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June 28, 2011

Job Offer: Lead Public Sector Management Specialist, World Bank, Jakarta

Worldbank Title: Lead Public Sector Management Specialist
Grade: GH
Department/Division: PREM East Asia Sector Department (EASPR)
Location: Jakarta
Appointment Type: Co-terminus (International)
Duration: Twelve (12) months initially
Funding: PFM Multi-Donor Trust Fund (MDTF)

 Background

The ongoing reorganization of the Ministry of Finance (MOF) in Indonesia is expected to herald the emergence of a radically transformed entity for the management of public finances that will be in line with modern international practices. However, major challenges in sustaining and managing fundamental changes in organizational structure, processes and systems will continue to confront the leadership over the medium term. Managing institutional and technical change of this magnitude will require intensive support as well as dedicated human and financial resources for the duration of program implementation. Change management and communications strategies are also envisioned as key program components.

Considering the far-reaching scope and inherent risks accompanying public sector financial management and revenue administration modernization program, the government’s operational strategy is based on three core principles: (i) modernization of the legal framework to underpin institutional reform; (ii) phasing the modernization of three major functional areas- public financial management, tax administration, and customs modernization; and (iii) coordinating donor support over the medium term.

In response the World Bank has agreed to finance a three-phase Government Financial Management and Revenue Administration Program (GFMRAP) through an Adaptable Program Loan funding instrument projected to span almost a decade. The investment financed by GFMRAP will be underpinned by a solid framework of policy and process reforms and systems development. The overarching program is designed to ensure the sustainability of the proposed institutional reforms with emphasis on improving governance and managing identified implementation risks.

To support the Governments’ Public Financial Management (PFM) reforms the World Bank and several development partners have established a Public Financial Management Multi-Donor Trust Fund (PFM MDTF). Currently, the European Commission, the Government of the Netherlands and the Swiss Government have contributed to the PFM MDTF.

The Indonesian public finance landscape is undergoing a second phase of reforms. The first phase of reform addressed the legal and regulatory framework for financial management. It was implemented starting in 2003 with the adoption of Law 17/2003 on State Finances, Law 1/2004 on the Treasury, Law 15/2004 on State Audit and Law 25/2004 on Development Planning. With the legal framework in place, the second phase of reforms is focused on other areas, including re-engineering of business processes for budget management, modernization of information, communication and technology (ICT) systems and the development of human and organizational capacity to operate a modern, state of the art, public financial management (PFM) system. In sum, they seek to address weaknesses in Indonesia’s public financial management systems, which continue to impair the efficiency and effectiveness of public spending.

In order to provide robust, reliable and timely fiscal data, the Government is developing a new financial management information system, known as SPAN. The procurement of a core system for budget preparation and execution, including budget preparation, payment, accounting, cash management and reporting modules, took place in 2009, with funding from the GFMRAP loan. SPAN is projected to become operational in the central treasury beginning in late 2011, and then rolled out to the local treasury offices and pilot line ministries starting 2012 to replace the multitude of applications currently used. However, major challenges in managing and sustaining these fundamental changes in organizational culture and processes will continue to confront senior staff over the medium to long term. Managing change of this magnitude will continue to require intensive support and attention, dedicated human and financial resources for implementation, sustained technical support, and a change management and communications strategy beyond the medium term.

The recurring problem of weak budget absorption is being addressed through changes in the nature of expenditure controls, accountability and systems/procedures. The Government wants to move toward a greater focus on public sector performance with greater flexibility for managers to manage their budgets. Significant progress has already been made, with the MOF having developed a Treasury Single Account and new cash forecasting and debt management capacity. Directorate General (DG) Treasury is continuing to upgrade payment and accounting systems to provide executing agencies ready access to funds allocated through the budget. The delegation of financial responsibilities to the executing agencies is being tempered with improvement in internal controls to ensure transparency, and good governance. Systems are being put in place to ensure that managers at different levels of the government are held accountable for the delivery of services. Reforms are also underway to ensure that more robust accounting; reporting and internal audit systems underpin the mandates for financial management delegated to the service delivery units.

Budget formulation and accounting processes and systems are being revamped under the guidance of DG Budget and the planning ministry (BAPPENAS) in an effort to more effectively allocate, monitor and evaluate fiscal spending. In line with practices in most OECD countries, the reforms include the introduction of a program structure for the budget, an MTEF and the move toward Performance Based Budgeting (PBB) and accrual accounting. The Government has largely developed the framework and guidance documents for these reforms with support previously provided under this program—which included the sharing of international experience, workshops etc. The GOI is introducing major components of these reforms in the 2011 budget (and medium-term plan, RPJM 2010-14). However, these are advanced, complex reforms that (based on other countries experience) will take years to properly develop and refine budget processes, practices and systems.

