The book will become the history of beginning of the Ministry of Finance

as a data-driven organization.
 Prologue

There is a thing which is unavoidable

A thing which becomes a certainty
Which scrolls through eras
It is called as change

Change is not an enemy

Change is an ally
Change is a method
A means to keep going forward

Current era is full of digitalization

We are flooded with information
Transformation is no longer an option
To advance bureaucracy and organization

We are all leaders

Who bear physical and mental powers
Change cannot just be a slogan and doctrine
Change keeps going on by keeping cool hands and head

Changes lead us to carry facts

Facts that are not merely numbers and words
Collected and compiled into data
Meaningful and valuable treasures as diamonds
Data analytics is a method. Data analytics is not a goal. Our goal is to
produce policies built on data. We achieve the goal because we ask
appropriate questions, and data analytics encourage synergy, not a silo.
Data synergy, understanding synergy, questions synergy.

Professor Suahazil Nazara, Ph.D.

Vice Ministry of Finance

v
Data governance is one of the foundations to build a data culture. The
role of leaders is crucial, one of which is to pay attention and formulate
data governance to optimize data utilization in the Ministry of Finance.
Bobby A. Nazief, Ph.D.
Special Staff of Information and Technology System

Data awareness needs to be improved starting from the smallest

organization structure. Don’t just be end users who contribute to
negligence or poor quality of data for decision making by higher level
leaders.
Yan Inderayana
Chief Data Management Officer CTO Ministry of Finance

We should think critically and creatively! Nowadays reading data is fun!

Technology is not the most crucial one. It is the humans.
Dr. Inggriani Liem
Coach of Indonesian Computer Olympiad Team

In terms of data analytics, I always put emphasis on letter c, which means

collaboration reinforced by communication.
Fajar Jaman
Founder of Data Science Indonesia

vi
Building A Data Culture in the Ministry of Finance

Board of Patrons: Secretary General of the Ministry of Finance, Assistant

of Minister for Organization, Bureaucracy, and Information Technology,
and Assistant of Minister for Revenues

Steering Committee: Yan Inderayana, Adelina Sirait, Deny Agung Pribadi,

and Rudy Rahmaddi

Authors: Dody Dharma Hutabarat, Canrakerta, Lazuardi Zulfikar

Wicaksana, Dimas Rahadian, and Lysa Novita Sirait

Reviewers: Donny Maha Putra, Sindhu Wardhana, Khomsun Arifin, Arief

Tirtana, Adek Rendra Muchtar, Ari Sulistiyo Budi, Elang Tomi Ariefianto,
Florentinus Eko Yulianto, Wahyu Jarot Setiaji, Hanung Adi Wijaya,
Muhamad Harestya Darmawan, Muhammad Meirizky Ikhsan, Wahyu
Wibowo, Farida Nur Cahyani, Romasta Siagian, Maratus Sholihah, and
Wida Hafizah

Graphic Designer and Cover Designer: Aditio Wahyudi

Translator: Tagara Primadista
Publisher: Central Transformation Office, Secretariat General, the
Ministry of Finance, Gedung Djuanda I Lantai 6, Jalan Dr. Wahidin Raya
No. 1, Jakarta 10710. Email: transformasi@kemenkeu.go.id

Published in 2022.
The creation is disseminated under the License of Creative Commons
Attribution-NonCommercial-ShareAlike 4.0 International
(https://creativecommons.org/licenses/by-nc-sa/4.0/deed.en). You
are allowed to use a part or the whole content of the book by mentioning
the source. You are allowed to use, reproduce, duplicate, share, and
disseminate the book in any forms, formats, and methods for non-
commercial purposes. It is prohibited to use, reproduce, duplicate, share,
and disseminate the book in any forms, formats, and methods for
commercial purposes.

National Library: Catalogue in Publication

ISBN 978-602-53950-2-4 (printed)
ISBN 978-602-53950-3-1 (pdf)

xxii + 110 pages; 16 x 23 cm

vii
viii
 TABLE OF CONTENTS

WELCOME ADDRESS BY THE MINISTER OF FINANCE ...............................xiii

WELCOME ADDRESS BY THE SECRETARY GENERAL OF THE MINISTRY
OF FINANCE .................................................................................................................... xiv
WELCOME ADDRESS BY THE ASSISTANT OF MINISTER FOR
ORGANIZATION, BUREAUCRACY, AND INFORMATION TECHNOLOGY xv
WELCOME ADDRESS BY THE ASSISTANT OF MINISTER FOR
REVENUES AS CHIEF DATA OFFICER ................................................................. xvi
PREFACE ..........................................................................................................................xvii
EXECUTIVE SUMMARY............................................................................................ xviii
INTRODUCTION ............................................................................................................... 1
Background ................................................................................................................... 1
Objectives ....................................................................................................................... 3
Scope ................................................................................................................................ 3
WHAT IS DATA-DRIVEN ORGANIZATION? .......................................................... 5
Data Value Chain ......................................................................................................... 5
Theoretical Framework of Data-Driven Organization in the Ministry
of Finance ....................................................................................................................... 9
CHALLENGES IN TRANSFORMATION INTO DATA-DRIVEN
ORGANIZATION .............................................................................................................. 14
Private Sectors and Advanced Countries’ Experiences ........................... 14
Challenges in the Ministry of Finance ............................................................. 16
DATA CULTURE .............................................................................................................. 23
Habit of Asking for Data ........................................................................................ 24
Democratizing Bureaucracy ................................................................................ 24
Data Leadership ........................................................................................................ 26

ix
 The Importance of Data Literacy ....................................................................... 27
Supporting Factors for Data Literacy .............................................................. 29
Those Who Have to Master Data Literacy ..................................................... 30
What Needs to be Done to Grow Data Literacy ........................................... 31
DATA ANALYTICS ECOSYSTEM............................................................................... 33
Growing Ecosystem ................................................................................................. 33
Strategic Direction for Data Analytics ............................................................. 36
HUMAN RESOURCES .................................................................................................... 39
Pool of Expertise ....................................................................................................... 39
Required Competencies ........................................................................................ 40
Approaches in Building Resources ................................................................... 47
INTRODUCTION OF DATA ANALYTICS TO THE MINISTRY OF FINANCE
................................................................................................................................................ 52
Data Analytics Ideas ................................................................................................ 52
Strategic Initiative of Data Analytics ............................................................... 55
Lessons to Learn ....................................................................................................... 59
SUCCESS FACTORS IN BUILDING A DATA CULTURE .................................... 63
Commitment of Leaders ........................................................................................ 63
Management of Changes ....................................................................................... 66
Obstacles for Data Culture .................................................................................... 68
ORGANIZATION STRUCTURE OF DATA ANALYTICS .................................... 71
Centralization Model .............................................................................................. 71
Decentralization Model ......................................................................................... 73
Center of Expertise Model .................................................................................... 74
Functional Model ...................................................................................................... 76
Principles of Data Analytics Unit ....................................................................... 78
DATA ANALYTICS AND DATA CONFIDENTIALITY ........................................ 81
Data De-identification ............................................................................................ 81

x
 Governance of Data Confidentiality and Privacy ........................................ 83
Understanding the Data Owned ......................................................................... 84
Risk Management of Data Analytics ................................................................. 85
MODELING TECHNIQUES FOR DATA ANALYTICS.......................................... 87
Data Mining ................................................................................................................. 87
Text Mining ................................................................................................................. 90
Social Network Analysis ........................................................................................ 93
Data Visualization .................................................................................................... 93
Development Process of Data Analytics ......................................................... 96
DATA ANALYTICS ROADMAP ............................................................................... 101
Governance .............................................................................................................. 104
Human Resources ................................................................................................. 105
Digital Infrastructure ........................................................................................... 105
Data as Assets.......................................................................................................... 106
CLOSING .......................................................................................................................... 108

xi
xii
 WELCOME ADDRESS BY THE MINISTER OF FINANCE

Currently the word is rapidly changing.

