PUBLIC FINANCIAL MANAGEMENT – MULTI DONOR TRUST FUND – PHASE II
PENGADAAN KONSULTAN UNTUK PENYUSUNAN ROAD MAP PENGEMBANGAN PUBLIC FINANCIAL MANAGEMENT
Loan No./Credit No./Grant No. : PFM MDTF-Grant TF0A1903
Reference No. (dalam Procurement Plan) : III.1.01
Kementerian Keuangan telah menerima bantuan hibah dari Bank Dunia, untuk melaksanakan bantuan teknis pengadaan jasa konsultan untuk penyusunan road map pengembangan Public Financial Management (PFM).
Bantuan teknis penyusunan road map pengembangan Public Financial Management dimaksud akan meliputi:
- Ruang lingkup pekerjaan
- Melakukan persiapan work plan activities, timetable dan deliverables.
- Melakukan review, analisa, dan evaluasi mengenai pelaksanaan PFM kurun waktu 10;
Tahun terakhir dibandingkan dengan rencana srategis yang telah disusun sebelumnya;
- Melakukan review dan analisa terhadap program transformasi kelembagaaan di Kementerian Keuangan laporan assessment PEFA, regulasi, rencana strategis per eselon I di Kementerian Keuangan, Bappenas, dan MOHA, khususnya yang relevan dengan pengembangan PFM area;
- Melakukan diskusi dengan stakeholders prioritas, arah serta tujuan dari PFM and RA area serta menyampaikan preliminary report dan finalisasiny;
- Mellakukan workshop; dan
- Membuat dan menyampaikan final report roadmap PFM.
- Penyedia merupakan konsultan perorangan, dengan kualifikasi sebagai berikut:
- telah menempuh pendidikan min. S2 di bidang ekonomi, administrasi publik atau bidang sejenis;
- memiliki pengalaman kerja dalam berbagai aspek manajemen keuangan publik paling kurang 10 tahun, lebih diutamakan pengalaman di berbagai dengan sejumlah negara mulai dari negara berkembang hingga negara maju, best practice internasional;
- berpengalaman luas berinteraksi dengan pejabat sektor publik di tingkat manajemen yang berbeda;
- berpengalaman dalam bidang pekerjaan yang terkait di Indonesia;
- memiliki kemampuan komunikasi lisan dan tulisan secara excelent dalam Bahasa Inggris;
- berpengalaman dalam proyek bantuan internasional di berbagai negara; dan
- diharapkan mampu berkomunikasi dalam Bahasa Indonesia.
- Periode pelaksanaan pekerjaan
60 hari kerja, dibagi menjadi 2 (dua) mission:
Mission 1 : 40 hari kerja, sejak 1 Oktober 2018 s.d. 31 November 2018
Mission 2 : 20 hari kerja, sejak 16 Januari 2019 s.d. 15 Februari, 2019
(Term of Reference (TOR) Kegiatan terlampir)
Sehubungan dengan hal tersebut, Kementerian Keuangan mengundang konsultan individual untuk dapat menyampaikan surat pernyataan berminat (expression of interest) dalam bahasa inggris, dengan melampirkan Curicullum Vitae (CV) disertai dengan pengalaman dalam pekerjaan sejenis.
Pengadaan konsultan dilakukan dengan metode seleksi konsultan individual secara kompetitif, dengan mengacu kepada Petunjuk Bank Dunia (Guidelines: Selection and Employement of Consultants under IBRD Loand and IDA Credits and Grants by World Bank Borrowers bulan Januari sebagaimana revisi terakhir bulan Juli 2014.
Penyampaian surat pernyataan berminat dan dokumen pendukung lainnya serta permohonan informasi lebih lanjut (pada jam kerja) ditujukan kepada:
Panitia Pengadaan Barang dan Jasa
Project Service Support Unit Public Financial Management – Multi Donor Trust Fund
Gedung Djuanda II Lantai 18
Jl. Dr. Wahidin Raya No. 1 Jakarta Pusat 10710
No. telp: 021-3449230 ext. 6860, 021-3443009, faksimili 021-3500846
Atau melalui email ke: firstname.lastname@example.org cc: email@example.com
Surat pernyataan berminat dan dokumen pendukung lainnya harus diterima di meja/email panitia paling lambat pukul 17.00 WIB, 7 September 2018.
