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WORKING PAPER 26
understanding
Policy making in
Indonesia:
In Search of a Policy Cycle
POLICY
MAKER
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WORKING PAPER 26
understanding
Policy making in
Indonesia:
In Search of a Policy Cycle
Authors:
Emma Blomkamp, M. Nur Sholikin, Fajri Nursyamsi, Jenny M. Lewis and
Tessa Toumbourou
January 2018
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Study by The Policy Lab (The University of Melbourne) and the Indonesian
Center for Law and Policy Studies (PSHK), for Knowledge Sector Initiative.
This research was supported by the Knowledge Sector Initiative, Indonesia, a joint
project of the Governments of Indonesia and Australia. It does not reflect the views
of the project or of the Governments of Indonesia or Australia.
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Key Messages
• Evidence from this study suggests that the steps of the policy cycle - from
agenda setting to policy evaluation – do not align with the actual practice of
policymaking in Indonesia. Some stages in the policy cycle, such as
consultation and evaluation by the state, were not prominent in practice.
Meanwhile, activities such as policy analysis, decision making and
coordination were not conducted sequentially.
• Greater understanding of the policy process in Indonesia could help KSI and
the broader knowledge sector in Indonesia to identify windows of opportunity
for knowledge mobilization.
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Table of Contents
Executive Summary
small claims procedure, Law on Persons with particular communities or stakeholders. Policy
Disabilities, research procurement regulation, and coordination did not necessarily wait until a policy
Village Law. The paper describes how policy document had been prepared. Rather than there
activities aligned, and did not align, with the policy being a single point of policy decision making, our
cycle as an eight step process from agenda examples demonstrate many points of decision,
setting to policy evaluation. which represent different 'gates' through which a
The strongest pattern in the examples is an law must pass before becoming an enacted policy.
agenda-setting phase at the start of the Even after a law has been approved by Parliament
policymaking process. Civil society organizations and the President, it may not be implemented
and the media appear to play a particularly completely. One aspect of a policy may be
important role in creating public awareness of implemented, for instance, while the broader
issues. While the executive is often assumed to approach stalls. Finally, our examples show very
play a key role in policy analysis and formulation, little policy evaluation and monitoring, except that
in these examples they were more likely to be done by non-governmental organisations.
performed by the legislative branch or non-
governmental actors. There was little evidence The general process of policymaking in
that the government would first analyze an issue Indonesia cannot be accurately represented as a
before a policy decision would be made. cycle underpinned by rational problem solving.
In addition, policy instruments tend not to be Further investigation into the practice of
designed based on the most rational means to policymaking in Indonesia should help to create a
achieve a high level strategy. Rather, the more nuanced picture of how policies are really
instruments seemed to be selected before any made. Gaining a better understanding of
policy analysis took place. Further, consultation Indonesian policy networks could further uncover
about policy was often not between citizens and who is involved in the process, what evidence
the state, but rather through internal government they use, and how they are able to influence
actors consulting with each other, or civil society debates and negotiations on particular issues.
organizations leading public discussions with
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Introduction 1
The aim of the study is to provide a more of the study, noting how policy can be
informed understanding of how policymaking conceptualized.
works in practice in Indonesia, and to explore the • Section 3 discusses the concept of the
relevance of the 'policy cycle' model in this context. policy cycle, drawing on a review of
This paper presents the findings of a small study, academic literature.
drawing on relevant research and analysis already • Section 4 describes key features of the
completed for KSI on policy-related processes in context of policymaking in Indonesia,
Indonesia, as well as secondary research and paying particular attention to the structures
consultation with Indonesian government and and traditions of government.
policy experts and practitioners. It explores the • Section 5 presents several examples of the
uses, interpretations, limitations and applicability processes associated with developing (and,
of the concept of the policy cycle in Indonesia. In in some cases, implementing) a range of
particular, it considers existing knowledge of the recent policies in Indonesia.
development planning and budgeting processes, • Section 6 discusses common features of
three branches of government, and significant the policy processes depicted and relates
policymaking activities at both the national and them to the key concepts of the policy cycle
sub-national levels of government. model.
The paper is organized as follows: • Section 7 summarises the key findings
• Section 2 presents the methodology of the study, noting implications and
recommendations for KSI.
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Methodology 2
This study takes a practice-oriented policy practices that shape policymaking in Indonesia.
sciences approach. It acknowledges that the Consultative meetings were held in Australia with
policy process involves 'many hands on the wheel, experts and practitioners in Indonesian policy and
not all of them “government”,' and that the government. Policy examples were developed
governmental hands are 'not necessarily steering based on a review of relevant documents and
in the same direction' (Colebatch 2005, 15). It practice insights from the experience of PSHK in
recognizes 'the limits to pure technical rational conducting research and advocacy related to
thought' and aims to develop practically useful policy. Four examples in this study were informed
knowledge (Durose and Richardson 2016, 12; by direct experience of PSHK's involvement in
Simon 1996). policy formulation: the management of traffic
Recent years have seen a small but growing cases in court; small claims procedure; law on
body of studies emerge on Indonesian government persons with disabilities; and research procurement
and policy. Yet the actual process of policymaking regulations. Two examples were developed
has been neglected by academic onlookers through documentary sources only: the village law
(Sherlock 2012, 555) – a problem that plagues and civil service reform.
approaches to evidence-informed policy The paper presents these examples as
internationally (Huckel Schneider and Blyth 2017). vignettes, which are stories about individuals,
This study builds on recent analyzes of planning situations and structures that draw on various
and policymaking in Indonesia, many of which sources and can be used to refer to important
take a political economy approach that highlights points about perceptions and behaviors (Hughes
the complex institutional arrangements and power 1998, 381; Durose and Richardson 2016). The
relationships shaping policy. This paper examples enable us to pinpoint specific activities
supplements existing knowledge with greater that actually happened in the policymaking
attention to the actual practice of policymaking, process, rather than a more general discussion
particularly by examining the development and that may be constrained by formal frames of
implementation of specific instances of different policymaking, such as the 'policy cycle' model or
types of policy. Indonesian laws that stipulate how policy should
This paper incorporates key findings from be made.
several other studies commissioned by KSI, along This combination of academic and practice
with a targeted literature review and expert based literature, expert consultation and policy
consultation, in order to explore the concept of vignettes enables our analysis to go beyond the
the policy cycle and the structures, traditions and 'policy cycle' and consider other ways of
understanding the policy process in Indonesia.
