasisKinerjadimanaanggarandipergunakansecaraefektifuntukmencapaitujuanKebijakan (MTEF)

6. PresentasiLangkahdan Sub LangkahdalambentukGambar

9. What is this MTEF? Different countries have different versions BappenasMoF version is Multi-year baseline budget estimates (forward estimates) New Initiative process for altering the baseline estimates for changes in priorities and circumstances

10. How does DGH MTEF differ from its existing Renstra? Renstra is not a five year budget There is a flexible link between each annual budget and the Renstra First, the Renstra is based on conservative fiscal assumptions whereas each annual budget is based on updated and realistic fiscal assumptions MoF issues an Indicative Ceiling in March which reflects the latest view of the fiscal environment and ‘fiscal space’

11. How does DGH MTEF differ from its existing Renstra? Second, although priorities of RPJM stay constant over five years, priorities for individual budgets are fine tuned for each budget  The President sets a policy direction and priorities for national development in January for the year planned based on the results of ongoing policy evaluation (PP 90 Article 7)  Bappenas reflects this into the RKP for the coming year  DGH identifies New Initiatives which are used to finalise the RKP

12. The MTEF formalises the flexible link between Renstra and successive annual budgets Renstra numbers are the ‘baseline’ for the next budget DGH proposes New Initiatives to change the baseline for the coming budget Bappenas considers proposed new initiatives against overall fiscal resources available (“fiscal space” at the start of budget preparation) and priorities of the President for the next year

13. New Initiative is defined in PP90 as “InisiatifBaruadalahusulantambahanrencanakinerjaselain yang telahdicantumkandalamprakiraanmaju, yang berupa program, kegiatan, keluaran, dan/ataukomponen” “A New Initiative is a proposal to improve performance over and above those already included in the forward estimates, in the form of changes to programs, activities, outputs, and / or components.” (PP 90, BAB 1 KETENTUAN UMUM, Pasal 1: 16)

14. Extra funding for New Initiatives can be sourced from : a. Activity / component activity / output, which ends b. Savings on the DGH baseline; and / or c. New funding based on the direction of government policy.

15. Those New Initiatives which Bappenas approves in February are added to the Indicative ceiling issued to DGH in March They become part of the DGH baseline for the next budget, and its Forward Estimates Over time the Forward Estimates may increasingly depart from the Renstra numbers(due to inclusion of successive rounds of New Initiatives) They also roll out beyond the last year of the Renstra The 2012 budget preparation will include a Forward Estimate for 2015

16. PREPARING YEAR t BUDGET

20. However adaption is required in budget agencies to implement MTEF New SOP outlines the new DGH processes Based on PP 90 / 2010 tentangPenyusunanRencanaKerjadanAnggaranKementerian Negara/Lembaga Bappenas Ministerial Regulation No. 1/2011 tentang Tata Cara PenyusunanInisiatifBaru

22. These implement Performance Based Budgeting principles

24. Better internal process for identifying and prioritising New InitiativesDGH is competing for a share of a limited amount of “Fiscal Space” being allocated by Bappenas to New Initiatives

25. Line agencies have much to gain from introducing MTEF Gives DGH greater certainty of future budget funding for multi-year highway programs Rewards DGH if it proposes New Initiatives which effectively support Government priorities

26. CONCLUSIONIndonesia is better placed than most to link budgeting to achieving planning targets By international standards Indonesia has very strong planning process The new MTEF process is a good one! The “winners” from the MTEF will be those KL which have very good policy based budget preparation processes

27. Policy Issue 1: Weak National Connectivity

28. Six Economic Corridors in Indonesia to Support National Logistic System and achieve Domestic Connectivity 1 4 3 6 2 Economic Corridor Mega Hub Hub Potential Area for Development 5 The Recommended Six (6) Economic Corridors : Logistics is part of the supply chain (supply chain): procurement activities storage delivery / transportation and service 1 4 Eastern Sumatera-North West Java Western Sulawesi 2 5 Northern Java East Java-Bali-NT 3 6 Kalimantan Papua Source: Coord. Ministry of Economic 26

30. Accelerate land acquisition using additional budget

31. (Expand BPJT capacity - to accelerate processing of projects)

32. Extend GOI funding share in PPP - to attract more investors

33. Development of much of the Sumatra Expressway corridor will require significant GOI funding to develop

34. Develop national expressway network plan – accelerated implementation schedule and funding requirements

35. New Initiative Increase Budget Allocation for Toll Road / Expressway Development

37. This is one of the high priority corridors

38. If full expressway corridor is to be completed in a 20 year period this will result in implementation of 130 km / year

39. Assume typical implementation costs of IDR 70 billion / km

40. Assume that planning and land acquisition will be carried out in 2012-2013 at a total cost of say IDR3 billion / km - total budget required will be IDR 3.8 trillion / year (2012-13)

41. Say DGH budget will build approximately 50% of the total corridor and this will start in 2014.

42. Annual budget increase required IDR 7 trillion / year

44. Policy Issue 2: Premature Asset Failure

47. Improve design for loading & drainage

49. Design life is 10 years but does not take into account extent of overloading – actual life will be less

50. Accommodation of 40 year design life for base and minimal overlay after 10 years and accommodation of actual overloading will increase initial costs by approximately 25%

51. Annual budget increase required IDR 3 trillion / year

52. After approximately 10 years the key parts of the network will be upgraded to this design life and annual costs will reduce.

54. Less disruption

55. Lower life-cycle cost

59. Terimakasih