How PPP in Indonesia Budgeted, Accounted, and Reported

Budget
Budget Budget
Planning and Audits
Execution Reporting
Preparation
• Government payments • All transactions are • Financial reports are • Financial reports are
and supports are recorded mostly generated audited by BPK
budgeted through a automatically through the SPAN (Supreme Audit Body)*
medium-term through a budget system. • Performance Audit
framework. and treasury system • Until recently, PPP • Fiscal Transparency
• Government payments called SPAN related liabilities are Audit
accounts for PPP considered off-balance
contract are managed sheet. However,
by the GCAs while Indonesia proceeds to *In the 2018 audit, one of the findings
government support adopt IPSAS 32 to was related to recognition of PPP
accounts (VGF and shift PPP liabilities to assets and liabilities in the financial
PDF) are managed by an on-balance sheet. statements. In 2019, the government
MoF • In 2019, PPP direct provided a proper disclosure while
liabilities and assets formulating national accounting
were disclosed in the standard for PPP concessions. This
notes of the financial standard is expected to be effective
statements shortly after stipulated.