Regional civil service management : policy issues and recommendations

 67651 Regional Civil Service Management: Policy Issues and Recommendations Grand Design of Regional Autonomy November 2011 !          Regional Civil Service Management: Policy Issues and Recommendations     Grand Design of Regional Autonomy DECENTRALIZATION SUPPORT FACILITY Indonesia Stock Exchange Building, Tower I, 9th Floor Jalan Jenderal Sudirman Kav. 52-53 Jakarta 12190 Phone: (+6221) 5299 3199 Fax: (+6221) 5299 3299 Website: www.dsfindonesia.org The Decentralization Support Facility (DSF) is a government-led multi-donor trust fund whose principal purpose is to support the decentralization agenda of the Government of Indonesia. The DSF attempts to fulfill three principal roles, which are designed to help the Government of Indonesia to: (i) improve the harmonization, alignment, and effectiveness of development assistance; (ii) inform and thereby improve policy development and implementation; and (iii) build governance capacity, particularly at sub-national levels. The institutional membership of DSF comprises the National Development Planning Agency (BAPPENAS), the Ministry of Finance, the Ministry of Home Affairs, and nine donors (ADB, AusAID, CIDA, DfID, Government of Germany, Government of the Netherlands, UNDP, USAID, and the World Bank). The principal financial donor to DSF is DFID, with AusAID and CIDA also having made financial contributions. Cover photos copyright Multi Donor Fund, World Bank Indonesia. All rights reserved. Regional Civil Service Management: Policy Issues and Recommendations is a product of consultants of the Decentralization Support Facility. The findings, interpretation, and conclusions expressed herein do not necessarily represent the views of the Decentralization Support Facility or its donors. Cover design by Harityas Wiyoga    GRAND DESIGN FOR REGIONAL AUTONOMY Table of contents I. Background ................................................................................................................................................ 1 II. Methodology.............................................................................................................................................. 2 III. Policy issues in regional civil service management ........................................................................... 3 A. Recruitment of Civil Servants in regions .................................................................................... 3 Issue..................................................................................................................................................... 3 Conclusion ......................................................................................................................................... 4 Recommendations............................................................................................................................ 4 B. Civil Servant Transfer...................................................................................................................... 5 Conclusion ......................................................................................................................................... 6 Recommendations............................................................................................................................ 6 C. Promotion .......................................................................................................................................... 7 Issue..................................................................................................................................................... 7 Conclusion ......................................................................................................................................... 8 Recommendations............................................................................................................................ 8 D. Performance Management ............................................................................................................. 9 Issue..................................................................................................................................................... 9 Conclusion .......................................................................................................................................10 Recommendations..........................................................................................................................11 E. Training ............................................................................................................................................11 Issue...................................................................................................................................................11 Conclusion .......................................................................................................................................12 Recommendations..........................................................................................................................12 F. Apparatus Profession Development ..........................................................................................13 Issue...................................................................................................................................................13 Conclusion .......................................................................................................................................13 Recommendations..........................................................................................................................14 IV. References ................................................................................................................................................15 i REGIONAL CIVIL SERVICE MANAGEMENT: POLICY ISSUES AND RECOMMENDATIONS ii  Regional Civil Service Management: Policy Issues and Recommendations Agus Dwiyanto I. Background Regional civil service management reform has been an urgent agenda in the regional autonomy implementation. After more than a decade of the regional autonomy, the facts are that there have been various problems with the regional civil service management. Among these problems are: mismatch between the apparatus’ competencies and their functions, politicized civil apparatus, commodification of bureaucratic positions and functions, and ethnically and locally spatial fragmentation, and strengthened values of primodialism. The accumulation of such problems certainly has negative impacts on regions’ performance in public service delivery. Regional autonomy expected to accelerate the reform of pubic services to enhance public welfare in regions may be inhibited by lack of regional apparatus’ professionalism. Citizens’ demand for efficient, effective and accountable public services when the government becomes closer to them cannot be fulfilled because its apparatus who serves them is not professional and competent. Consequently, the government’s promise of regional autonomy to improve access to and quality of public services is still far from satisfaction. One major cause of such problems is the inability of regulations on regional apparatus management under Law No. 32/2004 and Law No. 43/1999 and associated