JRSSEM 2022, Vol. 02 No. 4, 466 – 484

E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494

10.36418/jrssem.v2i04.279 https://jrssem.publikasiindonesia.id/index.php/jrssem

FACTORS AFFECTING THE IMPLEMENTATION OF

PERFORMANCE-BASED BUDGETING POLICIES:

COMMUNICATION, RESOURCES, AND BUREAUCRATIC

STRUCTURE

Cris Kuntadi

1

Nurma Livrianti

2

1

Bhayangkara University, Greater Jakarta, Indonesia

2

STIA LAN Polytechnic Jakarta, Indonesia

*

e-mail: cris.kuntadi@dsn.ubharajaya.ac.id, nurma.livrianti2021@gmail.com

*Correspondence: cris.ku[email protected]bharajaya.ac.id

Submitted

: 25

th

October 2022

Revised

: 16

th

November 2022

Accepted

: 23

th

November 2022

Abstract: This study reviews the factors that influence the implementation of performance-based

budgeting policies as the dependent variable on communication, resources, and bureaucratic

structure as independent variables in a literature study of state financial management. This research

is a literature review that aims to build a hypothesis of the influence between variables so that it

can be used in further research. This study shows that communication, resources, and bureaucratic

structure affect the implementation of performance-based budgeting policies. The research

method for this scientific article is a literature review and qualitative method through the

identification of several relevant literatures which are classified based on the relevance and quality

of the literature found and examines theories and relationships or influences between variables

from books and journals both offline and offline. in libraries and online sources from Mendeley,

Google Scholar and other online media. The results of this study can be concluded that:

Communication affects the implementation of performance-based budgeting policies. Resources

affect the implementation of performance-based budgeting policies. The bureaucratic structure

affects the implementation of performance-based budgeting policies.

Keywords: Implementation of Performance-Based Budgeting Policies, Communication, Resources,

Bureaucratic Structure

Cris Kuntadi, Nurma Livrianti | 467

INTRODUCTION

The implementation of performance-

based budgeting policies is one of the very

important processes in public policy that

determines whether the public policies

pursued by the government are correct and

can be implemented properly in the field

and successfully produce predetermined

outputs and outcomes. The

implementation of performance-based

budgeting policies is very necessary

because without being implemented, the

policy is only a good plan that is neatly

stored. If a policy is not right, then it will fail

even though the policy has been

implemented properly.

According to Grindle, (in Abdul Wahab,

2015) that policy implementation is not just

a mechanism for elaborating political

decisions into routine procedures through

bureaucratic channels, but more than that,

it concerns issues of conflict, decisions, and

who derives what from wisdom. So it is not

wrong to say that policy implementation is

an important aspect of the entire wisdom

process. Policy implementation is also the

process of applying a policy to a plan. In an

implementation, there is a basic meaning

contained, namely the existence of policy

goals or objectives, the existence of

activities or activities to achieve goals, and

the results of activities. Policy

implementation is not only limited to

actions or behaviors or bureaucratic units

responsible for implementing programs

and generating compliance of target

groups but more than that it continues with

a network of socioeconomic political forces

that influence the behavior of all parties

involved and ultimately there are expected

and unexpected impacts.

One of the efforts to realize Good

governance is to make changes to the

budgeting system used by the Government

of Indonesia. The changes to the budgeting

system were made because traditional

budgeting was considered inefficient. The

budgeting process only increases or

decreases the amount of the budget using

the previous year's budget so that the

budget tends to be set higher so that the

state needs a more responsive budgeting

system and can accommodate the

demands of performance appraisal from an

organizational unit. The implementation of

performance-based budgeting is

considered the most relevant to achieving

such goals. This is shown by the change

using the traditional budgeting system to a

performance-oriented budgeting system

(Performance Budgeting). The change

began with the issuance of Law Number 17

of 2003 concerning State Finance which

explained the change from the traditional

budgeting system to a performance-based

budgeting system.

According to Hutapea, R.S.T. (2022)

Performance Budgeting is a budgeting

approach that emphasizes the use of

budgets for the achievement of results or

goals. The implementation of performance-

based budgeting in Indonesia can be seen

from the performance evaluation of

ministries/institutions carried out by the

Ministry of State Apparatus Empowerment

and Bureaucratic Reform (PANRB).

468 | Factors Affecting The Implementation of Performance-Based Budgeting Policies:

Communication, Resources, and Bureaucratic Structure

Bureaucratic reform is a need that needs to

be met to ensure the creation of improved

government governance. The better the

governance of a country, the more the

wheels of national development will turn.

To encourage the strengthening of

bureaucratic reforms and the Government

Agency Performance Accountability System

(SAKIP) in government agencies, the

Ministry of PANRB carries out evaluations

every year. This is done to map the progress

of bureaucratic reforms and the level of

effectiveness and efficiency of budget use.