Public Financial Management Multi-Donor Trust Fund II
Terms of Reference
Consultancy Services for the Development of the Public Financial Management (PFM) Road Map (5 Years)
- In the early years of the implementation of reforms in the area of public financial management (PFM) and revenue administrations, the Government of Indonesia (GOI), through the Ministry of Finance received funding from a number of donor countries for the purpose of supporting the implementation of the government’s PFM reform agenda. The funds contributed by the initial donors consisting of the European Union and the Government of the Netherlands, were pooled in a trust fund referred to as the Public Financial Management Multi-Donor Trust (PFM MDTF), under the management of the World Bank. The PFM MDTF complemented the project loan from the World Bank for the Government Financial Management and Revenue Administration Project (GFMRAP). Subsequent to its launching in 2007, the PFM MDTF received more contributions from the Government of Switzerland, the USAID and the Government of Canada. This first phase of PFM MDTF officially ended in April 2014.
- Following the successful implementation of PFM MDTF Phase I, three (3) of the Phase I donors, namely the EU, Switzerland and Canada, agreed to continue to provide support for the second phase of PFM, now referred to as PFM MDTF II, to cover the period 2014 to 2018. All three (3) donors have recently agreed to extend the closing date of PFM MDTF II to fiscal year 2019. Unlike PFM I which primarily supported the initiatives from central government agencies, namely the Ministry of Finance, Bappenas, and the Secretariat General of DPR-RI, PFM MDTF II expanded its coverage in terms of the focus area, the agencies covered, and the levels of government involved - now covering both central as well as subnational governments.
- Following a series of consultations in the year 2012, the Government, donors and the World Bank agreed to focus on the following areas for PFM II:
|Component ||Description ||Implementing/Beneficiary Agencies |
|Component ||Description ||Implementing/Beneficiary Agencies |
|I || Better oversight of PFM reform processes ||Secretariat General, MOF through the |
Project Support Services Unit, MOF
|II ||More targeted allocation of Public Funds to development priorities. ||Directorate for Development Funding Bappenas, BAPPEDA, DKI Jakarta |
|III ||Better links between budgetary spending and improved public services ||Directorate General of Budget, MOF;|
Planning and Finance Bureau, MOF
| IV ||Improved budget execution and reporting ||Directorate General of Treasury, MOF |
|V ||Enhanced compliance and value-for-money in public resources use. ||Inspectorate General, MOF; |
Finance and Development Supervisory Agency (BPKP);
Center for Electronic Procurement Services, MOF (PLPSE);
Association of Indonesian Government Internal Auditors (AAIPI), an NGO
Corruption Eradication Commission (KPK)
|VI ||Increased fiscal revenues through improved tax administration performance ||Directorate General of Taxes, MOF|
|VII ||Improved Public Financial Management at the sub-national level ||Directorate General of Fiscal Balance, MOF; Ministry of Home Affairs |
Selected local governments
|VIII ||Strengthening/Transforming institutional capacity for PFM ||Center for Information and Technology, MOF (PUSINTEK),|
Organization and Management Bureau, MOF;
Central Transformation Office, MOF
- During the Policy Advisory Committee (PAC) meeting on June 16, 2017, the Minister of Finance proposed and the PAC agreed to narrow down the focus of activities into four (4) Priority Areas (programmatic themes) for the remaining life of PFM MDTF II as follows:
|PRIORITY AREA ||Components Covered |
- Improving Tax Administration
|Component VI |
- Promoting Budget Efficiency
|Component II, III, IV, V |
- Improving subnational transfers
|Component VII |
- Supporting more strategic management of PFM across units in the Finance Ministry
|Components I and VIII |
- Component I calls for “Better oversight of PFM reform processes, leading to an adequate sequencing and coordination of reform activities”. As pointed out in the PFM MDTF I mid-term “Evaluation of the EU Support to Indonesia’s Public Finance Management”, “The 2002 White Paper (on the Reform of Public Financial Management System in Indonesia)”, the official document where the road-map for the Government of Indonesia’s PFM reform program was explicitly outlined, is broad-based but needs updating. More importantly, Indonesia needs to clearly define the sequencing of PFM reforms in the coming years.
- To date, significant advances have taken place in the area of PFM, including the implementation of unified budgeting , the Medium Term Expenditure Framework (MTEF), performance based budgeting (PBB), the Treasury Single Account, the State Treasury and Budget System (Sistem Perbendaharaan dan Anggaran Negara or SPAN), accrual accounting and the more recent piloting of the Financial Application System for Spending Units (Sistem Aplikasi Keuangan Tingkat Instansi).
