Reorganization of the MoF Indonesia following the enactment of Law 17/2003 on Finance.



Public Financial Management Advisor - Change Management and Capacity Building Project Funded by AusAID


The Main project features was the reorganization of the Ministry of Finance following the enactment of Law 17/2003 on State Finance.


This was an exercise in change management at the very highest level of Treasury and Budget Function of the Ministry of Finance. It included the development of a chart of accounts, integration of the Budget General Ledger and Public Expenditure PEM Treasury General ledger to assist the government of Indonesia in developing double-entry accrual-based treasury general ledger accounting procedures, financial instructions and regulations for an integrated government wide GFMIS.


This was to enable the Indonesia Government financial reporting to have full capacity to control and manage budget resources and execution at strategic and operational levels, and provide required levels of data integrity, management reporting functionality and unified and timely data for meeting contemporary and future public finance management needs.


Activities performed included:


·Assisted the Financial Management Reform Committee in the reorganization of the Ministry of Finance (MOF) following the enactment of Law 17/2003 on State Finance.

·Assisted in changing the Ministry from several discreet independent units to one of an integrated organization.

·Assisted in planning for the movement of staff to new accommodation for the three new Directorates-General, the identification of operating procedures that would need to be revised in the light of the new structures, and the development of IT plans for the new Directorates-General.

·Mapped out the issues of co-ordination and integration that would need to be addressed by the new Directorate-General of Treasury.

·Assisted the MOF in liaising and coordinating the several potential projects to be funded by a group of international donors.