Reforming Public Sector Statistics in Indonesia
Challenge
Indonesia needed to strengthen fiscal statistics to bring its accounting in line with international standards, especially the G-20 Data Gaps initiative. This was part of a broader set of public financial management reforms, including an overhaul of central and local information technology systems and chart accounts.
Approach
The IMF launched a three-year project that included on-ground missions and continuous consultations. This was helped by the authorities’ decision to reform public sector statistics via Ministerial Decree, and the continuity of engagement between IMF staff and their Indonesian counterparts. During the project, Indonesia implemented an integrated financial management information system that is bridged to the GFS classifications. This is used to compile more comprehensive and more reliable data.
Impact
Indonesia increased the coverage of its annual government finance statistics from its central government to include its general governments, covering 33 provinces and 505 municipalities. By the end of 2015, for the first time the country reported quarterly general government statistics. It also improved the quality of these statistics, eliminating the discrepancies in deficit/surplus and financing data. Improved reliability and increased granularity and periodicity of data provided policymakers and the public with a more accurate picture of the government sector and facilitated the identification and monitoring of fiscal risks.