The Ministry of PANRB carried out SAKIP

and RB evaluations of 84 ministries and

agencies, 34 provincial governments and

514 districts and cities. The purpose of the

evaluation is to assess and assist

government agencies in improving the

quality of performance management

implementation and bureaucratic reform

(Ministry of PANRB, 2021).

Based on the results of the

performance evaluation of

ministries/institutions conducted by the

Ministry of PANRB in 2020 on 84 ministries

and institutions, 34 provincial governments

and 514 regencies and cities, it is known

that there are 1 (one) provincial

government with an A predicate, 4 (four)

provincial governments and 8 (eight)

district/city governments with a BB

predicate, as well as 21 provincial

governments and 115 district/city

governments with a B predicate while the

results of the 2020 SAKIP evaluation show 1

(one) government provinces with AA

predicate, 3 (three) provincial governments

and 11 A-predicate regency/city

governments, 9 (nine) provincial

governments and 56 districts/cities with BB

predicate, as well as 20 provincial

governments and 258 districts/cities with B

predicate (Ministry of PANRB, 2021).

Based on the results of the

performance evaluation of

ministries/institutions that have been

carried out by the Ministry of PANRB, it is

expected that there will be a strong

commitment from the central and local

governments to continue to improve the

quality of accountability for their

performance so that a bureaucratic culture

that is high performance, high integrity,

and serves the community well and The

use of the state budget will be more

targeted, measurable and accountable

because of the relationship between the

budget and the results to be achieved.

Based on this explanation, what we

want to research in this article are the

factors that influence the implementation

of performance-based budgeting policies,

including communication, resources and

bureaucratic structure. This study aims to

determine the effect of communication,

resources, and bureaucratic structure on

the implementation of performance-based

budgeting policies.

This research begins with a literature

search related to the implementation of

performance-based budgeting policies. A

literature search is the first step to

collecting information relevant to this

research. By searching the library,

information about previous research that

has been carried out is obtained. A certain

amount of literature is needed to support

the theory and see to what extent

Cris Kuntadi, Nurma Livrianti | 469

communication, resources, and

bureaucratic structures influence the

implementation of performance-based

budgeting policies.

Implementation of Performance-Based

Budgeting Policies

Policy implementation is a way in

which policies are implemented by

administrative agencies at every level

mandated in the policy. Policies can be

implemented and supported by the

implementers of activities. Policy

implementation can integrate policy

objectives with their realization with the

results of government activities.

Iimplementation can also be interpreted as

a process of activities carried out by various

actors so that in the end they will get a

result that is in accordance with the goals

or objectives of the policy itself, (Wijayanti,

2021).

Performance-based budget is a

budgeting system oriented towards

achieving performance that focuses more

on outputs and outcomes and its

implementation can be accounted for so

that the level of efficiency and effectiveness

of a program can be achieved (Nur & Oman

2014). Performance-based budgeting is a

procedure or mechanism to strengthen the

relationship between funds given to

government agencies/agencies with

outcomes and outputs, through budget

allocation based on information about

performance (Anggarini & Puranto, 2010).

Performance-based budgeting is a

budgeting system that orients budgets to

organizational outputs and is closely

related to the vision, mission, and strategic

plans of ministries/agencies. The

characteristic of performance-based

budgeting is the preparation of a budget by

paying attention to the relationship

between funding inputs and the results to

be achieved or outcomes that are finally

able to inform about the effectiveness and

efficiency of an activity (performance-

based budgeting, 2007). The performance-

based budgeting approach was conceived

to address various weaknesses found in

traditional budgets, particularly

weaknesses caused by the absence of

benchmarks used to measure performance

in the achievement of public service goals

and objectives. This approach shifts the

emphasis on budgeting from the previous

one which placed great emphasis on the

measured performance of work activities

and programs. The main focus of this

approach is on the level of efficiency of

organizing activities.

Implementation of performance-based

budgeting policies is a mechanism that

integrates performance information into

the annual budgeting process or on the

allocation of organizational resources. The

dimensions or indicators of the

implementation of performance-based

budgeting policies are a good information

system, the formulation of performance

indicators, a management accounting

system, and analysis and evaluation tools

(Bawono, 2015). Some of the factors

influencing policy implementation are

communication factors, resources,

dispositions or bureaucratic attitudes and

structures. Policy implementation is a

dynamic process that includes the

interaction of many factors. There are four

variables in the implementation of public

470 | Factors Affecting The Implementation of Performance-Based Budgeting Policies:

Communication, Resources, and Bureaucratic Structure

policy, namely communication, resources,

attitudes, and bureaucratic structure

(bureucratic structure). These four factors

must be implemented simultaneously

because each other has a close relationship.