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The concept 3
of the policy cycle
Figure 1 The policy cycle stages interactions are held with a range of actors,
model (based on Althaus et al. 2013)
including the wider community. 5. coordination
– once prepared, a policy is coordinated across
government to secure funding and ensure
coordination consistency with other existing policies. 6.
consultation decision – one or more of the options
decision
The stages model of the policy cycle remains Scholars have criticized the stages model for its
commonly used as a prescriptive tool, outlining the various limitations. One major criticism is that the
steps that should be taken by policymakers to stages model is underpinned by an assumption that
develop robust, evidence-based policy outcomes decision making is rational and sequential.
with broad application across all political systems. Policy issues are supposedly identified first,
Some scholars, educators and practitioners find then an evidence-based solution is foreign exchange and
the model to be a useful heuristic device for implemented (Hill 2013). In reality, bureaucracies
describing a complicated, often messy process. assigned to develop policy advice are inherently
Lasswell's (1956) early stages model of the policy complex and political, and may make decisions that
cycle has since been amended and revised by are more about organizational cultures and political
various scholars. A more recent model of the struggles rather than optimal solutions (John 2012).
policy cycle was developed by Bridgman and Davis In addition, the techniques used to inform rational
(1998, 2004), later revised by Althaus et al. (2013), decision making, such as cost benefit analysis, face
as involving the following eight stages: 1. problem difficulties in calculating social costs and benefits,
identification and agenda setting – a problem and policy makers always need to make value
is identified that captures the attention of the judgments about the desirability of policy projects
government and the larger community as (John 2012).
requiring government action. 2. policy analysis Another key criticism of the rationalist policy
– an issue is researched and analyzed to cycle model is that it ignores the complex political
inform a policy decision, often performed by the environment in which policymaking takes place
executive branch of government. (Howlett, Ramesh, and Perl 2009). This criticism,
closely related to that of assumed rationality,
highlights the lack of accuracy in defining the
3. policy instrument development – policy policymaking process as made up of separate,
instruments are designed or selected based distinct stages. Instead, policymaking is complex
on the most rational means to achieve a and messy, and policy processes rarely have
desired outcomes. marked beginnings and endings (Hill 2013; Howlett,
4. consultation – to test the acceptability of Ramesh, and Perl 2009; Knill and Tosun 2012;
a policy, discussions and proactive Sabatier and Jenkins-Smith 1993). In
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reality, distinct stages in the policy cycle may not full understanding of the policy issues it should
be evident. They may overlap, be inseparable, in address (Howlett, Ramesh, and Perl 2009;
some cases may be missing entirely (Hallsworth, Zahariadis 2014).
Parker, and Rutter 2011), or they might appear in The multiple streams framework, first
a different order – for example, solutions might conceptualized by Kingdon (2003), extended the
appear before problems (Cohen, March, and garbage can model to explain how problems are
Olsen 1972) . identified and brought to the attention of
As outlined, there is a robust body of policy policymakers at the agenda setting stage. This
study scholarship that points to the drawbacks of model views the policy process as the result of
the stages model of the policy cycle, including three sets of processes, or streams – the problem
that it is too simplistic and thus inaccurate and perception, the solutions, and public sentiments
that it does not adequately capture the various (change in government and the like) – which
factors that limit rational decision making . Various converge at certain times to create opportunities
alternative theories or models of the cycle model for agenda change (Tiernan and Burke 2002;
have emerged, seeking to better reflect the Zahariadis 2014).
complex reality of the policymaking process. The advocacy coalition framework (ACF)
Some common alternative models that have model assumes that policy actors seek to make
been used to explain the policymaking process rational decisions, though often the rationality with
include the incrementalist model, the garbage can which decisions are made is hindered by various
model, the multiple-streams model and the complex factors. This model argues that the policy
advocacy coalition framework – each outlined process is a long-term negotiation between
briefly below. coalitions of interests, policy brokers and political
The incrementalist model revised the institutions that share a set of basic beliefs
assumptions of the rational model, arguing that (Sabatier and Jenkins-Smith 1993; Sabatier and
decision making was not a fully rational process. Weible 2014). These coalitions compete and
Instead, only a limited amount of options are interact to influence policy change.
considered in the policy decision making process, In summary, there is a substantial literature
and decision makers trade off policy aims to that offers alternatives to the policy cycle as a
achieve a politically feasible outcome, resulting in model for the policy process. While the policy
incremental change (Lindblom 1959). The cycle may be regarded as a useful heuristic, and
incrementalist model remains underpinned by the sometimes seen as the way that policy should be
assumption that policy solutions are developed in made, it is generally seen as a set of stages that
response to identified problems, but it introduces are rarely followed in practice. These shortcomings
the notion of bounded rationality. are likely to be exacerbated when it is applied to
The garbage can model was developed in developing country contexts which face a range
response to observations that, in reality, public of different constraints.
policy decision making rarely follows an orderly, Much of the scholarship on the policy cycle
sequential process as both the rationalist and and its alternative models has focused on
incrementalist models assume. In this model, Organization for Economic Cooperation and
conceived by Cohen et al. (1972), the process in Development (OECD) country contexts (Young
which policy aims are identified is unclear, and 2005). The stages model conceptualized by
there is no distinct relationship between policy Bridgman and Davis (Bridgman and Davis 1998),
problems, analysis and solutions. Instead policy and later revised with Althaus et al. (2013) was
ideas, problems and possible solutions are developed for the Australian political context.
dumped together, so that policies might be Extensive work has also been dedicated to
developed chaotically, influenced by various studying policymaking within the US political
competing interests and agendas, often without system (Kingdon 2003; Lasswell 1956; Parsons
1995), and to a lesser extent the UK (Hogwood in her study of local policymaking, evaluation is
and Gunn 1984). There remains a gap in the often not carried out, and public consultation is
literature dedicated to understanding the policy often incomplete, with certain interest groups
process in developing country contexts. Various favorites.
