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Finance, Accounting and Business Analysis 
Volume 5 Issue 2, 2023 

http://faba.bg/       
ISSN  2603-5324 

 

Implementation of the Money Follow Program Concept in Performance-

Based Budgeting in Indonesia 

 

Siti Karlina1* , Ira Novianty2  

Government Management Accounting, Politeknik Negeri Bandung, Bandung, Indonesia1 

Government Management Accounting, Politeknik Negeri Bandung, Bandung, Indonesia2 

* Corresponding author 

 

 

Info Articles   Abstract 

 
History Article: 

Submitted 5 July 2023 
Revised  4 December 2023 

Accepted 9 December 2023 
 

 Purpose: The purpose of this study is to discuss how the implementation 

of the money follow program concept in performance-based budgeting 

in local governments in Indonesia. 

Design/Methodology/Approach: This study uses descriptive research 

by using questionnaires in data collection. The questionnaires were 

distributed to regional work units as an element of implementing local 

government policies in Indonesia.  

Findings: The results showed that the implementation of the money 

follow program concept in the implementation of performance-based 

budgeting in local governments in Indonesia has been well implemented. 

However, there are still obstacles, such as coordination between regional 

apparatus work units that is still difficult, the system used in planning 

and budgeting that is not yet adequate, and the limited budget owned by 

local governments to finance priority programs and activities. 

Practical Implication: The implication of this research for local 

governments in Indonesia is to provide input to evaluate the system used 

in planning and budgeting and improve coordination between regional 

apparatuses so that the implementation of the money follow program 

concept can run smoothly. 

Originality/Value: This research examines the implementation of the 

money follow program concept, which is a new concept in performance-

based planning and budgeting in local governments in Indonesia. 

Paper Type: Research paper. 

 

Keywords:  

Money follow program, 

performance-based 

budgeting. 
 

 

JEL: H60, H61, H70.  

   
* Address Correspondence:   

E-mail : siti.karlina.amp19@polban.ac.id1 

ira.novianty@polban.ac.id 2 

 

 

mailto:siti.karlina.amp19@polban.ac.id
mailto:ira.novianty@polban.ac.id
https://orcid.org/0009-0001-2403-2600
https://orcid.org/0000-0001-7913-6071


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INTRODUCTION 

 

Regional autonomy is the right and authority of regions to manage their government affairs in the 

community's interests (Christia and Ispriyarso 2019; Sufianto 2020). Since regional autonomy, local 

governments have been given the authority to regulate and manage their government affairs, including 

regional financial management. The existence of budgeting reforms marked by the issuance of a package of 

laws in state finance, namely Law Number No. 17 of 2003 about on State Finance, Law Number No. 1 of 

2004 on State Treasury, and Law Number No. 15 of 2004 on Examination of State Financial Management 

and Responsibility has consequences for the application of performance-based budgeting in regional 

financial management (Wardani and Silvia 2021). 

Performance-Based budgeting is an approach to budgeting that focuses on the relationship between 

inputs, outputs, and outcomes as well as the effectiveness and efficiency of each program and activity 

implementation (Halim and Iqbal 2019; Borce and Nikolov 2015). The purpose of implementing 

performance-based budgeting is to create effectiveness and efficiency in government spending (Borce and 

Nikolov 2015). Since its inception, the concept used in performance-based budgeting is the money-follow 

function, which focuses on budget allocation based on the functions of each unit in government agencies 

(Ningsih, Wirahadi, and Fontanella 2018). However, over time, the facts on the ground show that there are 

still weaknesses in the concept, including stalled projects at the central level and the local government level 

due to a mismatch between planning and budgeting as well as spending that exceeds the set budget and 

political influence on Budgeting (Mauro, Cinquini, and Pianezzi 2019). Therefore, since 2014 the central 

government has made a policy to change the concept of performance-based budgeting from money follow 

function to money follow the program (Ningsih, Wirahadi, and Fontanella 2018).  