Combination of population demographics, digital
disruption, and Covid-19 pandemic has brought
extremely different challenges for Indonesia. We
require new perspective and new way of working to be able to convert
the challenges into opportunities and to be an advanced country.
Data are one of opportunities that can make way towards
advancement. Similar to electricity, data have become an asset that
revolutionizes the world. Innovation and progressivity will be produced
if data become a part of strategies and operations. For the Ministry of
Finance that holds quite a lot of data, it is the time for all working units
to optimize data utilization better that assists the state financial
management and to produce appropriate policies for public welfare. The
book Building A Data Culture in the Ministry of Finance is the
commitment of the Ministry of Finance to educate the life of the nation
and to enhance literacy in Indonesia.
I hope the growth of data culture in the Ministry of Finance
becomes the responsibility of all employees of the Ministry of Finance to
improve the quality of public service.

Sri Mulyani Indrawati

xiii
 WELCOME ADDRESS BY THE SECRETARY GENERAL OF THE
MINISTRY OF FINANCE

Data analytics is one of important components in

digital transformation in Ministry of Finance. Data
analytics not only becomes a trend for employees
interested in field of data, but also can become a work
culture for all employees of the Ministry of Finance. Through a solid data
culture, new innovations will emerge in the Ministry of Finance that is
getting more agile, effective, efficient, and gives stronger and broader
impacts.
Progressive changes that require employees to learn and
implement new culture are not easy. It takes strong intention,
dedication, and earnestness to achieve them. The leaders are in charge
of guiding and making the way to be easier to pass so there are no
employees left behind.
The book entitled Building a Data Culture in the Ministry of
Finance is a guide for leaders and employees in transforming the
organization into a data-driven organization. I hope the book will
provide literacy that opens the insights and becomes a guide in building
data culture as the most important factor for the success of data-based
transformation. Enjoy reading!

Heru Pambudi

xiv
 WELCOME ADDRESS BY THE ASSISTANT OF MINISTER FOR
ORGANIZATION, BUREAUCRACY, AND INFORMATION
TECHNOLOGY

In modern organization, data-based

decision making is required (data-driven
organization). The Ministry of Finance as an
organization is open for changes, places data as a part
of work culture. It is expected that the Ministry of Finance becomes an
institution that is able to improve the efficiency of business process,
productivity, exploration of new potentials, and to produce effective
policies.
To support those matters, it requires a guide to build data
culture in the Ministry of Finance. The book entitled Building A Data
Culture in the Ministry of Finance is compiled to be a guide for all
leaders and employees so that everyone has the same perspective on
data-driven organization and how to realize it. The compiled guide does
not only give answers to the needs of skill sets in realizing data-driven
organization, but also illustrates the required ecosystem.
Finally, let us make data transformation real in the Ministry of
Finance that brings welfare to all people of Indonesia.

Sudarto

xv
 WELCOME ADDRESS BY THE ASSISTANT OF MINISTER FOR
REVENUES AS CHIEF DATA OFFICER

Transformation into data analytics-driven

organization has become a hot topic in various
industries around the world. The Ministry of
Finance cannot escape from the wave of changes
either. Data utilization is believed to be able to
improve the quality of decisions and effectiveness of public policies
produced by the Ministry of Finance as the fiscal authority and State
General Treasurer.
The process of changing data into values is certainly not easy.
One of the opportunities to implement data analytics in the Ministry of
Finance is the demographics of employees dominated by millennial
generation who mostly feel curious about new things and motivated to
produce values through their works. Data analytics gives a broad space
for them to distribute their interests and to produce outstanding
impacts.
I welcome the publication of the book Building A Data Culture
in the Ministry of Finance enthusiastically. The book is not only
addressed to millennial generation. Leaders of working units need to
read it as a guide to build data culture and to be a trigger of discussion
that opens new horizon. Hopefully, the book can enrich the literacy for
advanced Indonesian civilization.

Oza Olavia

xvi
 PREFACE

All praise and thanks be to Allah upon the publication of the

book entitled Building A Data Culture in the Ministry of Finance. The
book is compiled to meet the needs in the Ministry of Finance that is
undergoing data-based transformation. It is expected that the
production of abundant data will not only become archives, but also will
encourage better formulation of policies and decision making.
The implementation is not easy. It has to face the complexity of
public policies, immature data analytics ecosystem, and the limitedness
of employees with data analytics competency. The book contains general
guide for leaders and employees in building a data culture to overcome
the challenges and to successfully make the Ministry of Finance a data-
driven organization.
The authors receive helpful suggestions from many parties.
Special thanks to Secretary General, the Assistant of Minister for OBIT,
and the Assistant of Minister for Revenues as CDO for their valuable
insights.
The book is still far from being perfect. Science, technology,
environment, and organizational needs keep developing. Suggestions
and recommendations from readers can help improve the book. We hope
the book is useful for the transformation of the Ministry of Finance and
knowledge advancement in Indonesia.

Jakarta, 17 August 2021

Authors

xvii
 EXECUTIVE SUMMARY

The book is prepared as a general guide for stakeholders in the

Ministry of Finance, especially the leaders, on how to lead their working
units to be data-driven. In the Ministry of Finance, the volume of data
grows massively. The data grow so rapidly that the Minister of Finance
illustrates the condition by stating that “We, at the Ministry of Finance,
are actually sitting on a large pile of data. This is a new type of mine. In
digital era, the mine refers to the mine of data. However, of course they
have to be the data we process and understand.” Ideally, the availability
of data will encourage better formulation of policies and decision
making. However, such effort is not an easy task, it is a challenging one
instead.
One of the main challenges in data utilization is that data culture
has not been developed yet. The opportunity to optimize data utilization
gets fresh air as awareness and understanding of data start to grow in
some internal areas of the Ministry of Finance. Starting from the
background, the book is compiled to become a guide for leaders and
employees of the Ministry of Finance in building data culture in the
Ministry of Finance. The book introduces cultural approach to develop
and utilize data analytics skills in the Ministry of Finance. Hopefully, the
book will keep being renewed in accordance with the development of
science, technology, needs, and public discussion.
The book does not discuss about data technology. It does not
mean that technology is not important. However, it is because culture is
a stronger factor to encourage transformation. In an organization
without data culture, an analyst with the most sophisticated technology
device will not be able to create significant impacts. Otherwise, an

xviii
analyst who works in an organization with an excellent data culture will
create positive impacts even though he/she does not have current
technology in field of data analytics. From the illustration, it is clear that
data culture is the main factor to successfully transform the Ministry of
Finance into a data-driven organization.
The biggest problems in transformation into a data-driven
organization lie on cultural factors, humans, and business processes. The
book offers some recommendations that can be implemented through
ecosystem approach so that every element in it can grow together and
support each other. Considering the broad scope of responsibility
dimensions of the Ministry of Finance along with its vertical units, the
process of adaptation cannot take place instantly, but gradually. On
individual level, data-based transformation has to empower employees
to be more productive and more competent.
The process of decision making and actions does not belong to
the scope of data analytics, but falls on the domain of public policies.
Therefore, transformation of the Ministry of Finance into a data-driven
organization is expected to produce concrete decisions and actions that
bring benefits and values for the organization and public welfare,
departing from meaningful understanding, based on relevant
information, obtained from proper analysis and accurate and reliable
data.
Building a data culture certainly takes time and needs to be
supported by management of changes. It aims to make a data culture the
mainstream in the Ministry of Finance and to ensure that all parties are
ready to support the changes of data culture. Support from leaders
becomes the defining factor for the maturity level of data analytics
ecosystem in the Ministry of Finance. The role of leaders is important not

xix
only in viewing the broad image of organizational transformation, but
also in ensuring that every employee gets accustomed to it and can use
data in producing added values for organization and public.
Strong support from leaders is the enabler for changes of
organization culture. By demonstrating commitment and support,
strong leadership becomes key instrument in overcoming resistance of
people who go against changes. If data culture becomes a habit, it will get
attached to every line of organization. In building a data culture in the
Ministry of Finance, the leaders play three crucial roles, namely as the
builder, the sticker, and the grower of data culture.
The success of a data-based transformation lies on human
resource. Basically, all employees in the Ministry of Finance need to
appreciate and understand data analytics in general. In every working
unit, a data analytics practician needs to be present, which has task
specialization in field of data. To improve the quality of human resources
that master data analytics skills, the organization needs to take the role,
namely, to provide human resource development facilities through
education and trainings or other learning media according to the level of
ability and needs of organization.
To ensure that the process of data-based transformation can run
in organized manner and successfully towards data-driven organization,
the selection of appropriate organization structure becomes one of the
crucial factors. In implementing the analytical organization structure of
the Ministry of Finance, there are three principles that have to be
maintained, i.e. data analytics is not monopolized by one unit or only
understand certain functions, data analytics unit has to be inclusive and
transparent for the other units from various different levels, and data

xx
analytics unit has to establish relationship and can communicate easily
with business process owner unit.
Eventually, building a data culture is a representation of a
sustainable process. The process is drawn up in data analytics roadmap
containing directions and strategies that become a guide in
implementing the process of data analytics-based transformation. The
data analytics roadmap contains programs placed in four important
dimensions, namely governance, human resource, digital infrastructure,
and data as assets. The four dimensions contain short-term and medium-
term programs. It is expected that the approach and work procedure will
keep improving so as to produce innovations, renewability, and changes
of behavior as an impact of data culture.

