Capacity building for local governments has become a top priority for the central government in its efforts to improve the welfare of the people in Indonesia. In this context, the Minimum Service Standards (SPM) play a crucial role in ensuring that every citizen receives adequate basic services. Effective implementation of the SPM is key for local governments to meet the needs of the community, particularly for those living in extractive industry areas. With a clear and integrated framework in place, it is hoped that the well-being of the community, especially marginalized communities, can be achieved equitably and sustainably.
Granting broader autonomy to regional heads is expected to accelerate community welfare through the responsible improvement of basic services. In this context, it is important to implement the Minimum Service Standards (SPM) as a benchmark for ensuring equitable and fair service delivery. Since the enactment of Law No. 23 of 2014 on Regional Government, the SPM has undergone significant changes in its types, criteria, and implementation mechanisms.
Local government administrators are required to prioritize basic services in accordance with Government Regulation No. 2 of 2018 on Minimum Service Standards (SPM). This regulation clearly defines the types of basic services that must be provided and are funded through the General Allocation Fund (DAU) based on local service performance. The DAU is the primary budget source for fulfilling the SPM, as mandated by Article 130 of Law No. 1 of 2022 on Financial Relations between the Central Government and Local Governments (HKPD). Additionally, Ministry of Home Affairs Regulation No. 59 of 2021 emphasizes the importance of data collection, planning, and the implementation of basic service delivery based on community needs.
The implementation of SPM is not merely the responsibility of local governments, but also a strategic effort to address critical issues in public service. Tuban Regency in East Java and North Barito Regency in Central Kalimantan have taken the lead by implementing SPM as part of their Good Governance strategy to improve the quality of public services.
To support the implementation of the SPM, from August 2021 to August 2023, with support from the Ford Foundation, the Tifa Foundation and its partners have launched the Natural Resource Revenue Sharing Fund (DBH-SDA) Management Program for SPM Development in both districts. This program aims to ensure the effective use of DBH-SDA in fulfilling the basic rights of marginalized communities through strategic steps toward achieving the SPM.
In implementing this program, the SPM Implementation Teams in both districts received assistance in drafting an SPM Implementation Action Plan. This action plan represents the local government’s commitment to ensuring that programs contributing to the SPM are incorporated into local planning and budgeting documents. The Action Plan also outlines concrete steps toward achieving the SPM and provides tools for effective monitoring and evaluation. This SPM action plan will be integrated into both medium-term and annual regional planning documents as one of the local government’s strategies to improve basic services in extractive industry areas.
The implementation of the Minimum Service Standards (SPM) has become a vital tool for local governments in ensuring that every citizen, including those living in extractive industry areas, has access to equitable and high-quality basic services. Through the support of the DBH-SDA Program, Tuban Regency and North Barito Regency have developed Draft Action Plans for SPM Implementation, which will be adopted as local regulations. This development demonstrates the commitment of local governments in these two regions to ensuring fair and equitable access to basic services for marginalized communities.
The use of DBH-SDA to meet SPM requirements represents an innovation for local governments in their efforts to improve community welfare, particularly in areas with extractive industries. DBH-SDA can be utilized as a funding source for meeting SPM requirements in addition to budgets derived from DAU. In addition, local governments can also reformulate the Village Fund Allocation (ADD) by using variables (value-added), particularly for villages where extractive industries operate. Here, the DAU serves as the primary budget source for meeting SPM requirements, as mandated by Article 130 of Law No. 1 of 2022 on Financial Relations Between the Central Government and Local Governments (HKPD).
With the SPM action plan integrated into regional planning documents, it is hoped that local governments will be able to continue improving the quality of basic services on a sustainable basis. Thus, the SPM serves not only as a framework but also as a reflection of local governments’ commitment to creating a more prosperous and equitable society throughout Indonesia, particularly in regions with extractive industries. [Afrizal & Dorta Pardede]