Jakarta, Indonesia, February 22, 2016 – What cannot be measured, cannot be managed – so the saying goes. This motto for management also applies, and is even more critical, to a country’s finances. Eager to strengthen its public sector infrastructure, in April 2015 Indonesia launched a new financial management system that it hopes can usher in more efficiency, transparency and accountability.
Known by its Indonesian acronym SPAN, the new system is being touted as “sophisticated and modern for the future” by Said Askolani, Director General for Budgeting at the Ministry of Finance.
SPAN is an automated treasury payment and budget preparation information system. The system’s functionality is impressive: it can validate government financial transaction data, control government commitments, support the implementation of accrual-based accounting, and help produce real-time financial reports.
President Joko Widodo endorses the initiative launched at the Presidential Palace last year.
“We can now monitor budgeting activities and cash flows of all ministries. We must account for every single Rupiah,” said the President, echoing Indonesia’s commitment to improved government accountability.
SPAN is now also linked to the country’s commercial banking IT infrastructure, which modernizes the government’s cash management process. It is expected not only to facilitate the preparation of a unified national budget and control budget execution, but also provide timely information on the government’s financial position.