Vice Minister of Finance MINISTRY OF FINANCE OF THE REPUBLIC OF INDONESIA GIFT MEETING WASHINGTON D.C., 20-21 JUNE 2016 Prof. Mardiasmo Vice Minister of Finance

WHY INDONESIA NEEDS REFORM ON BUDGET SYSTEM Budget Discipline; Sustainability; Transparency; Efficiency; Accountability. The former law didn’t match the national and global conditions ICW - Indische Comptabiliteits Wet New System New Classification Law No 17/2003 reg. State Finance Law No 01/2004 reg. State Treasury Law No 15/2004 reg. State Finance Accountability

PUBLIC PARTICIPATION ON BUDGET CYCLES MUSRENBANG (2) BUDGET PREPARATION & ENACTMENT (1) FISCAL PLANNING Public Participation: PUBLIC HEARING WITH SUPREME AUDIT (5) EXTERNAL AUDIT & EXTERNAL REVIEW Public Participation: PUBLIC HEARING Public Participation: BUDGET MONITORING PUBLIC EMAIL TEPRA (3) BUDGET EXECUTION REVENUE RAISING, EXPENDITURE, LOANS Public Participation: REGIONAL ECONOMIST FORUM BUDGET GOES TO CAMPUS DJA’s GREETING (4) TRANSACTION ACCOUNTING, RECORDING AND REPORTING

COMMITMENTS BUDGET TRANSPARENCY IS ONE PART OF FISCAL REFORM ENGAGEMENT WITH GIFT (BECAME A STEWARD)

RECENT EFFORTS

OPEN BUDGET SURVEY

BUDGET TRANSPARENCY FORMULATING CITIZEN BUDGET IMPROVING BUDGET DOCUMENT (BOOK 3) PUBLISHING BUDGET DOCUMENTS ON OFFICIAL WEBSITE (PDF FORMAT) BUDGET TRANSPARENCY ACTION BECOME ONE OF KEY PERFORMANCE INDICATOR INCREASING PUBLIC AWARENESS ABOUT BUDGETING PROCESSES : REGIONAL ECONOMIST FORUM BUDGET GOES TO CAMPUS FOR GRADUATE LEVEL DJA’s GREETING (DJA MENYAPA) FOR HIGH SCHOOL LEVEL SCREEN DISPLAY AT COMMUTER LINE (TRAIN)

CITIZEN BUDGET: BUDGET IN BRIEF Contains key information of the central government budget Presented in accessible language and visual elements

3 SEPARATED DOCUMENTS FOR EASIER NAVIGATION Book 1 Draft Law on State Budget Book 2 Financial Note and the State Budget Book 3 Line Ministries’ Work Plans and Budget

PERSONAL PERFORMANCE CONTRACT KEY PERFORMANCE INDICATOR OF PUBLISHING BUDGET DOCUMENTS “How many level of data / which content will be noted in a financial note”

THE MOST SALIENT ACTION ENCOURAGING PEOPLE TO UNDERSTAND ABOUT THE BUDGETING PROCESSES : REGIONAL ECONOMIST MEETING BUDGET GOES TO CAMPUS (GRADUATE LEVEL) DJA’s GREETING - DJA MENYAPA (HIGH SCHOOL LEVEL) SCREEN DISPLAY AT COMMUTER LINE - TRAIN (PUBLIC)

REGIONAL ECONOMIST FORUM

BUDGET GOES TO CAMPUS

DJA’s GREETINGS

EMAIL FOR PUBLIC OPINION infoapbn@kemenkeu.go.id

ACTION PLANS

MAIN OBJECTIVE OF IMPROVING PUBLIC PARTICIPATION IMPROVING THE QUALITY OF BUDGET FORMULATION PROCESS HOW ? MAKING IT EASIER FOR PUBLIC TO USE BUDGET DATA FOR VARIOUS PURPOSES

TIME LINE 2016 DATA PORTAL DEVELOPMENT WORKSHOP IN JAKARTA July August September October November December WEEK 4 COORDINATION PREPARATION PRE DESIGN FINALIZATION DESIGN COLLECTING THE DATA SERIES (2005-2015) DATABASE MANAGEMENT SOFT LAUNCHING INDONESIA BUDGET DATA PORTAL SHOWING UP THE DRAFT DESIGN

ACTIONS PLAN 2017 - 2019 6 MINISTRIES WILL PROVIDE DETAIL OF THEIR OWN BUDGET DATA IN THE DATA PORTAL AT LEAST 75% OF BUDGET DOCUMENTS WILL BE PUBLISHED IN ACCORDANCE TO FISCAL TRANSPARENCY STANDARD

THANK YOU