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Government encourages electrification in Regional Budget management

13 February 2020 15:18

JAKARTA - The Ministry of Finance, Coordinating Ministry for Economic Affairs, Ministry of Home Affairs, Ministry of Communication and Informatics, and Bank Indonesia have signed a memorandum of understanding (MoU) and agreement regarding the acceleration and expansion of electronification in regional government transactions.

The agreement aims to transform Regional Budget transactions from cash-based to non-cash-based to speed up digital economic integration and minimise the possibility of budget leaks.

“Transaction electrification is also expected to boost digital economic and financial integration to national and regional levels, including government-to-government transactions such as from the central government to regional governments and even villages,” said Finance Minister Sri Mulyani Indrawati in an official statement, Wednesday (13/2).

“Any financial feedback loop in the country is expected to drive the economy.”

Going forward, Ms Indrawati added, the Ministry of Finance will develop the Regional Financial Information System as a data source for regional levels up to transaction records. Through the system, regional governments are expected to simplify procedures related to their respective budgets. (MS)

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