Furthermore, performance evaluation can

be interpreted as the process of assessing

and disclosing policy implementation

issues to provide feedback for improving

the quality of performance. The method of

implementation of the evaluation can be

done by comparing the results against the

target (in terms of effectiveness) and the

realization of resource utilization (seen

from the efficiency side). The success of the

implementation of a public policy is

measured by the process of achieving the

final result in accordance with the

objectives to be achieved and refers to the

policy design that has been made

(Winarno, 2016).

Communication

According to (Ratnaningrum, 2020)

Communication is an activity of conveying

information, both messages, ideas, and

ideas from one party to another in one

work unit or across units that are carried

out directly and indirectly which aims to

provide knowledge and information to

others so that they can influence thinking,

change attitudes, and encourage others to

do certain things.

Communication can be interpreted as

the process of conveying information from

the communicator to the communicant.

Policy communication is the process of

delivering policy information from

policymakers to policy implementers,

(Widodo, 2018). Communication can be

interpreted as the process of conveying

information from the communicator to the

communicant. Policy communication is the

process of delivering policy information

from policymakers to policy implementers,

(Widodo 2018). In addition, communication

is also the delivery of messages and

information about policies between

policymakers to policy implementers

including the transfer of knowledge

consisting of the nature of the policy, the

way of implementation, the boundaries of

norms, and the evaluation of the policy

itself. The communication process is a way

of delivery, clarity and consistency (Edward

in Winarno, 2016).

Communication in everyday life is very

important. Man cannot avoid various forms

of communication because with

communication man can build the

relationships he needs as a social being.

The messaging process should use

effective means to make it easier for

message recipients to understand the

message received. The delivery of the

message can be in the form of gestures,

oral, or written. In communicating, good

communication skills are needed so that

the objectives to be conveyed can be

received and understood well by the

recipient of the message. Communication

between organizations will provide success

in a policy if communication and

coordination between policy implementers

is carried out properly. Communication

between organizations and implementing

activities referred to in this study is a policy

implementer who can communicate

regulatory standards so that accuracy and

consistency are obtained as well as a

measuring tool in policy supervision.

Cris Kuntadi, Nurma Livrianti | 471

Each policy can be implemented

properly if there is effective communication

between policy implementers and target

groups. The goals and objectives of the

policy can be well socialized so as to avoid

any distortion of the policy (Ratnaningrum,

2020). If the policy is to be implemented,

then the implementation instructions must

be understood and clear. If the

implementation instructions are not clear,

then the implementors will experience

confusion about what will be done. In

addition, implementers have the flexibility

to impose their own views on the

implementation of policies, views that may

differ from those of their superiors or views

that should be used as a reference

(Winarno, 2016: 157).

Interactive and dialogical

communication patterns are made possible

by the application of e-government. Both

the government and society are positioning

themselves on the side of the giver and

receive information. This is in line with the

dynamics that continue to develop in

society, both because of the growth of a

culture of free speech as a result of the

reform movement and because of the rapid

development of information and

communication technology that changes a

lot of social values, social, economic,

cultural order, including government (Cris

Kuntadi, 2022).

Edward in Winarno (2016) stated that

implementation will be effective if policy

measures and objectives are understood by

individuals responsible for achieving policy

objectives. Clarity of policy size and

objectives needs to be communicated

appropriately with implementers. The

consistency and uniformity of the base size

and objectives need to be communicated

so that implementors know exactly the size

and purpose of the policy. There are 3

(three) dimensions or indicators in the

policy communication process, namely:

1) Transmission

Transmission is the first factor that

affects policy communication, before

the official implements a decision, he

must be aware that a decision has been

made and an order for its

implementation has been issued. Many

of these decisions are ignored or there

are often misunderstandings of the

decisions issued. The obstacles that

arise in transmitting implementation

commands are:

1) Conflict of opinion between the

executors and orders issued by

policy makers. Conflicts in this

policy will create immediate

obstacles or distortions to policy

communication.

2) Information goes through

multiple layers of bureaucratic

hierarchy as we know,

bureaucracies have a strict

structure and tend to be very

hierarchical. This condition greatly

affects the level of effectiveness of

policy communication. The use of

indirect means of communication

and the absence of specified

communication channels may also

distort the commands of the

executor.

3) The capture of communications

may be hampered by selective

472 | Factors Affecting The Implementation of Performance-Based Budgeting Policies:

Communication, Resources, and Bureaucratic Structure

perception and the refusal of

implementers to be aware of

policy requirements. Sometimes

the executors ignore what is

obvious and try to guess the true

meaning of communication.