- Apart from the reforms that have already taken place since the landmark State Finance Law (Law 17/2003) and State Treasury Law (Law 1/2004) were enacted, other significant reform initiatives that have taken place in the last five (5) years. Among these is the drafting of the Institutional Transformation Program Blueprint which was adopted in the year 2014 by Minister of Finance Decree No. 36/KMK.01/2014 dated 5 February 2014. In January 2015, MOF launched its Organizational Transformation Program, with the objective to improve the effective execution of tasks, organizational performance and an output-based-accountability culture.
The program was to be accomplished through the implementation of 87 strategic initiatives. Recently, under the leadership of the current Minister of Finance, Ibu Sri Mulyani Indrawati, these 87 strategic initiatives have been narrowed down to 20 initiatives.
- A more current development on the subject of Institutional Transformation is the Ministry’s decision to improve the effectiveness, efficiency and performance of the organization through Enterprise Architecture (EA). Following the benchmarking studies with the Australian Government and with the Malaysian Government, senior officials of the Ministry, led by the Minister convened to receive feedback from those who have participated in the benchmarking and to map out the next steps towards the development of EA in MOF. The commitment of the Ministry towards this direction is evidenced by the issuance of two Minister of Finance Decrees in this area. The first is KMK 452/KMK.01/2018 on the Ministry of Finance Enterprise Architecture issued on 6 June 2018, and the second is KMK 452/KMK.1/2018 on the Establishment of the EA Implementation Team issued on 19 July 2018.
- In October 2016, the Ministry of Finance, jointly with the World Bank launched the 3rd PEFA assessment for the year ending 2016. The government’s PEFA team included personnel from MOF, Bappenas, BPKP, LKPP and other agencies involved with public financial management. The PEFA review completed its reporting phase and the final PEFA report was launched recently. A key feature of the PEFA assessment is the identification of the strengths and weaknesses of the financial systems in the governments and highlighting areas for improvement.
- In the first semester of 2017, the PFM-MDTF II donors engaged a consulting firm to undertake a joint mid-term evaluation of the PFM MDTF II with the aim of providing an overall assessment of its past performance. The Consultant assessed the overall Public Finance Management government reform agenda encompassing central, subnational and local levels and considered how the PFM MDTF-II has supported it. The review also proposed options and recommendations for improving PFM MDTF project performance and for possible continuation of donor support in the area.
- One of the more recent developments in the PFM area is the issuance of Government Regulation 17/Year 2017 on the Synchronization of the Process of National Development Planning and Budgeting otherwise known as PP17/2017. The implementation of this Government Regulation has significantly impacted the way national planning and budgeting is being done this FY 2018 and in the years to come.
- Reforms in the field of public financial management is a continuing process. Substantial progress has taken place since the enactment of the landmark finance-related laws, but as highlighted by various studies/reviews done in recent years there is still much that need to be done to enable the government to achieve the goals it has set for itself. The Institutional Transformation Blueprint and strategic initiative (2012 - present), the PEFA report (2016-2018), the PFM-MDTF Joint Mid-term Review Report (2017), Government Regulation 17/2017, and other studies undertaken under the PFM MDTF umbrella underscore the continuing need to improve PFM policies, systems, processes and institutional arrangements so that the impact can be better felt in terms of improved public services.
- The challenge at this stage is no longer identifying problem areas or recommending solutions in the PFM areas because these have been done extensively in many previous studies and reviews.
Instead, to maximize the benefits from work already done, and to ensure that new laws and regulations are effectively implemented, there is a need to extract the relevant findings and recommendations from these studies, evaluate them relative to recent developments and national priorities, and develop a strategic multi-year road map that will guide the policies, decisions and actions of MOF and other agencies involved in PFM to enable them to achieve clearly defined goals in a systematic and orderly manner. There is no generally accepted definition for road mapping, but one way of describing it is as follows:
“Road mappingis a collaborative strategic planning process. The first stage is to determine a vision. The vision is a desirable future state that the business would like to have happen. Next, several vision statements are expressed and concrete goals are defined. The third stage is doing a gap analysis. Here, critical capabilities needed for the articulated visions are determined; then, a gap analysis between available capabilities and the needed capabilities is conducted. Finally, a portfolio of actions based on the gap analysis is recommended.”
- The objective of this consultancy is to engage the services of a Consultant who will assist the government in developing a strategic road map for the implementation of PFM and revenue administration reform initiatives for the coming 5-year period, with primary focus on the Central Government, but also with a view to strengthening PFM at the sub-national level. The Consultant shall also help develop a performance monitoring and evaluation framework to monitor progress in the implementation of the road map.
- This activity will facilitate better planning, coordination and sequencing of activities, as well as improve monitoring of the PFM reform process. It will also provide government officials and donors with a better understanding of the nature and direction of the overall PFM reform program and the progress of its implementation.