factors, including complex or troubled political Many of the limitations and critiques of the
contexts, and external interferences, may limit the stages model are evident, and indeed exacerbated,
application of policy cycle models in these contexts in Indonesia, where the political context is rapidly
(Young 2005). changing and various actors compete to influence
The relatively limited academic literature on the policy process. Despite not reflecting the
the Indonesian policymaking process and the Indonesian policymaking process, the stages
views of experts indicates that, due to factors model continues to be used as a tool to discuss
such as the complexity of the Indonesian political the policy process, and to train civil servants (see
context and the involvement of informal actors, State Administration Agency
the sequential model of the policy cycle may not 2015). Its continued use indicates the value of a
reflect the Indonesian context very accurately. heuristic model to envision policymaking, as
Datta et al. (2011, 69) observe that, in Indonesia, viewing the policy process as a series of stages
'policymaking at the highest level of government can be helpful for identifying 'entry points' into the
is often complex, multi-factoral and non-linear'. process, and for understanding the role of different
Experts consulted in this present study emphasized types of actors (eg bureaucracy , ministers and
the political nature of the policymaking process in cabinet, and the wider public) and different types
Indonesia, where various competing interests and of knowledge.
actors play a role in influencing the policy process. The remainder of the paper explores the
The Indonesian political system continues to context of policymaking in Indonesia in further
develop and change rapidly in the post- depth, and considers alternative ways of describing
decentralization era, thus lacking the stability that and visualizing the policy process to move toward
rational models assume to be inherent in a more accurate description. The following section
bureaucracies charged with formulating policy outlines key features of the Indonesian context,
analysis. Often there may be gaps between policy before several examples of policymaking are
issues and the policies used to respond to them. described in detail. We will then return to the
Finally, the key stages may be missing entirely. question of which, if any, model of the policy cycle
As Zhang (2015) observes best explains the policy process
in Indonesia.
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Policymaking in Indonesia: 4
structures and traditions
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President, the executive produces implementing district and municipal governments in Indonesia.
regulations. The regulations need to take into Since decentralization occurred through a “big
account other existing regulations, and sufficient bang” in 1999, these local governments have
budget and human resources also need to be played an increasing important role in policymaking
found. Consequently, 'the time lag between in Indonesia – although change
enacting laws and the issuance of implementing has been incremental and inconsistent. The
regulations can take years', especially if the laws on local governance issued in 1999 devolved
government considers the policy 'detrimental to its all governmental functions to local governments
interests' (Pramusinto 2016, 131). While a bill except for security and defense, foreign relations,
introduced by the executive requires parliamentary fiscal and monetary policy, religious affairs and
approval to be enacted, the legislature's approval the legal system. Further legislation and
is not required for implementation guidelines, in implementing regulations were passed in 2001,
the form of regulations, decrees and instructions. 2004, 2007 and 2014 to enact the devolution of
In practice, legislation is not always matched with responsibility and resources to local governments.
an implementing regulation, and implementing 'Spatial equity' is a priority of the current
regulations do not always align with legislation government, and a major tool for its redistribution
(expert consultation). policy is 'fiscal allocation to local governments—
The judiciary also plays a role in the policy including village funds introduced by Law 6/2014
process, notably by blocking the implementation on Villages' (Sato and Damayanti 2015, 182). With
of laws deemed unconstitutional, and in issuing the implementation of the new Village Fund
regulations that determine how laws are applied Program, 'the total government budget transferred
by the courts. The Constitutional Court can review to subnational governments has been reached
or strike out laws, but not implementing regulations. almost 37 percent' (Datta et al. 2017, 34).
Its establishment in 2003 and its independence
from the government have created a 'legal pathway Provinces play a coordinating role, and can
through which citizens and civil society activists elect governors, but most power is now
have been able to challenge government policies located at the district level. Like their national
they believe infringe human rights' (Rosser 2015, level counterparts, district governments have a
84). There has been significant judicial reform legislature, executive and judiciary. Each district
since the fall of the authoritarian regime, beginning has a local house of representatives (DPRD) and
with the establishment of the Supreme Court as an elected head of government (governor, regent
independent of the executive and legislative or major), who presents drafts of the development
branches of government in 1999. Civil society budget and other plans to the DPRD for approval.
organizations have played a significant role in the The local parliaments have three functions:
Supreme Court reforms, often with the support of legislation, budgeting and monitoring. Each sub
international donors (Yon and Hearn 2016). national government has their own long, complex
Specific cases of judicial reform as policy are process of developing plans and budgets for each
discussed in the next section of the paper, year, and administering these. Development
alongside examples of policy processes involving planning and budgeting are generally considered
the other two branches of government – the not well coordinated at the sub-national level
executive and the legislature, often working closely (expert consultation). Greater autonomy has
together. indeed in the emergence and diffusion of some
local government innovations, such as health
insurance schemes (Datta et al.
Sub-national government in Indonesia 2017; Zhang and McRae 2015).
As well as governmental institutions at the However, as Datta and co-authors (2017, 7)
national level, there are over 500 provincial, note, 'after more than 30 years of centralized
rule, there was very little capacity among local seen in the rigid hierarchy of laws and convoluted
governments' to manage large funds, identify planning system still followed today (Datta et al.
priorities and challenges, and develop appropriate 2017, 50). Despite these rigid, hierarchical, formal
local plans and strategies. Despite relevant processes, there is a lot of informal activity in
implementing regulations being issued, there are policymaking. As Datta et al (2017, 8) summarise,
still areas of overlapping authority between the in their review of Indonesia's recent political
central government and provincial, district and city history, 'although the formal centralized system
governments. Moreover, Pramusinto (2016, 159) broke down, many of the existing political
adds, 'decentralization is also hampered by the relationships and practices remained intact,
lack of trained officials at the provincial and district resulting in a more competitive, complex and often
or city government levels.' Zhang (2015) similarly confusing sets of political relationships.'
finds that local governments rarely use research This section of the paper considers such
and data in policymaking, and when they do, it themes and contemporary activities in Indonesian
tends to mainly be statistical data for agenda government as 'traditions', inspired by Bevir and
setting, with research seldom commissioned to Rhodes' (2003) discussion of British political
inform policy formulation. traditions. In addition to the traditions of centralized
Notably, decisions about whether programs planning and budgeting, and a weak bureaucracy,
and policies should be adopted or continued are Indonesian political culture such as consensus
not based on prior evaluations (Zhang 2015, iv). decision-making continues to shape policymaking
There is a lot of 'copy-pasting' of local strategies practice today.
