Effective External Control Strategy to Improve Network Governance in National Development

Abstract

Purpose: This research aims to explore the synchronization of planning and budgeting for development in Indonesia, focusing on governance and network management perspectives. It seeks to understand the complexity and effectiveness of networks in national development management and the impact of external control on task implementation.   Theoretical Framework: The study adopts a post-positivist approach, emphasizing the importance of governance structures and network management in development planning. It highlights the roles of independent bodies such as the Legislative/Regional Assembly (DPR/DPRD), Audit Board of the Republic of Indonesia (BPK), and Financial and Development Supervisory Agency (BPKP) in overseeing development processes and preventing waste and misappropriation.   Method: A qualitative methodology was used, incorporating data from various government institutions and professional organizations. Data collection involved in-depth interviews and document analysis. The study employed data reduction, data display, and conclusion drawing/verification techniques to ensure a robust analysis.   Results: The findings indicate a critical need for external control in ensuring adherence to plans and preventing misappropriation in development management. A significant overlap between the duties and authorities of BPKP and BPK was identified, suggesting a need for regulatory reform to enhance the efficiency and effectiveness of state financial oversight.   Conclusion: The study concludes that efficient and effective external control is essential for achieving transparency and integrity in state finances management. It recommends regulatory reforms to clarify the roles of BPKP and BPK, thereby improving the effectiveness of financial oversight. These changes are crucial for supporting the attainment of national development objectives and ensuring sustainable growth.