Connect with us

News

Continued Reforms Result in Stronger Management of Public Finances in Indonesia

Published

on

Consistent reforms in Indonesia’s public financial management have led to a stronger fiscal framework and system for budget execution, says the latest Public Expenditure and Financial Accountability assessment (PEFA) report for Indonesia, launched by the Minister of Finance today. The launch provides a platform for a public dialogue on the state of public financial management in Indonesia and the government’s direction for future reform efforts.

Indonesia has made significant gains in the preparation, reporting, and execution of the national budget, with higher scores for transparency of public finances, policy-based fiscal strategy and budgeting, better control in budget execution, and accounting and reporting, according to the report, which was prepared by the government of Indonesia with support from the World Bank and international development partners.

We continue to carry out critical reforms in public financial management, and these reforms are leading to results. A significant result is reflected in the achievement of an unqualified audit opinion from BPK in 2016. We are confident that further reforms will lead to a better value for money through stronger public finances and improved service delivery,” said Minister Sri Mulyani Indrawati from the Ministry of Finance.

Amongst the mechanisms which have led to stronger public finance in Indonesia are instruments now in place that enable more prudent fiscal management and control of budget execution. Fiscal rules, including restrictions on the budget deficit and outstanding debt, are effectively adhered to.

“Collecting more and spending better is integral to Indonesia’s efforts to enhance its public services and deliver more inclusive and sustainable development,” said Rodrigo A. Chaves, World Bank Country Director for Indonesia and Timor-Leste. “The World Bank looks forward to supporting further reforms in public financial management.”

The PEFA assessment covers institutions receiving budget allocations from the central government budget, including line ministries and agencies, public corporations, as well as local governments (through the central government transfers). This PEFA report covers the fiscal years from 2014 until 2016.

This PEFA assessment provides important insights on Indonesia’s reforms in public financial management, and enables us to identify gaps and opportunities for further progress. Canada is delighted to see how the reforms undertaken to date by the government of Indonesia are developing a solid platform for improved quality of financial reporting and oversight, which will enhance transparency and accountability,” said Peter MacArthur, Ambassador of Canada to Indonesia.

PEFA is an international methodology for assessing public financial management performance. It provides a framework for assessing and reporting on the strengths and weaknesses of public financial management, using quantitative indicators to measure performance.

We congratulate Indonesia for undertaking the PEFA 2017. The report demonstrates Indonesia’s willingness to further improve the management of its public finances as shown with the alignment of PFM instruments and system with international standards. The EU will continue to support the public financial reform agenda of the Government,” said Vincent Guérend, Ambassador of the European Union to Indonesia and Brunei Darussalam.

Indonesia’s reforms in public financial management are multi-faceted and includes also improvements in the flow of information. In 2015, Indonesia rolled out a system for managing financial management information that ensures more efficiency and accountability of the government’s financial transactions.

“Switzerland welcomes the successful execution of the PEFA. This report provides an important framework for prioritizing the next wave of reforms and we look forward to the follow-up reform actions by the government of Indonesia,” said Yvonne Baumann, Ambassador of Switzerland to Indonesia.

Continue Reading
Comments

Energy News

Korea is putting innovation and technology at the centre of its clean energy transition

Published

on

The successful implementation of the Korean government’s Green New Deal will provide an opportunity to accelerate Korea’s clean energy transition and place the country at the forefront of some of the energy industries of the future, according to a new policy review by the International Energy Agency.

Korea recently set a target of reaching carbon neutrality by 2050 to steer its energy sector away from today’s dominance of fossil fuels and strong dependence on energy imports. To accelerate the transition to low-carbon energy, the government is committed to substantially increasing the share of renewable energy sources in the electricity supply, gradually phasing out coal, significantly improving energy efficiency and fostering the country’s nascent hydrogen industry.

“Many of these measures will help Korea not only to advance its energy transition but also to improve its energy security – a high priority given the country’s limited domestic energy production,” said Dr Fatih Birol, the IEA Executive Director, who is launching the report today at an online event with Joo Young-joon, Deputy Minister at the Korean Ministry of Trade, Industry and Energy. “I welcome Korea’s ambitious carbon-neutrality goal and the initial steps set out in its Green New Deal. The IEA is committed to supporting the government in these vital efforts.”