The money follow program concept is a planning and budgeting concept that focuses on budget 

allocations based on the weight of programs/activities following the objectives set by the government and 

has a direct impact on society (Ningsih, Wirahadi, and Fontanella 2018; Suwanda et al. 2021). This concept 

only began to be applied at the ministry/agency/local government level starting in 2016. It was further 

stipulated in Government Regulation No. 17 of 2017 on synchronize the National Development Planning 

and Budgeting Process. Of the 38 provinces in Indonesia, the West Java Provincial Government is one of 

the local governments implementing the money follow program concept in its planning and budgeting since 

2018. Based on data from the budget realization report of provincial governments throughout Indonesia in 

2022, the West Java Provincial Government ranks first in the realization of the highest local government 

budget expenditure, which is 88.00 %, and the fifth highest local government budget revenue realization, 

which is 63.40 %. Therefore, based on the phenomena described above, the purpose of this study is to discuss 

how the implementation of the money follow program concept in performance-based budgeting in local 

governments in Indonesia. 

 

METHODS 

 
The type of research used in this research is descriptive research. The location of this research is the 

West Java Provincial Government. The population in this study was 36 Local government work unit of 

West Java Province. The sampling technique used is saturated sampling or census because all the population 

is used as a sample, so the total sample in this study is 36 Local government work unit of West Java Province. 

The type of data used in this study is subject data (self-report data) in the form of opinions from respondents 

in each Local government work unit of West Java Province. The data source used in this study is primary 

data from distributing questionnaires given to 36 Local government work unit of West Java Province. 

Respondents in this study were local government work unit heads, planning/budgeting sections, and 

finance/accounting sections of each Local government work unit in West Java Province. The data analysis 

used in this research is descriptive. Descriptive analysis in this study explains the choice of respondents' 

answers from a scale of 1 to 5, which reflects the level of answers from very bad to very good. Descriptive 

calculations are carried out by looking at the mode and calculating the average answer from Local 

government work unit employees of West Java Province. The following is the formula used to calculate the 

average. 

Average = ∑
𝑥

𝑛
 (1) 

where: 

x : Total observed value 

n : Number of observations 

 

After calculating the average results of respondents' answers, the scale range is calculated to see the 



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129 

 

tendency of respondents' answers to each statement which can be calculated using the following formula. 

 

Scale Range =  
(Highest Score − Lowest Score)

Many Classes
=  

(5 − 1)

5
= 0,8 (2) 

 

Based on the scale range, an interpretation is made based on the predetermined scale. Table 1 is a 

scale interpretation based on the scale range according to Sugiyono (2021). 

 

Table 1. Scale Range 

Range Interpretation 

1.00 – 1.79 Strongly Disagree / Very Unfavorable 

1.80 – 2.59 Disagree / Not Good 

2.60 – 3.39 Less Agree / Less Good 

3.40 – 4.19 Agree / Good 

4.20 – 5.00 Strongly Agree / Very Good 

Source: Sugiyono (2021). 

 

RESULTS AND DISCUSSIONS  

 

Assessment of the money follow program concept 

The money follow program variable has three dimensions: thematic-holistic, integrative, and spatial 

(Christy, Walewangko, and Wauran 2019). These three dimensions are divided into eight indicators. The 

following summarises respondents' answers to the indicators in each dimension of the money-follow 

program variable. 

 

Thematic-Holistic 

Based on Annex I Presidential Regulation No. 79 of 2017 on the 2018 Government Work Plan, the 

thematic-holistic dimension relates to priority themes in preparing the government work plan for the central 

and local governments. The thematic-holistic dimension has four indicators which can be seen in Table 2 

Thematic-Holistic Dimension Questionnaire Results are below. 

 

Table 2. Thematic-Holistic Dimension Questionnaire Results 

Indicator 1 2 3 4 5 Average Interpretation 

MFP1 Detailed planning 

of priority 

programs and 

activities each 

year. 

0% 1.3% 11.7% 42.9% 44.2% 4.299 Strongly Agree 

MFP2 Changes in 

programs and 

activities every 

year. 

2.6% 9.1% 19.5% 27.3% 41.6% 3.961 Agree 

MFP3 Always follow the 

changes in the 

local government 

budget. 

0% 1.3% 6.5% 14.3% 77.9% 4.688 Agree 

MFP4 Integration 

between local 

government work 

units in planning 

priority programs 

and activities. 

0% 1.3% 15.6% 15.6% 67.5% 4.494 Strongly Agree 

Thematic-Holistic Dimension Assessment  4.361 Very Good 

Source: Primary data processed (2023). 

