Yogya (KU) - The European Union has allocated as much as 100 million euros in funds for education program in regional financial management. The annually disbursed funds are the result of EU cooperation with the Indonesian government to support financial decentralization programs in the regions.
Those are several things delivered by the EU representative delegation for Indonesia, Juan Casla Urteaga, in a seminar on "Public Financial Management Reform in Indonesia and European countries." The Seminar was held at Hotel Phoenix Yogyakarta, Thursday (29/4). Casla added the aid is expected to improve regional financial management, along with the establishment of budgeting supervision systems for the revenues and expenditures sector.
"Of course, better financial management will ensure stability and can invite many investors to come to Indonesia," he said. Not only that, added Casla, in the EU - Indonesia cooperation in the field of public financial management, it is expected that both can share experience. According to Casla, Indonesia can learn much from financial management systems that exist in Europe. In contrast, the European Union has learned much from Indonesia related with decentralization.
Meanwhile, Head of UGM Center for Asia Pacific Studies, Prof. Dr. P.M.Laksono, said the recent legal cases in public finances management have been the attention of many people. In his opinion, an important experience can be learned of how the government should prioritize public financial supervision and management systems along with better good governance. "The better public financial supervision and management systems will automatically produce the better management of state finances, too," he explained
UGM economist, Dr. Bagus Santoso, said that the reforms of public financial management in Indonesia cover all aspects as in the European Union. Some areas, however, seem more ambitious than those in the EU, for example the areas of accrual accounting and performance-based budgeting.
Financial ConsultantÂ in the Indonesian Ministryâ€™s of Finance, Simon Delay, in his presentation said that there are three important elements in public financial management, including comprehensive implementation of budget discipline, efficient allocation, and efficiency of implementation. In practice, he suggested Indonesia not to imitate the EU prevailing policy. "Europe is also still learning and Europe not only has one model for the management of public finances because the systems in the UK, France and Germany differ from each other," he explained.
Political observer Dr. Purwo Santoso agreed that Indonesia should not imitate the EU policy. In relation with the rules of public financial management, Purwo Santoso still doubt it if the rules are effective enough to create better financial management. Purwo recognized any existing regulations are the result of the consensus between legislative members who had won the elections.