LPEM FEB UI with the Ministry of Finance and UNICEF: Dissemination of Child-Oriented Budget Analysis

LPEM FEB UI with the Ministry of Finance and UNICEF: Dissemination of Child-Oriented Budget Analysis


Rifdah Khalisha – Public Relations FEB UI

DEPOK – (28/7/2021) LPEM FEB UI together with the Indonesian Ministry of Finance and UNICEF Indonesia held the “Dissemination of Child-Oriented Budget Analysis” on Wednesday (28/7). Presenting Febrio Nathan Kacaribu, S.E., MIDEC, Ph.D. (Head of Fiscal Policy Agency, Ministry of Finance) in the opening remarks. Also present were Prani Sastiono, S.E., M.Ec., Ph.D. (LPEM FEB UI) and Khoirunurrofik, S.Si., M.A., Ph.D. (LPEM FEB UI) to present the results of the study.

In his remarks, Febrio said that, “Hopefully this study will be useful for all of us in formulating budgeting policies, especially for Indonesian children, so that in the future they will be more optimal.”

“On July 23, we just celebrated National Children’s Day, with the tagline “When children are protected, Indonesia is progresses”. We have always celebrated this commemoration together since decades ago as a reminder that protection for the next generation is very important in realizing a better welfare for all.” he continued.

Khorunnurrofik discussed the analysis of child-oriented budgets in Indonesia. He revealed, “Amid the demographic bonus, Indonesia has the largest number of productive age population 15-64 years among other age groups, which is around 187 million people (69.2%). Furthermore, the population aged 0-17 years is around 79.7 million people (29%). This productive age population is able to support efforts to improve the quality of human resources through improving the quality of life, education, and health.”

However, in terms of health for children aged 0-17 years, Susenas data (2018) noted 26.9% of children live in homes with inadequate sanitation, 31.59% of children experienced complaints of illness in the last month, 15.89% were sick in the last month, and 57.97% of children do not have health insurance.

Furthermore, in terms of education, 9.35% of children aged 5-17 years are illiterate. In children aged 7-17 years, 0.85% of children of school dropout age and 24.36% of children with disabilities do not receive education.

Talking about national policies and priorities, investment in children is an important resource for building human resources (HR). The hope is that children will grow into healthy, quality, and productive human resources. It is only then that HR contributes to the economy and society.

On the other hand, there is a long and complex chain of relationships between human resources and investment in children. Optimal quality can be achieved if there are interventions in various aspects of development and stages of the child’s life.

He also explained the research of LPEM FEB UI. The research aims to identify allocations and expenditures in the APBN for children; develop a common methodology for calculating annual child budgets based on international best practices that can be applied and adopted for Indonesia; identify gaps in service delivery to children; focusing on the national level, then on the sub-national level; and use the results as a basis for dialogue on fiscal space for children.

Of course this study has limitations, the research only marked 4 ministries, while the budget related to children may be in other ministries and only marks budgets at the output level so that underestimation or overestimation can occur. In addition, this study has not analyzed the budget based on the type of budget.

The research yielded several key findings. First, the integration and synchronization of policies related to children have been accommodated in the Ministry’s programs and expenditures. Spending on children at the Ministry of Health, Ministry of Social Affairs, Ministry of Education and Culture, and Ministry of PPPA in 2015 and 2019 was 3.6%-3.7% of the APBN or 0.5%-0.6% of GRDP. There was an increase of 9% from 2015 to 2019, but still lower than the increase in total spending of 4 ministries or agencies (K/L), total APBN, and GDP.

Second, the trend of spending related to children by the government at the ministry level has increased. Real spending related to children in 4 K/Ls has increased by 9% from 2015 to 2019. The proportion of spending related to children in 4 K/Ls through families has increased significantly from 10% in 2015 to 41% in 2019, while through children spending alone it has decreased from 61% to 35% in the same period. In its composition, the Ministry of Health and the Ministry of Social Affairs are dominated by spending for children through communities and families. Meanwhile, Kemendikbud and KemenPPPA are dominated by spending on children.

Third, the distribution of expenditure by age group and sector. The biggest recipients are children of general age or without grouping 0-18 years and children aged 12-18 years (SMP-SMA/Teenagers). The allocation of expenditure for children in general at the Ministry of Health and the Ministry of Social Affairs has increased, with the consequence that expenditures for children in the targeted categories 7-12 years (SD) and 12-18 years (SMP-SMA/Teenagers) in the Ministry of Education and Culture have decreased.

Fourth, the relationship between per capita child expenditure on child development in the fields of education, health, and child welfare. The increase in spending from 2015 to 2019 related to children is strongly correlated with a decrease in the number of poor children (SDGs1), wasting rates and the prevalence of malnutrition (SDGs2), and increased enrollment in public schools (SDGs4).

Closing the session, Khoirunurrofik made recommendations for further research, namely establishing a clear relationship between specific policy objectives (related to children) and the related budget, increasing the alignment of indicators and target values ​​of the National Medium Term Development Plan (RPJMN) with plans in various sectors, and continuing budget analysis related to children with a wider scope.

Prani continued the presentation, discussing the theoretical methodology, provisions, and main assumptions. She explained that, “There are 4 stages in developing a budget analysis methodology as part of the Policy and Methodological Framework, starting from preparing budget data, improving methods, budget marking, to validation.”

“The key principle of developing a budget analysis methodology is objectivity, increasing objectivity in decision making related to budget marking; simplicity, ease of understanding and implementation; consistency, ease of implementation consistently by everyone with the same logic; replicability, can be replicated in following years,” he continued.

The scope of the analysis is a child, referring to the definition of a child is someone under the age of 18 years. The data comes from the 2015 and 2019 fiscal years, using program, activity, and output level data from the Directorate General of Budget (DJA) and the Directorate General of Treasury (DJPb). This research focuses on the health, education, social, and child protection sectors based on samples from the Ministry of Health, Ministry of Social Affairs, Ministry of Education and Culture, and Ministry of PPPA.

Prani also shared that the research data sources used micro-level data, such as the National Socio-Economic Survey (SUSENAS), the Indonesian Family Life Survey (IFLS), Basic Health Research (Riskesdas, Demographic and Health Surveys (DHS), Population Surveys and Inter-Census Population Surveys. (SP/SUPAS), National Survey of Child and Adolescent Life Experiences (SNPHAR), and interviews and Focus Group Discussions with 4 K/L.

She explained in detail various data that supported the conclusions of the findings presented by Khoirunurrofik. Then, she made the suggestion that, “It is better for future research to focus on a sector rather than a ministry or institution, expand the scope of the study to the local government level, use a shorter time frame, pay attention to policy changes from time to time, include expenditures by type, conduct research more in depth about some high-value budgets.

In addition, the event also presented other figures, Jee Hyun Rah (OIC Deputy Representative, UNICEF Indonesia), Dr. Femmy Eka Kartika Putri, M.Psi. (Plt. Assistant Deputy for the Fulfillment of Rights and Rights Protection of the Coordinating Ministry of PKM), Woro Srihastuti Sulistyaningrum, S.T. (Director of Family, Women, Children, Youth, and Sports of the Ministry of National Development Planning/BAPPENAS), Dr. Purwanto, S.E., M.Sc. (Budget Director for Human Development and Culture, Ministry of Finance), Miriam Visser (PPM Expert, UNICEF), and Ubaidi Socheh Hamidi, S.E., M.M. (Head of State Budget Policy, Ministry of Finance).

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