 

Based on the results of the distribution of questionnaires which can be seen in Table 2 above, 44.2 % 

of respondents strongly agreed that there are already details related to priority programs and activities that 

will be implemented next year. This is because the programs and activities to be implemented are already 



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contained in the Long Term Development Plan and Regional Medium Term Development Plan documents 

of West Java Province. However, in planning and budgeting there are still obstacles, namely the limited 

budget for programs and activities, so each local government work unit must find other alternatives so that 

these limitations do not reduce the quality of the implementation of each program and activity. In addition, 

the budget proposed by each local government work unit sometimes differs significantly from the amount 

approved by the West Java Provincial Government. A total of 41.6 % of respondents, with an average of 

3.961 agreed that the programs and activities planned by each Local government work unit in West Java 

Province had changed every year. These changes are conditional, for example due to the COVID-19 

pandemic, adjusting activities and schedules for implementing activities, shifting, refocusing, and adding to 

the budget.  

A total of 77.9% of respondents with an average of 4.688 agreed that they followed the changes in 

the local government budget according to instructions from the West Java Provincial Government. For 

example, in 2022, there were changes in the local government budget, namely for regional revenue from 

Rp31.54 Trillions to Rp32.10 Trillions (an increase of 1.78%); regional expenditure from Rp31.5 Trillions 

to Rp33.98 Trillions (an increase of 7.79%); financing receipts from Rp742.37 Billions to Rp2.66 Trillions 

(an increase of Rp1.92 Trillions); and financing expenditure from Rp757.54 Billions to Rp782.84 Billions 

(an increase of Rp25.3 Billions). The change in the financing revenue budget is due to the remaining over 

calculation of the previous year's budget based on the audit results from Audit Board of the Republic of 

Indonesia. Meanwhile, the changes in financing expenditures are allocated to meet the needs of the West 

Java Governor Election reserve fund in 2023 and the additional allocation of working capital to provincial 

enterprises. However, there are still obstacles in the system used in the local government budget changes, 

namely local government information system. When changes are made, sometimes local government 

information system errors are due to the large number of accesses each local government work unit makes. 

In addition, the components listed in local government information system are incomplete, especially those 

in capital expenditure. When there is a previous rotation, each local government work unit must update the 

accounts in local government information system again by coordinating with local government finance and 

asset office. A total of 66.2 % of respondents with an average of 4.473 strongly agreed that they coordinate 

with other local government work units in planning programs and activities that will be implemented over 

the next year. The coordination was carried out at the West Java Province local government work unit 

forum. The purpose of the local government work unit forum is to align the programs and activities of each 

local government work unit with the proposed programs and activities from the Musrenbang governement-

wide work plans in West Java Province. The existence of coordination between local government work 

units in planning and budgeting can encourage the creation of a collaboration between local government 

work units in the success of the  Juara program through the team of teams. 

 

Integrative 

Based on Annex I Presidential Regulation No. 79 of 2017 on the 2018 Government Work Plan, the 

integrative dimension relates to the resources used to implement priority programs and activities. The 

integrative dimension has two indicators that can be seen in Table 3 below. 

 

Table 3. Integrative Dimension Questionnaire Results 

Indicator 1 2 3 4 5 Average Interpretation 

MFP5 Integration between 

local government 

work units in the 

implementation of 

priority programs 

and activities. 

0% 0% 14.3% 29.9% 55.8% 4.416 Agree 

MFP6 Integration of 

funding sources for 

the implementation 

of priority programs 

and activities.  

0% 0% 2.6% 24.7% 72.7% 4.701 Strongly Agree 

Integrative Dimension Assessment 4.559 Strongly Agree 

Source: Primary data processed (2023). 

