Sri Mulyani: Indonesia's Financial Management Has Been Very Good Since Megawati Became President

Minister of Finance, Sri Mulyani. (Photo: Instagram @smindrawati)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati assessed that Indonesia's financial and treasury management system is in a very good and reliable condition amid the pressure of the COVID-19 pandemic.

Sri Mulyani said that Indonesia's financial and treasury management system should be formed because reforms had been carried out since 16 years ago, namely around 2003. At that time the President of Indonesia was Megawati Soekarno Putri.

"With this reform, we see that the function of the treasury in Indonesia is getting better and better," said Sri Mulyani as quoted by Antara, Monday, October 26.

Sri Mulyani said that the Unqualified Opinion (WTP) obtained from the Supreme Audit Agency (BPK) of the Republic of Indonesia is also proof that all state treasury management is carried out with good accounting principles.

According to him, a good treasury system allows the government to make adaptive and responsive adjustments to the impact of the COVID-19 pandemic crisis.

"The reliable system in terms of state finances enables us to immediately make adjustments, adaptive, responsive. That can be done in an extraordinary, immediate, and flexible manner," he said.

The minister explained that the government had reformed the state treasury and financial management system through three packages of laws (UU) from around 2003 to 2004 ago.

The three laws are respectively concerning state finances, state treasury and supervision and accountability of state finances.

Since the reforms, the Directorate General of Treasury (DJPb) of the Ministry of Finance has assumed the responsibility of providing initiatives and innovations to the state treasury.

"Since then, DJPb has carried out various initiatives and innovations in modernizing, improving governance and management in terms of increasing reputation and credibility," he said.

On the other hand, Sri Mulyani said that DGT's reputation was not good when he first served as Minister of Finance in 2005, namely that there was a stigma in society that in disbursing the budget, brokers had to use the services of a broker.

Therefore, the Ministry of Finance established a front office, middle office and back office in each DGT regional office in order to improve and change the stigma of the community.

"That is the first way to clean budget brokers so that they become relatively good service offices. Automation is carried out in services so that the public knows more," he explained.

Not only that, the Ministry of Finance also made other efforts, namely implementing a state revenue module so that the public could clearly and transparently know the flow of money into the state treasury.

Then the Ministry of Finance also established a single treasury account so that the amount and utilization of state money in each Ministry / Institution (K / L) can be known.

"There has been discipline and control throughout the management of state finances to be able to maintain cash, liquidity and how to manage the treasury. This is to ensure that government cash is sufficiently liquid," he said.

Furthermore, the Ministry of Finance created the State Treasury and Budget System (SPAN) and the Agency Level Financial Application System (SAKTI) to continuously improve the governance of the state treasury.