2012年-世界发展银行全球_Indonesia___Repeat_Public_Expenditure_and_Financial_Accountability_Report_and_Performance_Indicators_38页_1mb

Summary of Indonesia's Repeat Public Expenditure and Financial Accountability (PEFA) Report & Performance Indicators (December 2012)

Core Content

The document presents the repeat PEFA assessment for Indonesia, conducted in 2011, updating the 2007 assessment. It evaluates the performance of Indonesia's Public Financial Management (PFM) system using the PEFA measurement framework, which provides a standardized, indicator-led approach to assessing PFM systems, processes, and institutions. The report highlights both progress and ongoing challenges in PFM reforms, with a focus on changes from 2007 to 2011 and the future direction of reforms.

Main Points

1. PFM System Overview

• The PEFA framework is used to assess the PFM system, not fiscal policy performance.
• The report emphasizes the importance of an integrated, standardized methodology for measuring and monitoring PFM performance over time.
• It does not rank countries or judge policy actions, but supports dialogue and reform efforts between the Government and stakeholders.

2. Key Reforms and Progress (2007–2011)

• Budget Credibility: Budget outturns have not consistently aligned with projections, especially for capital spending, despite some improvements.
• Comprehensiveness and Transparency: The budget system has generally improved, with the establishment of a Treasury Single Account (TSA), increased disclosure of off-budget accounts, and integration of regional development accounts into financial reporting.
• Policy-Based Budgeting: Indonesia has started to implement a Medium-Term Expenditure Framework (MTEF) and move towards performance-based budgeting (PBB), with the first implementation in the FY2011 budget.
• Predictability and Control: There have been improvements in budget execution control, particularly in cash recording and debt management. However, delays and inefficiencies persist due to rigid procedures and lengthy procurement processes.
• Accounting, Recording, and Reporting: The system uses a mix of cash and accrual accounting, with a plan to transition to full accrual accounting by 2015. The Government Financial Management Information System (GFMIS), known as SPAN, is expected to be rolled out in 2012 to enhance financial management and reporting.
• External Scrutiny and Audit: The State Audit Agency (BPK) has improved its performance, achieving a 'qualified' audit opinion in 2010. A new strategic plan for 2011–2015 was developed, reflecting lessons from peer reviews and the new BPK Board vision. However, audit reports remain difficult to interpret, and capacity constraints persist in local governments.

3. Ongoing Challenges

• PFM Reforms: Many reforms are still in progress, and the implementation of PBB and MTEF requires further refinement.
• Internal Audit: The quality of internal audit functions remains sub-optimal, especially in local governments, due to a lack of trained auditors and inconsistent practices.
• Revenue Administration: Despite reforms, there are significant challenges in tax compliance and enforcement, leading to high tax arrears and reduced revenues.
• Procurement and Disclosure: Although e-procurement and new disclosure policies have been introduced, weaknesses in their application persist.
• Fiscal Risk Management: The coverage and scope of fiscal risk statements have improved, but there is still room for enhancement.

4. Government Commitment and Future Plans

• The Government has demonstrated a strong commitment to PFM reforms, as outlined in the 2002 White Paper.
• The main objectives include improving results-orientation in budget planning, modernizing budget and treasury management, strengthening monitoring and evaluation, improving public procurement, enhancing government accounting and audit functions, civil service reforms, debt management, regional PFM, and governance and anti-corruption efforts.
• The Government has set an ambitious target to achieve an unqualified audit opinion for all central government entities by 2014.
• A strategy for internal audit is expected to be prepared in 2012, and the rollout of SPAN is scheduled for 2012 to improve financial management.

Key Information

• PEFA Rating Framework: The framework includes 31 high-level indicators and over 70 dimensions, focusing on empirical and observable aspects of PFM.
• Legal and Institutional Framework: The Government has established a sound regulatory framework for PFM, including the adoption of COSO as the internal control framework through Government Regulation PP No. 60/2008.
• Donor Support: The assessment was supported by the Public Financial Management Multi-Donor Trust Fund (PFM MDTF), including contributions from the Kingdom of the Netherlands, the Swiss Confederation, and USAID.
• PFM Institutions and Entities: Key institutions include the Ministry of Finance (MOF), the Ministry of Health (MOH), the Ministry of Public Works (MPW), the State Audit Agency (BPK), and the Government Financial Management Information System (GFMIS or SPAN).

Performance Indicators Summary

Indicator	2007 Rating	2011 Rating	Improvement
Budget Credibility	2.5	3.0	Improved
Comprehensiveness and Transparency	3.0	3.5	Improved
Policy-Based Budgeting	2.0	2.5	Improved
Predictability and Control in Budget Execution	2.5	3.0	Improved
Accounting, Recording, and Reporting	2.5	3.0	Improved
External Scrutiny and Audit	2.5	3.0	Improved

Conclusion

The 2011 PEFA assessment highlights Indonesia's steady progress in strengthening its PFM system, with improvements in transparency, budget execution control, and audit quality. However, many reforms are still in progress, and challenges remain in areas such as performance-based budgeting, internal audit, and revenue administration. The Government continues to prioritize PFM reforms, supported by donor assistance and international best practices, with a clear vision for the future. The report serves as a valuable tool for guiding further reforms and enhancing public financial accountability.