MoF to have powerful treasury unit<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
Reorganization of the Ministry of Finance (MoF)
\nwill be completed in March next year, thereby creating a powerful
\ntreasury unit, Minister of Finance Boediono said on Wednesday.<\/p>\n
A presidential decree on the reorganization measure would
\nfirst be issued before it becomes effective, to serve as a legal
\nbasis, Boediono said in a hearing with House of Representatives
\nCommission IX on financial affairs.<\/p>\n
\"We're entering the final stages, with the decree expected to
\nbe issued early next year. Then we expect this to operate
\ngradually, starting in March,\" Boediono said.<\/p>\n
The reorganization plan surfaced early this year, as part of
\nattempts to help boost efficiency, provide more clear-cut job
\ndescriptions to avoid overlapping polices and, to some extent,
\nhelp curb corruption.<\/p>\n
The plan came as a result of an agreement between the
\ngovernment and the International Monetary Fund (IMF), and was
\nlater included in the must-do list of action in the letter of
\nintent (LoI).<\/p>\n
Boediono said that under the plan, there would be a new unit,
\nto be known as the Directorate General of Treasury Management, to
\ninclude the management of state funds among its responsibilities.<\/p>\n
Not only will the treasury unit have authority over the
\nallocation of funds to ministries and government institutions but
\nit will also be responsible for finding resources to finance the
\nstate budget.<\/p>\n
That means it would become a kind of fund manager, tasked to
\nseek alternative resources of funds and provide advice, as well
\nas determine where to invest whenever there was a surplus.<\/p>\n
The preparation of state financial reports, cash management,
\ndebt management, lending operations, procurement policy and asset
\nmanagement would all fall under the unit's line of duties,
\nBoediono said.<\/p>\n
He added that more detailed information would be drawn up in
\nthe decree, which is expected to establish a clearer distribution
\nof responsibilities between the fiscal, monetary and
\nmacroeconomic areas, he added.<\/p>\n
Two other units will also be established: the Fiscal Policy
\nUnit and the Directorate General for Budgetary Affairs and Fiscal
\nBalance.<\/p>\n
The two units will also provide assistance in the drawing up
\nof the annual state budget in respective areas -- fiscal policies
\nand fiscal balance between the central and regional governments.<\/p>\n
At present, the three functions of three divisions are spread
\nbetween several directorates general and agencies.<\/p>\n
These include the State Accounting Agency (Bakun), Fiscal
\nAnalysis Agency, Directorate General of the State Budget,
\nDirectorate General of Fiscal Balance and Decentralization
\n(PKPD), Directorate General of Budgetary Affairs, Directorate
\nGeneral of Financial Institutions and the Bonds Management Center
\nunder the secretary-general.<\/p>\n
As a result of the plan, the PKPD and Fiscal Analysis Agency
\nwould very likely be scrapped.<\/p>",
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