The transmission dimension aims to

enable information to be conveyed to

the target group and related parties,

not just to policy implementers. The

government as a policymaker is

expected to be aware of the decisions

that have been made and have issued

warrants for their implementation. Pros

and cons are inevitable. Conflicts of

opinion between the implementers

and the orders issued by policy makers

are one of the triggers. The existence

of bureaucratic hierarchies makes the

level of effectiveness of policy

communication carried out also

slightly hampered. Due to obstacles in

communication, policy implementers

ignore the requirements of a policy.

2) Clarity

The dimension of clarity aims to make

the information received by policy

implementers, target groups and

related parties easy to understand and

clear, so that there are no errors in the

interplay of information. The

vagueness of the communication

message conveyed regarding the

implementation of policies that will

encourage the occurrence of incorrect

interpretations may even contradict

the meaning of the original message.

Factors that drive the vagueness of

policy communication are the

complexity of public policy, the desire

not to disturb community groups, the

lack of consensus regarding the

purpose of policy objectives, problems

in initiating a new policy, avoiding

policy accountability, and the nature of

court policy formation.

Edward in Winarno (2016) explained

that if the policy is implemented as

desired, then the implementation

instructions must not only be accepted

by the policy implementers, but the

communication of the policy must be

clear. The vagueness of the

communication message conveyed

with regard to the implementation of

the policy will encourage incorrect

interpretation and may even conflict

with the meaning of the original

message. Edwards identified six factors

that drive the vagueness of policy

communication, including the

complexity of public policy, the desire

not to interfere with community

groups, the lack of consensus

regarding policy objectives, problems

in initiating a new policy, avoiding

policy accountability and the nature of

court policy formation.

3) Consistency

A policy implementation will be

effective and effective if the

implementation orders are consistent,

that is, the implementation

instructions do not conflict with each

other. If there is conflict, it will

encourage policy implementers to take

loose (flexible) actions in interpreting

and implementing a policy.

Cris Kuntadi, Nurma Livrianti | 473

The effectiveness of policy

implementation is seen from clear and

consistent commands. The consistent

dimension aims that the information

submitted must be consistent so as not

to cause confusion in policy

implementers, target groups and

related parties. Inconsistent policy

implementation orders will encourage

implementers to take leeway in

interpretation and in implementing

policies. Factors that affect the level of

consistency are the complexity of

public policy, the problem of problems

that initiate new programs and the

result of the many unclear goals.

Implementation will be effective if the

measures and objectives of the policy

are understood by the individuals

responsible for achieving the policy

objectives. Clarity of policy size and

objectives needs to be communicated

appropriately with implementers. The

consistency and uniformity of the base

size and objectives need to be

communicated so that implementors

know exactly the size and purpose of

the policy. The dimensions or

indicators of communication are

transmission, clarity and consistency

(Edwards in Winarno, 2016: 156).

Resources

Resources are a very important

element in improving an organization's

service to public needs. One of them is

human resources which are key in towards

the competitive advantage of the

organization so that its quality must

continue to be developed. The dimension

or indicator of a resource is the level of

knowledge and skill (Izzaty, 2011). The

appointing resources of each policy must

be supported by adequate resources, both

human resources and financial resources.

Human resources are the adequacy of both

the quality and quantity of implementors

that can cover the entire target group.

Financial resources are the adequacy of

investment capital for a program/policy.

Both must be considered in the

implementation of government

programs/policies. Because without

reliability the policy implementor becomes

less energetic and runs slowly and soberly.

Meanwhile, financial resources ensure the

sustainability of programs/policies.

Without adequate financial support the

program cannot run effectively and quickly

in achieving goals and objectives (Edwards

in Winarno, 2016).

(Ratnaningrum, 2020) Resources are

everything that implementors use in

achieving goals that have been set through

a policy. Resources are one of the factors

that influence the success of policy

implementation. This is because policy

implementation requires the support of

human resources in the form of quality and

quantity of implementors consisting of all

target groups, financial resources in the

form of budget support, adequate facilities

and infrastructure

Resources are important in good

policy implementation. Indicators used to

see the extent to which resources influence

policy implementation include staff,

information, authority, and facilities

(Edwards in Agustino, 2016:138-139).

Resources in the form of funding are inputs

that can be used to produce the output of

474 | Factors Affecting The Implementation of Performance-Based Budgeting Policies:

Communication, Resources, and Bureaucratic Structure

an organization or Government Agency.

This is closely related to performance

appraisal from an efficient and economical

aspect. To assess government agencies or

agencies for performance achievement is

considered effective if the output produced

can meet the targets and targets that have

been set (C. Kuntadi, 2021).

The effectiveness of the policies

implemented will not run effectively and

well if they are not supported by the

potentials of unavailable resources.

