Questions/Answers
Question 1
Please provide a brief summary of the initiative including the problems/challenges it addressed and the solutions that the initiative introduced (300 words maximum)
Since the enactment of Law No. 6 of 2014 about villages and other implementing rules that provide village authorities with the ability to regulate and manage their own households in accordance with applicable laws and regulations, including in managing and using village budgets. Moreover, every village will receive funding of approximately one billion rupiahs per year from APBN funds. However, the implementation of administrative management of village finances that are less orderly causes frequent irregularities in the use of budgets in the village. Therefore, by utilizing the internet network that has been built since 2007, an application of village-based financial management websites with real-time data that is integrated in order to build transparency and accountability of financial management down to the village level.
In addition to ensuring transparency and accountability of village financial performance, the application used from the beginning of village development planning can ensure synergy between village planning and implementation of activities to be budgeted by the village government. This is very important, considering that the planning has also involved the community directly so that the certainty of the proposed community can be realized.
E-Village budgeting is a form of information and communication technology innovation which is a follow up of Banyuwangi Regent Regulation No. 15 of 2015 about management of village finance in the Banyuwangi district. With coordination from related parties such as Bupati, technical SKPD, village head and village apparatus and community the budget of Banyuwangi district is expected to realize inclusive institution and guarantee participation in decision making in accordance with one of the 2030 agenda objectives. This initiative will make it easier for government officials in presenting village financial data and policy formulation related to the utilization of APBDesa funds. The government in this case at the sub-district and district level also facilitates in the control of financial management conducted by the village government in accordance with the rules of the applicable legislation.
a. What are the overall objectives of the initiative?
Please describe the overall objectives of the initiative (200 words maximum)
In the Indonesian context, the village is the closest government structure to the community. The number of villages across Indonesia totals over 62,517. Therefore, village governance becomes one of the keys to the good and bad public services for the community. This is also the background of the emergence of the E-Village Budgeting initiative.
In general, there are two primary goals of E-Village Budgeting development. First, ensure that budgeting by the village government is in line with community needs. In the current era of decentralization, this is important because it brings local government closer to the community. The principle of decentralization of “the closer, the better” is the primary goal of the E-Village Budgeting initiative. Community needs must be accommodated in planning and budgeting at the village level.
Secondly, the development of E-Village Budgeting is intended to follow up the problems that occur in the village financial management process that should be done professionally, effectively, efficiently and with accountability, however, the administration of financial management is less orderly, resulting in budget misuse. Moreover since the enactment of Law No. 6 of 2014 which implies that every village will receive funding of approximately Rp. 1 billion rupiahs per year from APBN funds, with the E-Village Budgeting it is expected that the district government can easily perform monitoring from the planning process, and implementation to the reporting of APBDesa. In addition, the initiative is also designed to make it easier for rural government officials to present village financial data as well as policy formulation related to APBDesa funds utilization that impacts financial administration, transparency, and accountability of village administration.
b. How does the initiative fit within the selected category?
Please describe how the initiative is linked to the criteria of the category (200 words maximum)
In line with efforts to build inclusive institutions and ensure participation in policy-making, E-Village Budgeting is one method that can accommodate these efforts with the planning and implementation of performance-based budgeting. This method of budgeting is based on performance in accordance with the aspirations of village communities so that the absorption of APBDesa funds becomes more effective based on the needs of the village community. In addition, the ease in the process of administration to the reporting and formulation of related policies in the utilization of village financial assistance that affects the orderly administration of finance, transparency, and accountability of village governance.
The transparency and accountability of village financial management automatically increases public confidence in the performance of village government that increases the level of community participation both in terms of oversight and policymaking.