 

Based on Table 3 above, 55.8 % of respondents with an average of 4.416 agreed that they coordinated 

with other local government work units in implementing priority programs and activities. Coordination here 

is specifically carried out between the West Java Provincial local government work unit and the West Java 

Provincial Bappeda as the regional apparatus tasked with carrying out government affairs in the planning, 



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controlling, and evaluating regional development in West Java Province. However, there are still obstacles 

in this coordination related to the time and busyness of each local government work unit with their internal 

affairs. Each program and activity carried out by the local government work unit of West Java Province has 

minimum standards of service as a guideline for determining the type of essential services and quality of 

services in providing services to the community. Based on the West Java Provincial Regional Government 

Implementation Report, there are still problems in the implementation of these minimum service standards, 

namely not optimal community access to education because there are still sub-districts that do not have 

public schools, there are still districts/cities that have not reported in the event of a disaster or outbreak, the 

budget for disasters and outbreaks has not been allocated equally to all districts/cities, the available 

infrastructure, especially in the field of public works, is not all supportive, the budget refocusing in 2021 has 

caused the service budget for communities affected by the enforcement of local regulations and Head Local 

Government Regulation in West Java Province to be unavailable, and the COVID-19 pandemic has caused 

restrictions on activities between regions, causing several programs and activities to be hampered.  

A total of 72.7% of respondents with an average of 4.701 also agreed that there is integration of 

funding sources in implementing priority programs and activities of West Java Province. The primary source 

of funding for implementing these programs and activities is the West Java Provincial local government 

budget. Still, there is also funding from revenue sharing fund, general allocation fund, special allocation 

fund, and grants. In 2023, the West Java Provincial Government received transfer funds from the central 

government in the form of revenue sharing fund amounting to Rp2,198,044,917,000 originating from taxes 

and natural resources; general allocation fund of Rp3,298,968,208,000; special allocation fund of 

Rp5,033,727,259,000; and grants of Rp7,752,000. The general allocation funds obtained were allocated to 

finance the payroll of Government Employees with Employment Agreement formations, village funding, 

education, health, and public works. The special allocation funds obtained by the West Java Provincial 

Government are divided into physical special allocation fund and non-physical special allocation fund. 

Physical special allocation funds are allocated to finance education, health, irrigation, agriculture, marine 

and fisheries, and small and medium industries. 

Meanwhile, non-physical special allocation funds are allocated to finance operational assistance for 

education units, regional civil servant teacher allowances, operational assistance for organizing museums 

and cultural parks, health operational assistance, capacity building funds for cooperatives and micro and 

small businesses, funds for women and child protection services, and investment facility funds. Grants 

obtained by the West Java Provincial Government came from foreign loans that were granted amounting 

to Rp7,752,000. The funds were used to finance the IPDMIP (Integrated Participatory Development and 

Management of Irrigation Project) program. The IPDMIP program is a West Java Provincial government 

program that aims to create a sustainable irrigation system. 

 

Spatial 

Based on Annex I Presidential Regulation No. 79 of 2017 on the 2018 Government Work Plan, the 

spatial dimension relates to the clarity of function and integration of the location of the implementation of 

priority programs and activities. The spatial dimension has two indicators that can be seen in Table 4 below. 

 

Table 4. Spatial Dimension Questionnaire Results 

Indicator 1 2 3 4 5 Average Interpretation 

MFP7 There is a precise 

location of each 

program and activity 

planned by each 

local government 

work unit. 

1.3% 0% 14.3% 40.3% 44.2% 4.260 Strongly Agree 

MFP8 There is a connection 

between the 

infrastructure needed 

in each program and 

activity. 

0% 0% 16.9% 49.4% 33.8% 4.169 Agree 

Spatial Dimension Assessment 4.215 Very Good 

Source: Primary data processed (2023) 

 

The spatial dimension is one of the approaches used in preparing the 2018 governement-wide work 

plans (Government Work Plan). The spatial dimension relates to the function of locations integrated with 

implementing priority programs and activities. Based on Table 4 above, 44.2% of respondents with an 



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average of 4.260, strongly agree that each program and activity planned by them is evident where the 

program and activity will be implemented. This is because all complicated matters relating to the programs 

and activities to be implemented, one of which is the location, must be included in the planning documents 

and adjusted to the locus of the activities to be implemented. For example, one of the activities in the West 

Java Provincial Government program in the health sector is Integrated Health Center and Champion. 

During the planning of the 2023 program and activities, the West Java Provincial Government has 

determined that the locus of the Integrated Health Center and Champion activities in 2023 is in eight 

districts/cities in West Java, including Cirebon City, Pangandaran Regency, Cirebon Regency, Kuningan 

Regency, Banjar City, Cianjur Regency, Sukabumi Regency, and Tasikmalaya City.  