Potential resources will affect the policy

implementation process. Some of the

things included in the resource are the

relatively large number of staff who are

accompanied by adequate capabilities and

expertise for the purposes of policy

implementation (Edwards in Winarno,

2016).

Bureaucratic Structure

Bureaucratic structures are

organizational forms that become the

overall implementers of policies for

carrying out collective agreements in order

to solve social problems in modern life.

Basically, policy implementers know what is

being done and have the desire and

resources to do so, but in doing so they are

still hampered by the organizational

structures in which they carry out activities.

The dimension or indicator of bureaucratic

structure is the division of authority and

relations between organizational units

(Winarno, 2016).

Bureaucracy is actually a system for

turning complex work into simple, and also

a way to save money in administration. If

the traditional bureaucracy is unable to do

that then e-bureaucracy is the next hope,

although the challenges are also quite

tough, including the existence of a number

of budgets that must be allocated. The

bureaucratic chain from upstream to

downstream and the volume of work

covering all fields sometimes make the

bureaucracy run slowly. The

implementation of bureaucratic tasks

carried out conventionally so far has also

caused high costs. Not to mention the

impact caused by such a system in the form

of corruption, misappropriation, and fraud.

It's no wonder that many people are

skeptical when it comes to clean

bureaucracy. Because in such a very fat

system it is difficult to imagine that an

activity will run effectively and efficiently

(Cris Kuntadi, 2022).

At the government level, optimizing

the use of advances in information

technology can eliminate bureaucratic

organizational barriers. Information

technology can also form a network of

management systems and work processes

that allow government agencies to work in

an integrated manner to simplify access to

all information and public services. Thus, all

state institutions, society, the business

world, and other interested parties can at

any time make optimal use of government

information and services. In order for the

transformation process towards e-

government to be carried out as well as

possible, strong leadership in each

institution or unit of government is needed.

According to Edwards in Winarno

(2016) "the bureaucratic structure explains

how policies will be structured and explains

how resources will be allocated. The

Cris Kuntadi, Nurma Livrianti | 475

bureaucratic structure contains an element

of coordination because in the operation of

the organization involves many parties or

agencies. Bureaucratic structure becomes

important in the implementation of

policies". The bureaucratic structure has

two main characteristics, namely:

1. Standard operating procedures (SOPs)

develop as an internal response to

limited time, resources from

implementers, and a desire for

uniformity in the work of complex and

widespread organizations. With SOPs,

implementers can use the available time,

officials in complex organizations can

uniformize actions that can create great

flexibility and security in the

implementation of regulations.

2. Fragmentation stems from pressures

outside the bureaucratic unit which is an

interest group outside the bureaucracy.

The bureaucratic structure consists of

organizational structure, division of duties

and authorities (tupoksi), relationships

between organizations, and standard

operating procedures (SOPs) in

implementing performance-based

budgeting policies (Ratnaningrum, 2020).

Table 1: Relevant past research

No

Author (year)

Previous Research

Results

Similarities with this

article

Differences with this

article

1

(Polii et al., 2017)

Regulation,

disposition or

attitude and

communication have

a positive and

significant impact on

the implementation

of performance-

based budgeting

policies

Communication

affects the

implementation of

performance-based

budgeting policies

Regulation and

disposition or

positive and

significant attitude

towards the

implementation of

performance-based

budgeting policies

2

(Badjuka, 2019)

Communication,

resources,

dispositions or

bureaucratic

attitudes and

structures have a

positive and

significant effect on

the implementation

of performance-

based policies

Communication,

resources and

bureaucratic

structure influence

the implementation

of performance-

based budgeting

policies

Disposition or

attitude has a

positive and

significant effect on

the implementation

of performance-

based policies

476 | Factors Affecting The Implementation of Performance-Based Budgeting Policies:

Communication, Resources, and Bureaucratic Structure

No

Author (year)

Previous Research

Results

Similarities with this

article

Differences with this

article

3

(Primary, 2017)

Communication,

resources,

dispositions or

bureaucratic

attitudes and

structures have a

positive and

significant effect on

the implementation

of performance-

based policies

Communication,

resources, and

bureaucratic

structure have a

positive and

significant effect on

the implementation

of performance-

based policies

Disposition or

attitude has a

positive and

significant effect on

the implementation

of performance-

based policies

4

(Kurniasih et al.,

2013)

Communication,

resources,

dispositions/attitudes

of implementers, and

bureaucratic

structures positively

affect the

implementation of

performance-based

policies

The similarity with

this journal is that

both examine

communication,

resources and

bureaucratic

structures.

