1. How we Make The Best Government's Budget Execution ?

Background

Related  to Indonesian government treasury, Ministry of Finance improves the government treasury by its vertical institution named D.G Treasury, it improves mainly on the policy and management of gov.treasury so that this organization can achieve good governance by implementing good governance’s elements to government treasury. the treasury system is the soul of public expenditure, but it  has many obstacles in the implementation of the fund for public services, we must aware to this fact that policies have been made by DG.Treasury cannot control all budget execution process, the management of goverment trasury always encountered problems caused by weak standard operational procedure (SOP) of budget execution, bad cash management and central budget database doesn’t available yet, consequenly there are many lateness, leakage,  ineffective and inefficiency moreover the corruption of budget expenditure. Those problems is caused not only by complicated policy and management on treasury but also mainly caused by shortage of human resources who have skill&knowledge to make better public policy and management. I am aware to this condition on this 9 years I have been working,those problem become things obstruct indonesian development program, so I and other employees want to make a new change in my organization by improving the policies and management on the state treasury

Preface and discussion

In Indonesian treasury Management, I saw that all informations that had been given by Ministry of Finance to stakeholders always meet lateness because ineffective method that is all information about policy,mechanism,and realization of budget expenditure given to stakeholder using a conventional method. Year to year, Ministry of finance makes improvement in various techique and procedure, now Ministry of Finance makes a great reformation in forecasting, implementing, and reporting the used fund by making a database management system named Sisitem Perbendaharaan dan Anggaran Negara (SPAN). This is a huge database system covering all financial system that all ministries have.

Besides from the techology system, ministry of Finance make a reform in policy and standard procedure to develop the effectiveness and the efficiecy of the use of the budget for finance all indonesia development program.

The development priority of D.G Treasury is to improve the management of budget expenditure based on development priorities, to improve budget execution system for prevention of leakage of funds, and to reform the budget expenditure policies adjusted to the development target of indonesia

In this case, I will share all of those reform as a media for adding our insight in detail:

First of all I would like to provide information that D.G treasury of Ministry of Finance is proud of its achievement in the case of disbursement of funds, especially after the opening of the modern state treasury office (KPPN Percontohan) which was first opened in 2007, this was the biggest reform in the history of expenditures and revenues mechanism of funds in DG . treasury, because the modern state treasury office is very different from conventional state treasury office, the difference is: first, the modern state treasury office’s funds disbursement process is very fast in the settlement, the conventional state treasury office can be more than 1 day, while the modern KPPN only takes 1 hour, the second is there is not idle money and use treasury single account, all the money in all account of ministries must be transfered on the same day to the single account of government in the central bank, in australia, this method called 'just in time system’ where the amount of funds transferred to each government institution is really adjusted to their request and avoiding idle cash at each institution. The amount of cash remained in all institutions will be drawn into the government account at the Reserve Bank of Australia (RBA) in the end of each working day. The third is there was no such thing as collusion, corruption and nepotism and all government office also do not have to give bribes to get the funds, this best reformation of financial management is proven by the award from the Corruption Eradication Commission, the Commission awarded the DG treasury as the echelon 1 which is most anti-corrupt of all ministries’s echelon 1, beside that DG treasury got praise from other government office for the fast disbursement of funds category, the service is good and transparent and free of corruption and bribery.

 

Conclusion

In this case we can improve indonesia treasury in term preventing ineffective and inefficient of fiscal diciplin on public expenditure, we have several method those are:

1. Controlling the overall expenditure.
2.  Managing the budget allocation and optimizing them according to the priorities.
3. Efficiency and effectiveness of the budgeting program.
4. Evaluating the percentage of budget utilizing
5. Tightening the mechanism of budget execution system by a safely computerized database system (SPAN)
6. Changing the existing policies with new ones which are guarantee that the budget allocation is given to the right target for development of indonesia

 

List of Related Regulations

1.  Undang Undang Nomor 17 Tahun 2003 tentang Keuangan Negara (Lembaran Negara Republik Indonesia Tahun 2003 Nomor 47, Tambahan Lembaran Negara Republik Indonesia Nomor 4286);
2. Undang Undang Nomor 1 Tahun 2004 tentang Perbendaharaan Negara (Lembaran Negara Republik Indonesia Tahun 2004 Nomor 5, Tambahan Lembaran Negara Republik Indonesia Nomor 4355);
3. Undang Undang Nomor 15 Tahun 2004 tentang Pemeriksaan Pengelolaan dan Tanggung Jawab Keuangan Negara (Lembaran Negara Republik Indonesia Tahun 2004 Nomor 66, Tambahan Lembaran Negara Republik Indonesia Nomor 4400);
4. Peraturan Presiden Nomor 54 Tahun 2010 tentang  Pengadaan Barang/Jasa Pemerintah sebagaimana telah beberapa kali diubah terakhir dengan Peraturan Presiden Nomor 70 Tahun 2012;
5. Peraturan Menteri Keuangan Nomor 184/PMK.01/2010 tentang Organisasi dan Tata Kerja Departemen Keuangan ;
6. Peraturan Menteri Keuangan Nomor 169/PMK.01/2012 tentang Instansi Vertikal Direktorat Jenderal Perbendaharaan;
7. Peraturan Menteri Keuangan Nomor 190/PMK.05/2012 tentang Tata Cara Pembayaran Dalam Rangka Pelaksanaan Anggaran Pendapatan dan Belanja Negara.

link terkait: perbendaharaan.go.id
keyword: indonesia treasury, indonesian treasury, indonesian treasury, indonesia treasury perbendaharaan