NPM in Indonesia: Budget Restructuring, Privatisation and Civil Service Reform

Arif Budy Pratama

Abstract


This paper aims to evaluate the application of New Public Management (NPM) in Indonesia’s public sector through a brief description of public sector reform implementation and its impact to achieve better management practices and quality of public service delivery. The global advice of NPM-based reform suggests that public sector reform should be focused on management of public spending, management of public enterprises, and civil service reform. Based on this premise, the main analysis on Indonesia’s NPM included national budget restructuring, privatisation on parastatals, and bureaucratic reform. Indonesia’s budget restructuring obtained more adequate progress than both privatisation and civil service reform because of its high degree in managerial autonomy and relatively free political environment. Further research is needed to validate this proposition and to explain why NPM succeed in some areas and fail in others.


Full Text:

PDF

References


Astami, E. W., Tower, G., Rusmin, R., & Neilson, J. (2010). The effect of privatisation on performance of state-owned-enterprises in Indonesia. Asian Review of Accounting, 18(1), 5–19. http://doi.org/10.1108/13217341011045971

Bangura, Y., & Larbi, G. (2006). Public Sector Reform in Developing Countries. New York: Palgrave Mac Millan.

Blöndal, J. R., Hawkesworth, I., & Choi, H. D. (2009). Budgeting in Indonesia. OECD Journal on Budgeting, 9(2), 1–31. http://doi.org/10.1787/budget-9-5ks72wv89p48

Brandsen, T., & Kim, S. (2010). Contextualizing the meaning of public management reforms: a comparison of the Netherlands and South Korea. International Review of Administrative Sciences, 76(2), 367–386. http://doi.org/10.1177/0020852309365671

Catlaw, T. J. (2008). Book Review: Lynn, L. E., Jr. (2006). Public Management: Old and New. New York: Routledge. The American Review of Public Administration, 38(2), 244–247. http://doi.org/10.1177/0275074007307372

Common, R. (2001). Public management and policy transfer in Southeast Asia, (October 1999), v, 273 .

Conteh, C., & Huque, A. S. (2014). Public Sector Reform in Developing Countries, Paradox and Practices. New York: Roudledge.

Curry, D., Hammerschmid, G., Jilke, Sebastian, & Van den Walle, S. (2015). The state and perception of Public Sector reform in Europe. In A. Massey & K. Johnston (Eds.), International Handbook for public administration and governance. New York: Edward Elgar Publisihing.

Drechsler, W. (2009). The rise and demise of the New Public Management: Lessons and opportunities for South East Europe. Uprava Letnik, 3, 7–27.

Ferlie, E., Lynn, L. E., & Pollit, C. (2005). The Oxford Handbook of Public Management. London: Oxford University Press.

Gaebler, T., & Osbourne, G. (1993). Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector. New York: Plume Book.

Gow, J. I., & Dufour, C. (2000). Is the New Public Management a Paradigm? Does it Matter? International Review of Administrative Sciences, 66(4), 573–597. http://doi.org/10.1177/0020852300664002

Haque, M. S. (2013). Globalization, State Formation, and Reinvention in Public Governance: Exploring the Linkages and Patterns in Southeast Asia. Public Organization Review, 13(4), 381–396. http://doi.org/10.1007/s11115-013-0258-3

Hood, C. (1991). A PUBLIC MANAGEMENT FOR ALL SEASONS? Public Administration, 69(1), 3–19.

Hood, C., & Peters, G. (2004). The middle aging of new public management: Into the age of paradox? Journal of Public Administration Research and Theory, 14(3), 267–282. http://doi.org/10.1093/jopart/muh019

Huque, A. S. (2001). Governance and Public Management: the South Asian Context. International Journal of Public Administration, 24(12), 1289–1297. http://doi.org/10.1081/PAD-100105940

Kelly, R. M. (1998). Inclusive Democrafic Polity and Representative Bureaucracies , New Public Management. Administration Review, 58(3), 201–208.

Larbi, G. (1999). The New Public Management Approach in Crisis State (No. 112).

Lynn, L. E. (2006). Public Management: Old and New. Roudledge. http://doi.org/10.4324/9780203964774

Massey, A. (2009). Policy mimesis in the context of global governance. Policy Studies, 30(3), 383–395. http://doi.org/10.1080/01442870902888940

Massey, A., & Pyper, R. (2005). Public Management and Modernisation in Britain. New York: Palgrave Mac Millan.

Mcleod, R. H. (2002). Privatisation Failures in Indonesia.

Ministry of Finance Indonesia. (2014). Better Practice Guide: Performance Based Budgeting.

Nordholt, H., & Abdullah, I. (2002). Indonesia: In Search of Transition. Yogyakarta: Pustaka Pelajar.

O’Flynn, J. (2007). From new public management to public value: Paradigmatic change and managerial implications. Australian Journal of Public Administration, 66(3), 353–366. http://doi.org/10.1111/j.1467-8500.2007.00545.x

Olsen, J. P. (2004). Maybe It Is Time to Rediscover Bureaucracy. Journal of Public Administration Research and Theory, 16(1), 1–24. http://doi.org/10.1093/jopart/mui027

Pollitt, C. (1990). Managerialism and the Public Services: The Anglo-American Experience. Basil Blackwell.

Pollitt, C., & Bouckaert, G. (2000). Public Management Reform: A Comparative Analysis. Oxford: Oxford University Press.

Pyper, R. (2015). Public Administration, Public management, and Governance. In A. Massey & K. Johnston (Eds.), The International Handbook of Public Administration and Governance. cheltenham: Edward Elgar Publisihing.

Samaratunge, R., Alam, Q., & Teicher, J. (2008). The New Public Management reforms in Asia: a comparison of South and Southeast Asian countries. International Review of Administrative Sciences, 74(1), 25–46. http://doi.org/10.1177/0020852307085732

Vries, M. De. (2012). Public sector reform: an overview of recent literature and research on NPM and alternative paths. International Journal of Public Sector Management, 26(1), 4–16. http://doi.org/10.1108/09513551311293408

Yonnedi, E. (2010). Privatization, organizational change and performance: evidence from Indonesia. Journal of Organizational Change Management, 23(5), 537–563. http://doi.org/10.1108/09534811011071270




DOI: http://dx.doi.org/10.21776/ub.jpas.2019.004.01.7

Refbacks

  • There are currently no refbacks.