President Jokowi Criticizes Financial Reporting System

President Jokowi delivers a remarks in the 2016 National Working Meeting on Government Financial Accounting and Report on Tuesday (20/9), at the State Palace, Jakarta

President Joko ‘Jokowi’ Widodo instructed Minister of Finance and Coordinating Minister for the Economy to create a simple and uncomplicated reporting system because 60 to 70 percent of the bureaucracy deals with SPJ (letters of responsibility).

“Honestly, I do not understand what SPJ is. I only know that SPJ is abbreviation for letters of responsibility, but I do not understand the contain. Usually, I see my staffs deal with receipts, pictures, and photos,” President Jokowi said in a remarks when opening the 2016 National Working Meeting on Government Financial Accounting and Report on Tuesday (20/9), at the State Palace, Jakarta.

According to President Jokowi, the Government must prepare a simple yet result-oriented report. It should be easy to be checked, controlled, monitored and examined, rather than thick reports. “With all my respect, our energy should not be depleted on SPJ,” the President said.

President Jokowi then told that many teachers and headmasters are not focused on teaching and learning activities because they need to deal with SPJ. Receipts and SPJs must be found around the schools and teachers’ room, the President added.

The same situation happened at the Ministry of Public Works and Public Housing. According to the President, the Ministy must spare 80 percent of their works to control the roads, control the damaged irrigations, and monitor potholes, but now, they only focus on the SPJ.

“On agriculture sector, the Agricultural Field Supervisor used to walk in the rice field, have a nice talk with farmers, and give guidance to them. Now, if we take a look at the Department of Agriculture and Ministry of Agriculture, the Agricultural Field Supervisor sit behind the desk and deal with the SPJ,” the President stated.

Therefore, President Jokowi asked this matter to become common concern. Do not let the Government trapped in the routine. The President reminded all that the Government must be result-oriented. Do not waste the energy on SPJ. Moreover, the Government is now facing a challenge to implement accrual-based financial report. “The implemention will be harder,” the President said.

President Jokowi admitted that to change the accounting and reporting system is not easy. Those changes need learning experience in order to comply with the accounting and reporting systems desired by the Government.

Isn’t Only Accounting Technical Issue

In his remarks, President Jokowi asserted that financial management is not merely an accounting technical issue but also fundamental values ??that we must uphold in our daily lives as state officials. It is because the essence of  transparency and accountability of the state’s financial is moral and constitutional accountabilities to the people in using their money.

“That is the essence. We must ensure that every penny of their money is fully used for the benefits of all the people, so that they can directly feel the benefits from their money,” the President added.

The State Budget (APBN) and Regional Budget (APBD) which amount always increases every year must be spent on productive sectors that will boost people’s economy, be it in form of infrastructure development or poverty alleviation.

Therefore, President Jokowi asserted that the Government is committed to managing the finances effectively, transparent, accountable, and result-oriented, not procedure-oriented. “Yes, the procedure will follow but result must be the orientation. The principles should be embodied concretely in the qualify, reliable, and on-time financial report.

Coordinating Minister for the Economy Darmin Nasution, Coordinating Minister for Human Development and Culture Puan Maharani, Minister of Finance Sri Mulyani Indrawati,  Minister of State Secretary Pratikno, Cabinet Secretary Pramono Anung, Minister of Law and Human Rights Yasonna M. Laoly, Minister of  Health Nila F. Moeloek, and Minister of State Apparatus Empowerment and Bureaucratic Reform Asman Abnur also attended the meeting.(DND/ES) (RAS/MMB/YM/Naster)