civil service reform

Changing a Civil Service Culture: Reforming Indonesia's Ministry of Finance, 2006-2010

Author
Gordon LaForge
Country of Reform
Abstract

By the mid-2000s, Indonesia had recovered from a devastating economic crisis and made significant progress in transitioning from a dictatorship to a democracy. However, the country's vast state bureaucracy continued to resist pressure to improve operations. In 2006, President Susilo Bambang Yudhoyono tapped economist Sri Mulyani Indrawati to transform Indonesia's massive Ministry of Finance, which was responsible not only for economic policy making but also for taxes and customs. During four years as minister, Mulyani introduced new standard operating procedures, raised civil servant salaries, created a new performance management system, and cracked down on malfeasance. Her reforms turned what had once been a dysfunctional institution into a high performer. But ongoing resistance illustrated the difficulties and perils of ambitious bureaucratic reform in Indonesia.

This case study was drafted by Gordon LaForge based on research by Rachel Jackson, Drew McDonald, Matt Devlin, and Andrew Schalkwyk and on interviews conducted by ISS staff members from 2009 to 2015. Case published May 2016. Other ISS case studies provide additional detail about certain aspects of the reforms discussed in this case or about related initiatives. For example, see Instilling Order and Accountability: Standard Operating Procedures at Indonesia's Ministry of Finance, 2006-2007.

Una Klapkalne

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E
Focus Area(s)
Ref Batch Number
3
Critical Tasks
Country of Reform
Interviewers
Yoni Friedman
Name
Una Klapkalne
Interviewee's Position
Chief Executive Officer
Interviewee's Organization
National News Agency
Language
English
Town/City
Riga
Country
Date of Interview
Reform Profile
No
Abstract

Una Klapkalne describes the policy formation system and strategic planning implemented during her time at the State Chancellery. She describes the development of a policy formation system based on the production of specific documents. To implement this new system, her team at the Policy Coordination Department trained the ministries and reviewed their documents, as she details in this interview. She describes how the ministries increased the quality of their policy planning documents as they adapted to the new system. She also details how the department persuaded the ministries to support their changes. The team incorporated a new annotation system in to the policy formation process, which she says was to help administrators understand the cost each policy. In addition to explaining the policy formation system, Klapkalne discusses the process of ex-ante impact assessments and ex-post evaluations and the strategic planning system the team put in place. The team also increased cross-sectoral coordination, which she explains happened through the department’s mediation and by doing some harmonization at a lower level instead of the ministerial level. Klapkalne discusses how this change reduced the workload and meeting time for the cabinet officials.     

Case Study: Moving Beyond Central Planning: Crafting a Modern Policy Management System, Latvia, 2000-2006

Profile

Una Klapkalne was the Chief Executive Officer of the National News Agency, a position she had held since 2006. Until that point, she had been the head of the Policy Coordination Department at the State Chancellery. She joined the department in 2000. She started working in the administration immediately upon graduating, working her way up from an economic consultant to the deputy director of the state Civil Service Administration. From there she moved to the Ministry of Defense, where she served as the deputy state secretary. When the state secretary left for a year, she became the acting state secretary. She served as an advisor to the Prime Minister and the Minister of the Interior before joining the Policy Coordination Department.  She holds a Master of Business Administration from the Stockholm School of Economics in Riga and a Bachelor’s of the Arts in Economics from the University of Latvia. Additionally, she has earned certificates from the National Administration School of France in Management Effectiveness and from the Adam Smith Institute.   

Full Audio File Size
68 MB
Full Audio Title
Una Klapkalne - Full Interview

Baiba Petersone

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E
Focus Area(s)
Ref Batch Number
6
Country of Reform
Interviewers
Jonathan Friedman
Name
Baiba Petersone
Interviewee's Position
Director
Interviewee's Organization
Latvia School of Public Administration
Language
English
Nationality of Interviewee
Latvian
Town/City
Riga
Country
Date of Interview
Reform Profile
No
Abstract
In this interview, Baiba Petersone describes various tasks ministries assigned the Policy Coordination Department, particularly the civil service reforms she led. In her first few years in the new department, the main task was to survey Latvia’s policy-making system. From this survey, Petersone explains the department knew its first task was to create a policy system. They developed a process based on several types of documents, each with a different purpose. The department also created an annotation system to include information such as the costs of a proposal. The next step was to implement an inter-ministerial consultation system. Petersone discusses how the department chose its priorities and the sequence of its reforms. Finally, she details the civil service reforms undertaken, which she was in charge of. Her working group proposed abolishing the contract system and reforming how the government sets civil servant salaries. She describes the options considered and how the economic crisis of 2008 affected their ability to implement their changes.
 
