Background And Rationale Of Performance Management Reform In Indonesia

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This chapter initially introduces brief background information of Indonesia, as one of developing countries that becomes the subject of the study. This chapter trying to answer the first research question “How does the NPM reform in Indonesia and what is the rationale of the reform?
To see the how the NPM Reform that carries performance management taken up in Indonesia. Background and Rationales of NPM Reform as well as the existing condition portrays Indonesian Bureaucracy under SBY Presidency 2010-2014. Section 3.3.3. outlines the implementation strategy of the Reform during this period which comprises Performance Management strategy of reform. And closed with conclusion.

Figure 3.1. Map of Indonesia

Adopted from CIA World Factbook (

Figure 3.1. depicts Indonesia which located in the southern hemisphere, enclosed in between the North Pacific Ocean and the Indian Ocean. Stretch more than 5,000 kilometres from the east to the west with approximately in total of inhabitants of 249,9 million, the fourth-largest population in the world with a sprawling archipelago including more than 17.504 islands (CIA World Factbook) (BPS, 2015) (Rhodes et al., 2012). Most inhabitants live in
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The size of civil servants in Indonesia was growing up since the end of New Order Era and in 1980 increased more than 2 million. As per 2013 data, the number of civil servants are approximately 4,36 million or 1.76% of the population, comprises 890,521 in the central and 3,472,284 in the local (Tjiptoherijanto, 2012; BKN, 2013; KEMENPANRB, 2014). Nevertheless, the ratio of Indonesian civil servant consider proper compare to the other ASEAN countries (Tjiptoherijanto,

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