Methodology of Selection on the Use of KNI Prepared by SAI of Indonesia

1. Methodology of Selection on the Use of KNIPrepared by SAI of Indonesia

2. Agenda

3. Background

4. SAI’s Role in Use and Development of KNI

5. Selecting Key National Indicator SAI Roles in the Use and Development of KNI Stakeholder’s Needs and Expectations 1. Planning 2. Selecting Determining Selection Criteria Selection Criteria 4. Evaluating 3. Utilizing Legal Framework Improved KNI Selected KNI Best Practice Recommen ding KNI improvement Using Selected KNI in PA KNI Audit Report SAI Policy

6. Criteria Criteria Determining Selection Criteria Criteria Gatheringinformation regarding National Indicators Developing criteria forselecting KNI • Criteria1 referring to the quality of indicator • Criteria2 referring to the stakeholder perspective • Criteria3 referring to the SAI perspective • Determining the most important priority/ area/vision to be assessed • Identifying the link between availbale indicators and the selected priority/area/vision • Considering stakeholders interests • Identifying quality of indicators to be assessed: measurability & applicability/ • Identifying auditable factors: SAI resources-auditors, infrastructure, organisation, guidelines etc • Studying source of KNI: Government Development Plan • Identifying relevant factors for selection of KNI: • Stakeholder’s needs and expectation • Legal framework: mandate and regulation • SAI Policy: Strategic Plan and Audit Capacity • Best Practices

7. Selecting Key National Indicator Developing measurement for selection criteria Determining selected KNI Selected KNI • Determining KNI to be used • Detailing down into several sub indicators when necessary • Identifying methods to measure/assess indicators based on the selected criteria • Subjective-perception method • Objective-clear definition & measures of indicators • Designing measures • Degree/numbers (Low-Medium-High or 1 – 3) • Range (scale) • Applying measurement to each KNI • Ranking indicators based on criteria & the method of measurement • Adjusting the rank, if necessary (changes in weight of measures) • Determining KNI to be used Selected KNI • Target (Impact) • Program (Outcomes) • Activities (Output)

8. Indonesian SAI’s Experience

9. Understanding National Development Indicators Priority Focus-Cross Sectoral Pro-gram INPUT PROCESS OUTPUT National Current Condition Medium Term Plan of National Development National Priority Impact Indicator Stakeholder Feedback Identifying Problems and Threats Considering Long Term Develop-ment Plan Prior Period Evaluation Outcome Indicator Unrealized Prior Mission Determining Medium Term Development Target Prioritized Activities Output Indicator Resources Input Indicator Considering International/Global Commitment Considering Presidential Vision, Mission Program, Priority

10. National Development Plan 2010-2014 Vision Welfare, Democratic, and Justice Indonesia Indicators • 60 National Indicators • 409 Components of National Indicators Mission • Continuing sustainable development into welfare Indonesia • Strenghtening democratic pillars • Strenghtening justice dimension in all areas Agenda • Economic development and people welfare improvement • Good governance improvement • Democratic pillars establishment • Law enforcement and corruption prevention • Inclusive and justice development Selected Indicators • # National Indicators • # Components of National Indicators Priorities • Bureaucratic Reform & Governance • Education • Health • Poverty Alleviation • Basic Commodity Sustainability • Infrastructures • Investment & Business Climate • Energy • Environment & Disaster Management • Less Developed, Border, and Post Conflict Areas • Culture, Creativity, and Technology Innovation

11. Selection Criteria Quality of Indicators • Significant (financial, social, political) • Clear & measurable • Alignment with vision, mission, and other indicators • Data availability Stakeholders’ Perspective Indonesian SAI’s Perspective • Benefits for public • High Risk or Critical Success Factor • Number of Inter-related Entities • Audit Impact • Supported by audit capacities • Reflect the SAI’smandate Measurement

12. Selecting Key National Indicator Developing measurement for selection criteria Determining selected KNI Selected KNI • Education • Poverty Alleviation • Health • Infrastructures • Bureaucracy Reform Education • Basic education subsidies • Access and quality of basic education • Qualified teachers for basic education • Applying measurement to each KNI • Ranking indicators • Adjusting the rank, if necessary • Determining KNI to be used • Objective-clear definition & measures of indicators • Degree/numbers (Low-Medium-High or 1 – 3) Poverty Alleviation • Credit facility for SMEs • Rural agri-business development • Health services for the poor Health • Health Service Insurance • Health Environment • Drugs and Medical Services Availability for People Infrastructures • Road and Bridge Capacities Preservation • City high ways + Train Rail • Airport Devlp & Maintnce Bureaucracy Reform • Public Services Reform Progr • Corruption Mitigation Database • Regional Budget Management

13. End Notes

14. THANK YOU The Audit Board of the Republic of Indonesia (BPK) Jl. Gatot Subroto 31, Jakarta, Indonesia 10210 Website: www.bpk.go.id Telephone: +62-21-570-4395 Ext. 1181 Facsimile: +62-21-57953198 E-mail: hasan.b@bpk.go.id daeng.nazier@bpk.go.id bahtiar.arif@bpk.go.id 4th KNIWG Meeting, Helsinki, Findland, 13-14 March 2011