| 4. In which ways is the initiative creative and innovative?
The Regional Finance Laboratory is an institution which provides counseling, training, comprehension and analysis about regional finance. The eminent characteristics of this institution are creative, innovative, and original. The Regional Finance Laboratory approaches are not yet applied by any other institutions in Indonesia in the field of human resources capacity and character building.
The creative, innovative, and original approaches taken are:
a)Competency Technical Training, a training implementation for regional finance administration officials that consists of trainees organizing, training plans;
b)Technical Counseling, a program aimed to solve problems that are faced by the regional units in East Java province, regencies/cities, villages, and general society;
c)Web-based and Face-to-face Consultation Clinic, this program will be conducted through direct and electronic media;
d)Financial Database Service, Financial Database Service, public information service integrated to other services of Regional Finance Laboratory.
e)Regional Fiscal Policy Analysis, this program is designed by Regional Finance Laboratory as self-learning program to improve capacity and character building of human resource concerning comprehension and information of regional finance. Moreover, it is a proactive contribution related to regional planning and budgeting policy.
| 5. Who implemented the initiative and what is the size of the population affected by this initiative?
The Regional Finance Laboratory is an institution that provides skill, proficiency, knowledge, technical comprehension, insight development and mindset to develop human resource in regional finance. Regional finance is activities which consist of financial planning, budgeting, organizing, reporting, monitoring and evaluation of financial management in East Java Province.
Regulation that stipulates The Regional Finance Laboratory and becomes the legal basis for the institution is the Governor Decree Number 39 Year 2014 that was enacted on June 19th 2014 concerning Regional Finance Laboratory under East Java Regional Finance and Asset Management Department. It also supported by the Governor Decree Number 101 Year 2016 that was enacted on November 4th 2016 concerning Nomenclature, Organization Structure, Job Description, and Task Procedure of The Regional Finance and Asset Management Department Technical Operating Subsidiary Unit in which it will be used as Innovation in Developing Human Resource Quality concerning Regional Finance. (uptlpkd.bpkad.jatimprov.go.id)
Regional Finance Laboratory works and operates as front-liner in developing regional human resource quality and fiscal policy which pro-active, creative and innovative. Services given are adopted with latest information, technology and based on latest scientific evidences. UPT-LPKD also operates as knowledge center for activities that are related to regional finance.
| 6. How was the strategy implemented and what resources were mobilized?
The development of Regional Finance Laboratory are performed through several steps as follows:
1.The inauguration of Regional Finance Laboratory office on October 20th 2014 by the East Java Governor which also symbolize the first operational day of the institution;
2.The inauguration of structural officials to fill the organization structure on August 26th 2014 with composition as follow:
a.Director of The Regional Finance Laboratory;
b.Planning and Program Manager;
c.Human Resource Capacity Development Manager;
d.Regional Finance Laboratory Administrarion Vice Manager.
3.General Module drafting, the making of e-Learning Application Module and undertaking the Training of Tutor which collaborated with Gadjah Mada University of Yogjakarta on March 13th 2013, and funded by the World Bank;
4.Counseling session with Australia-Indonesia Partnership and Decentralization team with Mr. J.B. Carassco as DFAT Counselor and Mr. Daniel Hunt as AIPD Deputy Program Director on September, 17th 2014 to synchronize the programs that will be conducted in Regional Finance Laboratory with AIPD’s commitment toward the development of regional finance and public service.
The Regional Finance Laboratory establishes two programs as strategies as follows:
1.Planning and Program consist of accurate planning and implementation budget for instance:
a.Database development to contribute data, information and services;
b.Study result analysis using meta analysis method;
c.Analysis of latest study.
In which point b and c will be utilized as best practices of the planning policy materials for each district.
2.Human Resource Development through training and technical assistance, such as:
a.Technical training aims to develop ability in planning and budgeting;
b.Integrated monitoring and evaluation system;
d.Technical assistance to develop dissemination ability in regional financial management.
