TEMPO.CO, Jakarta- The World Bank said that the decade-long 'cash management' reform by the Government of Indonesia has resulted in reduced costs for taxpayers and better control of public 'cash'. The appraisal was made in a book entitled 'Cash Management Reform', which is jointly produced by the World Bank and Indonesia’s Finance Ministry.
"Cash management reforms were a pillar of public financial management reforms in Indonesia. Reform has allowed the Government to consolidate its cash balances into a treasury single account (TSA), streamline the receipt and payment processes, and improve accountability. The results are lower financing costs and improved control of both revenue and expenditures," said Marwanto Harjowiryono, Director General of Treasury, Ministry of Finance.
Directly after the 1997 Asian Financial Crisis, Indonesia underwent a series of reforms to improve the resilience of the economy and its ability to withstand shocks. The book outlines the various stages of reform, the successes achieved and the challenges faced in reforming the management of 'state cash'. International practices on various aspects of cash management, and, wherever relevant, benchmarking the Indonesian experience against such practices, informed the book’s preparation.
The book also focuses on the importance of improved transparency and accountability in public financial management, in order to improve public understanding of how state funds are managed - which is juxtaposed with Indonesia’s experience in the aftermath of the 1997 Asian Financial Crisis.
"The Indonesian cash management story is one of success. This book provides lessons learned that can guide the next generation of reforms in Indonesia, in neighboring countries, and beyond the region," said Rodrigo A. Chaves, World Bank Country Director for Indonesia.
This book, which is intended as a reference material for university students and public finance specialists who wish to understand the fundamentals of cash management in Indonesia, will be published in Indonesian and English, in order to appeal to audiences beyond Indonesia. Around 1200 copies of the Indonesian version and 250 copies of the English version will be given to higher education institutions, financial audit institutions, banking institutions, and other relevant agencies around the world.