In 2015, Korea became the first country in Northeast Asia to introduce a nationwide emissions trading system that sets a best practice example for other countries to follow. But more needs to be done to reduce the carbon intensity of Korea’s energy supply, which is above the IEA average because of the high share of coal-fired power generation.

Plans by the government to close aging coal-fired plants reflect growing concerns among the population over climate change and local air pollution. The government can draw on this public support to swiftly introduce its planned environmentally friendly energy tax programme that will complement other policy measures, according to the IEA report.

Korea’s private sector has a high capacity for technology innovation and its population has shown an almost unparalleled openness toward digitalisation. This closely links Korea’s energy transition to efforts to spur investments in energy storage systems, smart grids and intelligent transport systems.

“Korea can draw on its technological expertise by addressing regulatory and institutional barriers in its energy markets and by fostering more active consumer engagement,” Dr Birol said. “This can improve the way the energy markets operate, enhance competition and encourage the emergence of new business models.”

The focus of Korea’s energy transition must go beyond the power sector to target emissions from industry and transport, the IEA policy review says. The industrial sector is emissions-intensive and accounts for over half of Korea’s final energy consumption despite the notable improvement in energy efficiency over the last decade. The IEA review welcomes the new policy emphasis on integrating individual energy efficiency measures as building blocks for smart energy industrial complexes. It will also be important to find a good balance between mandatory and voluntary measures to encourage further energy efficiency improvements in industry.

In the transport sector, Korea has well-established fuel economy standards for passenger vehicles, but progress is currently lagging behind government targets. The IEA applauds the government’s plans to introduce fuel economy standards for heavy goods vehicles, which would put Korea at the forefront of global efforts.

Korea has set ambitious goals for the roll-out of electric mobility and also to establish itself as a leading exporter of hydrogen and fuel cell vehicles by 2040. Those targets and the commitment to research and innovation more broadly are commendable, but Korea also needs to reappraise the role public transport could play in the future, according to the report.

Continue Reading

Development

Indonesian President Addresses Global Business Leaders at the WEF Special Dialogue

Published

on

Today, President Joko Widodo of Indonesia took part in a dialogue with global business leaders, hosted by Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

The dialogue focused on the need for deeper public-private cooperation – currently focused on helping manage the COVID-19 pandemic – as well as providing a boost to the country’s economic recovery. Indonesia is currently experiencing its first recession in 22 years, and like many nations, is in the midst of tackling the pandemic; the country surpassed half a million confirmed cases of the disease this week.

“I would like to express my appreciation to the World Economic Forum for hosting the Country Strategy Dialogue on Indonesia at such a pivotal time for our country and the world,” said President Joko Widodo. “The Government of Indonesia remains strongly committed to engaging in public-private partnerships that support the country’s path towards sustainable and resilient economic recovery.”

In his opening remarks, the president said that the enactment of the Omnibus Law will help improve Indonesia’s investment climate and legal certainty, adding that: “Significant support from the business community in its implementation is essential, as it will add value to the government’s efforts in handling the pandemic and supporting economic recovery in a balanced and synergetic manner.”

More than 50 global business leaders took part in an interactive virtual discussion, during which they listened and offered suggestions to the president and members of his cabinet, who laid out their plans for economic revival.

“Indonesia with its large population, is making impressive progress in fighting COVID-19, and at the same time is using this pandemic as a means to restructure, modernize and upgrade its economy,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

The president emphasized measures his government would be taking to manage the spread of COVID-19. The focus is on providing treatment and ultimately vaccinations for the population, while also cutting red tape to fast-track needed investment aimed at restoring Indonesia’s growth and securing its competitiveness post-pandemic.

Several important cabinet members, including Erick Thohir, Minister of State-Owned Enterprises and Retno L. P. Marsudi, Minister of Foreign Affairs, and Luhut B. Pandjaitan, Coordinating Minister for Maritime Affairs and Investment, took part in the dialogue. They presented details of the planned establishment of the country’s multibillion dollar sovereign wealth funds, implementation of the Job Creation Laws and planned investment incentives, as well as prioritizing environmental sustainability in recovery efforts, to ensure the country’s leadership in the area of green growth.

