Sri Mulyani Annoyed Not All Public Service Bodies Apply Performance Contracts

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance (Minister of Finance) Sri Mulyani said that in 2020 only around 86.9 percent of the total Public Service Agencies (BLU) had implemented performance contracts. According to him, this reflects the inadequacy of government agencies in carrying out public service activities.

"This means that it illustrates that there are parts of the BLU that do not yet have a performance measurement like what they want," he said in a virtual BLU Coordinator Meeting, Friday, March 19.

He hopes that this year all public service agencies can implement performance contracts to support more optimal work standards.

"For the 2021 period I want none of the BLUs to not implement a performance contract," he said.

In fact, the Minister of Finance directed all these government agencies to make performance contracts down to the employee level.

“I don't want to hear the excuse that certain institutions are too unique, too special, and too complicated to implement it. We at the Ministry of Finance with 84,000 employees can apply performance contracts, "he said.

"Everything is an art, it all depends on the situation, and I do not believe (the reason for not being able to implement the performance contract)," he continued.

For information, the Public Service Agency is an agency within the government established to provide public services in the form of the provision of goods or services that are used or sold without prioritizing profit-seeking with the principles of efficiency and productivity.

BLU exist within the central government and local governments. The BLU in the regions is called the Regional Public Service Agency (abbreviated as BLUD).

Meanwhile, the concept of BLU financial management is contained in Law Number 1 of 2004 concerning State Treasury.

Public Service Bodies themselves can be identified in three main categories, namely health, education and other categories (area management, assets, etc.).

Throughout 2020, it was said that the Ministry of Finance earned Rp 69.6 trillion in revenue or grew 40.2 percent from the 2019 score of Rp. 48.8 trillion.

"All BLUs must apply the principles of good management. I hope that BLU will not become rigid because good management must be able to respond to changes and focus on performance, ”concluded Sri Mulyani.