and plans, according to Sutmuller and Setiono
(2011, 42) who also note, 'There is no habit of Key policymaking practices: planning and
involving stakeholders (practitioners, experts, budgeting
universities, business community, civil society ) Along with legislation and regulation,
[in local policymaking] and thus not accessing and development plans and budgets are major policy
benefitting from their knowledge in the policy instruments in Indonesia. The compilation of
formulation and policy decision-making process.' these voluminous documents 'is a resource
There are thus likely to be significant differences intensive process' (Datta et al. 2017, 34) that
in policymaking at the national and subnational illustrates some of the cumbersome formal
levels. It was beyond the scope of this study to requirements and tensions between the different
investigate these further, so policymaking at the levels and branches of government in the policy
subnational level remains an important focus area process.
for future studies of policy processes in Under the authoritarian 'New Order' regime of
Indonesia. President Suharto (1967-98), it may have been
possible to identify a linear, rationalistic policy
Traditions influencing policymaking in cycle. During that period, development planning
Indonesia was 'undisputedly dominated' by 'the
While the country has experienced rapid economic ideas of the technocrats – a solid
democratization and decentralization in recent group of mainstream economic professionals and
years, the remnants of Dutch colonial rule and bureaucrats', known as the 'Berkeley
Suharto's authoritarian regime linger in government mafia' (Boediono 2013, 8). Nonetheless, as
institutions and policymaking practice in Indonesia Sherlock and Djani (2015, 7) point out, the goal
today. A significant legacy of the Napoleonic for these US-trained economists 'was to legitimize
system left behind by the Dutch, and built on by the New Order government policies, while
the authoritarian approach of the New Order era, presenting the policies as being based on scientific
is 'an extensive bureaucratic machinery and a and objective evidence', at a time when political
highly-codified legal system' – science and sociological research in
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Indonesia was highly constrained. Since then, as through scientific methods; (iii) participatory:
experienced Indonesian policymaker Boediono incorporating the views of interest groups or
(2013, 10) argues, 'Policy making has become stakeholders, including those from the
more transparent, more publicly accountable, but executive, judiciary, legislature, society,
also more challenging, more noisy and more time private sector and non-governmental
consuming.' A legacy of the centralized authority organizations (NGOs); (iv) top-down: centered
of Suharto's authoritarian regime, development on plans prepared by the president, ministries
planning in Indonesia is seen as having fuelled and agencies; and (v) bottom-up: founded on
Indonesia's impressive economic growth since plans from the village, district and regional
independence (Blöndal, Hawkesworth, and Choi levels (Datta et al. 2011, 6).
2009, 12; Datta et al. 2017, 6). However, recent
studies have found that policymakers treat planning Long-term plans, developed for a 20-year
and budgeting as administrative and compliance period, are intended to guide all aspects of
procedures, rather than as a process to discuss Indonesia's economy and society. These then
substantive policy issues and consider whether inform the medium-term plan, which coincides with
proposed solutions will actually improve outcomes the President's five-year team and 'functions to
(Zhang 2015, iii; Datta et al. 2017, 43 ). explicitly highlight the political priorities of the
government and is in essence the policy agenda
The planning and budgeting process is regulated for the President's term of office' (Blöndal,
by a fairly complex legal framework (see Datta et Hawkesworth, and Choi 2009, 12). One of the
al. 2017, 34-36), which includes the following main objectives of the National Medium Term
guidelines: Development Plan (RPJMN) 2015–2019, for
Formal rules governing the drafting of instance, includes reducing inequality through
development plans suggest development increased productivity, development and poverty
planning should be (i) political: drawing on reduction measures. Mid-term development plans
the agenda proposed by the president (or are similarly generated at the local level every five
other democratically elected leaders); (ii) years: 'Immediately after the election of a new
technocratic: based on data generated Head of District, the [district] government
Figure 2 Integrated System of Planning and Budgeting (source: Datta et al. 2017, 35)
KL/Sectoral KL/Sectoral
Strategic Plans Work Plans RKA-KL DIPA-KL
(5 years) (1 year)
SKPD/Sectoral SKPD/Sectoral
Strategic Plans Work Plan RKA-SKPD DPA-SKPD
(5 years) (1 year)
commences the process of converting the government budgets are allocated, supposedly
successful candidate's campaign manifesto … informed by the mid-term development plan. In
into concrete policies in the LG's Mid-Term practice, the process of budgeting is somewhat
Development Plan (RPJMD).' (Zhang 2015, vi). disconnected from the planning process, and
Development planning is supposed to be both involves political contestation as well as technical
bottom-up, in the form of consultative meetings expertise. As Pramusinto (2016, 156) argues,
(musrenbang – see below), and top down. 'Budget allocation in Parliament calls for bargaining
National development plans are drafted by the and intensive negotiation.' The Budget Committee
National Development Planning Board (Bappenas), is a permanent part of the legislature, comprised
and sub-national plans are drafted by Regional of members taken proportionally from all factions
Development Planning Agencies (Bappeda) at in parliament. Indonesia's annual budget
provincial and district levels, in line with the formulation cycle can be divided into five stages:
overarching national development plan.
Once a national-level plan is drafted, based on an 1. establishing the level of resources available
evaluation of the most recent plan, and presented for the next budget (led by the Ministry
to a stakeholder forum (musrenbang), the head of of Finance and a committee of technical
Bappenas finalizes the plan and provides it to the experts, February-June)
President for approval, who then presents it to 2. establishing priorities for new programs (led
parliament. Subsequent annual development by BAPPENAS and culminating in a
plans are developed by government ministries. government-wide work plan issued by the
Despite the requirement for 'bottom up' President, March-May)
planning, several researchers and commentators 3. pre-budget discussions with the Parliament
have observed gaps or weaknesses in the (focused on the Budget Committee and
musrenbang process. Although these forums sectoral commissions, mid-May – mid June)
involve different levels of government and various
civil society organizations – at least in urban areas 4. finalization of the budget proposal (led by
- and they are important inputs into regional the Ministry of Finance, mid-June to mid
governments' budgeting processes, 'Musrenbang August) 5. preparing detailed budget
are principally an occasion for BAPPENAS to implementation guidance (discussed and
outline the draft government-wide work plan and reviewed by Parliament's sectoral
to solicit any changes at the margins' (Blöndal, commissions, August October).
