Instilling Order and Accountability: Standard Operating Procedures at Indonesia's Ministry of Finance, 2006-2007 (Bahasa Translation Available)

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Translation: Bahasa 
Abstract 

Studi kasus ini juga, Menerapkan Aturan Dan Akuntabilitas: Standar Operasional Prosedur Di Kementerian Keuangan Republik Indonesia, 2006-2007, tersedia dalam Bahasa Indonesia.

In 2006, Indonesian economist Sri Mulyani Indrawati took on a huge and knotty problem: bringing order and efficiency to the Indonesian Ministry of Finance, an organization of 64,000 employees. At the time, many Indonesian citizens viewed the ministry as corrupt and unaccountable, exemplifying the failures of the entire government. President Susilo Bambang Yudhoyono had appointed Mulyani because of her reputation as a tough-minded reformer and a savvy manager. Mulyani ascribed the ministry’s weak and inconsistent handling of taxes, customs and other services to a shortage of clear and consistent procedures for the many tasks employees handled. A key element of her strategy was to simplify and standardize ministry processes in order to improve employee performance and accountability. During the next two years, Mulyani and her team initially focused their efforts on 35 priority services that citizens used heavily, and then they expanded the reforms to include other activities. By 2007, the ministry had developed and implemented nearly 7,000 standard operating procedures. The changes significantly improved public services and earned popular acclaim for both the ministry and the Yudhoyono government. This case shows how a strong leader and her reform team introduced new ways of working to achieve significant gains in service efficiency, quality and fairness.

 

Rushda Majeed drafted this case study on the basis of interviews conducted in Jakarta, Indonesia, in November and December 2011, and on a 2009 interview of Sri Mulyani Indrawati by Matthew Devlin and Andrew Schalkwyk. Case published April 2012.

Associated Interview(s):  Sri Mulyani Indrawati, Robert Pakpahan

Keywords 
institutionalize
Ministry of Finance
Indonesia
Standard Operating Procedures
procedures
SOPs
performance management
transparency
accountability
corruption
Capacity building
Focus Area(s): 
Building a Reform Team and Staff
Civil Service
Critical Tasks: 
Civil service corruption
Evaluating performance
Job descriptions
Performance management system
Sequencing reform
Core Challenge: 
Principal-agent problem (delegation)
Country of Reform: 
Indonesia
Type: 
Case Studies
Author: 
Rushda Majeed