Agencification in the Indonesian Public Service: Cases of Higher Education

The number and the importance of autonomous agency have expanded over in almost all countries. Following the global trend, the Indonesian administration has extensively implemented the agency model since 2005. This paper... [ view full abstract ]

The number and the importance of autonomous agency have expanded over in almost all countries. Following the global trend, the Indonesian administration has extensively implemented the agency model since 2005. This paper examines the financial flexibility in the higher education from the agencification perspective, by exploring the distinctive aspects consisting of budgeting, investment management, remuneration, asset and liability management, financial reporting, and accountability and control system. It focuses on examining the use of financial flexibility in supporting agencification by employing case study, which is supported by descriptive statistical analysis, through an exploration in four different higher educations in Indonesia. The result shows an unstable balance between autonomy and control of the agencies. Furthermore, there is an ongoing process that agencification model does not cover the whole public service reform, but is supporting them mainly on financial aspects.

Keywords: agencification, public service agency, higher education