A total of 49.4 % of respondents, with an average of 4.169, also agreed that the available infrastructure 

had supported implementing programs and activities to be carried out by the West Java Provincial local 

government work unit. This is related to the regional development priorities of West Java Province in 2023, 

one of which is the development of regional connectivity infrastructure and environmental management, as 

well as the development of tourism destinations and infrastructure. However, based on BPS data in the West 

Java in Figures 2023 report, of the total length of West Java roads, namely 28,030.12 KM, there is 2,015.96 

KM of roads in a state of disrepair and 2,408.82 KM of roads in a state of heavy damage. In addition, based 

on the West Java Province local government implementation report, land facilities that support the 

implementation of public works affairs are not all owned by the government, so it requires a sufficient budget 

and a long negotiation to free the land.  

Based on the explanation above, the assessment of each local government work unit on the 

application of the money follow program concept in planning and budgeting can be seen in Table 5 below. 

 

Table 5. Money Follow Program Variable Assessment  

No Dimensions Average Interpretation 

1 Thematic-Holistic 4.361 Very Good 

2 Integrative 4.559 Very Good 

3 Spatial 4.215 Very Good 

Money Follow Program Variable Assessment 4.378 Very Good 

Source: Primary data processed (2023). 

 

Table 5 above shows that the average assessment of the application of the money follow program 

concept is 4.378 or classified as very good criteria because the implementation of the money follow program 

concept has precise planning and coordination between local government work units in planning, budgeting, 

and implementing government priority programs/activities, and a precise location of each planned 

program/activity. However, the assessment results show a value that is not optimal at 5.00 because in the 

implementation of the money follow program concept, there are still obstacles, including the system used 

to compile/revise the local government budget; sometimes errors during working hours, there are still 

problems in implementing minimum standards of service, and not all infrastructure that supports the 

implementation of priority programs and activities is adequate. 

 

Performance based budgeting 

Performance-based budget variables have five indicators: budget planning, budget implementation, 

budget transparency and accountability, budget efficiency and effectiveness, and performance evaluation 

(Anggraeni and Saleh 2020; Ginanjar et al. 2019). These five dimensions are divided into ten indicators. 

The following is a summary of respondents' answers to indicators in each dimension of the performance-

based budget variable. 

 

Budget planning 

Budget planning is a stage to determine steps and strategies for achieving predetermined goals 

(Triyono, Kalangi, and Alexander 2019). Budget planning made by local governments needs to be adjusted 

to the strategic plan that has been determined because the strategic plan is the main guideline for achieving 

the objectives of local government organizations (Adhi, Hakim, and Makmur 2019). Respondents were 

asked to assess the budget planning carried out by their respective local government work units. The 

following is Table 6 of the Budget Planning Dimension Questionnaire Results. 

  



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Table 6. Budget Planning Dimension Questionnaire Results 

Indicator 1 2 3 4 5 Average Interpretation 

PBB1 There is a link 

between budget 

planning and the 

West Java Province 

local government 

work unit strategic 

plan. 

0% 0% 7.8% 57.1% 35.1% 4.273 Strongly Agree 

Budget Planning Dimension Assessment 4.273 Very Good 

Source: Primary data processed (2023) 

 

Based on Table 6 above, 57.1 % with an average of 4.273, strongly agreed that the budget plans made 

by each local government work unit were by the West Java Province local government work unit strategic 

plan document. This means that the budget planning made by each local government work unit has referred 

to the performance indicators set in the strategic plan of each local government work unit in West Java 

Province. The basis for making the local government work unit strategic plan is the West Java Provincial 

Government's local government medium term. A clear example that there is a link between the budget 

planning carried out by each local government work unit and the West Java Province local government 

work unit strategic plan, namely, the initial draft of the West Java Province local government work unit 

strategic plan is an input in the formulation of the draft local government medium term which will later be 

discussed in the local government medium term Musrenbang. Later, after the local government medium 

term is stipulated by regional regulation, it will become the basis for the preparation of annual regional 

planning and budgeting carried out by each local government work unit in the local government. 