xxi
xxii
 INTRODUCTION

Background

Rapid development of information technology has brought a lot

of changes to the world. The fourth industrial revolution triggered by
internet growth has enabled digital-based transformation. The process
of business and service gets quicker and is almost not limited by space
and time. Public institutions witness incredible data volume explosion.
Internal data in form of input and output of business process, electronic
mails, as well as documents and reports from working units become
abundant. Similarly, data coming from outside the organization, such as
social media, traffic, weather data, blog, survey results, and public
information from other regulators, grow exponentially.
In the Ministry of Finance, the volume of data grows massively.
The data grows so rapidly that no less than 500 terabytes of data are
saved in the data center managed by Financial Technology Information
System Center. The volume of data does not include the data saved in
work devices in every working unit in addition to the data in the data
center. The volume of data held is so big that the Minister of Finance
illustrates the condition by stating that “We, at the Ministry of Finance,
are actually sitting on a large pile of data. In digital era, the mine refers
to the mine of data. However, of course they have to be the data we
process and understand.”
Ideally, the availability of data will encourage better formulation
of policies and decision making. However, such effort is not an easy task,
it is a challenging one instead. One of the main challenges in data
utilization is that data culture has not been developed yet. Data have not

1
been treated as assets that can produce added values for institution and
public as a whole. In addition, data are still considered products of a unit
that manages information technology.
Such phenomenon occurred once on initial stage of computer
introduction in the working units of the Ministry of Finance. At that time,
computer literacy was not formed yet so computer was considered “a
foreign thing” and a lot of employees felt reluctant to learn and to be
skilled at operating computer. Along with the passing of time and change
of generations, most tasks in every working unit of the Ministry of
Finance use computer. Nowadays, computer has become an inseparable
part of our daily life and is considered a compulsory skill of every
employee.
Rigid rules and bureaucratic obstacles among the working units
of the Ministry of Finance take part in the challenges that hamper data
sharing. It often happens that a working unit faces difficulty to obtain
data that are managed by another working unit. The reluctance to share
data is also caused by concerns about abuse of access right grant to other
people from outside the working unit that produces the data.
The opportunity to optimize data utilization gets fresh air as
awareness and understanding of data start to grow in some internal
areas of the Ministry of Finance. It is reflected by the emergence of a few
initiatives to use data analytics skill to support the performance of tasks
in some working units. Although the initiatives have not become the
mainstream, the idea to optimize data utilization is believed to bring
significant impacts. Considering the vital role of the Ministry of Finance
for national economy, the improvement of fiscal policies and data-based
state financial management is believed to be able to improve public
welfare.

2
Objectives
Departing from the background, the book is compiled to achieve
seven objectives, namely:
1. To be a guide for leaders and employees of the Ministry of Finance
in building a data culture in the Ministry of Finance;
2. To be a reference for everyone in understanding and implementing
transformation into data-driven organization in respective working
unit;
3. To introduce data analytics as a method to solve problems;
4. To enrich the literature of data analytics in the context of fiscal
authority in Indonesia;
5. To support the realization of good data literacy to improve the
quality of performance of tasks and functions of the Ministry of
Finance;
6. To encourage the readiness of human resource to have
understanding and competencies required to implement data
analytics; and
7. To encourage the utilization of data analytics to formulate policies
and to take decisions.

Scope
The book introduces cultural approach to develop and utilize
data analytics skills in the Ministry of Finance. Hopefully, the book will
keep being renewed in accordance with the development of science,
technology, needs, and public discussion. The aim is to keep the content
relevant to the development of eras and to be able to be valid reference
for leaders and everyone who desire to learn about data-based
transformation in the Ministry of Finance.

3
4
 WHAT IS DATA-DRIVEN ORGANIZATION?

Data Value Chain

One of important messages from the Minister of Finance for

organization transformation in the Ministry of Finance is to make the
Ministry of Finance a data-driven organization. The message is also in
line with the aim of data utilization which is to support the
transformation into a data-driven organization1. Many views and
concepts emerge about data-driven organization, factors that become
the key to success, and challenges to be faced for successful
transformation. The views and concepts that emerge depart from
various perspective depending on the discussion dimension.
An organization can be a data-driven organization if the
organization understands data and data values and is able to design and
implement organization unit responsible for data 2. Using data value
chain approach, data will produce value after being processed into
information by data manager unit and given meaning by business
process unit and data manager unit (Figure 1). The approach is highly
relevant and logical considering that data can be used for different
purposes depending on the interests underlying them.

1 When the book was written, there was no Indonesian phrase equivalence used
in general for the term data-driven organization. The book suggests “organisasi
yang digerakkan berdasarkan data” as an equivalence based on equivalence of
words and meaning.
2 Treder, M. (2019). Becoming a Data-driven Organisation. Berlin Heidelberg:

Springer.
5
 Figure 1
Data Value Chain

Source: Adapted from Treder (2019)

An organization that produces a lot of data, reports, and

dashboards is not necessarily a data-driven organization3. To be a data-
driven organization, organization must focus on forward-looking
analysis predicting the future and giving recommendations about what
needs to be done in the future. Analysis that gives answers to the
questions “who”, “what”, “when”, “why”, “where”, and “how” is the main
driving factor in a process of transformation into a data-driven
organization.
Data analytics initiative will not produce a data-driven
organization if there are no follow-ups based on understanding of
relevant data and information obtained. Organization also needs to take

3
Anderson, C. (2015). Creating A Data-Driven Organization: Practical Advice from
the Trenches. Sebastopol, CA: O’Reilly Media, Inc.
6
accurate decisions and actions so that the understanding gained from
data-based information can produce value4.
The use of data value chain can shed light on the definition of
data-driven organization. However, before drawing conclusions, we
need to see the context and the environment where the organization is
located. Therefore, it requires environmental scanning in understanding
an organization holistically5. Environmental scanning is done because
the environment where the Ministry of Finance is located differs from
the environment of other organizations, including private companies.
The environment determines the constraints as to how far an initiative
of transformation into a data-driven organization can be implemented.
Environmental scanning also becomes an important part of organization
strategies to improve the ability to adapt to the environment6.
One of thinking frameworks of environmental scanning that can
be used to finalize the concepts of data-driven organization for the
Ministry of Finance is Parsons’ Organization Model7. Organization can be
viewed in three layers, namely institutional, managerial, and technical. If
we put them into a hierarchy, the three layers will form a pyramid as in
Figure 2.

4 Ibid.
5 Vecchiato, R. (2012). Environmental Uncertainty, Foresight and Strategic
Decision Making: An Integrated Study. Technological Forecasting and Social
Change, 79(3), 436-447.
6 Hambrick, D. C. (1982). Environmental Scanning and Organizational Strategy.

Strategic Management Journal, 3(2), 159-174.

7 The model was constructed by a sociologist named Talcott Parsons (1960). The

model was then developed by James Thompson (1967).

7
 Figure 2
Parsons’ Organization Model

By using Parsons’ Organization Model, the transformation into

a data-driven organization is done for goals that are consistent with the
goals and functions of the three levels of organization. The peak is that
the transformation into a data-driven organization is expected to
produce legitimacy for public organizations. The main goals of public
organizations are public values8. It means that public values are the main
legitimacy upon the existence of public organizations. As a public
institution that implements the constitution, laws, and people’s mandate,
the Ministry of Finance translated public values into public welfare that
becomes the goal of all its activities. Therefore, the transformation of the
Ministry of Finance into a data-driven organization should result in
public welfare.