Hawkesworth, and Choi 2009, 18). As Nurmandi
(2012, 69) notes, 'the Musrenbang agenda is (Blöndal, Hawkesworth, and Choi 2009)
more of a ceremonial forum' and Bappenas is not It is a rigid and cumbersome process, yet is of
required to disseminate the draft plan to citizens. crucial importance for policy implementation, since
Recent research on decentralized policymaking both the executive and public service depend on
for KSI found the musrenbang: did not make parliament's decisions around budgeting
useful information available to villages, sub (Pramusinto 2016, 156). Moreover, since the
districts or technical agencies; rarely involved structure and timing of the process are so
marginalized groups such as the poor or women; predictable, and information needs are relatively
lacked clear criteria for decision-making; and were consistent, it is seen to offer regular opportunities
often bypassed by powerful actors. Notably, for evidence-informed policymaking (Zhang 2015,
'Musrenbang were relatively short, announced at vi). However, since plans and budgets are typically
short notice, lacked competent facilitation and seen by civil servants 'as outputs to produce
involved much speech making' (Datta et al. 2017, rather than opportunities to discuss policy
37). problems and strategies' (Datta et al. 2017, iii),
Each year annual, provincial and district level there is currently not much
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rigorous policy debate or analysis in planning and by 'a bureaucratic culture of compliance with the
budgeting processes. letter of the law, poor staff training, pressure on
civil servants to conform to existing practice within
Weaknesses in policy capacity their particular ministry, and to obey their
In the early 2000s, the Indonesian bureaucracy superiors.' (Sherlock and Djani 2015, 5). Despite
was considered among the lowest quality in the efforts by initiatives such as KSI and The Australia
world (Datta et al. 2017, 6). Due to weaknesses Indonesia Partnership for Decentralization to
in training, promotion and compensation, support evidence-informed policymaking in
cumbersome reporting requirements, and a lack Indonesia, there continue to be significant gaps
of significant bureaucratic reforms, the public in the use of evidence and research in the
service continues to be 'widely seen as corrupt, policy processes. Writing about the first 100 days
bloated, inefficient and either incapable or unwilling of the government of President Joko Widodo
[to implement] policies set by the democratic (known as Jokowi), Damuri and Day (2015, 3–5)
government' (Datta et al. 2017, 19). note, for instance, 'While some initiatives have
This is a particular challenge for policymaking in been implemented with success, some seem to
Indonesia, as civil servants play an important role have been launched without enough preparation,
in the drafting and implementation of laws, consultation, or empirical evidence, and many
regulations and guidelines, and by participating in have been poorly communicated.' On the other
'regular planning, budgeting and accounting hand, there have also been some promising
processes' (Datta et al. 2017, 19 ). A 2009 World developments in Jokowi's approach to reforming
Bank report (referred to by Nurmandi 2012, 35– government administration, notably through
36) revealed, in particular, weaknesses in changes to the civil service law and the
'coordinating the formulation and implementation reorganization of parliamentary staff (Sherlock
of policies and programs across different branches, and Djani 2015, 1-2).
at both the central and local level'. Corruption continues to plague Indonesian
Law-making in Indonesia takes a long time politics and policy. Although anti-corruption
and the government does not usually achieve its activism is having some impact, Indonesia has
ambitious policy agenda. There were 284 laws on consistently poor rankings on Transparency
the national legislation program (Prolegnas) from International's Corruption Perceptions Index.
2005 to 2009, and 247 laws on the 2010-2014 Between 2002 and 2013, at least 360 public
programme. However, as Pramusinto (2016, 122) officials, including Members of Parliament, police
notes, Parliament only has capacity to revise thirty officers, bureaucrats, judges and mayors, along
laws a year despite 'its previous target of seventy with bankers and businesspeople were jailed for
laws a year.' There is also a very high turnover of corruption in Indonesia (Boediono 2013, 20). The
parliamentarians, who are often not re-elected, illicit fundraising of the political elite, writes Marcus
which restricts 'the emergence of a cadre of Mietzner (2015), has in an oligarchical system of
experienced professional parliamentarians who party politics and the misappropriation of state
have both policy depth and a good understanding budgets. 'Systemic corruption in the bureaucracy
of how to use parliamentary mechanisms and deters people with talents and integrity from
procedures to achieve policy outcomes.' (Sherlock entering and thus further reduces the ability of the
2012, 563). bureaucracy to perform effectively,' argues
Boediono (2013, 22).
Previous research for KSI found significant This problem is compounded by 'a low salary
gaps in the capability of civil servants, who often remuneration system', which results in civil
lacked the expertise and incentives to make well servants who 'are often compelled to undertake
informed policy (Sherlock and Djani 2015, 4). various activities to make ends meet' (Pramusinto
These problems were compounded 2016, 120). Fear of being accused of corruption
also shapes the behavior of public officials parliamentary systems. This also helps to explain
and those who come into contact with them. US why the parliamentary debate is 'notorious for ill-
Sherlock and Djani (2015, 7) write, in relation to informed and irrelevant interventions by committee
the potential for strengthening policy processes by members, long repetitive speeches and …
involving non-state actors: 'Many organisations inconsistent and contradictory policy
remain reluctant to receive funds from the stances' (Sherlock 2012, 562).
government because they want to maintain the
independence of their institution, want to avoid The role of non-governmental organizations
being drawn into complex bureaucratic processes International development organizations and
and/or corrupt payments to officials.' In relation to domestic civil society organizations play an
local government planning, Datta et influential role in some policy sectors, but have
al. observe that risk averse local civil servants limited involvement in others. Donor agencies
prefer to “play it safe” by basing their annual plan have notably influenced public policy changes
and budget on the previous year's documents. through 'the process of formulating regulatory
Local government officers worry that if they 'try out frameworks, laws and other lower-tier
new things', they could be accused of 'budget regulations' (Pramusinto 2016, 125). Recent
mismanagement, which might lead to corruption research by Datta et al (2017, 48) demonstrates
charges.' (Datta et al. 2017, 42). the influence of the World Bank on higher education
policy, while Rosser (2015, 72) has 'pointed to the
Consensus style decision making way in which parents, teachers, and their NGO
An important tradition in Indonesia, expressed allies have been able to influence education policy
in the 1945 Constitution and shaping policymaking making through lobbying, demonstrations, the
today, is 'the practice of making decisions by media, and strategic use of the court system.'
