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World Bank Document Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized November 2011 Draft FinalReport Costing andImplementation Minimum Service Standards(MSS) Capacity Developementof FINAL REPORT ii CAPACITY DEVELOPMENT OF MIMINUM SERVICE STANDARDS (MSS) COSTING AND IMPLEMENTATION Table of Content Chapter 1: Introduction ..................................................................................................... 1 1.1. Background ......................................................................................................... 1 1.2. The program ....................................................................................................... 2 1.3. Duration of the Program ........................................................................................ 2 1.4. Expected Results ................................................................................................ 2 Chapter 2: MSS Concepts and Policies in Indonesia ....................................................... 3 2.1. Basic policy of MSS ............................................................................................ 3 2.2. MSS Regulations of Line Ministries .................................................................... 4 Chapter 3: Capacity Development of MSS Costing and Implementation ......................... 7 3.1. Supporting national government on MSS development and implementation ..... 7 3.1.1. Evaluation the status of MSS formula and technical guidelines in all sectors ...................................................................................................... 7 3.1.2. Costing of MSS: Instrument testing using local data .............................. 11 3.1.3. Produce an MSS costing manual for local governments ........................ 12 3.1.4. Distribute and ‘socialize’ the manual on MSS costing for selected sectors ................................................................................................................ 14 3.1.5. Monitor MSS implementation .................................................................. 16 3.1.6. Develop a strategy for rewarding kabupaten/kota that has demonstrated consistent and exceptional results in MSS implementation .................... 17 3.1.7. Examination of the relationship between the implementation of MSS and the attainment of the MDGs .................................................................... 18 3.1.8. Develop the capacity of the central and sub-national government personnel ................................................................................................ 23 3.2. Supporting local government on MSS costing and implementation .................. 26 3.2.1. Self Assessment of MSS implementation and achievement in selected sectors by a sample of local governments .............................................................. 26 3.2.2. Costing (the new) MSS .............................................................................. 34 3.2.3. Setting MSS targets and budgets ............................................................... 41 i FINAL REPORT 3.2.4. MSS Targets and Costing as basic information of programming in Planning and Budgeting Documents ...................................................................................... 45 Chapter 4: Challenges on MSS Implementation in Indonesia ........................................ 53 4.1. MSS technical and costing concept .................................................................. 53 4.2. MSS technical guidelines and costing manuals ................................................ 53 4.3. MSS socialization and basic services awareness in local governments ........... 53 4.4. MSS baseline in local governments .................................................................. 53 4.5. MSS costing funding ......................................................................................... 53 4.6. MSS Information used as basic programming in the planning documents ....... 54 Chapter 5: Summary, Lesson Learned, and Recommendations ................................... 55 5.1. Summary of program activities ............................................................................ 55 5.2. Lesson learned .................................................................................................... 63 5.3. Recommendations ................................................. Error! Bookmark not defined. List of Tables Table 1: MSS Issued and Guidelines ............................................................................... 4 Table 2: MSS’s basic services, number of indicators, and target year ............................ 5 Table 3: Inputs/comments for MSS indicators, technical guidelines and costing manuals ......................................................................................................................................... 8 Table 4: Status of MSS Costing Manual Supported by DSF .......................................... 13 Table 5: MSS Costing Socialization and Exercises ....................................................... 15 Table 6: The relationship between the implementation of MSS and the attainment of the MDGs ............................................................................................................................. 21 Table 7: MSS of Environmental Baseline Data of 2010 and target of 2011 – Kabupaten Bantul ............................................................................................................................. 27 Table 8: MSS Self Assessment Study in 6 regions ........................................................ 27 Table 9 :MSS Baseline Data in Pilot Regions ................................................................ 30 Table 10: Status of MSS Costing in Pilot Regions ......................................................... 35 Table 11: MSS Costing of Health in Pilot Regions ........................................................ 38 Table 12 : MSS Health costing per indicator per capita/object services in Pilot Regions ....................................................................................................................................... 39 ii CAPACITY DEVELOPMENT OF MIMINUM SERVICE STANDARDS (MSS) COSTING AND IMPLEMENTATION Table 13: Status of MSS setting target in pilot regions .................................................. 42 Table 14: Setting Target of Education MSS of City of Mataram .................................... 43 Table 15: Status of MSS information as Basic programming in Planning Document in Pilot Regions .................................................................................................................. 46 Table 16: Supporting national government on MSS development and implementation 55 Table 17: Supporting concepts and tools for MSS implementation in pilot regions ....... 56 Table 18: MSS implementation Status in Pilot Regions by the end of September 2011 57 Table 19: Workshop, training, and other training in the National and Local Governments ....................................................................................................................................... 61 iii FINAL REPORT Executive Summary MSS implementation MSS prepared by the Government through the Line Ministries, and based on implemented by local governments. It is mandated by the regulation Government number 65 of 2005 concerning Guidelines for Preparation and Regulation number Implementation of Minimum Service Standard followed by Minister of 65 year 2005 Home Affairs No. 6 of 2007 on Technical Guidelines for Preparation and Determination of Minimum Service Standards, Regulation of the Minister of Home Affairs No. 79 of 2007 on Guidelines for Planning achievement of the Minimum Service Standards. MSS has issued for Until now, MSS has been compiled and published for 15 sectors: 15 sectors Health, Environment, Government Affairs of the Interior, Social Housing, Women Empowerment and Child Protection, Education, Public Works, Food Security, Employment, Family Planning and Welfare, Communication and Information, Arts, Transport and Capital Investment. Some of the 15 areas have been followed by financial planning activities of the MSS Technical Instructions. MSS implementation Implementation of Minimum Service Standards that are part of the also supported by improvement of public services has been clearly stated in Government other regulation as Regulation No. 20 of 2004 on the Government Work Plan, Government like MoHA Regulation Regulation No. 58 Year 2005 on Regional Financial Management, as number 54, year well as in MoHA Regulation. No 54 of 2010 on Procedures for 2010 on planning Formulation of the Regional Planning Document. MSS implementation mechanism and agenda as an integral part in the process ofplanning, budgeting, budget others implementation, reporting and accountability. MSS, on its application is expected to be implemented in phases taking into account the needs, priorities and local financial capacity, institutional and personnel areas . Government in the development of local capacity in the application of The MSS MSS, the Ministry of Home Affairs (MoHA) in collaboration with the implementation Decentralization Support Facility (DSF), to assist and facilitate program of MoHA is implementation of MSS in the program of Capacity Development for supported and in Costing and Implementation of MSS.. The program has supported the collaboration with Government and the Pilot Regions with
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