The influence of minimum service standards (MSS) to performance of local government to deliver services in Indonesia decentralised system

How performance management influences the motivation of public-sector institutions in a decentralised system has received little attention by scholars. This study helps fill this gap by investigating how Minimum Service Standards (MSS) in Indonesia influences the motivation of local government in a decentralised country like Indonesia. This study considers the nature of MSS, how it works, what effect it has on the performance of local governments and why. The evidence is collected from extensive interviews with eighty-three respondents from central government, local governments (eight districts and cities) and non-governmental sector. The findings show the varying effects on the motivation of local government to improve service delivery. MSS does not motivate local governments that are already performing well, but more importantly, it also does not motivate those that are performing badly. However, a small positive effect is found on the motivation of those whose performance lies just below the minimum standard. As it has limited influence, the MSS system does not achieve its formal objectives. However, it survives because it brings central government other benefits. MSS provides a framework for central-local dialogue about public services and strengthens the role central government plays in delivering services at the local level