The Impact of Budget Efficiency Policy on Employee Performance Management at the BPPK Ministry of Finance

Abstract

This study examines the impact of the government’s budget efficiency policy on employee performance management at the Financial Education and Training Agency (BPPK), Ministry of Finance. The study was motivated by the fact that, despite the implementation of budget efficiency measures at the beginning of 2025, BPPK’s Organizational Performance Score (NKO) remained high and even showed an increasing trend. This phenomenon raises an important question regarding how organizational performance could be maintained under conditions of resource constraints. The study aims to analyze the factors that explain why the efficiency policy did not significantly reduce organizational performance, to identify the role of performance management in sustaining performance during the efficiency period, and to examine the factors influencing the effectiveness of employee performance management in this context. This research employs a qualitative case study approach with a descriptive-analytical design. Data were collected through direct observation during the internship period, semi-structured interviews with employees involved in performance and risk management, and document analysis of DKRO, LPKR, and other relevant institutional reports. The data were analyzed using thematic analysis and validated through source and method triangulation. The findings indicate that the budget efficiency policy did not directly reduce BPPK’s aggregate performance because the organization was able to adapt through changes in work methods, especially the digitalization of program implementation, work arrangement adjustments, and the use of periodic performance governance through DKRO or LPKR. The study also finds that performance resilience during the efficiency period is supported by the integration of performance management and risk management, which enables the organization to monitor achievements, identify operational risks, and determine follow-up actions on a quarterly. However, the study also reveals that the stability of aggregate performance coexisted with implementation trade-offs, particularly in terms of quality assurance, impact evaluation, and adjustment burdens experienced by implementing units. In conclusion, this study shows that the stability of organizational performance during a period of budget efficiency should not be interpreted as the absence of impact, but rather as the result of adaptive performance management, periodic governance mechanisms, and continuous organizational adjustment in response to resource constraints.