The importance of local government performance measurement system in achieve decentrlization goals : the case of Indonesia

Abstract

Decentralization in this paper refers to "... the process by which the central government transfers powers, functions and resources to departments and municipalities. Its goal is to increase the autonomy of the sub national levels of government and encourage more direct citizen participation in local public affairs" as defined by Ceballos Medina and Marcela (2002). It is a common practice across the world fo different reasons. In Indonesian context, the implementation of decentralization has been mandated by law No.22/1999 regarding local governance that was revised into law No.32/2004, and law No.25/1999 regarding Ballance of Central and Local Finance that was also revised into law No.33/2004. Revisionsa on both laws are currently in progress. According to law No.32/2004 there are three goals of decentralization, namely to increase local welfare, public services and local competitiveness. Since the early stage of its implementation, however, decentralization has encountered with mounted problems, ranging from the problem of interpretation to over democratization in local elections thot unable to yield with reputable local leadera as well as unbareable number of local governments resulting from exessive regional proliferation. It is argue that the implementation of Local Government Performance System (LGPMS), as it is implemented in many countries across the world, can enhance the possibility of accomplishing the goals of decentralization which are set out by law. In addition this paper provides recommendations on how LGPMS in Indonesia should be way-forwarded based on carefull and critical review on EKPOD as one of three mandated Monitoring and Evaluation System by Governmental Regulation No.6/2008.