With this initiative, we choose category " Making Institutions Inclusive and Ensuring Participation in Decision Making"
Question 2
The initiative should improve people’s lives, notably by enhancing the contribution of public services to the implementation of the 2030 Agenda for Sustainable Development and the realization of the SDGs
a. Please explain how the initiative improves the delivery of public services (200 words maximum)
The role of the government as a state regulator in the implementation of the 2030 agenda is significant where the government is responsible for existing regulations that can accommodate the interests of all groups. E-Village Budgeting is a government product in the effort to implement the 2030 agenda. It can be seen that E-Village Budgeting is a form of innovative infrastructure in systematic and integrated, sustainable and resilient village financial management in accordance with the objectives of the SDGs on industry, innovation and infrastructure particularly related to quality development of reliable, sustainable and resilient infrastructure, including cross-border areas, to support economic growth and human well-being, with a focus on access that is acceptable and equitable for all.
In addition, E-Village Budgeting is also a means of reducing all forms of corruption by monitoring systems conducted by various stakeholders, developing effective, accountable and transparent institutions down to the village level and participating in decision-making in accordance with the objectives of SGDs on peace, justice, and institutional strengthening are in particular related to the reduction of all forms of corruption and bribery, the development of effective, accountable and transparent institutions, ensuring responsive, inclusive, participatory and representative decision-making at all levels.
Question 3
The initiative must impact positively a group or groups of the population (i.e. children, women, elderly, people with disability, etc) and address a significant issue of public service delivery within the context of a given country or region.
a. Please explain how the initiative has addressed a significant issue related to the delivery of public services (200 words maximum)
Since the enactment of Law No. 6 of 2014 concerning villages and other implementing rules that provide village authorities to regulate and manage their own households in accordance with applicable laws and regulations, including managing and using the village budget. In reality, however, there are still many problems that occur in village financial management conducted by the village government, such as:
a. the imbalance between the low welfare of the village community and the amount of funds managed by the village government;
b. limited resources of the village government apparatus in terms of administration and governance in the field of village financial management, thereby affecting the risks in the management and accountability;
c. budget planning, administration and reporting processes in the APBDesa that are still done manually and the absence of a clear report format, thus making the resulting report less transparent and accountable;
d. weak validation of village financial planning and management data conducted by the village government.
As an effort to overcome the above problems, it is necessary to provide facilities for the village government to carry out their activities starting from the planning process, administration, budget change, accountability and reporting of village finance so as to increase public participation, transparency, and accountability of village financial management.,
b. Please explain how the initiative has impacted positively a group or groups of the population within the context of your country or region (200 words maximum)
E-Village Budgeting makes it easy for the government, in this case, the government at the sub-district or district level to coach and control the management of village finances in accordance with the prevailing laws and regulations. This is evident from the process of village governance activities starting from planning, budgeting, budget changes and village budget reporting no longer using incremental budgeting methods.
In addition, efficiency and effectiveness of village financial management can be done in an orderly, transparent, and accountable manner, and synergy especially related to the planning process, budgeting, administration and financial reporting of the village. The planning process that involves the community from the results of data entry deliberation of village development planning and village consultation results as outlined in the RKPDesa to the APBDesa the resulting output can be seen directly. Transparency on the use of village budgets is published and made available to the public through the website address http://smartkampung.id/ems/rapbdes.
Question 4
The initiative must present an innovative idea, a distinctively new approach, or a unique policy or approach implemented in order to realize the SDGs in the context of a given country or region.
a. Please explain in which way the initiative is innovative in the context of your country or region (200 words maximum)
E-Village Budgeting is an application for village-based village-wide management in the Banyuwangi District with real-time data in order to build transparency and accountability for village budget management. This initiative responded to the challenge for the village government with funding of approximately Rp. 1 M per year sourced from APBN.
E-Village Budgeting is implemented at lower levels of government is the integration between district government and village government in the effort to develop and control the management of village finances in accordance with the rules of the applicable legislation. In addition, E-Village Budgeting also facilitates village government officials in presenting village financial data as well as in the formulation of policies related to the utilization of APBDesa funds that affect the orderly administration of finance, transparency, and accountability of village governance.
