Ministry of Finance launches reorganization drive
Ministry of Finance launches reorganization drive
Dadan Wijaksana, The Jakarta Post/Jakarta
The planned reorganization of the Ministry of Finance took place
on Friday -- with the directorate for budgetary affairs having
been split into two -- in a move to help boost efficiency and
avoid overlapping policy.
The shake-up established a new and powerful directorate called
the Directorate for State Treasury, in addition to the
Directorate for Budgetary Affairs and Fiscal Balance, to be
headed by Mulia P. Nasution and Achmad Rochjadi, respectively.
The official inauguration was carried out by the Minister of
Finance, Boediono.
Achmad's unit will be in charge of conducting the planning for
state budget allocations both spending and revenues, while
Mulia's unit will execute those plans.
"This is important to create a check and balance system, as
the planner and executor of the state budget is not the same
(directorate). It's a common international practice," Boediono
said after the inauguration.
The reorganization plan surfaced early last year, as a result
of an agreement between the government and the International
Monetary Fund (IMF).
Boediono also said the treasury unit would also be responsible
for the management of state funds. Not only will the treasury
unit have authority to disburse funds to ministries and
government institutions, but it will also be responsible for
finding resources to finance the state budget.
It would act like a fund manager, tasked to seek alternative
sources of funds and provide advice, as well as determine where
to invest whenever there was a surplus.
The preparation of state finance reports, cash management,
debt management, lending operations, procurement policy and asset
management would all fall under the unit's line of duties.
The two directorates, supported by other units within the
ministry, will provide assistance in the drawing up of the annual
state budget in respective areas -- fiscal policies and fiscal
balance between the central and regional governments.
Elsewhere, the Center of Bonds Management Unit (PMON), and
Fiscal Analysis Agency (BAF), would no longer be independent
units, but would be integrated with the two directorates.
Eyebox
Herwidayatmo to go to Washington
Minister of Finance Boediono announced on Friday that
Herwidayatmo, chairman of the Capital Market Supervisory Agency
(Bapepam), would take up a new post at the World Bank to
represent ASEAN in the Washington-based organization for two
years.
Officials of ASEAN governments have been taking turns every
two years to represent the region at the Bank and Herwidayatmo
would replace a top official from Thailand, Boediono said.
The capital market watchdog head would start assuming his new
post on Nov. 1.
Asked about his replacement at Bapepam, Boediono could not
name one as a discussion was still underway. -- JP