Abstract:

The Government Institution Performance Accountability System (SAKIP) is a state budget accountability instrument that has been implemented in Indonesia. Considering the tremendous potential of State-Owned Enterprises (Badan Usaha Milik Negara-BUMN) to generate state revenue, the Kemen-BUMN has an obligation to implement SAKIP. This study assesses SAKIP implementation within the Ministry in 2015 and 2016 in terms of the five dimensions of the performance accountability framework used by the government sector: clear and measurable goals, performance measurement, feedback, evaluation, and incentives. Our research reveals that the first two dimensions were fulfilled in 2015 and 2016. Feedback was not adequately achieved in 2015 because of a lack of commitment from the Ministry to implement SAKIP. In 2016, however, the feedback aspect of SAKIP was more successfully applied as the Ministry created a special unit to address performance management and ministry officials were more committed to implementing SAKIP. The performance evaluation and incentives aspects of SAKIP were not fulfilled in either 2015 or 2016.