Indonesia Assesses the Policy of Financial Liquidity Loan Collaboration
Indonesia Minister of Finance Sri Mulyani and PSA Leaders in the 2019 National Service Agency Coordination Meeting today (02/26) at Dhanapala Building of Ministry of Finance in Jakarta. Photo by The Ministry

JAKARTA (TheInsiderStories) – The government through Ministry of Finance (MoF) conducting a study of policies that enable the Public Service Agency to collaborate in the form of financing loans to raise the productivity of State assets, told minister in Jakarta, on Tuesday (02/26).

The minister Sri Mulyani Indrawati said, the State agencies which experienced excess liquidity could borrow each other. Thus, she added, do not have to wait for the audit results at the end of the year.

Through collaboration with Bank Indonesia (BI), the agencies that have excess liquidity and deficits can be collaborated according to the laws and regulations that will later be made.

The government also encouraged the improvement of the State agencies business processes through the implementation of technological innovations to provide optimal services to the public.

One of the technological innovations facilitated by the government through the MoF, including online office applications “Office Automation”  to replace paper-based mailing procedures and information systems coaching Integrated Online System as a medium for connecting various information systems independently developed by each institutions.

The role of the State agencies in supporting fiscal sustainability to date continues to show improved performance. To date, there are 218 agencies spread across 30 provinces in Indonesia. From the aspect of financial performance in 2018, 74 percent of all institutions were able to exceed the previous year’s income.

This can be seen from the increase in the agencies funding portion compared to the State Budget from 2012 amounting to 53.7 percent, increasing to 75.2 percent in 2018. This year, the government itself has targeted the State companies revenues of Rp 47.9 trillion (US$3.42 billion) or 12.7 percent of non-tax Revenues amounting to Rp 378.3 trillion.

Reportedly, during 2018, the realization of the agencies revenues reached Rp55.4 trillion, reaching 128 percent of the target in the state budget which amounted to Rp 43.3 trillion. The institutions revenue realization also increased compared to 2017 realization which amounted to Rp47.3 trillion. With that, the Stated firms manages assets of more than Rp800 trillion or 14.6 percent of the total assets of the central government.

Written by Daniel Deha, Email: daniel@theinsiderstories.com

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