arun arya blog banner

Indonesia – Ministry of Finance: Digital Transformation Strategic Implementation Plan 2020 – 2024 (Vol. 2): Detailed Report

20 August 2020
70 Views

The “Digital Transformation Strategic Implementation Plan (2020–2024)” focuses on modernizing Indonesia’s Ministry of Finance (MoF) through digital transformation aligned with the government’s Public Financial Management (PFM) reform agenda. Developed under the guidance of the World Bank, this plan emphasizes integrating technology to improve operational efficiency, fiscal transparency, and citizen-centric service delivery.


Key Highlights:

  1. Vision and Objectives:
    • Build a digitally-enabled, data-driven MoF by 2024, streamlining operations and enhancing decision-making using advanced analytics, cloud platforms, and AI.
    • Promote integration between planning, budgeting, and financial systems to align spending with national development priorities.
  2. Strategic Initiatives:
    • Integration of Planning and Budgeting: Enhance data sharing between systems (e.g., KRISNA and SAKTI) to align planning outputs with financial execution.
    • Simplified Budget Execution: Streamline processes for improved fiscal discipline and efficiency.
    • Unified Revenue Management: Implement a digital platform for citizen and business tax compliance.
    • Office Automation and HR Development: Digitize workplace operations and implement modern e-learning platforms to develop human capital.
  3. Digital Governance and Infrastructure:
    • Introduce open APIs and Big Data systems to ensure seamless data exchange across ministries.
    • Enhance cybersecurity and regulatory frameworks to safeguard digital operations.
  4. Benefits:
    • Improved fiscal accountability, citizen experience, and decision-making.
    • Optimized public service delivery through cost and time savings.
    • Increased state revenue and minimized inefficiencies.
  5. Change Management:
    • Foster a culture of digital adoption within MoF, supported by leadership-driven initiatives and employee upskilling programs.
  6. Implementation Governance:
    • Outlines timelines, governance structures, and estimated costs for delivering initiatives.

Note on Preparation

This report was prepared by a World Bank team led by Arun Arya, Senior Public Sector Specialist and Task Team Leader of Indonesia’s PFM Program. The effort was supported by Ernst and Young (EY), which provided technical and advisory assistance to ensure a robust digital transformation strategy.