1. HOW CAN COUNTRIES BETTER SUPPORT PUBLIC SECTOR INNOVATION?
Presented by:
Minister’s Expert Staff for Institutional Affairs
Ministry of National Development Planning/
National Development Planning Agency
Asian Public Governance Forum (APGF)
Jakarta, June 12th 2014

2. PRESENTATION OUTLINE CHALLENGES IN PUBLIC SECTOR’S SERVICES
WHAT IS THE INNOVATION?
THE EVOLUTION OF PUBLIC SECTOR INNOVATION’S APPROACHES
BARRIERS TO INNOVATION
WHAT GOVERNMENT OF INDONESIA DOES TO FOSTER INNOVATION IN PUBLIC SECTOR
FURTHER COOPERATION TO FOSTER INNOVATION

3. A. CHALLENGES IN PUBLIC SECTOR’S SERVICES
How to deliver improved services
in better ways
with tighter budgets
in a risk averse culture
to citizens with increasingly higher expectations.
PUBLIC SECTOR

4. B. WHAT IS THE INNOVATION?
Innovation in public sector is about creating the right environment for ideas and actions, and adopting new ways of thinking and behaviors.
It can mean generating and implementing new ideas; changing or creating more effective processes or ways of doing things; or adapting to changes.
It can be incremental, substantial or radical; and Innovation is all of these things, and it starts with creating the right conditions.

5. C. THE EVOLUTION OF PUBLIC SECTOR INNOVATION’S APPROACHES
20th Century
21st Century
Ad hoc
Random
Silos
Bureaucratic
Managing human resources
Running projects
Administering
Systematised
Conscious
Collaboration
Entrepreneurial
Building innovation capacity
Co-creating solutions
Leading

6. D. BARRIERS TO INNOVATION
Leadership
People and Workforce Practices
Culture
Communica-tion and Engagement
Resources
Technology
The low level of commitment to innovation
Technology systems of varying ages and capabilities
Low quality and capacity of staff
Top-down organizational structures
Budget constraints
Lack of communication and networking

7. E. WHAT GOVERNMENT OF INDONESIA DOES TO FOSTER INNOVATION IN PUBLIC SECTOR

8. E.1 NEED FOR INNOVATION/REFORM IN THE INDONESIAN NEXT 5-YEAR DEVELOPMENT PLAN
Long Term Development Plan Mandate for Medium Term Development Plan :
Strengthen the development in all sectors by emphasizing on achieving a competitive economy that based on eminence natural resources and quality human resources, as well as improvement on science and technology.
Long Term Challenge:
AVOIDING MIDDLE INCOME TRAP (MIT)
(will be achieved by year 2030 if the economic growth is 6% to 8%/year)
Technocratic draft of Medium Term Development Plan is important to strengthen the development foundation to avoid the MIT.
AEC, BONUS DEMOGRAPHY, ASEAN POST 2015, CLIMATE CHANGE
Politics, Laws, and Security
Economy
Social Welfare
Natural Resources and Environment
Regional
Bureaucracy Reform
Rule of Law
Corruption Eradication
Democracy
Domestic stability
Structural transformation
Resilience: Food, Energy, and Water
Infrastructure
Innovation
Quality Human Resource
Poverty
Equality
Employment
National Social Security System (SJSN)
Natural Resources and Biodiversity
Marine
Disaster Mitigation and Climate Change
Minimal Service Standards
Urbanization
Decentralization
DELIVERY MECHANISM
Funding Framework:
State budget and Non-State budget
Regulatory Framework
Institutional Framework
Comprehensive Reform
Not Business as Usual (out of the box)
Sustainability
Integrated

9. E.2 PUBLIC PRIVATE PARTNERSHIP
Giving opportunity for public in participating infastructure development through public-private partnerships
Government provides regulation, code of conduct and management of utility reform on infrastructure development in the economic development of Indonesia

10. E.3 ONE STOP SERVICE/SINGLE WINDOW AND OTHER FRAMEWORK/GUIDELINES
One Stop Services (OSS) organizes complete Licensing and Non-licensing procedure of investment in single office that has the authority from related technical institutions or ministries to issue the Licensing and Non-licensing documents on particular sectors: Implemented in almost region in Indonesia
Established Framework of Local Government Innovation System to help local governments develop roadmap for their innovation system (Regulation of the Minister for Research and Technology and the Minister of Home Affairs No.03 Year 2012 and No. 36 Year 2012 on Strengthening Regional Innovation Systems).
National Policy and Strategy on the Development of e-Government (Presidential Instruction No.03 Year 2003).
Guidelines to improve the quality of public services by involving citizen participation (Minister for Administrative and Bureaucracy Reform Regulation No.13 Year 2009)

11. E.4 INTEGRATED REFORM ON CIVIL SERVICE
No.
Changes
Old System
New Reform 1.
Career
Echelon
Job Grading 2.
Mind set
Civil service as a Job
Civil service as a Profession 3.
Contractual Employee Status
Outsource
Professional-hired 4.
Career system
Closed career system
Open and integrated career system 5.
Salary system
Based on class-rank
Performance-based 6.
Recruitment
Separated in each agencies, the process and passing grade is not standardized
Integrated, competitive, open, transparent and accountable 7.
Political Intervention
High  Abuse of power of Head of Local Government in selecting officials
Low  open selection of high-rank officials, and appointed by executive secretary 8.
Training
Theoretical Approach
Experiential Learning Approach

12. E.5 THE USE OF ICT FOR PUBLIC OPENESS
Computer-Assisted Test System (CAT) in civil service employee recruitment process;
ICT-based government procurement system (e-procurement);
Information Service System and the Electronic Licensing on Investment (SPIPISE);
G2G: Government to Government
G2E: Government to Employee
G2B: Government to Business
G2C: Government to Citizens

13. F. FURTHER COOPERATION TO FOSTER INNOVATION

14. INTERNATIONAL COOPERATION SCHEMES TO FOSTER INNOVATION1.
Common development cooperation: transferring money, technology and solutions from developed countries, mainly in the North, to developing countries, mainly in the South.
This cooperation scheme can still be continued. 2.
Today, development solutions come from anywhere -- North, South, East and West -- and increasingly from other developing countries.
They come from countries and regions that have confronted the same issues and solved them. Developing countries can cooperate to share their solutions.
This kind of cooperation needs to be fostered. 3.
In the future, a forum like today, in the form of triangular cooperation involving developing and developed countries in the same stage, will be even more effective to foster innovation and to find solutions.
Developed Country
Developing Country
Developed Country
Developing Country
Developing Country

15. Thank you Terima kasih