“deliberation to reach consensus”, rather than Since the fall of the New Order, a large number of
majority voting (Sherlock 2012, 561). According to civil society activists, including labor leaders,
an OECD report, 'It is most noteworthy that the women activists, and human rights advocates,
budget – as amended by the Budget Committee – have also influenced policy by entering politics
is enacted by consensus, rather than by majority (Mietzner 2013). Where there are strong economic
voting' (Blöndal, Hawkesworth, and Choi 2009, interests in certain policy issues, such as tobacco-
27). This does not mean that every member of control, groups like tobacco companies and
parliament must individually agree with each farmers have exerted influence over policy by
proposition discussed. Instead, informal negotiations mobilizing their financial resources, political
and discussions are held among the various connections, and organizational capacity; although
factions or party leaders behind closed doors. 'In they have been increasing challenged by tobacco-
effect,' as Sherlock (2012, 561) explains, 'it is only controls based in health organisations, NGOs,
the party leaders in the committee or plenary universities and international organizations (Rosser
session who deliver the votes of their party: 2015, 88).
consensus is, in reality, an agreement amongst Some of the experts we consulted suggested that
party leaders.' This means that leaders of the policy cycle model was more likely to be
committees and parties have a lot more power followed in instances where an organization with
than individual MPs, there is little transparency of 'technocratic' expertise, such as the World Bank,
decision-making, and there is less need to maintain was highly involved. However, instances of
party discipline or dialogue on policy issues than technocrats advancing a shared agenda in
in other countries' policymaking happens only occasionally (expert
consultation; Boediono 2013).
16
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Indonesian policymaking in
practice: actual examples of 5
policy processes
policy
processes from recent years in Indonesia. It includes instances of
This section of theactivities
policymaking paper provides
in different vignettes of three
sectors by all specific policymaking
branches of
government at the national level – the executive, legislature and judiciary – as
well as highlighting input from non-governmental actors. The processes we
studied each center on a specific policy instrument, as briefly outlined below.
The following section contains a discussion of the patterns observed, which
constitute hypotheses for further investigation.
A more detailed visual depiction of the steps, actors and activities involved in
developing each policy is presented on the following pages. They have been
constructed based on descriptions of the policymaking process written by
knowledge sector actors in Indonesia. The first example of the civil service law
is based on a section of a recent paper for KSI (Datta et al. 2017). The other
examples are based on the experience of PSHK, supplemented with relevant
documentary sources. A process map was developed for each by identifying the
main types of actors and activities involved, and arranging them in sequential
order (see Key below). Sometimes different law stalled after the change of government
actors were involved in different activities in 2014. None of the implementing
simultaneously, and the maps sometimes show regulations required by the law had been
multiple streams of activity. The stages of the passed at the end of 2016.
policy cycle model were used as an analytic 2. Supreme Court Regulation (12/2016) on
framework to identify different types of activities. Management of Traffic Violation Cases in
This study had a limited scope and relied on Court
research conducted by one of the organizations A well-known problem in Indonesia, since it
involved in the examples of policymaking (PSHK). has been the topic of news media coverage
This provided access to the 'black box' of and social media posts for some time, is the
policymaking - but is not an independently chosen handling of traffic violation cases. In 2016,
set of examples, and has a strong focus on judicial over three million cases - almost 96% of
reform. The individual policies were selected to criminal cases were handled by the courts -
reflect a mix of policy instruments and institutions, related to traffic violations. Supported by an
and were identified based on their relevance to international donor (Australia Indonesia
KSI, who commissioned this work, and familiarity Partnership for Justice), a civil society
to PSHK, who carried out the primary research. organization (PSHK) worked with the
The selected policies were often part of a bigger Supreme Court Research and Development
package of reform involving CSOs and international Center to review the situation and propose
donors. They do not represent the broad range of some solutions. The two organizations
policies developed in Indonesia. Sub-national formed a research team, which conducted a
policymaking, for instance, is not explored here, study of district courts to understand the
although it is an important level of government problem and identify potential responses.
and warrants investigation in any follow-up studies. As well as drafting a regulation that was
discussed and eventually approved by
The selected examples of policy instruments the Supreme Court, the research team
and associated policymaking process are: conducted advocacy through the media
1. Civil Service Law (2014) and executive offices, which, in the
As part of a broader agenda of bureaucratic handling of traffic violation cases being
reform, driven by subsequent governments entered into the President's legal reform
and international donors, a new civil service package in 2016. Working closely with
law has been introduced. An academic the police and attorneys to coordinate their
team commissioned by the Domestic action, the Supreme Court is now
Affairs Committee prepared a draft bill that implementing the new approach to online
was first presented to Parliament in 2011. management of traffic cases, which is being
Widely debated within governmental and monitored by PSHK with ongoing support
public forums, policymakers initially failed from AIPJ.
to agree on it, until one of the academic 3. Supreme Court Regulation (2/2015) on
authors who drafted the bill published an Small Claims Court
influential newspaper column which spurred Establishing a small claims procedure
action by Cabinet in 2013. A watered down or court was part of the blueprint of
version of the bill was subsequently passed judiciary reform issued by the Supreme
by Parliament and approved by the President Court in 2010, in order to reduce the
in 2014. Although the Civil Service cassation of small cases to the Supreme
Commission was accordingly set up and has Court, and improve access to justice for
been issuing its own regulations, broader the wider community. Following on that
implementation of the policy, the Supreme Court established a
18
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working group with support from AIPJ, Persons with Disabilities, which was signed
which commissioned studies to inform by the President in May 2016.
and formulate draft regulations. After 5. Revision of Presidential Regulation
discussion in several working group (54/2010) on Research Procurement
meetings, the Supreme Court approved Indonesia suffers from a low level of
the draft regulation. The working group scientific publications, and both research
and research team then began to develop funding and government procurement have
guidelines and materials to socialise the been identified as contributing issues.
new approach to small claims with the Stakeholders from government, universities
public and the 300+ courts in Indonesia. and the wider research community have
To ensure the implementation of this been pushing to revise the regulation on
procedure, and identify successes and research procurement. Preliminary policy
challenges, the research team is also analysis and discussions led by KSI with
conducting monitoring and evaluation stakeholders in 2016 identified potential
through observation and interviews with amendments to the procurement provision of
relevant stakeholders (courts and users of Presidential Regulation no. 54, year 2010.