Question 4b
b. Please describe if the innovation is original or if it is an adaptation from other contexts (If it is known)? (200 words maximum)
E-Village Budgeting is a form of innovation of information and communication technology of adaptation result from Information System of Planning, Budgeting and Integrated Regional Financial Management (SIMRAL) where this application is built for integrated development planning with budgeting and management of regional finance. SIMRAL is a system that integrates development planning data consisting of recording and processing of village/village musrenbang data, musrenbang district, SKPD forum, city musrenbang and RKPD data, and Renja SKPD, with PPAS budgeting, RKA, DPA and cash budget as well as administration or financial management up to accounting and reporting of accountability so that the resulting product will be more transparent, and can be accounted for.
Question 4c
c. What resources (i.e. financial, human , material or other resources, etc) were used to implement the initiative? (200 words maximum)
the resources used for development and implementation of E-Village Budgeting are as follows:
a. Financial resources
b. The construction of E-Village Budgeting began planning in 2014 through a budget allocation provider in APBD FY 2014 of Rp250,000,000 - which was used to build the E-Village Budgeting application system and training for village government apparatus. While overall implementation was targeted in 2016 with the APBD FY 2015 budget amounting to Rp268,000,000.00 which was used for capital expenditure server addition to the E-Village Budgeting application requirement and training for village government apparatus, and FY 2016 equal to Rp,154,500,000.00 which was used for training for village government apparatus and updating the application system. Then FY 2017 was conducted, updating applications to adjust to PMK 50/PMK.07/2017 totaling Rp50,000,000.00.
c. Technical Resources
1. Internet network services in each village built with the bandwidth cost of the District Government.
2. Development of E-Village Budgeting application in accordance with applicable legislation and synergized with village needs.
3. Cooperation is undertaken by the District Government with several service providers to maximize the internet network in the village.
d. The Banyuwangi District Community Empowerment Office provides consultation and assistance services by opening DD / ADD clinics.
e. Human Resources
The synergy and synchronization principle between SKPD and other related parties is needed so that the initiative can proceed according to plan.
Question 5
The initiative should be adaptable to other contexts (e.g. other cities, countries or regions). There may already be evidence that it has inspired similar innovations in other public-sector institutions within a given country, region or at the global level.
a. Has the initiative been transferred to other contexts?
Yes
E-Village Budgeting received appreciation from the Minister of Finance of Indonesia, Sri Mulyani at the Economic Briefing Forum in Jakarta on October 27, 2016, because the financial administration is done online at the village level. According to the Letter of the Minister of Home Affairs Number 356/769/SJ, the Government of Banyuwangi Regency is ranked I in the National Action Plan - National Counterterrorism and Eradication (RAD-KK) in which the E-Village Budgeting application becomes one of the mainstay action items.
In addition, several other districts/cities from different provinces have also conducted comparative studies or sharing on village financial management through E-Village Budgeting applications, including East Java (Situbondo, Madiun, Pacitan, Trenggalek, Bangkalan, Ponorogo, Lamongan), Central Java (Pati District), West Java (Cirebon Regency, Pangandaran, Bappemas and Bappeda West Java Province), Lecturers STPDN Padang, etc
Question 6
The initiative should be able to be sustained over a significant period of time.
a. Please describe whether and how the initiative is sustainable (covering the social, economic and environmental aspects) (300 words maximum)
E-Village Budgeting is a system designed to facilitate village financial management in Banyuwangi District and has been adapted to the needs of the village government. This is a follow up of Banyuwangi Regent Regulation No. 15 of 2015 on the management of village finances in Banyuwangi Regency. In line with this, E-Village Budgeting continues to be developed and used sustainably, and this is supported by the Banyuwangi District Budget from 2014 until now.
b. Please describe whether and how the initiative is sustainable in terms of durability in time (300 words maximum)
The Village and Community Empowerment Office of Banyuwangi District directly provide facilities, technical personnel for consultation, assistance for the village commonly known as DD/ADD Clinics. Furthermore, the optimization of Internal Control System (SPI) is used to monitor the utilization of E-Village Budgeting in each related SKPD and village government. A series of evaluation meetings were also conducted at the district, sub-district and village levels to refresh and determine the level of development of E-Village Budgeting utilization. Evaluations were also obtained from various stakeholders such as village apparatus or community apparatus, especially students, for a better E-Village Budgeting system.