Scope of Work
- The work of the Consultant will be divided into two (2) Missions where he will be will be expected to perform the following tasks:
Mission 1 (40 man-days):
- Prepare a Work Plan outlining the planned activities, timetable and deliverables.
- Review the major PFM and revenue administration reform initiatives that have been implemented by MOF and other central agencies in the past 10 years, and compare the goals laid out in strategic and annual plans to determine the extent to which the goals and targets have been achieved. This will include but shall not be limited to initiatives under PFM MDTF I and PFM MDTF II.
- Review and analyze the institutional transformation program of the MOF to assess the plans and recommendations have been proposed that impact on the PFM area, including the recent plan to develop an EA framework, and the extent to which they have been carried out.
- Review the PEFA Assessment report, the Joint Mid Term Evaluation of the Public Financial Management Multi Donor Trust Fund (PFM MDTF) II , the PFM MDTF semi-annual reports, and other major studies/work done in the PFM area; identify the weaknesses of the existing systems and processes, and assess the continuing relevance of recommendations given in the reports if any.
- Review new laws, government and ministerial regulations in the PFM area, and assess the impact of these regulations on existing systems and institutions.
- Review the strategic plans of key Echelon I Units in the Ministry of Finance, Bappenas and MOHA that would be relevant for the development of the PFM Road Map.
- Discuss key findings with the Minister of Finance, senior officials (Echelon I and Echelon II level) of MOF, BAPPENAS, MOHA, and as necessary with officials of other agencies involved in the audit and control functions. Consult or confirm their agency’s vision, priorities, goals, future direction, and plans for reforms in the PFM and revenue administration area. Discuss with them preliminary assessments and recommendations.
- Based on the review, analysis, evaluation and discussions with senior government officials done under activities 15.b) to 15.g) formulate a logically sequenced road map on the future direction and proposed action plan for PFM and RA reforms for the next 5 years focusing on key reform areas for the central agencies involved in planning, budgeting, budget execution, revenue administration, reporting, auditing, and other PFM areas covered in the reviewed reports.
- Recommend an Monitoring and Evaluation (M&E) framework, with performance indicators and baseline values for the indicators, to provide a basis for ascertaining the extent to which plans are being implemented
- Conduct focus group discussions as needed, to present to stakeholders the result of the reviews and preliminary recommendations, and at least one (1) workshop to present the draft Preliminary Report.
- Prepare and submit the reports as described in paragraph 16, Mission 1.
Mission 2 (20 man-days):
- Obtain written feedback from stakeholders on the Preliminary Report. Carry out discussions with senior officials and counterparts to clarify their comments or to obtain confirmation from key officials/counterparts who have not submitted written comments.
- pdate the Preliminary Report to accommodate feedback from stakeholders..
- Work closely with officials of agencies who will implement the plans laid out in the PFM road map to ensure adequate understanding and to facilitate the successful execution of the approved action plan.
- Obtain agreement with stakeholders for the implementation of activities specified in the action plan.
- Prepare and submit the reports described in paragraph 16 Mission 2
Expected Output and Deliverables
- The expected output/deliverables from this consultancy shall include the following:
- A Detailed Work Plan for the implementation of the tasks described in the section “Scope of Work”.
- A brief status report every two weeks on the progress of implementation of activities as laid out in the Work Plan, to be submitted to, and discussed with the Chair of the GOI MCR and the PSSU Director.
- A Draft Preliminary Report on the result of activities 15.b) to 15.g) to be shared before the Workshop. This report will cover: (i) key findings covering the areas of review, (ii) PFM Road Map and Action Plan for the period 2019-2023, and (iii) the proposed monitoring and evaluation framework
- At least one (1) workshop to present to stakeholders the Draft Preliminary Report.
- A Final Preliminary Report to be submitted to the Minister, Secretary General, MOF, Chair of the GOI-MCR and PSSU Project Director at the end of Mission 1 of the assignment, and to be shared with stakeholders for their review and comments.
- A Draft Final Report to be shared with stakeholders and counterparts before the Workshop covering the following:
- PFM Road Map and Action Plan for the period 2019-2023
- Monitoring and Evaluation Framework
- At least one (1) workshop to present the Draft Final Report to stakeholders.
- A Final Report to be submitted to the Minister of Finance, Secretary General of MOF, Chair GOI-MCR and PSSU Project Director.
