MINISTRY OF FINANCE – REPUBLIC OF INDONESIA
The Progress of Implementation of Medium Term
Expenditure Framework (MTEF) in Indonesia
Go to Modern Budget System : Credible, Transparent, and Accountable
MTEF Framework
20
Long-term Development Planning
National
Strategic
Plan
MTDP
MTEF
To achieve
5
National Goals
Dept/Agency
RKA-KL
Work Plan
Govt Work Plan
PresidentPlatfor
ms
APBN
1
Program
Activity
Output
Performance-based
Outcome
2
MTEF Illustration
Budget Implication
2011
Policy
decided as
baseline
2012
2013
2014
(R)APBN
Forward
Estimate
Forward
Estimate
MTEF
3
Objectives and Conceptual Based of MTEF
4
MTEF Progress
1. Setup macro economic assumptions to perform medium
term fiscal framework (MTFF);
2. Setup tax ratio, deficit target, revenue target,
expenditure limit to formulate medium term budget
framework (MTBF);
3. Setup MTEF as an indicative ceiling for National Medium
Term Plan (RPJMN) and MTEF for all Line
Ministries/Agencies in preparing Strategic Plan (Renstra
K/L);
4. Formulate 3-years forward estimates in Government
Work Plan (RKP);
5. Calculate baseline and 2-years forward estimates for all
LM/A in RKA-KL.
5
Some Challenges
Medium Term Expenditure Framework:
 Setup baseline;
 Determine the parameters;
 Formulate 3-year forward estimates;
 Forward estimates adjustment;
 Strategic review of Policy/Program.
6
MTEF Context : Implementation Steps
Existing Government
Policy
Re-priorities
Costing Process
Determine
Baseline
Set-up
Parameters
Formulate FE
Review
Decide
Evaluate &
Assess
• Continued;
• Terminated;
• Lapsing.
• Continued;
• Lapsing;
• New Policy.
• Existing Policy : actual, trend
analysis, adjustment;
• New Policy : assessment.
Take into
account
Total = Existing +
New
determine
Parameter Index :
2013, 2014, 2015
Apply per
Program
Forward Estimate
20137
2014
2015
Units Involve and roles :
Govt. Policy:
• Continued;
• Terminated;
• Lapsing.
Review
• Continued;
• Lapsing;
• New Policy.
Re-prioritas &
Decide
Costing Process :
• Existing Policy;
• New Policy.
Evaluate &
Assessment
Take into
Account
2013
Parameter Index :
2013, 2014, 2015
Set-up FE
Apply per
Program
2015
• Bappenas
• Dept/Agency
• MoF
•DG Budget MoF
• Bappenas
• DG Budget MoF
• Dept/Agency
Determine
Baseline
Set-up
Parameter
2014
• Bappenas
• Dept/Agency
• MoF
• FPO MoF
• Team Assumption
• DG Budget MoF
8 • Dept/Agency
Long-term Targets
 Gives more flexibility to Department/ Agency in
managing the budget;
 Implementing Efficiency Dividend in line with
Incentive/Disincentive Policy;
 Introducing “Sunlight” project in order to motivate Budget
Honesty Management.
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DATA
BUDGET ALLOCAT ION BY FUNCT ION (BASELINE) , 2013-2015
ECONOMIC MACRO ASSUMPTIONS, 2012-2015
URAIAN
(billion rupiah)
APBN 2012
2013
2014
2015
- Economic Growth (%)
6,7
6,7-7,4
7,0-7,7
7,0-8,0
- Inflation (%) y-o-y
5,3
3,5-5,5
3,5-5,5
3,5-5,5
- Interest Rate of SPN 3 m (%)
6,0
5,0-7,0
5,0-7,0
5,0-7,0
- Exchange Rate (Rp/US$1)
8.800
8.800-9.200
8.800-9.200
8.900-9.300
90
80-100
80-100
80,0-100,0
- ICP (US$/barrel)
- Lifting (million barrel/day)
950
970-990
970-1.000
1.000-1.010
No.
Forward Estimate (Baseline)
FUNGSI
2013
2014
2015
1 General Public Services
122.173
124.494
126.544
2 Defence
65.908
67.518
70.050
3 Public Order and Safety
25.268
25.783
26.916
4 Economic Affairs
86.932
86.070
85.371
5 Environmental Protection
10.064
9.914
9.267
25.706
26.520
13.361
7 Health
13.412
7.679
6.384
8 Tourism and Culture
2.070
2.081
2.049
9 Religion
1.848
1.884
1.935
10 Education
92.666
91.930
80.797
5.234
4.555
4.598
451.281
448.430
427.272
6
Housing and Communities
Ammenities
11 Social Protection
JUMLAH
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DATA
APBN 2012 & FORWARD ESTI MATE 2013-2015
(trillion rupiah)
I TEM
A. REVENUES AND GRANTS
APBN
2012
Forward Estimate
2013
2014
2015
1.311,4
1.437,8
1.614,1
1.815,1
DOMESTI C REVENUES
1. Tax Revenues
a. Domestic Tax Revenues
b. I nternational Trade Tax
2. Non-tax Revenues
a. Oil and G as
b. Non Oil and G as
I I . GRANTS
1.310,6
1.032,6
989,6
42,9
278,0
159,5
118,5
0,8
1.437,3
1.165,3
1.122,0
43,3
272,0
153,0
119,0
0,5
1.613,7
1.335,3
1.289,2
46,1
278,4
152,9
125,5
0,4
1.814,7
1.530,1
1.480,8
49,3
284,7
155,4
129,3
0,4
B. EXPENDI TURES
I
CENTRAL GOVERNMENT
1. Line Ministries
a. Baseline
b. New I nitiative
1.435,4
965,0
508,7
-
1.546,1
1.025,0
567,5
451,3
116,2
1.680,5
1.107,0
624,0
448,4
175,6
1.777,0
1.133,9
675,2
427,3
248,0
456,3
470,4
400,0
70,4
457,4
521,1
443,6
77,6
482,9
573,6
488,4
85,2
458,7
643,1
550,7
92,4
(1,8)
(124,0)
(1,5)
32,5
(108,3)
(1,2)
80,7
(66,4)
(0,6)
184,0
38,0
0,3
124,0
125,9
(1,9)
108,3
123,0
(14,7)
66,4
91,3
(24,9)
(38,0)
(9,3)
(28,8)
I.
2. Non Line Ministries
I I . TRANSFER TO REGI ONS
1. Balanced Fund
2. Special Autonomy and Adjusted Fund
C. PRI MARY BALANCE
D. BUDGET DEFI CI T (A - B)
% GDP
E. FI NANCI NG
I . DOMESTI C FI NANCI NG
I I . FOREI GN FI NANCI NG (NETO)
Source: Ministry of Finance, RI
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