Fri, 05 Dec 2003

Govt finalizing draft for new state accounting standard

The Jakarta Post, Jakarta

A new accounting standard in the drawing up of state financial reports is being drafted and is expected to be finalized in June next year, before coming into effect in 2005, according to Minister of Finance Boediono.

"There is still time left, but we need to work hard to prepare the whole thing," Boediono told a seminar on state accounting on Thursday.

He added that the drafting of the new bookkeeping standard was mandated by the Law on State Finance, which was enacted early this year.

Under the law, executives at all level of government -- including the president, governors, mayors and regents -- are obliged to draw up an accountability report using a revised accounting standard, which is a more advanced and transparent one.

No details of the items to be changed have been made available, while according to Boediono, the drafting process had been underway since last year.

As the new accounting standard will also be effective in the local governments, Boediono expected an active role on the part of provinces, regencies, and municipalities in their preparations to comply with the new regulation.

"Because of that, we expect local governments to take the initiative... and display their achievements in improving the management of the regions' finances," he said.