Budgeting Flexibility and Performance‐Based Budgeting: An Institutional Perspective

Higher education institutions in Indonesia have experienced significant changes since implementation of dual budgeting system. They have to run the standardized budgeting system, which is similar to all government... [ view full abstract ]

Higher education institutions in Indonesia have experienced significant changes since implementation of dual budgeting system. They have to run the standardized budgeting system, which is similar to all government institutions, and special budgeting system prepared for semi-autonomous agency. Consequently, higher education implements two different budgeting model in accordance with each system.

This paper would discuss about new public management (hereafter NPM) as an international movement in public sector organizations in which contemporary the implementation of performance based budgeting system (hereafter PBBS or simply PBB), is a prominent agenda in achieving its objectives. New institutional theory as suggested, among others, by DiMaggio and Powell (1991), are used to understand how the PBB have been institutionalized in Indonesian Public Service Agencies with its technical and sociocultural characteristics.