Participatory Budgeting: Between Procedures and Realities
The participatory budgeting established in Indonesia after decentralization provides the community an opportunity to participate in local budgeting . While the meetings and public hearing are procedurally seen as good enough for accommodating community pr
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Participatory Budgeting: Between Procedures and Realities
Abstract The participatory budgeting established in Indonesia after decentralization provides the community an opportunity to participate in local budgeting. While the meetings and public hearing are procedurally seen as good enough for accommodating community proposals, the result is perceived as far from being participative and accommodating. The low willingness of district governments to share budget information has hindered public participation. The non-existence of clear procedures to screen village proposals and the low capacity of district councils make the selection of village proposals not based on scale of priorities. Participatory budgeting just becomes a formality where rural residents still cannot influence budgetary decision making. Keywords Fiscal decentralization Public hearing Rural development
6.1
Participatory budgeting
Musrenbang
Introduction
Along with fiscal decentralization, the Indonesian government involved villagers in budgetary decision making by establishing a public hearing mechanism, locally named Musrenbang, through Law 25/2004 on the National Planning System. This is procedurally an effort to provide a medium whereby people participate in local development planning. The idea behind the participatory budgeting system is that the resources transferred from the central government should be used to meet the needs of local people. The aim is to create the allocative efficiency of local spending, or the best composition of spending that meets the various needs of local people. While Musrenbang had been implemented in Indonesia, the portion of development expenditure did not substantially increase after decentralization. Chapter 5 showed that a larger portion of the district budget was utilized for recurrent expenditure. This has raised questions about the design and implementation of participatory budgeting in Indonesia. To understand the design and implementation © Springer Nature Singapore Pte Ltd. 2017 Sutiyo and K.L. Maharjan, Decentralization and Rural Development in Indonesia, DOI 10.1007/978-981-10-3208-0_6
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6 Participatory Budgeting: Between Procedures and Realities
of participatory budgeting in Indonesia, a case study in Purbalingga district will be discussed in this chapter. The case of Purbalingga district is quite relevant to discuss as it only allocated a low portion of the budget for development expenditure. Thus, it can be identified here what is really happening in the district budget formulation. A method of process documentation research is applied to follow the dynamic of budgeting in 2010. This is basically a data collection method whereby the researcher closely follows the process to record how the procedures are systematically executed by the agencies and how the interfaces between an organization and people are taking place. Using this method, the researchers stayed in the research location for a long time and made detailed observations documenting the process among all actors.
6.2
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