Course Title: Doctor of Philosophy in Government

Thesis Title: Effective Public Expenditure Management (PEM) as a tool to support economic growth and reduce the poverty: The implementation of Performance Based Budgeting in Indonesia Budget System

Supervisors: Prof John Halligan and Dr Chris Sadleir

Abstract

The efforts to achieve high economic growth and reduce the number of poor people have become an important subject of concern for both policy makers and financial institutions in Indonesia. The government commitment to reduce poverty, especially after the economic crisis in 1998, can be observed from many government policies and programs on the poor. Together with the government’s limited budget (fiscal constraints) to achieve those targets, the Government of Indonesia’s Ministry of Finance sought to focus on the management of public expenditure. Performance Based Budgeting which has been introduced into Indonesia Budget System several years ago is believed to play an important role to achieve the development targets which are to enhance economic growth and reduce the poverty.

The introduction of PBB is a part of economic reform in improving the efficiency in government financial sector in Indonesia.