Proportional Transparency of Financial Management
Finance and Asset Management Agency Regional Banyuwangi

A. Problem Analysis

 1. What was the problem before the implementation of the initiative?
• Most people do not have any proper knowledge about the Regional Financial Management • Public involvement process in several meetings and consolidation activities is still a discourse. Public do not have any access about the inputs discussed in such meetings and consolidation. Moreover, they have no information, should their ideas or input be accommodated in such meeting. • In 2003, the Government of Banyuwangi Regencydid not use the integrated system for the Planning, Organization, and Accountability Management of Local Fiscal Management. • The lack of public control function, the public access to supervise the previous management system. • Transparency is the principle of creating mutual trust between government and the community through the provision of information and ensure ease in obtaining information society, an essential requirement to participate in the financial management area. In this regard, local governments need to proactively provide comprehensive information on policies and services provided to the community. • Transparency has become a sort of an ethical international association that must exist to ensure the implementation of the system of government that is accountable and transparent - one key to good governance. • The difficulty of gaining electronic information in order to create Transparency of Financial Management which is always up to date through the implementation of e-SIKD (e Regional Financial Information System).

B. Strategic Approach

 2. What was the solution?
a. Who has proposed a solution to the above is the leaders who support the initiative on input from staff or subordinates who carry out the task on each Unit (SKPD) in order to facilitate the function of both the Transparency of Financial Management Planning, Administration and Accountability and stakeholders’ interests. b. This initiative has been solving problems how to integrate the result of official meeting and electronic financial information system,allowing public to access the data obtained, economical, efficiently, and effectively. c. Reducing bureaucracy complex can indeed be an option, but at this time is not an ideal choice. The only visible option is to use the information technology to mediate such ideal objective.

 3. How did the initiative solve the problem and improve people’s lives?
Related initiatives include the following: a. Transparency of Financial Management is a medium to actively announce information regarding regional development plan including the budget, initial planning, discussion, up to the establishment, implementation of development activities. b. The availability of information on the implementation of development activities which can be accessed on the district's official web site Innovative and Creative Approaches: a. To support the realization of Transparency of Financial Management, the Government of Banyuwangi Regency integrates all related information into web-based e-SIKDsystem. b. The e-SIKD system is web-based, on-line and real time, in line with the concept of open source software, allowing the system to keep being improved and disseminated. c. The innovation is supported by the entire leaders on the institution so that innovation can be run in accordance with the applicable provisions of the commitment.

C. Execution and Implementation

 4. In which ways is the initiative creative and innovative?
Strategies are implemented, namely: a. Regional Financial Information System (e-SIKD) was developed by integrating all sectorsinto a web-based environment, on-line and in real time. b. e-SIKD is going to applied widely in Banyuwangi government institutions. c. The process of fiscal management is going to be integrated in one chain which will not be interrupted in its execution. The budgetary control is also used in accordance with the Local Budget (budget) set. d. Holding some continuous training in order to operationalize the system. e. The integrated system will be able to increase the effectiveness of the use of the government budget in the operational functioning of the public service. f. The e-SIKD answer public’s demand on the thetransparancy of all things related to the Fiscal Management of Banyuwangi Regency

 5. Who implemented the initiative and what is the size of the population affected by this initiative?
Stakeholders contributing to the implementation of this initiative are: a. Community, namely democratic society; b. Local Taskforce Unit for the amount of 86 units; c. Local stakeholders as parties related to the transparency of the financial management area; d. NGOs; e. Legislature or parliament in the Banyuwangi Regency; f. Private parties
 6. How was the strategy implemented and what resources were mobilized?
Budget is used for the initial investment of Rp. 400,000,000.00 ($ 34,482) which the details are as follows: a. IDR 100,000,000 ($ 8,206) is used for the purposes of making the design of systems / processes necessary business surve early. b. IDR 100,000,000 ($ 8,206) is for competence assistance of Human Resources (HR) c. IDR 100,000,000 ($ 8,206) is used to disseminate to the public to understand about the transparency of the financial management d. IDR 100,000,000 ($ 8,206) is for the Maintenance of the system is used in order to be accounted for the results. Resource Mobilization Participatory approach which attempts to always involve the relevant stakeholders, both in terms of service providers (government) as well as of the service recipient (Society) in each phase of activity which is considered strategic to set the direction of government policy in improving the transparency of public services in the field of Financial Management

 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
Some of the successful outputs include: a. The available A online information about Fiscal Management Transparency on the website; b. The availability of the details of the Annual Revenue and Expenditure Planning (budget) of Banyuwangi Regency. c. The availability of financial administration process starting from the Letter of Provision Fund (SPD), a Letter of Request Payment (SPP), Payment Order (SPM) and Warrant Fund Liquefaction (SP2D) d. The availability of the details of the realization and accountability of Local Budget; e. The publication of data and the programs and activities undertaken by the Government of Banyuwangi Regency

 8. What were the most successful outputs and why was the initiative effective?
The system is applied to monitor progress on the Finance Management Transparency Region include: a. The Government of Banyuwangi Regency hold an annual evaluation on the progress of the implementation; b. The web-based information center shares the up-to-date information to public effectively and efficiently

 9. What were the main obstacles encountered and how were they overcome?
The Obstacles are: 1. Less available human resources who are able to operate the regional financial information system (e-SIKD), having expertise in the field of Programming and Networking; 2. The distance between the Regional Working Units (on education) are very far apart. The solutions to the obstacles are: 1. Conducting training and mentoring continuously until the system is able to operationalize the planning, budgeting and reporting. 2. Adding bandwidthof 30 mega to 60 megabyte thus gained access to the regional work units are not obstructed

D. Impact and Sustainability

 10. What were the key benefits resulting from this initiative?
The key benefits gained from the innovation are: a. The level of public trust towards government officials increases; b. The level of public involvement in the financial planning also increases; c. The public rights are ensured, in the terms of gaining information about the fiscal management matters; d. Public are able to conduct the supervisory function; e. The public can access information easily and transparently. f. Openness to evolving information technology advances, g. The commitment of all parties to provide the best service, with the support of information technologies and integrated systems as well as human resources quality and integrity. h. The system can be developed in accordance with the progress and changes of the underlying rules.

 11. Did the initiative improve integrity and/or accountability in public service? (If applicable)
This initiative is being continued and replicated or disseminated for public services with Regional Financial Information System (e-SIKD) include: a. Web-based and open source software base b. Can be developed independently c. Following the development of applicablerules and regulations. d. Can be utilized by all districts/cities in Indonesia e. Based system built by the Government of Banyuwangi Regency been adopted by the City of Pekalongan. f. Information on all related activities are widely publicized on

 12. Were special measures put in place to ensure that the initiative benefits women and girls and improves the situation of the poorest and most vulnerable? (If applicable)
General experience gained in implementing this initiative are: a. The system facilitate the implementation of tasks on all regional work units (on education) that were previously conducted with manual system which is not real time - not connected and no data center b. It is expected that the innovation will be more developed in the future, following all the technological advances and more complicated public’s demands. c. An institution is able to create great innovation based on the existing system environment without having to spend enormous number of fund. d. The system benefit not only the government institution but also private parties and public related to whole process .

Contact Information

Institution Name:   Finance and Asset Management Agency Regional Banyuwangi
Institution Type:   Government Agency  
Contact Person:   Djadat Sudradjat
Title:   Mr  
Telephone/ Fax:   +62 0333 414062, Fax: +62 0333 404061
Institution's / Project's Website:  
Address:   Jl. Adi Sucipto No 28 Banyuwangi
Postal Code:   68416
City:   Banyuwangi
State/Province:   Jawa Timur

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