regulations to respond to the dynamic of regional governance. Both laws have not clearly governed the position of regional apparatus as part of the national civil apparatus. As a result, it has been difficult to mobilize apparatuses between regions and between levels of government. Spatial and institutional fragmentation of apparatus has been stronger and has caused narrow-minded bureaucratic egotism and culture. Another cause of such problems is the government’s approach to civil service management irrelevant to its challenges and issues of developing a professional civil apparatus. One example is the formation used as the basis for recruiting civil servants (PNS). Such formation-based recruitment has created an obstacle to the effort to recruit civil servants according to their competencies and skills because the positions to be held by candidates are not clear. The civil servants selection system is not based on their skills but their general knowledge. Such problems are also caused by distorted policy implementation and civil service management in regions. Destructive politicized regional apparatus and commodified positions and functions within regional government organization over the past year are some examples of distorted regional appratus management. Despite the laws issued to prevent such bureaucratic politicization and functional commodification, the political and economic interests of regional heads and stakeholders have confirmed such implementation distortions. Such various problems have caused many parties to express their concerns over the prospect of regional autonomy implemented in regions unless they are immediately solved. To better analyze the problems encountered by the government in managing its apparatus in regions the Ministry of Home Affairs has established a Consultant Team to conduct a study on civil service management practices in regions. This study is expected to produce sufficient information to map the problems encountered by the government and regions in managing their civil apparatuses and make recommendations for the reform needed to create a professional, highly- performing apparatus capable of serving as a pillar of the Unitary State of the Republic of Indonesia (NKRI). 1 REGIONAL CIVIL SERVICE MANAGEMENT: POLICY ISSUES AND RECOMMENDATIONS Regulatory reform of regional apparatus management will be made in two terms. In the short term, there will be a change of regulation on regional civil service management under Law No.32/2004 to produce the state’s civil apparatus in regions with professionalism, high integrity and ability to manage regional government functions efficiently and effectively. The regulatory change of Law 32/2004 is also needed to adapt to the directions and spirits of establishing a National Civil Apparatus (ASN) Law in lieu of Law No. 43/1999. In the long term, regulatory reform will be made through creating a grand design of regional autonomy governing the roadmap of regional apparatus management reform for the next 20 years. II. Methodology To achieve these goals, the Ministry of Home Affairs has established a Consultant Team to study the problems encountered by regions in managing their apparatuses and to make recommendations for necessary reform in order that regions may be able to manage their apparatuses to support the implementation of efficient, effective and accountable regional government functions. The case study covered three sectors, i.e. education, health, and public works. The three sectors were selected because they play a significant strategic role in improving the socioeconomic welfare of citizens and regional development. They also represent the complexity encountered by the government of Indonesia in managing its apparatus in regions. The education and health sectors involve large portions of regional apparatuses, particularly teachers and paramedics. The problems faced in apparatus management in these sectors represent the problems faced by most of the regional apparatus. The study was conducted in three provinces, i.e. West Java, West Kalimantan and East Nusa Tenggara. The provinces were purposively sampled, each representing regions with relatively developed, average and underdeveloped socioeconomic conditions. In each of the provinces, 2 districts (cities/regencies) were purposively sampled to represent different characteristics of regions, such as regencies vs. cities, newly established autonomous regions (DOHP) vs. existing autonomous regions, and island regions vs. inland regions. The study was conducted at the provincial and district levels. The Consultant Team conducted an interview with key respondents from selected provincial and district governments. The interview involved regional heads (KDH), regional secretaries (Sekda), assistants to the regional secretaries, BKD Head and staff, Education Office (Dinas) Head and staff, Public Works Office Head and staff, Health Office Head and staff, teachers, doctors and paramedics and relevant professional associations. The focus in each of the regions was on discussing and clarifying findings from reviews and policy recommendations for regional apparatus management reform. The results of the study from regions were then discussed in a seminar involving stakeholders from MOHA, the Ministry of State Apparatus Empowerment and Bureaucratic Reform, the State Administrative Agency (LAN), and the National Civil Service Agency (BKN). The results of the seminar were deeply discussed in an FGD involving representatives from the above ministries and non-ministerial agencies. The FGD was designed to agree on policy issues of regional apparatus management reform and a follow-up action plan for each policy issue to be implemented by the MOHA, Ministry of State Apparatus Empowerment and Bureaucratic Reform, BKN and LAN. 2  GRAND DESIGN FOR REGIONAL AUTONOMY III. Policy issues in regional civil service management A. Recruitment of Civil Servants in regions Issue The recruitment of prospective civil servants is more critical than other processes of the whole civil service management function. Improper recruitment processes have long-term detrimental effects if the civil servants recruited do not have qualifications as required. Unfortunately, the recruitment of regional civil servants has some problems to which the government has not given attention. The first problem arises from the use of a formation as the basis for assessing the needs for civil servants. The use of a formation, i.e. the number of civil servants and their ranks needed to perform certain bureaucratic functions, has some weaknesses. First, the formation does not represent the expertise/skills required by a certain government organization unit. The recruitment of prospective civil servants is not intended to fill a vacant position but to fill a formation. As a result, the recruitment of prospective civil servants gives less attention to the candidates’ skills and competencies. The selection system was not designed to measure their perspective and skills to hold a certain position but only general knowledge. Because recruitment is not attributable to a vacancy, a new problem with government organization, including local government organization (OPD) arises where there is an increasing number of civil servants without function. Such civil servants are categorized as implementing staff (“staf pelaksana