 

Budget implementation 

Budget implementation is the stage of implementing the budget by the predetermined budget 

planning (Ginanjar et al. 2019). Budget implementation carried out by local government work unit in local 

governments requires monitoring from local government work unit leaders so that budget implementation 

is by predetermined plans (Ginanjar et al. 2019). The budget implementation dimension has two indicators 

which can be seen in Table 7 below. 

 

Table 7. Budget Implementation Dimension Questionnaire Results 

Indicator 1 2 3 4 5 Average Interpretation 

PBB2 Direct supervision 

of budget 

execution. 

0% 1.3% 6.5% 32.5% 59.7% 4.506 Strongly 

Agree 

PBB3 Recording by the 

accounting 

department. 

0% 0% 0% 16.9% 83.1% 4.831 Strongly 

Agree 

Budget Implementation Dimension Assessment  4.669 Very Good 

Source: Primary data processed (2023) 

 

Based on Table 7 above, 59.7 % of respondents, with an average of 4.506, strongly agreed that local 

government work unit leaders supervise budget implementation in each local government work unit. This 

can be proven by the evaluation carried out by local government work unit leaders on budget 

implementation by providing feedback in assessing whether the budget implementation has gone well. In 

addition, there are Monev (Monitoring and Evaluation) activities and the Application of Public Information 

Disclosure to Public Bodies in West Java Province. This activity is a form of supervision and evaluation 

carried out by the Governor of West Java Province as the regional head to all regional apparatus and 

provincial enterprises in West Java Province.  

Starting in 2022, the Monev activity will be carried out through E-Monev (Electronic Monitoring and 

Evaluation). E-Monev aims to improve the services of the regional apparatus and Regional Budget Office 

of West Java Province and the Public Information Openness Index ranking of West Java Province. 

However, the E-Monev system also turns out to still have weaknesses, namely, the E-Monev system 

experiencing errors during working hours which causes sub-sub activities that do not appear in the system. 

So, this impacts the monev report of an agency in that quarter that cannot reach the predetermined target. 

In addition to E-Monev constraints, there are other obstacles faced by the majority of local government 

work units related to this monev activity, namely program and activity data in each section in local 



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government work unit or each Technical Implementing Service Unit (of the government) in local 

government work unit submitted late to the planning section. So that when an evaluation is to be carried 

out, the planning section has not yet obtained the data, which results in the evaluation activity being 

postponed.  

A total of 83.1 % of respondents, with an average of 4.831, strongly agreed that the accounting section 

in each local government work unit continuously records all transactions made into the local government 

information system. The recording is done after the local government work unit has finished carrying out 

the activity. The activity of inputting transactions into local government information system has been 

ordered by the Ministry of Home Affairs of the Republic of Indonesia since 2019. Still, it was only 

implemented within the West Java Provincial Government in 2021. One of the achievements achieved by 

West Java Province in the implementation of local government information system is that West Java 

Province is used as a pilot model for implementing local government information system for other local 

governments in Indonesia. In the implementation of local government information system, of course, there 

are still weaknesses, namely the local government information system website sometimes experiences errors 

during working hours, which can hamper the data input process for making local government work unit 

financial reports. 

 

Budget transparency and accountability 

Budget transparency and accountability are principles in performance-based Budgeting (Hermanto 

2020). Respondents were asked to assess budget transparency and accountability in each local government 

work unit in implementing performance-based budgeting. Table 8 summarizes the respondents' answers to 

budget transparency and accountability dimensions. 

 

Table 8. Results of the Budget Transparency and Accountability Dimension Questionnaire  

Indicator 1 2 3 4 5 Average Interpretation 

PBB4 Information 

disclosure to those 

who need it. 

0% 2.6% 23.4% 41.6% 32.5% 4.039 Agree 

PBB5 Publication of local 

government work unit 

financial reports at 

least once every six 

months on the website 

of each local 

government work unit 

of West Java 

Province. 

19.5% 6.5% 23.4% 26% 24.7% 3.229 Disagree 

PBB6 Financial report 

information is 

updated on the West 

Java Province local 

government work unit 

website at least once a 

year. 

11.7% 5.2% 11.7% 31.2% 40.3% 3.831 Agree 

PBB7 Preparation of local 

government work unit 

financial reports every 

year. 