Communication,

resources and

bureaucratic

structure influence

the implementation

of performance-

based policies

Disposition/attitude

of implementers

positively affects the

implementation of

performance-based

policies

5

(Surianti &

Dalimunthe, 2015)

Regulation,

communication, and

resources, positively

and significantly

affect the

implementation of

performance-based

budgeting policies

The similarity with

this journal is that

both research

communication and

resources. Resources

influence the

implementation of

performance-based

budgeting policies

Regulation has a

positive and

significant effect on

the implementation

of performance-

based budgeting

policies

6

(Cris Kuntadi,

2022)

External pressures,

organizational

commitment, and

There are no

similarities

External pressures,

organizational

commitment, and

Cris Kuntadi, Nurma Livrianti | 477

No

Author (year)

Previous Research

Results

Similarities with this

article

Differences with this

article

understanding of the

financial

management

procedure system

have a positive and

significant impact on

the implementation

of performance-

based budgeting

policies

understanding of the

financial

management

procedure system

have a positive and

significant impact on

the implementation

of performance-

based budgeting

policies

7

(Ontorael, 2018)

Budget, human

resources and

information systems

have a positive and

significant effect on

the implementation

of performance-

based budgeting

policies

The similarity with

this journal is that

both research

human resources.

Human resources

influence the

implementation of

performance-based

policies

Budgets and

information systems

have a positive and

significant effect on

the implementation

of performance-

based budgeting

policies

8

(Ningtias, 2019;

Surianti &

Dalimunthe, 2015)

Transformational

leadership,

organizational

commitment, and

human resource

competence

positively influence

the implementation

of performance-

based budgeting

The similarity with

this journal is that

both examine

organizational

communication and

human resources.

Human resources

influence the

implementation of

performance-based

policies

Organizational

leadership and

commitment have no

effect on the

implementation of

performance-based

policies

9

(Maulina, 2019)

Human resources do

not have a positive

and significant effect

on the

implementation of

performance-based

budgeting policies

-

Leadership style

factors, monitoring

and evaluation, and

regulation have no

effect on the

implementation of

performance-based

budgeting policies

478 | Factors Affecting The Implementation of Performance-Based Budgeting Policies:

Communication, Resources, and Bureaucratic Structure

No

Author (year)

Previous Research

Results

Similarities with this

article

Differences with this

article

10

(Gowasa et al.,

2020)

Human resources

have a positive and

significant effect on

the implementation

of performance-

based budgeting

policies

The similarity with

this journal is that

both research

human resources.

Human resources

influence the

implementation of

performance-based

budgeting policies

-

MATERIALS AND METHODS

This method of writing scientific

articles is a literature review (library

research) and qualitative methods through

identifying some relevant literature

classified based on the relevance and

quality of the literature found and

examines the theory and relationships or

influences between variables from books

and journals both off line in the library and

online sourced from Mendeley, Scholar

Google and other online media.

In qualitative research, literature review

should be used consistently with

methodological assumptions. This means

that it must be used inductively so as not

to direct the questions posed by the

researcher. One of the main reasons for

conducting qualitative research is that the

research is exploratory, (Ali & Limakrisna,

2013).

Based on this relevant literature, it is

analyzed using narrative patterns, with the

aim of:

1) Deepen knowledge of the

implementation of performance-based

budgeting policies and help readers to

understand together about the factors

that affect budgeting performance in

the government sector in Indonesia.

In this study, it offers an explanation of

the factors that affect budgeting

performance in the context of government

in Indonesia.

RESULTS AND DISCUSSION

Based on theoretical studies and

relevant previous research, the discussion

of this literature review article in the

concentration of State Financial

Management is:

1. The Effect of Communication on the

Implementation of Performance-Based

Budgeting Policies.

(Polii et al., 2017) analyzed the

investigation of the knowledge and

understanding of members of the Regional

Cris Kuntadi, Nurma Livrianti | 479

People's Representative Council (DPRD)

about performance-based budgeting in

Bitung City. The results of the analysis show

that communication has an effect in

performance-based budgeting.

Communication is a contributing factor to

performance-based budgeting in the

partnership relationship between the

legislature and the executive. In addition,

communication is also a supporting factor

in the implementation of performance-

based budgeting in Bitung City. The DPRD

can establish communication between the

community, local governments, and the

central government through political

communication.

(Badjuka, 2019) analyzed the

implementation of the SIRBA policy in

improving the quality of financial

management at the Gorontalo State

University (BLU UNG) public service agency.

The results of the analysis show that

communication is influential in the

implementation of the SIRBA policy. The

observations showed that there were

formal and informal meetings that

discussed planning and budgeting

activities at the faculty and work unit levels.

As for smoothing communication, the

delivery of messages is carried out via

telephone, WA and SMS from the

leadership to subordinates and between

fellow implementers related to the

implementation of the RBA. These various

activities are evidenced by documents in

the form of invitation letters for

coordination meetings at the university and

faculty levels and photos of coordination

meeting activities.