8 Mark Moore, a scholar of Harvard University, in his book entitled Creating

Public Value: Strategic Management in Government (1995) explains that the goals
of public organizations are public values.
8
Theoretical Framework of Data-Driven Organization in the
Ministry of Finance

Transformation of the Ministry of Finance into a data-driven

organization should produce concrete decisions and actions that bring
benefits and values for the organization and public welfare, departing
from meaningful understanding, based on relevant information,
obtained from proper analysis and accurate and reliable data. The
definition above is visualized in a theoretical framework consisting of six
levels as presented in Figure 3.

Figure 3
Theoretical Framework of Data-Driven Organization in the
Ministry of Finance

The figure shows that the efforts to build the Ministry of Finance
into a data-driven organization need to pay attention to mutual
relationship between the stages in the theoretical framework. The series

9
of stages from bottom to top, namely from data to value, constitute a
process that “guides” so that every stage on top levels has solid
foundation on bottom levels. As an example, valid information will be
obtained only if the data used are accurate. Similarly, quality decisions
can be taken only if decision makers have holistic understanding, not
only of the information held, but also of the context of information.
Vice versa, the series of stages from top to bottom, namely from
value to data, constitute a process that “directs” so that every stage on
bottom levels is aligned and relevant to the goals desired to be achieved
on top levels. As an example, when the public deems that it is important
and urgent for the government to protect impacted communities during
pandemic, the government needs to take actions in form of provision of
social aids. Furthermore, a few decisions need to be taken, such as to
allocate budget, to determine distribution mechanism, and to prepare
accountability mechanism. The process is then continued with gaining
holistic understanding such as the demographic of unfortunate people,
the level of people’s income, and success indicators of social program.
The process keeps going until the data level, such as data collection,
processing, and analysis, so that the government programs in social field
are efficient.
The selection of pyramid shape to illustrate the relationship in
data-driven organization construction is not without reasons. The lower
parts always have broader area than the upper parts. The aim is to
illustrate the lower stages will require more efforts before producing
quality outputs for the upper stages.
As an illustration, to take an effective action as a result of
recommendation of a data analytics project, an organization leader
should take more than one quality decision, such as allotment of

10
resources, improvement of business process, coordination with external
parties, and convincing higher management about potential benefits to
be gained. Similarly, to obtain relevant information about the factors
most influential on energy usage efficiency, data analytics team will
explore and analyze more data rather than just the amount of power and
service bills.
The theoretical framework also shows that the process of
transformation into a data-driven organization involves participation
and collaboration of many parties. In addition to determining which unit
to be the main player on each stage, collaboration among them is
definitely required to ensure that the data-based transformation obtains
support and is relevant for related stakeholders. In general, the
participation requires data unit, business process unit, operational unit,
and leaders. In value creation process, the transformation involves the
public that will assess the impacts of public policies produced by the
Ministry of Finance as a public institution that becomes the footing of
many hopes.
In the process, if a decision or policy has high complexity or
tends to be unpopular, the most realistic approach will be to find
consensus among the players and impacted people. The approach is a
form of emancipation of stakeholders and broadens the opportunity for
successful transformation. As said by Robin Tye, the Chief Operating
Officer of Ernst and Young, “The important thing is that everyone feels
satisfied to be a part of the process. It is not good to take correct decision,
but no one supports it.”
A healthy ecosystem gives opportunities for everyone to
express their views and interpretation if there is a dissent while ensuring
that everyone becomes a constructive part of the team. Certainly, there

11
will be a potential risk if participation of too many people is involved. If
there are no limitations for the level of involvement, the transformation
will face slow process and contradictory inputs. Therefore, the process
of transformation of the Ministry of Finance into a data-driven
organization needs to find the balance between the number of parties
involved and the extent of participation on one hand and the level of
control and process advancement on the other hand.

12
13
 CHALLENGES IN TRANSFORMATION INTO DATA-DRIVEN
ORGANIZATION

Private Sectors and Advanced Countries’ Experiences

Before data analytics is implemented massively in the Ministry

of Finance, we need to look at what happens at private sectors in more
advanced countries. Private sectors have adopted data analytics in their
activities earlier than public sectors. Similarly, advanced countries have
implemented data analytics earlier than countries of emerging
economies.
A current study entitled Big Data and AI Executive Survey 2021
conducted by NewVantage Partners can be a guidance to the
development of data analytics in leading companies in the United States
of America9. The survey found that Multinational companies in United
States of America recorded as Fortune1000 also faced difficulties in
transforming into data-driven organizations.
The study found that out of 85 companies surveyed, only 40%
of them treated data as company assets. Only 30% obtained actual
results from data-driven initiatives/data analytics even though they had
invested tens of million even hundreds of million dollars for big data and
data analytics. It means that 76% of the world-class organizations had
not transformed into data-driven organizations.

9
NewVantage Partners. (2021). Big Data and AI Executive Survey 2021. The
Journey to Becoming Data-Driven: A Progress Report on the State of Corporate
Data Initiatives. Accessed from
https://www.newvantage.com/thoughtleadership on 12th April 2021.
14
 From the study, it is found out that transformation into data-
driven organization is not an easy process. The question is what the
biggest problem is faced by the companies that their transformation
initiative did not produce any results yet. The answer is that almost all
(92%) of the companies admitted that human problems, business
process, and culture became the obstacles from adopting data analytics
into their businesses. Although the study did not specifically explain on
which aspect the challenges of business process in implementing data
analytics lied on, the finding gave an initial clue of how much the leading
companies in the world faced classical problems frequently faced in
other transformation projects. Therefore, implementing data analytics
massively without paying attention to cultural changes can end up in
inefficiency and failure.
In the context of government, the term “business” is known as
the task and function. To implement data analytics in the Ministry of
Finance, we need to understand the task and function of the Ministry of
Finance. In broad outline, the function of the Ministry of Finance consists
of three areas, namely policy, regulation, and transaction10 (Figure 4).
Whatever function of echelon I units of the Ministry of Finance, all can be
mapped into the three areas.

10
Allen R., Hurcan, Y., & Queyranne, M. (2016). The Evolving Functions and
Organization of Finance Ministries. Public Budgeting & Finance, 36(4), 3-25.
15
 Figure 4
Function Areas in the Ministry of Finance

Adapted from Allen, Hurcan, and Queyranne (2016)

Challenges in the Ministry of Finance

Considering the broad scope of responsibility dimensions of the

Ministry of Finance along with its vertical units, the implementation of
data analytics needs to be done measurably and realistically. Given that
data analytics initiative is quite new compared to the other initiatives in
the Ministry of Finance and the unequal competencies of human
resource in field of data analytics, on initial stage, the implementation of
data analytics can be done in transaction functions that are more
quantitatively measurable and executable. Furthermore, data analytics
can be developed and proceeded in the area of policy and regulation
function.
However, the strategy is not interpreted that the
implementation of data analytics cannot be done in policy and regulation
function. The implementation of data analytics in a working unit still
16
needs to consider the characteristics of function of the working unit. If a
working unit holds the core task and function in policy or regulation
area, the implementation of data analytics in policy or regulation
function in the unit is a thing that needs to be done.

1. Complexity of public policy

There are some considerations why on initial stage the

implementation of data analytics is done in transaction function, not in
policy and regulation area. The first consideration is related to inherent
constraint of a data analytics project. As discussed in previous chapter,
in accordance with the theoretical framework of data-driven
organization in the Ministry of Finance, understanding and information
obtained from data analytics need to be translated into decisions and
actions of organization. However, for public organizations, transmitting
the results of a data analytics project into decisions and actions of
organization is not as easy as implementing the same process in a private
company.
Public institutions face greater problems in transformation
process than private companies. In addition to the problems faced by
private companies, public organizations also face more complex
challenges. Different from private companies where decisions of a Chief
Executive Officer (CEO) are relatively easier to be executed inside the
company, decisions and actions taken by leaders of a public institution
need to consider on what level the decisions and actions need to be
taken.
According to Parsons’ Organization Model, decisions that have
impacts on institutional layer tend to have higher complexity and risks

17
than decisions that have impacts on technical layer. Similarly, if the
decisions and actions are related to external parties that involve conflict
of values and interest, translating information and understanding
obtained from data analytics into public policies is a process that tends
to be more complex.
Studies show that the practical use of information and
understanding obtained from the process of transformation into public
policies is extremely limited. Studies conducted in the states of the
United States of America found that executive institutions rarely applied
information obtained from their transformation programs into their
decisions11. Moreover, it can be said that parliamentary institutions
almost neglect the information they obtain.
Reality shows that information obtained from data analytics is
not the only basis for consideration used in decision making and
formulation of public policies. Public policy itself is produced through a
complex process involving many actors with various perceptions,
interests, values, and preferences of policies 12. Therefore, the process of
decision making and actions does not fall in the scope of data analytics,
but falls in the domain of public policy process. The implementation of
data analytics utilization in the Ministry of Finance requires various
supports, such as legal basis and management of changes, all of which
falls beyond the scope of a data analytics project.

