Govt to get World Bank aid for ADP
JAKARTA (JP): The government will get $30.25 million in loan from the World Bank this year to help finance the government's accountancy development project (ADP) as part of its effort to improve the management of state finances.
Minister of Finance Mar'ie Muhammad told a hearing with the Budgetary Commission of the House of Representatives (DPR) yesterday that the project, which was launched 15 years ago, is intended to systemize and standardize the accounting system used by state institutions in reporting both state finances and assets.
"I honestly say that we have thus far no reliable accounting system in dealing with the state finances," he said.
He said that his ministry estimated the state assets based on the results of a nation-wide inventory completed last year at Rp 53.7 trillion (US$24.8 billion).
"But, the amount was a historical figure which has not reflected the real value of the assets. It is because we don't have enough professionals to appraise and to manage our assets," added Mar'ie, who himself is an accountant.
The government will focus on improving accounting at state agencies which hold important roles in reporting and supervising the state finances.
Nirwan Nazarudin, head of the accounting board for state finances at the ministry of finance told The Jakarta Post during a break in yesterday's hearing that the World Bank's aid will be used jointly by his board (Bakun), the Capital Market Supervisory Agency (Bapepam), the Export Service Facilitating Agency (Bapeksta), directorate general for financial institutions and the office of Coordinating Minister for Economy and Finance Saleh Afiff for developing the accounting system for state finances.
"Of the $30.25 million, Bakun will use $13 million, Bapepam $10 million, directorate general for financial institutions $5 million and the remaining $1.75 million by Bapeksta and the Coordinating Minister for Economy and Finance," he said.
The money, which will have a maturity of over 15 years, carries an interest rate of four percent.
New offices
In a related development Mar'ie said that the government will soon set up 16 new regional accounting offices at second and first level administrations which will help the accounting board for state finances to monitor state assets and manage state finances.
Bakun thus far operates offices in Jakarta, Semarang, Surabaya, Medan, Bandung, Palembang, and Ujungpandang.
He said that the new offices, which are the main arm of Bakun, are to process data provided by budgetary and treasury offices in provinces.
"But, the offices will also take inventories and supervise the state assets and property," he added.
"Our main objective is to safeguard the state assets, which are usually vulnerable to illegal bartering," he pointed out.
He added that in the future, all data related to the state assets and properties will be directly monitored through a computerized system at Bakun. (fhp)