Profile

Baiba Petersone was the director of Latvia’s School of Public Administration. She began her career as a researcher in the Academy of Sciences. After entering politics during Latvia’s independence, she spent seven years as an active politician. In 1996 she entered the civil service as Director of the Department of Education Strategy in the Ministry of Education. From there she joined the State Chancellery as a member of the Policy Coordination Department. She received her Bachelor’s Degree in philosophy, though at the time the field really consisted of social science. 

Full Audio File Size
70 MB
Full Audio Title
Baiba Petersone - Full Interview

Charles Lepani

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P
Ref Batch Number
2
Country of Reform
Interviewers
Matthew Devlin
Name
Charles Lepani
Interviewee's Position
High Commissioner to Australia
Interviewee's Organization
Papua New Guinea
Nationality of Interviewee
Papua New Guinean
Town/City
Canberra
Country
Date of Interview
Reform Profile
No
Abstract

Charles Lepani recalls his experience as one of Papua New Guinea’s highest-ranked civil servants during the country’s decentralization process in the mid-1970s. He highlights the challenges the central government faced in attempting to decentralize power to newly formed and ethnically distinct provincial governments while maintaining a sense of common national identity. He identifies the various parties involved in the debate over decentralization and details the struggle between the central government and provinces that pushed for a greater devolution of powers, most notably the island of Bougainville. He also explains how financial powers were divided between the national and provincial governments and how he dealt with the opposition he encountered among civil servants accustomed to the formerly centralized system.   

Case Study:  Decentralization Without Disintegration: Provincial Government in Papua New Guinea, 1972-1985

Profile

At the time of this interview, Charles Lepani was Papua New Guinea's High Commissioner to Australia.  Previously, he worked as an economic and public policy consultant. He was a member of the Aid Review team for the governments of Papua New Guinea and Australia. As director of the PNG National Planning Office from 1975 to 1980, he was involved in the formulation of PNG’s post-independence macroeconomic policy and public sector planning system, including aid coordination. Lepani served as PNG’s ambassador to the European Union from 1991 to 1994. He was managing director of Minerals Resources Development Co. from 1994 to 1996, leading the partial privatization of the state’s mining and petroleum assets and subsequently heading Orogen Minerals Ltd.  He earned a master's degree in public administration from the Kennedy School of Government, Harvard University.  

Full Audio File Size
94MB
Full Audio Title
Charles Lepani Interview

Emil Salim

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C
Ref Batch Number
5
Country of Reform
Interviewers
Matthew Devlin
Name
Emil Salim
Interviewee's Position
Faculty
Interviewee's Organization
University of Indonesia
Language
English
Nationality of Interviewee
Indonesian
Town/City
Jakarta
Country
Date of Interview
Reform Profile
No
Abstract

Emil Salim describes lessons learned from his long career in Indonesia’s government. He describes his efforts to institute procedures to set priorities for budgeting and implementation, to build capacity, to educate leaders (particularly from the military) about economics, to reform civil service, and to facilitate interministerial communications. He defines major challenges he faced in creating communications and systems of local governance for a nation of over 17,000 islands. He gives his views on the transition from a centrally planned economy dominated by the military to an increasingly market-driven, more democratic country and reports on his efforts to enhance civil society. He offers suggestions about how to combat loyalty to agency rather than loyalty to government and the nation.

Case Study:  Against the Odds: Attempting Reform in Suharto's Indonesia, 1967-1998

Profile

At the time of this interview, Emil Salim was on the faculty of the University of Indonesia in Jakarta. He graduated from the university's Faculty of Economics in 1959. He received his Ph.D. in economics from the University of California at Berkeley in 1964. In 1966, he was a member of a team of economic advisers to President Suharto. In 1967 and 1968, he was an adviser to the Ministry of Manpower. From 1967 to 1969, he was chairman of the technical team for the Council for Economic Stability and was a member of Parliament. He was vice chairman of the National Development Planning Agency in 1969. In 1971 was minister of state for the improvement of the state apparatus. During the 1970s, he was minister of communications, of development supervision and of environment.