the procedure) for the working group. The government's procurement agency LKPP
4. Law on Persons with Disabilities (8/2016) began drafting regulations in early 2017, with
When Indonesia ratified the international input from various governments and
Convention on the Rights for Persons community stakeholders.
with Disabilities (CRPD), pressure grew The bill was submitted to the executive for
to revise national legislation to treat policy coordination and discussions, but as
disability as a human rights, rather than of May 2017, it had been returned to LKPP
charity, issue. A coalition of community to be improved.
organizations promoting the rights of 6. Village Law (6/2014) and associated
people with disabilities played a key role executive regulations
in law reform, taking the initiative to draft Village development and community
the Disability Bill, with people with empowerment have long been discussed
disabilities, and succeeding in having the as part of the decentralization agenda in
bill entered into the national legislation Indonesia. The perceived need to update
agenda. The bill, which was accompanied village law gained momentum following: a
by an academic paper also produced by review of a 2004 law on local government
the disability community, was then by the Directorate General of Community
discussed in, and passed by, Parliament. Empowerment and Villages; a USAID
By the time it reached joint discussions sponsored study and consultation on village
with the government, the House is no longer governance in 2008; and discussions in
involved the community. When the House working meetings with the Ministry of Home
of Representatives' term ended in mid Affairs in the House of Representatives in
2014, the discussion of the bill was 2004-2009. Parliamentary discussion of the
incomplete, and the legislative process had draft bill started after the President sent a
to start again with the new government in 2015. letter to the House of Representatives to
This time, the draft bill and academic paper discuss the village legislation in January
were formulated by parliament, although still 2012. Two years later, following public
based on the community version. After three hearings, a comparative study and
months of discussions, the House of parliamentary debates, the Village Law was
Representatives and the Government agreed passed by the House of Representatives,
on the final draft of the Law on dramatically increasing the responsibilities
and budgets of village administrations. The in its National Medium Term Development
following year, the law became a political Plans 2015-2019. Various efforts to monitor
commodity during the 2014 parliamentary its implementation are being conducted by
and presidential election campaigns. The civil society organizations (independent
incoming government included strategies for research institutions), with support from
the implementation of the Village Law international donors (see, eg, Antlöv,
Wetterberg, and Dharmawan 2016).
= sequence of activities
* Number = order of activities
4 13a 15a
3
Parliament The Civil
KASN issues guidelines on Policy implementation
submits the Service Commission stalls, with changes in
bill for debate. (KASN) sets up to 14a the new law, responding to 15b
civil servants' requests and leadership and fewer
(Policy monitor the meetings to discuss reform.
complaints, and revising its
implementation of the None of the implementing
discussion) guidelines in response to
new civil service law (2014). regulations have been
other ministries' regulations.
approved by end 2016.
(Policy implementation/
coordination)
20
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Discussions to socialise
and coordinate responses to
the regulation among
Supreme Court, Police and
Media coverage
Supreme Court Research attorneys (2017)
of public 6
dissatisfaction with Center (Puslitbang MA) and (Policy implementation /
Australia Indonesia Partnership coordination)
the handling of
traffic violation for Justice (AIPJ) issue tender Supreme Court High
cases in court. for Research on Managing Level Meeting approves the 7a
Traffic Violation Case in Court regulation. Chief of Supreme
(2013). Court issues Supreme Court PSHK supported
Regulation on Traffic Violations by AIPJ to conduct
(Agenda setting) Procedure (2017). monitoring of the
7b regulation in Jakarta
1 (Policy decisions) District Court
22
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Government issued
Government includes
implementing regulation
The Institute of Research strategic program for
(43/2015)
and Empowerment (IRE) (Decision / implementation of
Decentralization made an academic study ) village law in the Assistance program
of village governance National Medium for Village Government
(Agenda setting)
Working meetings (2008). Term Development and Community
in the House of (Problem identification / 2015-2019 Plans Empowerment
policy analysis) (Implementation / (conducted by CSOs
Representatives with the 10
Ministry of Home Affairs coordination) with donor support)
1 in 2004-2009 identified (Implementation)
need for a village law. 2a President and ministries
Review of 2004 law on local issue technical regulations
(setting agenda) 11
government by the Directorate Public consultation related to the
General of Community on review of village implementation of the Parliament and
Empowerment and Village governance, supported village law (2014) Government agree to
identified a need for studies 2b by USAID (2008) (Formulation/ approve the village Monitoring of
related to village development (Policy consultation implementation) legislation (December implementation
laws.
Ministry of Home and analysis) 2014) by civil society
(Evaluation/ Affairs prepares the (Policy decisions) (independent
agenda setting) first draft of new research institutions,
Change of
village law (2010). government 9 supported by
(Policy formulation) international donors).
6
President Susilo Public discussions
Bambang Yudhoyono of village legislation
sent a letter to the House (supported by CSOs Law discussed
of Representatives to 3 and Australian donors, by parties and
discuss the village 2012) candidates during
legislation (2012). (policy consultation) election campaigns
(Policy decision/ (2014)
agenda setting) (Policy
Public hearings and
comparative study led 7 discussion)
by expert staff appointed
4 by Parliament, who draft 8
sections of the bill. The Village Law is
Discussion of bill in the 5 (consultation, policy passed by the House
House of Representatives analysis and formulation) of Representatives in
- conducted by the House December 2013.
Special Committee with the (policy decisions)
Ministry of Home Affairs.
(2012-13)
(policy discussion)
Discussion: is there
6 an Indonesian policy cycle?
