Cash Management Reform in Indonesia : Making the State Money Work Harder

During the last decade, a body of common practices has emerged among developing countries on the legal, institutional and procedural foundations to support efficient cash management. These common practices have been reviewed and documented in guidance notes and publications on international practices issued by multilateral institutions like the International Monetary Fund (IMF), the World Bank (WB), and the Organization for Economic Co-operation and Development (OECD). Additionally, frequent peer-to-peer exchanges of experiences between countries have resulted in the continued evolution of cashmanagement practices to leverage improvements in data management, ICT and banking systems. The first part of this chapter examines international practices with regard to setting the objectives, as well as the legislative and institutional arrangements for cash management. It details the objectives and principles of cash management, its links with policy issues, information technology needs, incentives and sanctions to promote implementation, and the sequencing of the reform. The second part of the chapter describes Indonesia s experience with setting the objectives and institutional arrangements related to cash management, and with sequencing of the cash management reform. The concluding part describes the remaining challenges and suggests the way forward.

Bibliographic Details

Main Authors:	Indonesian Ministry of Finance, World Bank Group
Language:	English en_US
Published:	Jakarta 2014-10
Subjects:	ACCOUNTANT, ACCOUNTING, ACCOUNTING FRAMEWORK, AMORTIZATION, ANNUAL BORROWING PLAN, APPROPRIATIONS, ARREARS, BANK ACCOUNT, BANK ACCOUNTS, BANK OFFICE, BANKING SERVICES, BANKING SYSTEM, BANKING SYSTEMS, BENEFICIARIES, BONDS, BORROWING COSTS, BORROWING STRATEGIES, BORROWING STRATEGY, BUDGET DEFICIT, BUDGET EXECUTION, BUDGET MANAGEMENT, BUDGET PROCESS, BUDGET SURPLUS, BUDGETING, CAPACITY BUILDING, CASH ACCOUNT, CASH ACCOUNTS, CASH BALANCE, CASH BALANCES, CASH FLOW, CASH FLOW ANALYSIS, CASH FLOW PLANNING, CASH FLOWS, CASH INFLOWS, CASH MANAGEMENT, CASH OUTFLOWS, CASH RESERVES, CENTRAL BANK, CENTRAL GOVERNMENT FINANCING, COMMERCIAL BANK, COMMERCIAL BANKING, COMMERCIAL BANKS, CONTINGENT LIABILITIES, CORRUPTION, CREDIBILITY, CREDIT RISK, CS, CURRENCY, DEBT, DEBT FINANCING, DEBT INSTRUMENT, DEBT ISSUANCE, DEBT LEVEL, DEBT LEVELS, DEBT MANAGEMENT, DEBT MARKET, DEBT POLICY, DEBT SERVICING, DEBT SOURCES, DEBTS, DECENTRALIZATION, DEFICIT FINANCING, DEPOSIT, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT BANKS, DISBURSEMENT, DISBURSEMENTS, DOMESTIC BOND, DOMESTIC BOND MARKET, DOMESTIC BORROWING, DOMESTIC DEBT, ECONOMIC ASSUMPTIONS, ECONOMIC COOPERATION, ECONOMIC CRISIS, ELECTRONIC BANKING, ELECTRONIC FUND, ELECTRONIC PAYMENTS, EMPLOYEE, EQUITY PARTICIPATION, EXCESS LIQUIDITY, EXPENDITURE, EXPENDITURES, EXTERNAL DEBT, EXTRABUDGETARY FUNDS, FINANCIAL ACCOUNTABILITY, FINANCIAL ADMINISTRATION, FINANCIAL ANALYSIS, FINANCIAL APPLICATION, FINANCIAL CRISIS, FINANCIAL INCENTIVES, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL MANAGEMENT, FINANCIAL MANAGEMENT SYSTEMS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL REGULATIONS, FINANCIAL STATEMENTS, FINANCING COSTS, FISCAL BALANCE, FISCAL POLICY, FUND MANAGER, GEOGRAPHICAL SPREAD, GLOBAL ECONOMY, GOVERNMENT ACCOUNT, GOVERNMENT ACCOUNTS, GOVERNMENT BANK, GOVERNMENT BORROWING, GOVERNMENT BUDGET, GOVERNMENT DEBT, GOVERNMENT EXPENDITURE, GOVERNMENT FINANCE, GOVERNMENT FINANCING, GOVERNMENT POLICIES, GOVERNMENT REVENUE, GOVERNMENT REVENUES, GOVERNMENT SECURITIES, GROSS DOMESTIC PRODUCT, GROSS SETTLEMENT SYSTEM, HOLDING, ID, INFORMATION SHARING, INFORMATION SYSTEM, INFORMATION SYSTEMS, INFORMATION TECHNOLOGY, INSTITUTIONAL REFORMS, INTEREST COSTS, INTEREST RATE, INVESTING, INVESTMENT DECISIONS, INVESTMENT PROJECTS, INVESTMENT STRATEGY, ISSUANCE OF TREASURY BILLS, LACK OF TRANSPARENCY, LIABILITY, LIABILITY MANAGEMENT, LICENSES, LIQUIDITY MANAGEMENT, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, MARKET DEVELOPMENT, MARKET INSTRUMENTS, MARKETING STRATEGY, MINISTRIES OF FINANCE, MONETARY FUND, MONETARY POLICY, MONEY MARKET, MONEY MARKETS, NATIONAL GOVERNMENTS, PAYMENT ORDER, PAYMENT SYSTEMS, PHYSICAL CAPITAL, PORTFOLIO, PRIVATE FINANCIAL SECTOR, PRIVATE SECTOR, PRIVATIZATION, PROVISIONS, PUBLIC, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SECTOR MANAGEMENT, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, RECEIPT, RECEIPTS, REGULATORY FRAMEWORK, REMITTANCE, RETURN, RETURNS, REVENUE COLLECTION, REVENUE SHARING, RISK MANAGEMENT, RISK MANAGEMENT SYSTEMS, SAVINGS, SECURITIES ISSUANCE, SETTLEMENT, SHORT-TERM LENDING, SHORT-TERM LIQUIDITY, SLR, SOCIAL SECURITY, SPECIAL FUNDS, STATE LIABILITIES, STATE OWNED ENTERPRISES, STATUTORY LIQUIDITY, STOCK EXCHANGE, STRUCTURE OF GOVERNMENT, SURPLUS FUNDS, TAX, TAX COLLECTIONS, TAX REVENUE, TAX REVENUES, TECHNICAL SUPPORT, TELECOMMUNICATIONS, TIMELY PAYMENT, TRANSACTION, TRANSACTION COSTS, TREASURY, TRUST FUND, UNION,
Online Access:	http://documents.worldbank.org/curated/en/2014/10/20345226/cash-management-reform-indonesia-making-state-money-work-harder https://hdl.handle.net/10986/20665
Tags:	Add Tag No Tags, Be the first to tag this record!