Pratama, A.F. (2017) examined the

factors influencing the implementation of

performance-based budgeting policies in

the work unit of the Secretariat General of

Disease Prevention and Control of the

Ministry of Health. Based on the results of

the research conducted, it can be

concluded that communication affects the

implementation of performance-based

budgeting policies, where communication

dimensions or indicators (transmission

factors, clarity factors, and consistency

factors) affect the dimensions or indicators

of implementation of performance-based

budgeting policies. Implementation of

performance-based budgeting policies in

the P2P Task Force based on effective

communication factors.

(Kurniasih et al., 2013) analyzed the

effect of e-government policy

implementation on the performance of

cimahi city apparatus. Based on the results

of the research conducted, it can be

concluded that communication, resources,

and bureaucratic structures have made a

meaningful contribution to the success of

policies. The communication dimension

shows that the number of respondents who

consider openness in the delivery of

information in the implementation of e-

government in Cimahi City is quite high.

This can be seen from the two-way

communication that has been established

quite well between the apparatus in various

SKPDs in Cimahi City. In the resource

dimension, the resources of the e-

government implementing apparatus in

Cimahi City are sufficient. This can be seen

from the number of apparatuses and clear

task descriptions that are adjusted to the

expertise of each apparatus. In addition,

budget resources are sufficient in the

480 | Factors Affecting The Implementation of Performance-Based Budgeting Policies:

Communication, Resources, and Bureaucratic Structure

implementation of e-government in Cimahi

City which is accompanied by budget

accountability in the implementation of e-

government in Cimahi City is sufficient as

can be seen from the expenditures that are

in accordance with needs. The facilities and

infrastructure in the implementation of e-

government are quite feasible, the

information is sufficient and clear enough.

Likewise, the clarity of authority is self-

explanatory. This can be seen from the clear

division of duties between apparatuses in

accordance with the position of each

apparatus.

2. The Effect of Resources on the

Implementation of Performance-Based

Budgeting Policies

(Surianti & Dalimunthe, 2015) analyzed

The Implementation of Performance Based

Budgeting In Public Sector (Indonesia Case:

A Literature Review). The results of the

analysis show that human resource

problems in the government sector in

Indonesia still remain the main problem,

especially in regional governments.

(Badjuka, 2019) analyzed the

implementation of the SIRBA policy in

improving the quality of financial

management at the Gorontalo State

University (BLU UNG) public service agency.

The results of the analysis show that the

resources on the BLU UNG can be relied

upon to implement the SIRBA policy.

Human resources of the RBA operator team

who are adequate as the spearhead of the

SIRBA policy implementor element have

the ability and expertise based on the

needs recruited based on basic

competencies in the field of planning,

mastery of information technology, and the

field of budgeting and finance and have

high dedication and willingness to work, so

that what has been planned in the Strategic

Plan can be implemented as planned. In

addition, SIRBA's supporting facility

resources displace an integrated

management information system in a

computerized system that processes and

integrates the entire RBA planning flow in

the form of a network of coordination,

reporting and business and budget

planning procedures to support

performance and obtain information

quickly, precisely, accurately, transparently,

accountably and efficiently. The results of

the observations found the

implementation of the UNG Position

Analysis. In addition, to ensure the

continuity of HR expertise, technical

training was carried out for the RBA

Operator Team. From the aspect of

supporting activities, it is supported by a

website that can be accessed through

www.ung.ac.id supported by a local

network connected to the FO network that

connects and integrates all work units in

UNG and wireless networks using radio

access transmitters that are distributed

throughout the campus area in the form of

hotspots. Progress in implementing the

SIRBA policy on BLU UNG is highly

dependent on the effectiveness of the

human resources in it. The ability of

implementors plays an important role and

determines their success. This is in line with

Abdussamad's research (2013) that an

organization in carrying out its activities will

always face humans as a dynamic resource

and have the ability to continue to grow.

Cris Kuntadi, Nurma Livrianti | 481

(Ontorael, 2018) examined analisis of

factors influencing the effectiveness of

performance-based budget

implementation in the Regional Financial

and Asset Management Agency of North

Sulawesi Province. Based on the results of

the research conducted, it can be

concluded that human resources have a

positive and significant influence on

performance-based budgets. Human

resources play an important role in the

implementation of performance-based

budgeting owned by the government,

where with the availability of human

resources who are able to manage the

implementation of budgeting and

maximize the budget owned by local

governments to achieve priority goals in

development to improve regional

capabilities.

(Ningtias, 2019) analyzed the influence

of transformational leadership,

organizational commitment and human

resource competence on the target of

implementing a performance-based

budget on the regional revenue agency of

Jember Regency. The results of the analysis

show that the competence of human

resources affects the implementation of

performance-based budgets. This is

because human resources in Bappeda

Jember Regency use their creativity in

completing their work.