24
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related to traffic violation cases, civil society examining detailed drafts of legislation or
actors continued advocacy work during policy regulation, rather than considering the different
development, in order to keep the issue on the levers of influence the government could use to
agenda and generate public and political support address an issue before selecting a particular
for policy changes. instrument. An exception was judicial reform –
hence the two track process that emerged in the
2. Policy analysis example of traffic violation policy. In that case,
There were inconsistent examples of policy the research team identified three possible
analysis in the processes we studied. While the solutions to the issue of traffic violation case
literature on the policy cycle suggests that policy management, and chose not to rely on the
analysis is often performed by the executive Supreme Court alone to develop the policy
branch of government, and is usually the first solution. While they were waiting for discussions
activity after agenda setting, that was not the to take place within the Supreme Court working
case here. In our examples, policy analysis was group, the research team led a media campaign
more likely to be performed by the legislative and held advocacy meetings with the ombudsman
branch or non-governmental actors, and often at and the President's office, which in the issue
the same time as policy formulation. This was became part of the President's law reform
particularly true for judicial reforms that involved package, as well as a new Supreme Court regulation.
a civil society organization funded by an There is perhaps an assumption among
international donor. Even when legal reform was Indonesian policymakers and associated
happening through the executive or legislative researchers that the logical place to make policy
branches of government, policy analysis and changes is through legislation or regulation.
formulation were sometimes done by non- It is possible this observation is limited by our
governmental actors, such as the academic team examples that mainly focus on law reform. There
who produced the draft civil service bill. Although may, however, be alternative policy instruments
there is a legal requirement to produce an that should be considered, especially when the
academic paper to inform the development of challenges of coordination and implementation
legislation, in at least some cases the academic are significant – as discussed below.
paper appeared to be produced simultaneously or after a bill was
first drafted. There was little evidence that the 4. Consultation
government would first research an issue and The acceptability of a policy was generally not
perform its own analysis before a policy decision tested through a formal consultation held by the
would be made. government with stakeholders or community
members. Rather, discussions and proactive
3. Policy instrument development interactions were held with a range of actors
Another significant difference between the throughout the policymaking process. Sometimes
theoretical model of the policy cycle and actual public hearings and media discussions were
examples of policymaking practice in Indonesia facilitated by government, but consultation more
was that policy instruments did not seem to be commonly occurred in one of two ways: internal
designed or selected based on the most rational government actors consulted with each other in
means to achieve a desired outcome. There policy discussions and negotiations; or public
was little evidence of the government setting high discussions with particular groups of community
level strategies then choosing instruments members or stakeholders were led by civil society
accordingly. In the examples we studied, the organisations. Sometimes CSOs and government
instruments seemed to be selected before any are operating policy processes in parallel, and
policy analysis or discussion took place. Policy identifying influences and connections between
analysis and discussions tended to focus on the two is not always obvious.
26
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or key actors and issues, such as the use of part of policymaking in the legislative and
knowledge by civil society organizations in policy executive branches of government. The process
formulation and negotiations. In developing the can be more straightforward when the Supreme
policy process maps, we were not able to identify Court is making regulations independently of
clear, short-lived 'policy windows' where problem other branches of government, but judicial reform
perceptions, policy solutions and political streams also involves other governmental and non-
converged into opportunities for agenda change governmental actors too.
(Kingdon 2003; Tiernan and Burke 2002). Civil society organisations, international donors
and the media play an important role, especially
Concluding discussion: not quite a policy in agenda setting and sometimes in policy
cycle analysis, formulation and discussion.
As well as the variations of activities and The only instances of monitoring identified in our
common absence of certain stages, such as examples were by CSOs. Sometimes policy
consultation and evaluation, it is clear from the entrepreneurs, such as PSHK, pursue different
discussion above and the process maps on the tracks simultaneously to increase the chances of
preceding pages that there is no common a policy (eg traffic violation case management)
sequence of phases in policymaking that cuts being adopted and implemented.
across different types of policies and branches of This observation challenges the findings of other
government. Moreover, the process is clearly research for KSI that suggested there is generally
political and not purely rational. Political limited involvement of actors other than
discussions and negotiations are an important senior civil servants from the executive branch of
government in policymaking (Datta et al. 2017).
7 Conclusion
T
his study concludes that it is not possible to identify a singular policy
cycle in practice in Indonesia. Policymaking in Indonesia generally follows
the process of agenda setting, then sub-processes of policy discussion/
formulation/coordination/decision, often followed by implementation and sometimes
by monitoring. However, abstracting these general patterns says little about how,
why or where policies are made, or who gets to shape them.
The policy cycle is therefore not a suitable normative or descriptive framework
for policymaking in Indonesia. Indeed, we would recommend that KSI discontinue
their use of the term 'policy cycle', and instead refer to the 'policy process' when
discussing policymaking in Indonesia. The policy cycle is a limiting framework that
does not adequately explain the ways in which policy is made in Indonesia (and
generally not in other nations either). This study did not identify an alternative
heuristic device for describing the policy process and use of evidence in it, so this
remains a question for further investigation.
This study has identified key aspects of policymaking that have not been as clear
in research that mainly focuses on structural dimensions, such as the political
economy. By considering policymaking in Indonesia through the lenses of the policy
cycle and political traditions, we have identified key actors, activities and patterns in
the processes of policy development. Specific examples of policymaking illustrate
the irregular and inconsistent ways in which policies are developed by the different
branches of government in Indonesia. By combining this analysis of examples with
a review of relevant literature on Indonesian government and development, this
study has highlighted important trends in policymaking, such as the discussions and
negotiations between the executive and the legislature, the
28
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by Paul A. Sabatier and Christopher M. Weible, 3 edition. Boulder, CO: Westview Press.
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Dr Rachael Diprose, Lecturer in Development Studies, School of Social and Political Sciences,
The University of Melbourne
Prof. Vedi Hadiz, Professor of Asian Studies, The Asia Institute, The University of Melbourne
Dr Krishna Hort, Senior Consultant (technical advisor), Nossal Institute for Global Health,
University of Melbourne
Prof. Denny Indrayana, Professorial Fellow, Melbourne Law School
Prof Tim Lindsey, Director, Center for Indonesian Law, Islam and Society – Melbourne Law
School
Dr Dave McRae, Senior Research Fellow, The Asia Institute, The University of Melbourne
Prof Andrew Rosser, Professor of South East Asian Studies, The Asia Institute, The University
of Melbourne
Dr Stephen Sherlock, Adjunct Associate Professor, University of New South Wales Canberra
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The Knowledge Sector Initiative (KSI) is a joint program between the governments of Indonesia
and Australia that seeks to improve the lives of the Indonesian people through better quality public
policies that make better use of research, analysis and evidence.
KSI is a consortium led by RTI International in partnership with Australian National University (ANU),
Nossal Institute for Global Health, and Overseas Development Institute (ODI).
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