Objective

The Objective of the assignment is to lead the Bank’s engagement in providing advisory and analytical services to support the development and implementation of Indonesia’s central level public financial management (PFM) reforms, which are being implemented in the Ministry of Finance (MOF), BAPPENAS and line ministries.

Activities

The Lead Specialist’s responsibility will be to continue to provide strategic guidance to government counterparts and to guide Bank efforts on Indonesia’s PFM reform, SPAN/GFMRAP implementation and institutional reforms in the Ministry of Finance as well as related institutions. The Lead Public Sector Management Specialist will carry out duties that include, but are not necessarily limited to the following:
 Lead the Bank team in providing advisory services to the Ministry of Finance to implement their agenda on budget and treasury reforms, including improvements in business processes, accounting, the development and rollout of a Government Financial Management Information System (SPAN), and the adoption of appropriate change management strategies to support these reforms. This includes support for the modernization of budget preparation, budget execution and treasury management processes and systems, including:
o To the Minister and senior management of the Ministry of Finance and the SPAN implementation group, headed by the Advisor to the Minister of Finance, of which World Bank consultants are nominated members, on the SPAN implementation, including the legal framework and procedures, design, testing, transition and live pilot phases (SPAN is scheduled to go live in 2013).
o On the SPAN related change management and communication strategy, currently scheduled up to 2013.
o On the transition to accrual accounting and reporting, scheduled to be completed by 2014.
o On the ongoing evolution of the MTEF and PBB policies, legal framework and procedures and systems, including establishing the link to the budget to financial and non-financial monitoring and evaluation systems.
o Strengthening internal fiscal controls as well as the timeliness and reliability of accounting data and reporting, toward international standards.
o To the Treasury on implementation of further reforms in cash, debt and asset management and to ease ongoing budget disbursement and absorption issues.
 Support the design and execution of activities under PFM MDTF trust fund, including assistance with establishing peer-to-peer learning networks;
 Lead and contribute to analytic pieces supporting PFM reform, including for: significant policy questions that arise during program implementation; Bank Policy Notes and Public Expenditure Reviews; and potential joint Bank-IMF missions;
 Lead and contribute to ad hoc advice, briefings and presentations in support of the Bank’s overall engagement: e.g. on the implementation of fiscal decentralization, procurement reforms; and,
 To prepare and organize international and domestic workshops, seminars, roundtables and bench-mark visits related to the GFMRAP/PFM-MDTF programs.

Deliverables

Overall expected outcomes include:
 Improved efficiency and effectiveness in overall governance and implementation of the Government’s public financial management reform agenda under the GFMRAP/PFM MDTF umbrella, and in particular SPAN.
 In support of the broader Bank programs and teams, to lead and contribute to Bank Policy Notes and analytic work regarding PFM reforms in support of other Jakarta Bank teams as required, such as decentralization, education etc.

Qualifications

The successful candidate shall demonstrate that s/he has:
 An advanced degree, minimum Masters level (MA/MSc), in a subject commensurate with the assignment;
 At least 20 years of experience related to PFM in a large public sector institution, including senior management experience;
 Senior and management level experience in implementing a GFMIS, including Strategic Planning and Control, Quality Assurance, Configuration Management, Data Administration (model control and coordination), Test and Evaluation, Maintenance Operations, Requirements Management and Integration, Change Management and Implementation, and Financial Management;
 A thorough understanding of large scale public financial management business processes and systems management in complex organizational structures;
 A strong ICT systems and analytical background, with a knowledge of international “good practice” in implementing GFMIS’s as well as solutions tailored to different country contexts;
 Can write and articulate ideas clearly and concisely in English. Comprehension of spoken, and an ability to write in, Bahasa Indonesia would be an advantage;
 Demonstrated ability to operate effectively in a complex and volatile management environment, to lead initiatives and other consultants in major project tasks and to work closely with other team members across different areas within the Bank;
 Demonstrated ability to work effectively in a multi-cultural environment and to build effective working relationships with clients and colleagues, with an ability to promote stakeholder buy-in and participation; and,
 Knowledge of Indonesia’s’ PFM systems and institutions would be an advantage.

Duration of Assignment

The envisaged duration of the assignment shall be shall be for twelve (12) months from mid-2011, with an option for an extension as required and dependent on performance. Extensions will be dependent on performance against the TOR and the continuing business case.

Management and reporting

The Lead Specialist will directly report to the Task Team Leader of the GFMRAP and PFM MDTF, PREM, based in Jakarta. Under the auspices of the PFM MDTF, regular written and occasional presentations of advisory services/presentations will be provided to the TTL, focusing on near- and medium-term reform activities and milestones.

Note: The posts on the IMF PFM Blog should not be reported as representing the views of the IMF. The views expressed are those of the authors and do not necessarily represent those of the IMF or IMF policy.

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