11
Joyce, P. G., & Tompkins, S. S. (2002). Using Performance Information for
Budgeting: Clarifying the Framework and Investigating Recent State Experience.
In Meeting the Challenges of Performance-Oriented Government (pp. 61-96).
Washington, DC: American Society of Public Administration.
12
Weible, C. M., & Sabatier, P. A. (2018). Theories of the Policy Process. Fourth
Edition. New York NY: Routledge. Various leading theories on the process of
formulation of public policies can be learned in the book.
18
2. Data analytics ecosystem that has not grown

The second consideration is related to the maturity level of data

analytics ecosystem in the Ministry of Finance. On institutional level,
analytical topic is a relatively new topic in the internal of the Ministry of
Finance compared to other more established topics. On one hand, when
data analytics becomes the topic of discussion of many parties, the
benefit is to improve awareness of data analytics potentials for
organization. However, on the other hand, excessive expectation and
“celebration” can cause euphoria that does not reflect the actual
condition of the organization’s ability in implementing data analytics in
policies and business process.
When we treat data analytics project as medication or
remedy for all difficulties, it will result in data analytics projects that are
considered bringing undesired benefits (underdelivered). Whereas data
analytics project cannot stand independently, it should be placed in an
ecosystem as a whole. When the assumption is approved by many
people, especially the main stakeholders, it will be contra-productive
against the goals of implementation of data analytics project in an
organization that just starts to know data analytics. To implement data
analytics as a part of business process requires time and adjustment.
Especially if the adjustment must be done on regulation level that
certainly will involve many parties.

3. Limited resources

The third consideration is related to the needs for human resources.

Although there are some employees who have skills in field of data

19
analytics, they can be categorized as outliers with rare and different
competencies compared to the competencies generally held by other
employees. In addition, their number is very limited.
Currently, the employees of the Ministry of Finance who have
interest and abilities in field of data analytics organize themselves and
their activities into a community called as the Ministry of Finance Data
Analytics Community (MoF-DAC). Core administrators and expert
members of MoFDAC only consists of 49 members 13. Not only their
number is not proportional to the total number of employees of the
Ministry of Finance, but also their number is not comparable to the needs
for human resources in field of data analytics if data analytics is
implemented massively in every function and line of the Ministry of
Finance. Certainly, the implementation of data analytics in the
organization cannot be imposed on them without viewing the ecosystem
as a whole.
The last consideration is related to the incomplete digitalization
and automation of business process of the Ministry of Finance. Some
business processes in the Ministry of Finance are done manually. For
example, around 78% of government spending transactions in the
Ministry of Finance as Budget User are still done manually, such as order,
approval, payment, tax payment, recording, reconciliation, and reporting
process14. The consequence is that it requires a lot of resources to

13 According to the Chairman and Vice Chairman of MoFDAC, the number of

regular members of MoFDAC per 7th July 2021 is 424 people with diverse levels
of expertise. 391 of them (84%) learn data analytics, either through formal
pathways such as school and university, or through non-formal pathways such
as courses, training, and autodidact. However, those who have formal
background of data analytics are very rare. Moreover, not all of them work in the
area of data analytics. Only 221 of them (48%) work related to data analytics.
14 Hutabarat, D. D. (2021). Marketplace Pemerintah: Kerangka Teori dan

Operasional Pengembangan dan Implementasi Marketplace Pemerintah di

20
process a transaction. The study also shows that one out of eight
employees performs supporting tasks15, whereas the activities do not
produce significant added values. Too many personnel allocated for
supporting tasks may lead to the lack of human resources performing
the main tasks of the Ministry of Finance as the fiscal authority and State
General Treasurer. Although the condition should not hamper the
implementation of data analytics, ideally the implementation of data
analytics can support the acceleration of transformation digital in the
Ministry of Finance to be even quicker.

Indonesia. Jakarta: Directorate of Treasury System, Directorate General of

Treasury, Ministry of Finance. The book can be accessed from
https://bit.ly/SPAN-Marketplace.
15 Ibid.

21
22
 DATA CULTURE

Transformation into a data-driven organization is not a

mechanistic and one-time process. Similar to the flow of data in value
chain, data do not automatically produce benefits and values. The efforts
require imagination, determination, and consistency. The process of
transformation is frequently not linear and uniform 16. Some
organizations implement it well, while some other organizations still
face challenges in more fundamental matters.
To convert data into values, the process will require interaction
among humans, technology, and organization structure. The processes
will be determined by organization culture. Therefore, data culture
becomes a crucial factor for the success of transformation into a data-
driven organization. The role of data culture is so important that
McKinsey emphasizes that data culture constitutes a decision culture. As
stated by Satya Nadella, the Chief Executive Officer of Microsoft,
transformation into a data-driven organization is not only about
implementation of technology, but also about cultural changes so every
organization, every team, and everyone is empowered to do great things
because data at their fingertips17.
Data culture will accelerate the implementation of data
analytics, optimize its benefits, and guide the organization to avoid any
risks. However, by learning from other transformations, an organization
cannot instantaneously adopt a culture of other organizations. Data

16 Díaz, A., Rowshankish, K., dan Saleh, T. (2018). Why Data Culture Matters.
McKinsey Quarterly.
17 Satya Nadella (Chief Executive Officer of Microsoft). Accessed from

https://blogs.microsoft.com/blog/2014/04/15/a-data-culture-for-everyone on
22nd June 2021.
23
culture should be built from the internal parts of organization by
involving participation of everyone to build awareness of mutual goals.
The next chapter will discuss about some factors that determine to what
extent data culture can be built in an organization.

Habit of Asking for Data

Data culture needs to be encouraged by the habit of using data

as “currency” in every dialogue and discussion. Every recommendation
and assumption need to be build based on data. For example, such
question as “Do you have any data to support the recommendation or
assumption?” is something that needs to be habituated and not
considered taboo. Similarly, everyone has be willing to answer the
question without having to lose their face even though the person asking
is an employee of the lowest position in a meeting. The key is healthy,
positive, and neutral discussion.
Opinion difference is recommended if there are data that
support the opinion difference. Moreover, data-based opinion difference
needs to be appreciated in a very hierarchical climate that tends to
ignore data. Data-based new ideas are the initial steps to create
innovations.

Democratizing Bureaucracy

One of the dominant characteristics of government bureaucracy

is pyramid organization structure where those who are on top levels
have higher powers than those who are on lower levels. Although the
structure gives clarity of command chain and division of tasks, the
structure makes it difficult for the best ideas to emerge from every level

24
if it is too rigid18. Bureaucratizing democracy will open a space for data
culture to grow with the emergence of fresh ideas from everyone.
There is an anecdote in the community of data analytics
practitioners that a threat against a data-driven organization is the
Highest-Paid Person Opinion (HiPPO) 19 or an opinion that comes from a
person with the highest pay. HiPPO is an anti-thesis of data-driven where
they are the highest officials of an organization who have extensive
experience but only rely on intuition and subjective truth, and
sometimes do not care about data. Instead of preserving the pyramid of
ideas, data culture needs democratization of ideas where every level can
bring up some hypothesis that need to be tested to produce the best
innovations.
Regional Budget Data Review Competition 2021 proved how
idea democratization opened spaces for those who were not structural
officials to be able to have a direct dialogue with the Minister of Finance
and to deliver brilliant ideas regarding improvement of Regional Budget
spending quality.20 The winning team presented ALokasi Outcome
aNomAli (ALONA) project that predicted Human Development Index
(HDI) and its components based on the compositions of Regional Budget
spending based on their functions. The model developed was also able
to detect the presence of anomalies, such as regions with large spending
but low HDI. Although its implementation requires time, efforts, and

18 Bureaucracy organization structure approach comes from an influential

sociologist named Max Weber in his book entitled Economy and Society (1921).
Even though it is classical, the way Weber views bureaucracy is still applied in
creation of bureaucracy organization structure until now.
19 The term HiPPO was introduced by Avinash Kaushik. In animal world, hippo is

also called as hippopotamus.