Implementation of those strategies aimed to solve human resource issues by doing the following:
1.Technical training for financial administrator about planning, budgeting, managing, reporting and financial evaluation;
2.Competency assessment in regards to planning, budgeting, managing, reporting and financial evaluation of regional finance;
3.Assistance in performing regional finance programs;
4.Database development based on financial management data;
5.Information and communication technology improvements related to regional finance:
Main Resources that are utilized:
a)Institutional Capacity Development Program by facilitating the Institution to achieve properly-functioned institutional percentage with a budget of Rp.2.497.633.000 (±US$182.900) in fiscal year 2016.
b)Improvement and Development Program by capacity empowerment with a budget of Rp.4.422.800.000 (±US$323.900) to achieve human resource enhancement that comprehend regional finance in fiscal year 2016.
-The World Bank was involved in drafting the general module and accrual-based e-learning application;
-Australia Indonesia Partnership Decentralization was involved in drafting the basic and intermediate training module, and assisted in selecting the tutors.
Resource of Tutor:
a)The East Java regional department officials who follow the Training of Trainers program;
b)Academics, experts, and practitioners;
a)Ten technical personnels with education and experience background in Finance concentrated on human resource capacity development and financial administration;
b)Two technical personnel with background in general governmental affairs concentrated on Planning and Program;
c)Two technical personnel with Information Technology background concentrated on Information Technology Development;
d)Ten certified security personnels;
e)Six cleaning service personnels;
f)Three mechanical, electrical and hydrants outsourcing personnels.
| 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
Based on the Minister of Administrative and Bureaucratic Reform of the Republic of Indonesia Decree Number 10 Year 2011 concerning Changes Management General Guidance, stakeholders are characterized into three qualifications: Key Stakeholders, Primary Stakeholders, and Secondary Stakeholders.
Key stakeholder is officials who hold legal authority in making decision based on executive aspect according to its level which is the Chief Executive Officer of East Java Financial and Asset Management Department and the Director of UPT Regional Finance Laboratory.
Stakeholders who have direct connections with policies, programs and activities. They should be positioned as the main determinants in the decision making process. The primary stakeholders are Planning and Program Manager, Human Resource Capacity Development Manager, Regional Finance Laboratory Administrarion Vice Manager.
3.Supportive (Secondary) Stakeholders
Secondary stakeholder does not have direct connection to policy, program and event but somehow they possess concern through their advice and influence toward social attitude and government legal decision for instance:
a.East Java Finance and Asset Management Department staffs;
b.Staffs of UPT Regional Finance Laboratory;
c.Information Technology consultants from Sepuluh Nopember Institute of Technology Surabaya;
d.Academics who are involved in drafting learning module from Airlangga University of Surabaya, Gadjah Mada University of Yogyakarta, Diponegoro University of Semarang, Brawijaya University of Malang, Andalas University of Padang, University of Indonesia, Padjajaran University of Bandung, Hasanudin University of Makassar, Sam Ratulangi University of Manado, and Trunojoyo University of Madura;
e.East Java regional units and Regencies/Cities and Villages.
•World Bank, involved in assisting the establishment of regional finance laboratory;
•Australia Indonesia Partnership Decentralization, involved in structuring regional finance laboratory;
•KOMPAK Governance for Growth, involved in advising the development of Regional Finance Laboratory.
| 8. What were the most successful outputs and why was the initiative effective?