Full Audio File Size
91MB
Full Audio Title
Emil Salim - Full Interview

Sonam Tobgye

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L
Ref Batch Number
4
Country of Reform
Interviewers
Rohan Mukherjee
Name
Sonam Tobgye
Interviewee's Position
Chief Justice
Interviewee's Organization
High Court of Bhutan
Language
English
Nationality of Interviewee
Bhutanese
Place (Building/Street)
High Court
Town/City
Thimphu
Country
Date of Interview
Reform Profile
No
Abstract

Chief Justice Lyonpo Sonam Tobgye of Bhutan details the process through which Bhutan drafted its first constitution.  He discusses the successes and challenges of that process, as well as the difficulty of balancing the use of other countries as models with the unique requirements of Bhutan.  Tobgye also touches on the involvement of Bhutan's king in the constitution-drafting process and the many judicial reforms during his tenure as chief justice, including efforts to make judicial proceedings more efficient and to increase access to justice across the population.   

Profile

At the time of this interview, Lyonpo Sonam Tobgye was chief justice of the High Court of Bhutan, a position he had held since 1991.  He was appointed chief justice of the Supreme Court in December 2009.  Tobgye oversaw the drafting of Bhutan’s first constitution and a number of judicial reforms.  From 1986 to 1991, he simultaneously held the positions of auditor general of the Royal Audit Authority and secretary of the Royal Civil Service Commission.  During that time he implemented a number of civil service reforms and drafted the rules and regulations for both the civil service and the Royal Audit Authority.  Prior to those appointments, Tobgye served as a judge on the High Court.  In 2001 he received the Medaille d’Honeur from the Court de Cassation of France for his contribution to the cause of justice in Bhutan.

Full Audio File Size
67MB
Full Audio Title
Chief Justice Lyonpo Sonam Tobgye Interview

Bola Tinubu

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D
Focus Area(s)
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13
Country of Reform
Interviewers
Graeme Blair
Name
Bola Tinubu
Interviewee's Position
Former Governor
Interviewee's Organization
State of Lagos, Nigeria
Language
English
Nationality of Interviewee
Nigerian
Town/City
Lagos
Country
Date of Interview
Reform Profile
Yes
Abstract
Bola Tinubu, former governor of the state of Lagos in Nigeria, reflects on his administration’s successes in reforming the civil service, reducing corruption, and improving state infrastructure.  He details the process he went through to reform the state government, from the waste management system to financial mismanagement within the public sector.  Tinubu lays out the steps he took to improve incentives for civil servants, including salary increases, improving quality and hygiene of working environments, and teaching investment principles and how to work toward home ownership.  His payroll-system reforms removed thousands of ghost workers from the system.  Tinubu explains how he applied principles he learned in the corporate world to the public sector reform effort.  Tinubu also details the steps he took in removing endemic corruption in the public sector, which included eliminating cash payments to the government.  He discusses how he brought back expatriates to improve the hospitals and transportation system.  He also touches on the difficulties in working with a federal government that sometimes undermined reform efforts.
 
Profile
Bola Tinubu served as governor of the state of Lagos from 1999 to 2007, during which he initiated reforms that improved the efficiency of the civil service and improved infrastructure.  He served from 1992 to 1993 as a senator until the end of the Nigerian Third Republic.  Prior to entering politics he worked in the private sector for companies including Arthur Andersen and Deloitte, Haskins, & Sells.  He was also an executive of Mobil Oil Nigeria.  After Tinubu left politics, he became active in negotiations to unite Nigeria’s opposition parties and in pushing for electoral reforms.   He earned a bachelor’s degree from Chicago State University in business administration in 1979.  He holds the tribal aristocratic title of asiwaju, given to him by the Oba of Lagos, who holds a ceremonial position as traditional leader of the state of Lagos.
Full Audio File Size
71 MB
Full Audio Title
Bola Tinubu - Full Interview