0% 0% 1.3% 2.6% 96.1% 4.948 Strongly Agree 

Assessment of Budget Transparency and Accountability Dimensions 4.012 Good 

Source: Primary data processed (2023) 

 

Based on Table 8 above, 32.5 % of respondents, with an average of 4.039 agreed that the information 

provided by each local government work unit is easily accessible to those who need information. All 

information or data the public can know is available on one website developed by the West Java Provincial 

Government, namely on the opendata.jabarprov.go.id page. However, sometimes the update of data or 

information on the website is late due to delays in submitting data or information from the relevant local 

government work unit to West Java Department of Communication and Information. A total of 24.7 % of 

respondents, with an average of 3.229 disagreed that each local government work unit publishes financial 

reports every six months on the local government work unit website or the West Java Provincial 



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Government website. This is because the publication of financial reports is carried out once a year after an 

audit by Indonesian Audit Board. The only published financial statements are the consolidated financial 

statements of the West Java Provincial Government. The publication is on the West Java Portal website, 

https://jabarprov.go.id/, which the West Java Department of Communication and Information manages. 

A total of 40.3 % of respondents, with an average of 3.831 agreed that each local government work 

unit updated their financial report information. However, the update of financial report information carried 

out by each local government work unit is not directly through the website but by providing financial reports 

per month, quarterly, semesterly, and annually to local government finance and asset office West Java 

Province. This is because updating financial report data on the  Portal website is the task of West Java 

Department of Communication and Information after the annual financial statements of each local 

government work unit are combined into the Consolidated Financial Statements of the West Java Provincial 

Government and audited by Audit Board of the Republic of Indonesia. A total of 96.1 % of respondents, 

with an average of 4.948, strongly agreed that each local government work unit prepares financial reports 

every year. The result is regulated in Government Regulation No. 12 of 2019 Article 10 on Regional 

Financial Management which states that the Head of local government work unit as a budget user, is 

responsible for preparing and submitting The financial reports that each local government work unit must 

prepare to include a budget realization report, balance sheet, operational report, statement of changes in 

equity, and notes to financial statements. These financial reports must be submitted to the Governor of West 

Java through head of local goverment financial management office no later than two months after the end 

of the fiscal year. 

 

Budget efficiency and effectiveness 

Budget efficiency and effectiveness emphasize that the budget available to local governments must 

be appropriately utilized to improve public welfare (Halim 2007). Respondents in each local government 

work unit of West Java Province were asked to assess budget efficiency and effectiveness. The following is 

presented in Table 9, a summary of respondents' answers to budget efficiency and effectiveness in 

implementing performance-based budgeting in West Java Province. 

 

Table 9. Budget Efficiency and Effectiveness Dimension Questionnaire Results 

Indicator 1 2 3 4 5 Average Interpretation 

PBB8 There is a small 

budget allocation for 

each program and 

activity 

implementation. 

0% 0% 9.1% 24.7% 66.2% 4.571 Strongly Agree 

PBB9 There are no programs 

and activities that are 

not implemented. 

0% 1.3% 7.8% 53.2% 37.7% 4.273 Strongly Agree 

Assessment of Budget Efficiency and Effectiveness Dimensions 4.422 Very Good 

Source: Primary data processed (2023) 

 

Based on Table 9 above, 66.2 % of respondents, with an average of 4.571, strongly agreed that each 

local government work unit utilizes the budget by the predetermined budget ceiling. All of the budgets are 

allocated to the implementation of programs and activities that each local government work unit has 

planned. However, based on the West Java Provincial Local Government Implementation Report, there 

are still budgets that have not all been absorbed, including Rp12,944,356,990 for the development of the 

social welfare sector carried out by Social Department in West Java Rp1,986,867,069 for programs 

supporting regional government affairs and Rp711,451,062 for programs to improve public peace and order 

carried out by Civil Service Police Unit in West Java and Rp286,192,564,329 for programs and activities at 

Education Department in West Java. A total of 53.2 % of respondents with an average of 4.273 strongly 

agreed that the programs and activities planned annually by each local government work unit could be 

implemented. However, there are still obstacles in the implementation of these programs and activities, 

including the COVID-19 pandemic, which has caused activity restrictions on the implementation of 

programs and activities and budget refocusing, which has caused budget allocations that were initially for 

the implementation of programs and activities to be focused first on buying vaccines, medicines, personal 

protective equipment for health workers, and other matters in the health sector related to handling the 

COVID-19 pandemic. 

