Village Public Expenditure Management in Indonesia - Towards Better Budgeting and Spending - Findings from a Village Public Expenditure Review

Jul 19, 2026

The report presents findings from a village public expenditure review in Indonesia, focusing on village financial management, reporting quality, and spending and revenue patterns. It highlights widespread use of Siskeudes and submission coverage for consolidated data, evaluates the reliability of reports, and analyzes how spending is distributed across public works, salaries and operations, housing/sanitation, health, and education. It also examines capital and goods/services allocations, budget credibility under a modified PEFA approach, and how funding sources shape priorities.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages49

Reading Time2 h 3 min

AccessFree to download

Executive Summary

Summary of Findings

Future Directions

1. Introduction

2. Village Financial Management

Village Resources Since Introduction of Village Law

Village Revenue Sources

Village Financial Management Regulations

Village Financial Reporting

3. Methodology

4. Part 1: Village Reporting Analysis

Finding 1

Finding 2

5. Part 2: Village Expenditure Analysis

Finding 3

Finding 4

Finding 5

Finding 6

Finding 7

6. Part 3: Village Revenue Analysis

Finding 8

Finding 9

Finding 10

Finding 11

7. Part 4: Village Budget Credibility Analysis

Finding 12

Finding 13

Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized 2021 Village Public Expenditure Management in Indonesia: Towards Better Budgeting and Spending Findings from a Village Public Expenditure Review ACKNOWLEDGEMENTS This assessment was led by Anna O'Donnell (Senior Social Development Specialist, World Bank), with guidance and support from the Ministry of Home Affairs. Analysis for the public expenditure review was conducted by Ihsan Haerudin and Andrew Laing, with support from Findi Firmanliansyah. The report was written by Ihsan Haerudin, Tara Moayed, Alexander B Setiadji, and Shah Zaman Farahi. The authors would like to thank the team from MoHA’s Directorate of Facilitation for Village Finance and Asset Management and the Siskeudes team, without whom this report would not be possible. The report has benefited from useful comments by peer reviewers: Bert Hofman, Kathleen Whimp, Jurgen Rene Blum, and Ahmad Zaki Fahmi. This report was made possible through funding from the Australian Government Department of Foreign Affairs and Trade (DFAT) . CONTENTS Abbreviations ........................................................................................................................................................ 4 Executive Summary ............................................................................................................................................... 5 Summary of Findings .................................................................................................................................................6 Future Directions .......................................................................................................................................................8 1. Introduction .................................................................................................................................................. 9 2. Village Financial Management..................................................................................................................... 10 Village Resources Since Introduction of Village Law ..................................................................................10 Village Revenue Sources ............................................................................................................................ 12 Village Financial Management Regulations ...............................................................................................13 Village Financial Reporting ......................................................................................................................... 13 3. Methodology............................................................................................................................................... 15 4. Part 1: Village Reporting Analysis ................................................................................................................ 17 Finding 1. Nearly 95% of villages across Indonesia use Siskeudes, while data from nearly 60% of villages is submitted into the National Consolidation Application.....................................................................................17 Finding 2. Most village reports included both original budget and actual expenditure data, and the majority passed basic data validity tests; however, poor district guidance may impact reliability of reports........................................18 5. Part 2: Village Expenditure Analysis ............................................................................................................ 19 Finding 3. The largest share of village spending is for public works (36%), followed by salary and operations (26%), housing/sanitation (7%), health (4%), and education (4%) .....................................................................19 Finding 4. Across all re

FAQs

How widely do Indonesian villages use Siskeudes for reporting and data submission?

The report finds that nearly 95% of villages use Siskeudes, and data from nearly 60% of villages is submitted into the National Consolidation Application.

What are the main categories of village spending identified in the review?

The largest share of spending is for public works (36%), followed by salary and operations (26%), then housing/sanitation (7%), health (4%), and education (4%).

What does the report say about budget credibility across villages?

It reports that 75% of villages receive an A or B grade in a modified PEFA assessment of budget reliability, with substantial variation in how budgets perform.

Jul 19, 2026

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