Strengthening Strategy of Indonesian Local Legislative Councils on Budget Oversight

Abstract

Purpose –The purpose of this paper is to investigate the strengthening approach followed by Indonesian local legislative councils in particular on local government annual budget oversight, this study aims to discuss and examine what and how the approach of strengthening must be managed and conducted by local legislative members.

Design/methodology/approach –The study is based on the results of a qualitative in depth interviews involving 5 members of local legislative councils, 1 professional regional planning and budgeting consultant, 1 professional facilitator in strengthening local legislative councils and local council secretariat which is in charge of organizing secretarial and financial administration, supporting the implementation of the tasks and functions of the local legislative councils. The in depth interviews uses the case study method in five districts in east java province, Indonesia.

Findings –The findings confirm that strengthening budget oversight by local legislative councils must begin from planning, budgeting process to the oversight of public services. In order budget oversight to be more directed and planned, the local legislative councils must implement several steps including determining targets and standards, measuring actual performance, comparing results with predetermined targets and standards, taking necessary corrective actions. Another thing that is quite crucial for local legislative councils is encouraging the realization of an effective and efficient organization. To realize such an organization, every government agency must be prepared to utilize the wealth of knowledge it has. Knowledge management is an effort to improve organizational capabilities in managing intellectual assets: existing knowledge and experience. Lack of capacity was not just individual, therefore it is very necessary a comprehensive capacity-development package is needed for member of local legislative councils. And the supporting from local council secretariat is very important and crucial in budget oversight activities

Practical implications – The findings have implications for local legislative council should be develop standard operating procedures in budget oversight as a standardization of the mechanism must be conducted by local legislative members in completing their budget oversight, reducing the level of errors and omissions that may be carried out in implementing their duties and increasing the efficiency and effectiveness of the implementation of duties and responsibilities of individuals and the organization as a whole;

Keywords : Budget Oversight, Local Legislative Councils, Strengthening Strategy, Knowledge Management, Indonesia

Paper type : Research paper

DOI: 10.7176/EJBM/11-24-07

Publication date: August 31^st 2019