Question 7
The initiative should have gone through a formal evaluation, showing some evidence of impact on improving people’s lives.
a. Has the initiative been formally evaluated?
Yes
If yes, please describe how the initiative was evaluated? (200 words maximum)
The evaluation is regularly conducted by the Village and Community Empowerment Office of Banyuwangi District as a part for continous improvement of the program. The evaluation is conducted based on the following :
1.The involvement of the village community in making decision of village development planning
2. The benefit of the progamme to the village government in organizing the village development and manage the village financial
3.The transparency and accountability of the village government in arranging the village financial and development report
b. Please describe the outcome of the evaluation of the impact of the initiative (200 words maximum)
a. In 2015 no more than 10% of villages submitted the Realization Report of APBDesa TA 2014 implementation in accordance with the specified schedule. Then, in 2016, after the implementation of E-Village Budgeting as a whole (189 villages) submitted the Realization Report of APBDesa TA 2015 implementation although it must be re-consolidated.
b. The implementation of the 2015 budget resulted in a low opinion in 50% of villages over financial reporting. As for the implementation of the 2016 budget after the planning, administration and financial reporting of villages through E-Village Budgeting, only 31.22% of villages had negative feedback (59 villages) due to the lack of optimal capacity of village government resources.
c. The program planning pattern is directed according to the previous planning result which involves the community that illustrates that the program implemented is the aspiration of the village community.
d. The suitability between village planning and budgeting that sets goals in the RPJMDesa and RKPDesa can be achieved.
e. The high absorption rate of the village financial aid budget by the end of 2015 was 99.92% and continued to increase until the end of 2016 and 2017 to 100%.
f. The effectiveness of the guidance and supervision of the implementation of village governance by the district government (SKPD technical and district) conducted periodically and systematically.
g. Transparency on the use of village budgets published to the public through the website address http://smartkampung.id/ems/rapbdes.
h. The transparency and accountability of village financial management automatically increased public confidence in the performance of village government increasing the level of community participation both in terms of oversight and policymaking.
c. Please describe the indicators that were used (200 words maximum)
a. Quality of financial reports from village to district government is aligned with time frame
b. The effectiveness and efficiency in implementing the village planning in line with the village community needs and aspiration;
c. The transparency and accountability of village financial management report that can be monitor from village government website to ensure the public trust and the
involvement of the village community in developing the village;
d. The congruence of the implementation of village budgeting management with the rules of law
Question 8
The initiative must demonstrate that it has engaged various actors such as from other institutions, civil society, or the private sector, when possible.
a. The 2030 Development Agenda puts emphasis on collaboration, engagement, coordination, partnerships, and inclusion. Please describe what stakeholders were engaged in designing, implementing and evaluating the initiative. Please also highlight their roles and contributions (300 words maximum)
In the implementation process E-Village Budgeting has involved the cooperation of several parties either directly or indirectly, among others:
1. The Banyuwangi district government consisting of the Banyuwangi Regent who acts as a regulator and technical SKPD that coordinates in accordance with their main duties and functions;
2. Village heads and apparatus of Banyuwangi District (189 villages) as users of the E-Village Budgeting application system to be truly beneficial to the village's financial management;
3. Society, especially students who research E-Village Budgeting and then the results will be used as evaluation material for the development of the initiative.
Question 9
a. Please describe the key lessons learned, and any view you have on how to further improve the initiative (200 words maximum)
All the processes undertaken in the effort to build E-Village Budgeting is not easy. The team has worked optimally to accommodate the necessary things. The limitations of village apparatus resources that become obstacles in the implementation of E-Village Budgeting can be overcome in accordance with the main duties and functions of the Banyuwangi District and Village Community Empowerment Office, and it becomes an opportunity for further progress.In addition, synergy and coordination between SKPD and village administration are essential for the successful implementation of E-Village Budgeting. The village government apparatus is also very enthusiastic about this initiative because in addition to facilitating the management of village finances, it will also make the village financial management more transparent and accountable and it is a success for us in empowering the village government apparatus. Evaluations were also given mainly from the village apparatus as users of E-Village Budgeting in order to improve the quality of the system itself.