20 The winner of Regional Budget Data Review 2021 was GASPOL team consisting

of Sindhu Wardhana, Agung Septia Wibowo, and Achmad Ginanjar.

25
further improvement, such bureaucracy democratization needs to be
promoted in the Ministry of Finance to bring up bright ideas departing
from good understanding of data. Idea democratization is not only
implemented in certain occasion. It should be a habit in organization to
bring up innovative ideas out of every line and working unit of the
Ministry of Finance.

Data Leadership

Data leadership is interpreted as leadership that inspires,

encourages data culture, and supports the emergence of data value
chain, starting from data collection to creation of values and benefits 21.
Transformation into a data-driven organization and building data
culture require strong leadership. For organizations, the main potentials
of data-based leadership include the acceleration of innovation
emergence, strategic plan testing, identification and measurement of
potential opportunities, identification of potential problems and
mitigation of risks, quick correction of mistakes, improvement of
organization adaptability, and acceleration of digital and technical
adaptation22.
Strong leadership will build team, fight for support of the
stakeholders, and build positive relationship with other units. Strong
leadership will build team by providing training, work devices, and data
access required. Visionary leaders will also determine appropriate
organization structure, implement required modifications, and give

21Anderson (2015).
22Newman, D. (2016). The Future of Work: Data-Driven Leadership. Futurum
Premium Report.
26
clear incentives and career path so that everyone working with data
becomes productive and do great things. Support from the stakeholders
is obtained by showing the results of data analytics projects even though
it only constitutes small win. All of the actions will increase the
opportunities to distribute data culture in organization.
Organization with data culture tends to have leaders who take
decisions based on data 23. For example, before an organization
implements new policies, it needs to conduct limited trial to observe how
effective the policies are before escalated into larger scope. Similarly,
meeting leaders can utilize the first 30 minutes of the meeting to read
proposal summary and supporting data before taking evidence-based
decisions. Such practices will stimulate every employee that if they want
to be heard and to communicate directly with their superior, they have
to bring data and facts. If it is done consistently on management level,
data culture will be able to be a norm in the organization.

The Importance of Data Literacy

One of key factors to develop a data culture in the Ministry of

Finance is “data literacy”. Why does it require data literacy? There are
many answers to the question. Everyone can have different answers. In
fact, data are everywhere and needed in daily life. Data can help solve
problems both for regular office works, and for decision making and
formulation of policies. Data can also help create appropriate plans. With
appropriate data, works can be monitored and evaluated more properly
and accurately.

23Waller, D. (2020). 10 Steps to Creating a Data-Driven Culture. Accessed from

https://hbr.org/2020/02/10-steps-to-creating-a-data-driven-culture on 21st
June 2021.
27
 After we understand the importance of “data literacy”, we need
to further understand the purpose of “literacy”. The meaning of literacy
has a long history. In the past, the definition of literacy was only limited
to the ability to read and write 24. As time goes by, the definition of
literacy develops and gets more diverse. UNESCO, for example, defines
literacy as a set of real skills, especially reading and writing skills
regardless of which context the skills are gained and who gain them.
Meanwhile, Education Development Center states that literacy is more
than just reading and writing skills. It is an individual ability to utilize
his/her whole potentials and skills in his/her life. In other words,
literacy includes the ability to read words and read the world.
After understanding the meaning of data and literacy, we need
to further understand the meaning of data literacy. There are various
views on data literacy. Data literacy is frequently related to the ability to
think critically manifested in form of ability to process data into
information and knowledge that can be followed up 25. On individual
level, data literacy enables everyone to access, interpret, and assess
critically, manage, handle, and use data ethically26. While Tableau simply
defines data literacy as an ability to obtain meaningful information from
data. Although there are differences of choices of words, there is a
similarity among the opinions. Therefore, data literacy is an ability to

24 It is the basic definition of literacy in Great Dictionary of the Indonesian

Language (KBBI) and Cambridge Dictionary. The two dictionaries also have
broader definitions of literacy. KBBI, for example, also defines literacy as an
individual ability to process information and knowledge for life skills.
25 Koltay, T. (2015), “Data literacy: in search of a name and identity”, Journal of

Documentation, Vol. 71 No. 2, pp. 401-415. https://doi.org/10.1108/JD-02-

2014-0026.
26 Prado, J. C., & Marzal, M. Á. (2013). Incorporating Data Literacy into

Information Literacy Programs: Core Competencies and Contents. Libri, 63(2),

123-134.
28
read, understand, produce, and communicate data as a part of
information.

Supporting Factors for Data Literacy

There are some principal factors that develop data literacy. The
factors also determine the level of data literacy. The first factor is data
understanding. To work with data, one certainly has to understand the
data. To gain understanding of data, the answers to some questions
about the data need to be found. Where do the data come from? What are
the types of data? Which unit produces the data? What business
processes are related to the data? Who uses the data? How are the data
compiled? It is important to answer the questions to gain understanding
of data.
The second factor is ability to analyze data. Ability to analyze
data is the second level of data literacy. On this level, one has been able
to implement statistic and analytical methodology to produce useful
insights. Furthermore, on this level, one is able to define the relationship
between variables in data.
The last factor is ability to interpret data. The factor is the most
important and most complex part because not only we cannot
communicate with data, but also assess what effects the data have on the
organization. Furthermore, one with such ability can see potential
benefits for organization upon understanding of the data.

29
Those Who Have to Master Data Literacy

Every employee in the Ministry of Finance should be data

literate. Moreover, data literacy has to be important competency for
management level. Why? Because they are the people who will take
decisions and determine the direction of organization. For example,
Budget Execution Director has the duty to formulate policies in field of
budget execution. Prosecution and Investigation Director has the duty to
formulate policies in field of prosecution and investigation of customs
and excise. Loan and Grant Director has the duty to formulate policies in
field of loan and grant. The quality of formulation of policies and decision
making by the officials certainly will be better if they have proper data
literacy. Therefore, the people who occupy the positions should have
proper data literacy.
On management level, data literacy is not interpreted that they
should master technical skills such as collecting, cleaning, processing,
and aggregating data, let alone the ability to build predictive and
prescriptive model. Data literacy of management level is interpreted as
an ability to understand design and logics of a data analytics program,
basic statistic interpretation, and extrapolatory limitedness.
Although an analyst needs to deliver his/her presentation in a
form easy to absorb, if we intend to create a conducive climate for data
culture, the superiors and the leaders of the analyst need to keep
learning and to have knowledge about basic statistic interpretation and
general terminologies in field of statistics. In other words, data culture is
supported by data literacy that requires statistic literacy. The
measurement of data culture success is when everyone believes that
data are important parts of their daily tasks. Understanding of data

30
enables everyone to have a basis for stronger argumentation than
without any data.

What Needs to be Done to Grow Data Literacy

Although data literacy cannot be built as easy as shooting fish in

a barrel, it is not impossible to do. Data literacy can start from daily
activities. There are some habits that can be started to accelerate and
bring out data literacy naturally. Activities such as data analytics
mentoring and coaching need to be promoted.
Trainings as well as knowledge-sharing and experience-sharing
forums are also important to eradicate data illiteracy. The activities are
not only in form of lecturing or seminar, but also in form of practical
training (hands-on training) and workshop. Those who have adequate
abilities in field of data are also suggested to disseminate data literacy
through writing and narration in scientific forums, mass media, and
social media. Regular agenda related to data literacy such as hackathon,
data presentation competition, data understanding creation
competition, take part in promoting data literacy in the Ministry of
Finance. Eventually, all of the activities need support from all parties at
the top management and working units so as to realize data literacy in
the Ministry of Finance.