(Maulina, 2019) analyzed the factors

influencing the implementation of

performance-based budgeting in Banda

Aceh City. The results of the analysis show

that human resources have no significant

effect on the implementation of

performance-based budgeting. Human

resources are not one of the determining

factors for the success of performance-

based budget implementation within the

scope of the Banda Aceh city government.

(Gowasa et al., 2020) analyzed the

effect of human resource competence on

performance-based budget

implementation. The results of the analysis

show that the competence of human

resources has a significant effect on the

implementation of a performance-based

budget. The implementation of

competencies is carried out by applying

several things to obtain competent human

resources, namely having knowledge of

work, having skills in work and having a

responsible work attitude.

3. The Effect of Bureaucratic Structure on

the Implementation of Performance-

Based Budgeting Policies

(Kurniasih et al., 2013) analyzed the

effect of e-government policy

implementation on the performance of

cimahi city apparatus. Based on the

research results, it can be concluded that

the bureaucratic structure has made a

meaningful contribution to the policy's

success. SOPs are readily available and the

fragmentation (spread of responsibility) in

the implementation of e-government is

already quite high. Based on the results of

the research, the SOP of Cimahi City has

benefits as a standardization that must be

done in completing work, reducing errors

and omissions. The SOP also ensures that

the established and scheduled process can

take place as it should. In addition, SOPs

will ensure the availability of data for

process improvement so that

accountability by reporting and

documenting results in the implementation

482 | Factors Affecting The Implementation of Performance-Based Budgeting Policies:

Communication, Resources, and Bureaucratic Structure

of tasks increases. The efficiency and

effectiveness of task execution also

increase because SOPs provide concrete

ways to improve performance and avoid

variations in the process of implementing

activities and overlapping task

implementation. Thus, SOPs can help

government administration officials

involved in the service process become

more independent so that the information

needed in the preparation of standards and

providing performance information is

adequately available. Bureaucratic structure

influences the implementation of

performance-based budgeting policies.

This study's results align with the research

conducted by (Kurniasih et al., 2013).

(Badjuka, 2019) analyzed the

implementation of the SIRBA policy in

improving the quality of financial

management at the Gorontalo State

University (BLU UNG) public service agency.

The results of the analysis show that the

bureaucratic structure in the

implementation of the SIRBA policy is

based on Standard Operating Procedures

(SOP) which regulates the flow of SIRBA

implementation which provides uniformity

in the actions of implementors, resulting in

excellent flexibility, as well as fairness in the

implementation of the rules. In addition,

there is a distribution of responsibilities

consisting of leaders, financial officials and

technical officials who have carried out

functions and responsibilities

proportionally, namely preparing the

annual RBA, as well as conveying

operational performance accountability,

coordinating the preparation of the RBA

and preparing documents for the

implementation of the BLU UNG budget,

technical persons in their respective fields

who are obliged to, among others, compile

planning for technical activities in their

fields, carry out technical activities in

accordance with the RBA and account for

operational performance in their field

Conceptual Framework

Based on the formulation of the

problem, theoretical studies, relevant

previous research and discussion of the

influence between variables, then in the

process of thinking about this article as

below.

Figure 1: Conceptual Framework

Dpalm source

Communication

Implementation of

Performance-Based

Budgeting Policies

e1

H3

Bureaucratic Structure

H1

H2

H3

Cris Kuntadi, Nurma Livrianti | 483

Based on the

conceptual framework

image above, communication, resources,

and bureaucratic structures influence the

implementation of performance-based

budgeting policies. Apart from the three

exogen variables that affect the

implementation of performance-based

budgeting policies, there are many other

variables that affect it, including:

a) Organizational commitment: (C.

Kuntadi., 2022), (Ningtias, 2019).

b) External Pressure: (C. Kuntadi., 2022)

c) Understanding the system of

procedures: (C. Kuntadi., 2022).

d) Attitude or Disposition: (Polii et al.,

2017), (Badjuka, 2019), (Pratama, A.F.,

2017), (Kurniasih, 2013)

e) Regulation: (Polii et al., 2017), (Surianti,

M., & Dalimunthe, A.R, 2015),

f) Budget: (Ontorael, 2018)

g) Information systems: (Ontorael, 2018)

h) Leadership: (Ningtias, 2019), (Maulina,

2019)

CONCLUSIONS

Based on relevant theories and articles

and discussions, hypotheses can be

formulated for further research:

1. Communication affects the

implementation of performance-based

budgeting policies.

2. Resources influence the

implementation of performance-based

budgeting policies.

3. Bureaucratic structure affects the

implementation of performance-based

budgeting policies.

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under the terms and conditions of the Creative Commons Attribution (CC BY SA) license

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