The Public Service Agency (BLU) Paradox: Why Budget Achievements  Don’t Always Reflect Superior Performance

Martha Maria Hitijahubessy; Johanis Darwin Borolla; Silva Tetelepta

doi:10.30598/arujournalvol6iss2pp146-155

Martha Maria Hitijahubessy Pattimura University, Ambon
Johanis Darwin Borolla Pattimura University, Ambon
Silva Tetelepta Pattimura University, Ambon

DOI: https://doi.org/10.30598/arujournalvol6iss2pp146-155

Keywords: Public Service Agency (BLU), Fiscal Independence, Financial Performance, Budget Effectiveness, Operational Efficiency

Abstract

This study aims to critically examine the financial performance of Pattimura University under the Public Service Agency (BLU) framework during the 2019–2024 period. Specifically, it investigates the university’s fiscal independence, budget effectiveness, and operational efficiency to assess the extent to which financial flexibility translates into institutional advancement. Quantitative data analysis reveals consistently high effectiveness in revenue realization and exceptional operational efficiency—indicating strong financial discipline. However, the fiscal independence ratio remained modest, fluctuating between 35% and 45%, and dropped to its lowest point in 2024. This modest fiscal independence highlights the need for improvement in this area. More importantly, despite these favorable financial metrics, Pattimura University continues to hold a B level institutional accreditation. This discrepancy illustrates a core paradox: robust financial performance under the BLU model does not automatically lead to superior academic or institutional outcomes. The findings suggest that financial autonomy, while necessary, is insufficient unless integrated with strategic investment in academic quality, research capacity, and institutional governance.

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Author Biographies

Martha Maria Hitijahubessy, Pattimura University, Ambon

Program and Budget Planning Division

Johanis Darwin Borolla, Pattimura University, Ambon

Faculty of Economics and Business

Silva Tetelepta, Pattimura University, Ambon

Program and Budget Planning Division

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