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sectors participate. This is a forum at which social development policies and projects are discussed and reviewed at the cabinet level and interdepartmental co- operation for their implementation is sought. The Deputy Chairman of the Divison of Social and Cultural Affairs of the BAPPENAS attends these sessions and reports the decisions to the Chairman of the BAPPENAS so that the latter is in a position to make a periodic assessment of the social situation and the progress of social development projects.
12.
In development policy planning and national plan formulation, the BAPPENAS makes extensive use of the expertise, experience and information available with the implementing ministries and agencies through both formal and informal contacts and working relationship. Formal participation in the planning process by the ministries is ensured through standing committees and ad hoc committees consisting of representatives of both the BAPPENAS and the functional ministries. It is also customary for representatives of non-governmental agencies like the Institute of Public Administration, the universities and research institutions and non-governmental experts with academic knowledge and practical experience to be co- opted as members of such committees. Although some guidelines are given for the working of such planning committees by the BAPPENAS, the investigations and studies by the committees are designed and carried out by the committees themselves. The BAPPENAS normally stipulates the coverage and depth of analysis of the subject matter as well as the delivery dates of the committee reports. All the social aspects featured in the Second Five-Year Plan (1974-79) are reported to have been incorporated in the plan document after extensive discussions and consultations that took place between the BAPPENAS and the various functional ministries and
departments.
B.
13.
Project planning
In Indonesia, as in ma ny
other developing countries of Asia, comprehensive econcic and social planning, involving cross-sectoral co-ordination and integration, is still in the process of development. Project formulation, therefore, represents, to a large extent, the core of the planning process in the country. Plan projects are identifiable units of technical and organisational activity resulting in the achievement of specified targets within stipulated periods of time. Since development projects are financed mostly from government resources, the project planning and the annual budgeting processes are very closely linked. According to legal requirement, the central government budget is required to be balanced, i.e. the total development plus non-development expenditures in any year should not exceed the total available resources during the year represented by internal revenues plus foreign aid. Determination of the over-all level of the budget, based on expected revenue receipts and foreign aid, is the first step in the budgetary process.
The National Economic Stabilisation Council chaired by the President determines the over-all level of the budget and establishes ceilings for the annual development and non-development budgets. The budget estimates for the ministries and departments are to be adjusted within this over-all ceiling. Although budget ing and planning activities in Indonesia have developed along independent lines, the recent attempts by the BAPPENAS and the Ministry of Finance have set the tone for a gradual evolution of a framework of procedures designed to permit closer participation of all agencies in the formulation, review and implementation of the projects as a part of the over-all development plan.
After
14. Under the standard procedure the ministries submit to the BAPPENAS their sectoral programmes consisting of the estimated rupiah requirements for their ongoing projects and new project proposals for aid commitment and technical assistance during the following fiscal year.
initial scrutiny a nd consultations with the ministries on these tentative proposals, the BAPPENAS and the Ministry of Finance indicate the preliminary budget ceilings for each ministry and sector. The preliminary proposals submitted by the ministries are examined by the BAPPENAS and the Ministry of Finance in the light of (a) the over-all Five-Year Plan, (b) the progress of implementation of projects during the Frevious budget years, and (c) the general policies as regards project priorities. On completion of this examination, the BAPPENAS and the Ministry of Finance hold further consultations with the ministries following which draft proposals are submitted to the Economic Stabilisation Council indicating the expected resources for financing the development budget and the ministerial ceilings by programme and sector. On the basis of the presidential decisions, the ministries are asked to revise their sectoral and project proposals.
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