The establishment of Directorate General of Treasury (DGT) is not regardless of consequence the implementation of state financial management reform in indonesia. Central government taking steps to change through legal and organization reform when the spirit of manifesting good governance is establish. In parallel, legal reform marked by the establishment of a package of the State Finance Act accompanied by organizational changes in the Ministry of Finance in order to harmonize the organization with discernment of function Ministryof Finance as Fiscal Management institution.

As Fiscal Management institutions, Ministry of Finance have some authorities in state finance such as functions in assessment , budgeting , and the treasury .This is the reason of organizational reform ( reorganization ) with 'establishment' of three organization with new nomenclature , namely Directorate General Budget and Financial Balance (Ditjen APK), Directorate General of Treasury (Ditjen PBN), and Agency of Economic Assessment, Financial, and International Cooperation (BAPEKKI). An organizational change that characterized by separating of functions but in one organization, as well as uniting the same functions but distributed in various of units.

The Directorate General of Treasury is not completely new. ‘Core function’ of GDT is spread in various units of Echelon I with dominant function, namely budget implementation, cash management, asset management, and foreign debt management are under unit of Echelon I Directorate General of Budget (DJA) . Beside that, other treasury functions are scattered over several units Echelon I and II namely domestic debt management in the Center of State Bonds Management (PMON), subsidiary loan management and cash management in the Directorate General of Financial Institution (DJLK), accountability of budget implementation in State Financial Accounting Agency (BAKUN), and Regional Financial Information Data office (KPDIKR) BINTEK

In the Presidential Decree Number 35, 36, and 37 in 2004 and Finance Minister Decision Number 302/KMK/2004 and Number 303/KMK/2004, units that have treasury function are fused into one Directorate General of Treasury, consisting of 1 Secretariat of Directorate General and 7 Technical Directorate at Central Office as well as 30 Regional Office Directorate General of Treasury and Treasury Office (KPPN) at its vertical agencies (see organization).

The inauguration of the Director General of Treasury and all Official of Echelon II in October 2004 was the starting point synergy of the new organization. Until now, there have been some times the turn of the officials of echelon II and the offices of the below.