IDENTIFICATION OF PROBLEMS IN IMPLEMENTING SMART CRITERIA IN LOCAL BUDGETING SYSTEM

Abstract The budgeting system of local governments in Indonesia has referred to the Key Performance Indicators (KPI) of SMART (Specific, Measurable, Achievable, Relevant, and Timebound) criteria with a review of the suitability of goals and objectives. The purpose of this study is to identify problems during the adoption of the SMART Criteria KPI into the budgeting system. This study uses a descriptive qualitative method to answer several questions, namely: Has the Government implemented a specific budgeting plan? (Q.1); Has the government planned budgeting in a measured manner? (Q.2); Has the government used the budget fairly and achieved the targets written in the budget system? (Q3); Is the budget system planning relevant to its implementation? (Q4); Has the government done it in a timely manner? (Q.5). The results of the implementation of the SMART Criteria KPI were 68%, categorized as good but not perfect. The conclusion drawn is that this is because the budget system has not optimally integrated cost standards and minimum service standards in fund allocation.