 

 

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Performance evaluation 

Performance evaluation is one of the stages in performance-based budgeting. Performance evaluation 

is carried out to determine strategies or efforts to achieve predetermined goals (Ginanjar et al. 2019). The 

following Table 10 is a summary of respondents' responses to the performance evaluation dimension. 

 

Table 10. Performance Evaluation Dimension Questionnaire Results 

Indicator 1 2 3 4 5 Average Interpretation 

PBB10 Periodic evaluation of 

the implementation of 

each program and 

activity. 

0% 0% 7.8% 28.6% 63.6% 4.558 Strongly Agree 

Performance Evaluation Dimension Assessment 4.558 Strongly Agree 

Source: Primary data processed (2023) 

 

Based on Table 10 above, 63.6 % of respondents, with an average of 4.558, strongly agreed that the 

leaders of each local government work unit regularly evaluate the implementation of programs and activities 

carried out by each local government work unit. In general, the evaluation carried out by the local 

government work unit leader is carried out every month. The result is done to determine whether or not the 

strategies used in implementing these programs and activities are good. So that later, each local government 

work unit head can make policies if there are deviations in implementing these programs and activities. 

Currently, evaluation activities in implementing programs and activities of each local government work unit 

have been carried out digitally through the E-Monev (Electronic Monitoring and Evaluation) website on the 

https://e-monevkijabar.com/ page. So that evaluation activities will be more accessible and more systematic 

because all conventional reports will be replaced and integrated with one reporting system, namely E-

Monev. However, most local government work units complained that sometimes the E-Monev application 

experienced errors during working hours, such as the non-appearance of several sub-activities, which could 

hinder the process of making monitoring and evaluation reports for each local government work unit.   

Based on the explanation above, the assessment of the implementation of performance-based 

budgeting can be seen in Table 11 below. 

 

Table 11. Performance-Based Budgeting Variable Assessment 

No Dimensions Average Interpretation 

1 Budget Planning 4.273 Very Good 

2 Budget Implementation 4.669 Very Good 

3 Budget Transparency and Accountability 4.012 Good 

4 Budget Efficiency and Effectiveness 4.422 Very Good 

5 Performance Evaluation 4.558 Very Good 

Performance-Based Budgeting Variable Assessment 4.387 Very Good 

Source: Primary data processed (2023) 

 

Based on Table 11 above, it can be seen that the average assessment of the application of performance-

based budgeting is 4.387 or classified as very good because the budget plan made by each local government 

work unit follows the West Java Province local government work unit strategic plan document; the existence 

of monitoring and evaluation activities through the E-Monev system; the recording of financial transactions 

in local government information system, updating data and information; the preparation of financial reports 

every month, quarter, semester, and year; and budget utilization following the predetermined budget ceiling. 

However, this assessment has not yet obtained an optimal score of 5.00 because there are still obstacles, 

such as the COVID-19 pandemic, which causes restrictions on the implementation of programs and 

activities, budget refocusing, delays in submitting data or information from local government work unit to 

West Java Department of Communication and Information  which causes delays in the process of updating 

data or information on the opendata.jabarprov.go.id website, there is still a budget that has not been 

absorbed, and the system used to conduct monitoring and evaluation sometimes errors during working 

hours. 

 

CONCLUSION 
 

Based on the research results on the implementation of the concept of money follow program in the 

implementation of performance-based budgeting in Indonesia, the concept of money follow program in 

performance-based budgeting has been implemented well. However, there are still obstacles faced, including 

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budget constraints; coordination between local government work units in implementing priority programs 

and activities; infrastructure supporting the implementation of programs and activities is not adequate; the 

system used to compile/revise the local government budget and monitoring and evaluation sometimes errors 

during working hours; and the COVID-19 pandemic which caused limited implementation of 

programs/activities and budget refocusing which caused budget allocations that were initially for the 

implementation of programs and activities to be focused first on buying vaccines, medicines, personal 

protective equipment for health workers, and other matters in the health sector related to handling the 

COVID-19 pandemic. 

 

 

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