The development programs of UPT Regional Finance Laboratory in fiscal year 2016 achieve outputs as follow:
1.Technical counselings for regional units of East Java province in 2016 were held for around 20 sessions and followed by 792 participants. In 2015 were held for around 18 classes and followed by 655 participants. The average participants comprehension level in 2016 reached 92,47% compared to 2015 which only reached 70,51%. (supporting data attached);
a.Technical Training participants were from outside East Java Regional Government, such as the Head and Members of Papua Province Legislature, South Kalimantan and South Sumatera Training Body, and Deli Serdang (North Sumatera) Regency Government, with a total of 183 participants;
b.Brainstorming sessions were conducted twice in collaboration with Situbondo and Sidoarjo Regencies Governments, with a total of 110 participants;
c.Counseling for Pamekasan, Blitar, Situbondo and Sidoarjo Regencies Governments, with a total of 514 participants;
d.General Lecture for educational institutions with a total of 298 students from Diponegoro University of Semarang, Padjajaran University of Bandung and Panca Marga University of Probolinggo;
3.Producing studies such as:
a.Expenditure Standard Analysis (Book) (Analisis Standar Belanja, abbreviated to ASB, In Bahasa Indonesia); (uptlpkd.bpkad.jatimprov.go.id)
b.East Java Development Plan and Budget Synchronization (Book); (uptlpkd.bpkad.jatimprov.go.id)
c.Regional Finance General Module Update.
4.UPT Regional Finance Laboratory employed 30 professional tutors in accordance with their educational background; (uptlpkd.bpkad.jatimprov.go.id)
5.Information Technology Service The Regional Finance Laboratory produced fourteen online videos for e-learning; (uptlpkd.bpkad.jatimprov.go.id)
6.Counseling Clinic consisted of 16 face-to-face and 11 online-based counseling with a total of 37 issues were discussed. (uptlpkd.bpkad.jatimprov.go.id)
Main topic of the issues:
c.Executive and Legislative;
e.Drafting process of Budget Implementation Document. (uptlpkd.bpkad.jatimprov.go.id)
7.Database Service, in 2016 The Regional Finance Laboratory added a search engine feature within the e-library to quicken the problem solvings concerning regional finance.
Concrete examples from the existence of UPT-regional finance laboratory that can be perceived by other departments are:
1.Accurate planning, budgeting and punctual submission of Accountability Report;
2.Regional finance administrators able to comprehend drafting process of financial report;
3.Regional finance administrators able to differentiate assets (regional belonging and assests);
4.Mutual perception about regional finance toward enacted regulations;
5.Ability to provide solution concerning regional finance issues as a form of Knowledge Transfer.
| 9. What were the main obstacles encountered and how were they overcome?
The existence of Regional Finance Laboratory is fully supported by the Indonesia Finance Ministry under the Directorate General of Regional Fiscal Balance (Direktorat Jenderal Perimbangan Keuangan, abbreviated to DJPK, in Bahasa Indonesia) since it helps the central government in solving regional finance issues to achieve Good Government Governance. In actualizing that expectation, The Regional Finance Laboratory establishes coordination with Domestic Affairs Ministry in regards to institutional empowerment, training materials improvement and the activities supply needs.
According to the Internal Environment Analysis (Analisis Lingkungan Internal, abbreviated to ALI, in Bahasa Indonesia), there are several obstacles need to be solved by The Regional Finance Laboratory.
Obstacles and Its Resolutions:
The absence of a Governor Decree that enacts educational retribution to support The Regional Finance Laboratory operational expenditure.
Arrange a Governor Decree that enacts educational retribution service to support operational expenditure in collaboration with KOMPAK Governance for Growth as donor.
Learning modules have not yet been adapted with the complex characteristics of East Java.
Upgrade learning module periodically to match with the East Java’s complex characteristics accompanied by KOMPAK Governance for Growth.
Uneven distribution of human resources based on their number and expertise.
Drafting organizational structure and job descriptions based on Governor Decree Number 101, 2016 concerning Nomenclature, Organization Structure, Job Description, Function And Task Procedures of The Regional Finance and Asset Management Department Technical Operating Subsidiary Unit.
Limited amounts of equal perceptions and comprehensions about financial management policy, system and procedure.
Conduct periodic focus group discussions about regional finance issues.
Limited amounts of facilities and infrastructures that are used for regional finance training.
Develop more facilities and infrastructures to support regional finance training.