31
32
 DATA ANALYTICS ECOSYSTEM

Growing Ecosystem

In building data culture, we need to understand that nothing can

be built at the blink of an eye. Neither can data analytics ecosystem. Data
analytics ecosystem should grow and evolve over time, both
philosophically and structurally27. On initial stage, ecosystem built with
internal structure is the most realistic option. However, the option is
getting irrelevant as time goes by. On initial stage of data analytics
implementation, it is reasonable to build analytical function ad hoc and
on decentralized basis. As the maturity level of data analytics and the
complexity level of needs increase, coordination and collaboration
mechanism needs to be built gradually too. It also makes sense to borrow
external resources on initial stage before making commitment to build
internal capability.
Building data analytics ecosystem is not done by letting the
elements in the ecosystem grow themselves. Ecosystem is built by a
spirit that every element in it will grow together and support each other.
Data analytics ecosystem includes all echelon I and non-echelon units
including special mission vehicles in the Ministry of Finance. To support
the function of the Ministry of Finance as fiscal authority and State
General Treasurer, the data analytics ecosystem of the Ministry of
Finance will also involve ministries, institutions, and regional
governments, both as data source entities and entities that utilize data
analytics produced by the Ministry of Finance. Collaboration of all the

27 Anderson (2015).
33
entities is crucial to support the effectiveness and sustainability of data
analytics initiative.
In implementing data analytics in the Ministry of Finance, we
need to consider that all parties and components required to develop
data analytics are interrelated elements. Similarly, to convert data into
values, the process will require interaction among human resource,
technology, and organization structure. The processes are placed in
ecosystem framework as a community that grows together underlain by
regulations, organizations, and commitment that develop data culture
(Figure 5). Data culture is the determining component of positive
interaction success in data analytics ecosystem. Data culture enables
everyone and every working unit to be empowered to produce values
and benefits for organization and public.

34
 Figure 5
Ministry of Finance’ s Data Analytics Ecosystem

35
Strategic Direction for Data Analytics

To ensure that the growth of data analytics ecosystem remains

relevant to the needs of organization in broad sense, the main drivers are
executive directions from the Minister of Finance, Vice Minister of
Finance, and leaders of echelon I units of the Ministry of Finance that
need to be responded by the data analytics ecosystem. The concept goes
hand in hand with the theoretical framework of data-driven organization
in the Ministry of Finance that places values of executive directions as a
process that directs every activity in the data analytics ecosystem to be
in line with and relevant to the strategic goals to be achieved.
The executive directions can be in form of the needs to arrange
responses to policies or to take strategic decisions related to important
themes such as global, macroeconomic, sectoral, industrialization, local
regional, demographic, banking and financial, corporate and
institutional, and climate change issues.
For data analytics ecosystem to produce effective solutions for
the macro and cross-sectoral problems, it is reinforced by information
technology-based virtual workspace which has the potential to produce
agile and productive organization. The virtual workspace enables data
analytics project to be reinforced by supports from subject matter
experts and analysts beyond the working unit owning the business
process. Data analytics ecosystem also requires collaboration and
innovation from all echelon I units in the Ministry of Finance in terms of
governance, technology, human resource, competency, data, and
management of changes.
Building the ecosystem is crucial to support and equip all
employees in creating innovations, services, decisions, actions, and

36
policies that are useful for organization and public. On technical level,
data analytics ecosystem is expected to give early alerts and insights for
operations and services. Data analytics ecosystem in the future will also
enable collaboration among communities, business world, and
government.
Good quality of data, coming from automation and digitalization
of business process, and data standardization, becomes good input for
every existing process in data analytics ecosystem. The level of data
literacy including understanding of data and user involvement, either
from business process unit or data processing unit, takes part in giving
good input. For all elements in the ecosystem to interact, it requires some
elements as the activator and generator called as program induction.
Program induction will be dynamic depending of the maturity level of
data analytics in the Ministry of Finance. Program induction of data
analytics includes implementation of data analytics initiative, role
models from leaders, data competitions (hackathon), and synergy with
other institutions.

37
38
 HUMAN RESOURCES

Similar to other transformation projects, the success of a data-

driven transformation lies on its human resources. Although certain
tasks require high level of understanding and ability, basically all
employees need to appreciate and understand data analytics in general.
The chapter will describe the group of skills that needs to be mastered in
the Ministry of Finance and the competencies that need to be mastered
by data analytics practitioners.

Pool of Expertise

To optimize the function of data analytics in the Ministry of

Finance, data analytics functional position needs to be developed into a
strategic position. Based on the specialty of assignment in field of data,
data analytics practitioners can be classified into three groups, namely
data analysts, data scientists, and data engineers. The three roles with
their respective specialty have to collaborate in a team to realize the
development of data utilization in the Ministry of Finance. In case that
the organization structure of data analytics is not there yet, the three
roles can be done ad hoc until the organization structure and positions
accommodating the needs of such professions have been established.
Data analysts are basically junior data scientists. A data analyst
has to understand programming, statistics, machine learning, data
munging, and data visualization. In addition to technical skills, attention
to details and ability to present the results of data analytics effectively
are crucial to be a successful data analyst.

39
 In technical implementation, data analysts can get directions
from more experienced data analysts. Then, based on the directions, they
obtain, process, and summarize data. They are the people who manage
the quality assurance of data scraping, conduct regular database query
upon user request, and overcome data problems to achieve timely
resolutions. Furthermore, they pack data to give insights that can be
absorbed in form of narrative or visual.
Data engineers tend to focus on software engineering and
database design. They are also responsible for the smoothness of flow of
data from data sources to data destinations. By utilizing descriptive
statistics and outputs produced by algorithm, data are moved back to
their sources or other locations.
Data scientists are data analytics practitioners with a role
between data engineers and business process owner unit. They have
skills in field of statistics, data mining, machine learning, operation
research, six sigma, automation, and knowledge about business process.
They combine some techniques, processes, and methodologies from
various fields to achieve the goals of organization. They are in charge of
bridging various components that contribute to improvement of
business process, and eliminating silos that hamper efficiency.

Required Competencies

Basically, the competencies required to be a successful data

analytics practitioner can be classified into two types, namely hard skills
and soft skills. Hard skills are the skills required to perform a profession
or work gained from education, training, and experience. While soft
skills are expertise, skills, and social intelligence so as to adapt to

40
environment and working world. The two types of competencies are
crucial to master so that a data analytics practitioner will not only have
good career, but also become the agent of change in his/her organization.

1. Hard skills

In general, to be a data analytics practitioner, someone has to

have some skills and knowledge such as data cleaning and preparation,
data exploration and analysis, knowledge of statistics, and creating
dashboards and reports. Knowledge of organization and business
process will also support the success of a data analytics practitioner.
a. Data cleaning and preparation
Studies show that data cleaning and preparation take around
80% of data processing task. Therefore, the skills to clean and
prepare data are the main skills for everyone who desires to work in
field of data. In general, a data practitioner needs to collect data from
one source or more to prepare data for numeric analysis and
categorization.
b. Data exploration and analysis
Before conducting an analysis, an analyst needs to formulate
questions or problems and convert them into data queries. The
questions or problems can come from business process owner unit
or directions from leaders. After that, data analysis is conducted to
extract answers to the questions. Exploration is another form of
data analysis in form of search for trends or interesting relationship
among data that can give understanding of the problems or issues
handled. Proper analysis and accurate and reliable data make it
possible to find answers to questions, solutions for problems, even

41
 opportunities to improve the efficiency and effectiveness of business
process.
c. Has knowledge of statistics
Knowledge of statistics is a crucial skill to be a good data
analytics practitioner. Basic knowledge of statistics, such as calculus
and probability, is highly required because mere raw report is not
enough. A data analytics practitioner has to be able to see trends and
fluctuations. With knowledge of statistical theories and applied
statistics, a data analytics practitioner will not only be able to make
data statements, but also understand why an analysis produces
certain results. The level of knowledge required in field of statistics
will vary depending on the position or role of a practitioner in team.

d. Create data visualization

To tell a story with data, a data analytics practitioner requires
data visualization skills. Data visualization can help explain the
importance of trends and patterns that have been identified. Data
analytics practitioners use various types of charts and graphs to
present their findings in brief and interesting manner.
Of various kinds of software in field of data analytics, Tableau
and Power BI are two most popular software among corporate users.
The two have excellences in form of ability to produce data analytics
results easily. Tableau is specifically excellent at creating beautiful
visualization. Meanwhile, Power BI, based on Microsoft system
generally used such as Azure, SQL Server, and Excel, is excellent at
creating efficient data visualization. The strengths of the two
software lie on convenience of use. Nevertheless, the two have their
respective weaknesses.

