The digital transformation in Public Financial Management (PFM) in Indonesia has become a crucial foundation for supporting the effectiveness and efficiency of state financial management. Ministry of Finance, as the leading financial authority, has integrated treasury systems through digitalization and leveraged big data analytics to support data-driven policies.
Continuing the series of thematic Focus Group Discussions (FGDs) that have been conducted since Tuesday (20/08), the second thematic FGD of the Road to Launching and First Meeting of the ASEAN Treasury Forum (ATF) 2024 was held on Thursday (22/08) with the theme "Digitalization of Public Financial Management." The ATF is an initiative by Director General of Treasury, serving as a peer-learning platform for ASEAN countries to enhance treasury management capacity and support regional economic growth.
"Director General of Treasury has directed that treasury and public financial management (PFM) should have their own forum at the ASEAN regional level. In response to this, the Directorate General of Treasury initiated the establishment of the ATF during the High-Level Meeting as part of the ASEAN Finance Ministers' Meeting. In this meeting, the Minister of Finance expressed the hope that the ATF could become a peer-learning platform for ASEAN countries to sharing knowledge, ideas, and innovations in enhancing treasury management capacity, which will support the acceleration of ASEAN regional economic growth," this statement explained by Dwi Irianti Hadiningdyah, the Secretary of the Directorate General of Treasury, in her remarks.
In this thematic FGD, Arif Wibawa, Director of Treasury Information System and Technology (SITP), presented material on the Digitalization of Public Financial Management, specifically focusing on enhancing government transactions through the digital integration of treasury systems and implementing data-driven policies using big data analytics.
"The project for the next Integrated Financial Management Information System (IFMIS) aims to integrate IFMIS and data analytics to transform the Directorate General of Treasury into a data-driven organization. This includes the development of micro-services-based applications, mobile-based applications, limitations on the use of cloud services related to data sovereignty issues, adjustment of regional fiscal management with central fiscal policies, as well as rapid technological developments and system-based policies," the Director of SITP explained.
The second thematic FGD was held virtually and moderated by Iwan Teguh Setiawan, Head of Subdirectorate of the External Information System Management. The forum was also attended by the the Heads of Regional Offices of the Directorate General of Treasury, who shared their views, they are the Head of the DJPb Regional Office for South Kalimantan, the Head of the DJPb Regional Office for Banten, the Head of the DJPb Regional Office for Central Java, the Head of the DJPb Regional Office for Bali, the Head of the DJPb Regional Office for Central Kalimantan, the Head of the DJPb Regional Office for South Sulawesi, the Head of the DJPb Regional Office for Southeast Sulawesi, and the Head of the DJPb Regional Office for Papua.
Digitalization in public financial management in Indonesia is a strategic step to face future challenges in state financial management. With a strong organizational structure and a clear roadmap, the Ministry of Finance continues to strive to become a more responsive and efficient institution in supporting national economic development. The integration of information technology, data analytics, and data-driven policies are key to achieving this goal. [NS/BS]