Timeline for Activities and Delivery of Output/Deliverables
|ACTIVITIES ||WEEK ||Output |
|1 ||2 ||3 ||4 ||5 ||6 ||7 ||8 || |
|ACTIVITIES ||WEEK ||Output |
|Mission 1 (40 days –Sept-Oct 2018 || || || || || || || || || |
- Prepare detailed work plan
|x || || || || || || || |
- Review and analysis of (i) major PFM reform initiatives,(ii) institutional transformation initiatives, (iii) the PEFA (iv) strategic plans, (v) other reports/laws/regulations.
|x ||x ||x ||x ||x || || || || |
(To be submitted by the end of Week 6):
- Draft Preliminary report on:
- Key findings covering the 3 areas of review
- PFM Road Map and action plan for the period 2019-2023
- Monitoring and Evaluation Framework
- Discussions with stakeholders on priorities, future direction, and plans for further reforms in the PFM and RA area , and any preliminary consultant recommendations
- Develop the PFM Road Map and Action Plan
- Recommend the Monitoring and Evaluation Framework
| ||x ||x || |
|x ||x ||x || |
- Submission of bi-weekly progress report
| ||x || ||x || ||x || || |
- Workshop on the preliminary report and finalization of report
| || || || || || ||x ||x |
- Preliminary Report (Final)
|Mission 2 (20 days –Nov-Dec 2018) || WEEK ||OUTPUT |
|1 ||2 ||3 ||4 |
- Obtain written feedback on the Preliminary Report and carry out discussions with stakeholders.
|x ||x || || |
- A draft FinalReport after Week 2 on:
- PFM road Map and Action Plan for the period 2019-2023
- Monitoring and Evaluation Framework
- Update the preliminary report to incorporate feedback.
| ||x || || |
|10. Conduct focus group discussions /workshop || ||x ||x || |
- FinalReport on the PFM Road Map and Action Plan agreed to by stakeholders after week 4
|11. Obtain the written agreement of the stakeholders to the Road Map and Action Plan and the M&E Framework and finalize the report || || ||x ||x |
- The expected result from this Consultancy is the implementation of better planned and sequenced activities based on clearly defined government goals and priorities.
Reporting and Work Arrangements
- The Consultant shall be under the direct supervision of the Assistant Minister for State Expenditure, as Chair of the GOI Management Committee Representatives, who will provide guidance and direction on technical matters.
- For routine day-to-day operational matters, the Consultant shall work closely with the Head of the Project Support Services Unit (PSSU) and the PSSU Team which will provide administrative and logistical support services.
- The Consultant shall be supported by a Counterpart Team consisting of technical staff from the different agencies covered by the Road Map study. The Team shall provide assistance to the Consultant in facilitating meetings and obtaining documents/materials needed by the Consultant. This Team will also be responsible for reviewing the output of the Consultant.
- The Consultant shall work closely with Officers in Charge of PFM-MDTF Project Implementation Units, with other Echelon II and III officials and designated counterparts from agencies involved with PFM.
- The Consultant shall consult with/seek guidance from the Minister of Finance and the Heads of various Echelon I units in MOF and other agencies covered in the PEFA Report and the PFM Road Map.
- The Consultant shall coordinate closely with the World Bank Task Teams involved in implementing activities under the various PFM MDTF components, the PSSU Project Management Advisor, and other PFM MDTF consultants working in related activities.
Period of Assignment
The Consultancy will be for a period of 60 working days, divided into two (2) Missions. Mission 1 of the assignment is estimated at 40 man-days to take place from September 1, 2018 to October 31, 2018. Mission will be for 20 man-days to take place from November 16, 2018 to December 15, 2018. The break between Missions is intended to give time to GOI stakeholders and counterparts to review and comment on the Preliminary Report. Allocation of number of days between Mission 1 and Mission 2 and the start-up of Mission 1 and Mission 2 is flexible depending on the agreement between MOF and the Consultant, and the time needed for the processing of necessary work permit and visa requirements.
The Consultant should have the following qualifications:
- Advanced degree in economics, public administration or related fields.
- At least 10 years work experience in various aspects of public financial management, preferably with a number of countries ranging from developing countries to advanced, best practice countries.
- Extensive experience interacting with public sector officials at different management levels
- Satisfactory work experience in related line of work in Indonesia is preferred
- Excellent verbal and written communication skills in the English language.
- Experience in international aid projects in various countries.
- Ability to communicate in Bahasa Indonesia is desirable.
Total Ceiling for this project is $100,000 (In USD, $1 = Rp. 13,500).
 In addition to GOI and NGO implementing agencies, the World Bank also implements PFM MDTF funded activities.