Global chief executive officers responded by presenting their plans for further investment and offered suggestions for collaboration.

James Quincey, Chairman and Chief Executive Officer of The Coca-Cola Company said: “I appreciate the government’s efforts to encourage investment, maintain sustainability at the centre of their rebuilding efforts and clearly communicate their ambition to work together with different stakeholders to create new and innovative ways to foster growth.”

The Government of Indonesia and the World Economic Forum have agreed to continue the dialogue aimed at developing multistakeholder solutions in areas such as mainstreaming low-carbon investments, supporting Micro Small and Medium-sized Enterprises (MSME) through reskilling and upskilling, and building long-term resilience for the country’s travel and tourism sector.

Continue Reading

Development

Pakistan PM Khan Speaks with Global CEOs on Strategic Priorities in Post-Pandemic Era

Published

on

The World Economic Forum today hosted a “Special Dialogue with Prime Minister Imran Khan” for its members and partners, chaired by Forum President Børge Brende. The session gave chief executives from across the world an opportunity to hear directly from the prime minister on the factors behind Pakistan’s resilience to the economic shocks of the pandemic and his country’s post-COVID-19 recovery strategy.

In the virtual session, Khan explained the policy priorities of the Government of Pakistan, including regional connectivity projects like the China-Pakistan Economic Corridor (CPEC), and progress on talks to improve trade flows between Afghanistan and Pakistan following his visit last week to the Afghan capital. Khan also responded to questions from chief executives on promoting a digital economy in Pakistan and improving the enabling environment for long-term investors.

“My aim is for Pakistan’s economy to emerge greener, fairer and stronger from the pandemic. It is crucial for us to work with the international business community and partners like the World Economic Forum to share the important reforms underway here and help global businesses participate in the emerging opportunities in Pakistan,” said Imran Khan, Prime Minister of Pakistan.

“Pakistan’s economy has shown remarkable resilience to the pandemic, placing it in a strong position to rebound quickly from the shock. The Forum convened this dialogue with Prime Minister Khan for global business leaders to discuss the country’s economic response in greater detail and to understand where they could contribute to Pakistan’s ambitious recovery strategy,” said Børge Brende, President, World Economic Forum.

More than 70 members and partners of the World Economic Forum from around the world participated in the virtual session.

Continue Reading

Publications

Latest

Eastern Europe19 mins ago

Can economic cooperation contribute to sustainable peace in Karabakh?

A major step has taken towards the Karabakh conflict on November 10, 2020. The century-old conflict between Azerbaijan and Armenia...

Russia2 hours ago

The Coming Bipolarity and Its Implications: Views from China and Russia

Authors: Zhao Huasheng and Andrey Kortunov The Chinese authorities have never accepted or used the concept of China-U.S. bipolarity. Neither...

Energy News4 hours ago

Korea is putting innovation and technology at the centre of its clean energy transition

The successful implementation of the Korean government’s Green New Deal will provide an opportunity to accelerate Korea’s clean energy transition...

Development6 hours ago

Indonesian President Addresses Global Business Leaders at the WEF Special Dialogue

Today, President Joko Widodo of Indonesia took part in a dialogue with global business leaders, hosted by Klaus Schwab, Founder...

Development7 hours ago

Pakistan PM Khan Speaks with Global CEOs on Strategic Priorities in Post-Pandemic Era

The World Economic Forum today hosted a “Special Dialogue with Prime Minister Imran Khan” for its members and partners, chaired...

Tech News8 hours ago

The drive towards Industry 4.0 in Thailand

The United Nations Industrial Development Organization (UNIDO) presented its Industrial Development Report (IDR) 2020: Industrializing in the digital age at...

Human Rights11 hours ago

Putting women and girls’ rights at the heart of the global recovery for a gender-equal world

European Commission and the High Representative of the Union for Foreign Affairs and Security Policy put forward ambitious plans to...

Trending