Performance Budgeting as a Tool for Achieving Good Forest Governance: Potentials and Challenges

Abstract

"Following the implementation of decentralization in Indonesia, the Government of Indonesia adopted performance budgeting to replace the traditional system of budgeting in government agencies at the various levels. Drawing on research undertaken in North Luwu District, South Sulawesi, the paper describes the district governments adoption of the performance budgeting system and assesses the potential and challenges for achieving good forest governance at the local level. While the system is good at delivering promises in terms of better bottom-up planning and budgeting processes, several areas need to be improved or approached in a different way, particularly in moving towards balancing economic development and forest conservation."