1. INDONESIAN’S BUDGET REFORM & Transparency MANILA, SEPTEMBER 18TH, 2015 MINISTRY OF FINANCE REPUBLIC OF INDONESIA

2. Indische Comptabiliteits Wet 1.Law No 17/2003 reg. State Finance 2.Law No 01/2004 reg. State Treasury 3.Law No 15/2004 reg. State Finance Accountability Why Indonesia needs reform on Budget System a.Budget Discipline; b.Sustainability; c.Transparency; d.Efficiency; e.Accountability. The former law doesn’t match the national and global condition 1.New System 2.New Classification

3. (1) Fiscal planning (5) External audit & external review (4) Transaction accounting, recording and reporting (3) Budget execution revenue raising, expenditure, loans (2) Budget preparation & enactment Budget Cycles Current Fiscal Year (N) N - 1 N + 1

4. Fiscal Policy & Macroeconomic Framework (Mid May) Temporary Ceiling (Mid June) Budget Proposal (August) Line Ministries Budget Document Examination (End of Nov.) Budget’s Law Draft of Budget Law & Financial Note Govt. Plan & Indicative Ceiling (March) Budget Doc. DIPA K/L (31 st December) BUDGET PREPARATION Budget Approval (end of Oct) Fiscal planning & management Budget preparation & enactment

5. Comments on 2014 Survey Result 1.Indonesian budget proposal documents are prepared by several institution, such as Ministry of Finance and Ministry of National Planning. There were unsufficient information about the objects of survey (which documents), also the detail information that needed on it; 2.There were lack of communications between all stakeholders. The unit, who received the confirmation form surveyor, just answered limited poin of all questions and didn’t made proper communication to other stakehoders; 3.There was lack of awareness about the survey because the stakeholders had limited informations about “budget transparancy; 4.The pre-budget proposal, that didn’t up loaded onto Ministry of Financy, has decreased the point of Indonesia. However, the Ministry of Finance already makes a presscon to deliver the policy of the next year budget.

6. CHALENGES for UPCOMING SURVEY 1.Improving comminication between stakeholders, in that case the DG BUDGET will stand as the coordinator; 2.Improving the content of budget documents, especially Indonesian Financial Note, to comply the international budget transparancy standard; 3.Publishing all budget document, after government submit to the parliement; 4.According to the Law on Public Information Opennes, common people or NGO could ask further detail of budget data, unless it is classified by Goverment; 5.Improving the budget prosses by improving the public participation, for example DG Budget will made a workshop with NGO and expertise to discuss about macroeconomic assumption, which will be used budget formulation.