42
 Alternatives of the two software are Google Data Studio and
Apache Superset. The two are alternatives that can be used without
having to think about paid license. Currently, Google Data Studio can
be utilized as cloud as long as the user has a Google account and can
be connected to Google Drive or third party software. Meanwhile,
Apache Superset can be installed on premise and can be utilized by
users in broad sense. Apache Superset itself is able to handle data in
petabyte map (big data) and has obtained significant support from
technology companies such as Lyft and Dropbox as well as becoming
a priority-scale project in Apache Software Foundation in 2021.

e. Creates dashboards and reports

A data analytics practitioner has to empower other people in
organization to use data in making important decisions. By creating
dashboards and reports, a data analyst can give access to other
people to important data by eliminating technical obstacles.
Dashboards and reports can be in form of simple charts and tables
with date filter, to big dashboards containing hundreds of interactive
and automatically-updated data points. Job qualifications related to
data analytics can be highly varied from one position to another
position, but almost every task performed by a data analytics
practitioner involves preparing reports on analysis findings and/or
creating dashboards to display them.

f. Has knowledge of organization and business process

Knowledge of organization is the understanding of specific
matters existing in organization, directorate, or certain divisions of
organization. For example, if a data analytics practitioner intends to

43
 understand data related to management of state cash, he/she needs
to understand the working unit that implements the business process
related to management of cash in Directorate General of Treasury
and which data are interrelated. Similarly, if he/she is about to
analyze data of an information system, he/she needs to understand
the system and its procedure.
Knowledge of organization can vary from one organization to
another. Therefore, a data analytics practitioner has to be able to
learn quickly anywhere and in any fields data analytics works. If an
analyst does not understand the organization and context analyzed,
he/she will face difficulties to perform the tasks effectively.
Therefore, knowledge of organization and business process becomes
domain knowledge and main skills of a data analytics practitioner.

2. Soft skills

Similar to the importance of soft skills for other types of

professions, mastery of soft skills also takes part in determining a data
analytics practitioner’s career advancement. While hard skills are the
skills required by someone to interact with data, soft skills are the skills
required by someone to interact with other people. Moreover, soft skills
are required to interact with the environment.
In general, to be a good data analytics practitioner, someone has
to master some soft skills, namely communication and presentation,
problem solving, critical thinking, curiosity, attention to details, and
teamwork.

44
a. Communication and presentation
The deeper a report is, the briefer it has to be presented. An
analyst has to be able to explain the most important elements of data
analysis to team leader and business process owner unit leader. If no
one understands the report presented by a data analyst, there will be
no strategic decisions taken based on the report. Therefore, after
successfully conducting data analysis, a data analyst has to be able to
tell and show the conclusions of the analysis to information users.

b. Problem Solving
Problem-solving skill is one of the most important skills that has
to be mastered by a data analytics practitioner. To solve problems, an
analyst has to think critically and understand what are the right
questions to ask. If the questions asked are based on knowledge of
organization and business process, the investigation conducted will
be relevant to the needs of working unit. Eventually, data analytics
outputs will be relevant and produce the answers needed.
Data analytics mostly pursues logical thinking on the problems
faced. Therefore, an analyst has to have good logics on business
process and data. An analyst will reach right conclusions more
quickly if he/she is accustomed to data variations and challenges.

c. Critical thinking
Problem solving and critical thinking refer to the ability to
utilize knowledge, facts, and data to solve problems effectively. It
does not mean that a data analyst has to have instant answer.
However, he/she has to be able to think independently, evaluate the
problems, and find solutions. The ability to develop well-thought

45
 solutions within reasonable framework of time is a valuable skill for
organization.
To be a successful data analytics practitioner, someone has to
think like a data analyst. If data analyst wants to use data to get
answers to questions, he/she will have to know what questions to ask
first. One thing which is also crucial is that a data analyst does not
depend on existing answers. On the contrary, he/she needs to
consider various possible scenarios.

d. Curiosity
An analyst may not have all information he/she needs in his/her
hands. Therefore, an analyst has to have great curiosity to explore
information more deeply if he/she wants to optimize the data he/she
has collected. An analyst also needs to read the results of current
studies so as to follow the development of science and technology in
field of data analytics. An analyst needs to have understanding and
latest tools to be able to interpret the most important information of
data he/she has. Up-to-date knowledge in field of data analytics is
also useful when an analyst presents his/her findings to the leaders
and persuade them about the steps to be taken by the organization
thereafter.

e. Attention to details
In many things, an analyst’s job is similar to finding a needle in
a haystack. An analyst has to be able to pay attention to small clues
that direct him/her to a greater message hidden behind the data.
Reporting and collecting data can be boring. Therefore, the ability to

46
 draw important conclusion from data is a skill that needs to be
continuously developed.
Attention to details is also useful when an analyst sorts out data
and arranges analytical process. A minor mistake in a line of code can
make the whole workflow wrong. An analyst has to be aware of minor
mistakes that can cause greater problems in the system.

f. Teamwork
Data analytics practitioners need to collaborate with people of
various positions and working units to complete their tasks. They
also need to cooperate with business process owner to determine
what kinds of questions that can be answered through data analytics.
They also collaborate with website developers to ensure that the
organization’s website or information system is designed efficiently
to produce data they need. In greater scale, data analytics
practitioners collaborate with leaders to determine how the latest
data insights can guide the Ministry of Finance to move towards its
goals.

Approaches in Building Resources

Data analytics profession is a very interesting profession. To
master data analytics, someone does not need to have formal
background in field of statistics or mathematics. The development of
competencies has to be interdisciplinary including data analytics skills,
information technology skills, knowledge of business process, and
communication skills. The development of profession can be done by
combining training methods including face-to-face learning, e-learning,
or hands-on practice at the workplace. The curriculum also needs to

47
cover leadership skills required to prepare future leaders who
understand data culture. Table 1 contains examples of capacity
development programs for data analytics practitioners that can be
implemented28.
There are many approaches that can be implemented in
management of human resources in field of data analytics. Firstly, a
working unit can develop data analytics skills by having some data
analysts from the working unit’s internal, where the internal analysts
will obtain support from the externals when required. Secondly, internal
analysts can also cooperate with professional specialists upon request if
the internal analysts’ experience and skills are not adequate to solve
certain problems. Thirdly, the working unit can also utilize after-sales
service of software companies related to data analytics techniques or
methods. Lastly, the working unit can assign regular tasks to external
parties to reduce costs (outsourcing) and focus internal analysts to more
important and strategic tasks.
Before determining which approach to be implemented, we
need to identify the organization’s needs of data analytics as a whole. The
next step is to determine resources, either internal or external, that can
be used to meet the needs. External resources can be utilized when there
are highly specialized needs. However, the external resources are only
used to meet the needs that do not frequently occur and are not the
determining factors of the organization’s capability. When the needs are
highly significant and frequently occur, the organization needs to
prepare internal resources to avoid dependence to external resources.

28
World Customs Organization. (2018). WCO Capacity Building Framework for
Data Analytics.
48
49
50
51
 INTRODUCTION OF DATA ANALYTICS TO THE MINISTRY OF
FINANCE

Data Analytics Ideas

Data analytics have great potentials for a lot of changes and

innovations. In private sectors, data analytics can explain how banks and
retail sectors operate. In health industry, data analytics can give
understanding how to cure cancer. Even in field of security, data
analytics can help protect the world from terrorism 29. Data that are
considered having small value will become beneficial knowledge if the
users are able to analyze them and produce added values.
In the Ministry of Finance itself, the use of data in work activities
are actually not something new. However, its optimization through the
utilization of data analytics in the Ministry of Finance just started in
2019. In the beginning of its implementation, the utilization of data
analytics was done segregatively and sporadically in working units
departing from the initiative of young employees. In general, data are
utilized to give answers to what are happening or descriptive. Not many
analyses have produces an prediction or analysis able to direct the
organization to certain decision making. Even though data analytics
activities have been carried out, the ideas are still restricted to the
initiating working unit and are not widely open yet. It happens because
the awareness of data culture is just developed in a limited community.

29
Marr, B. (2015). Big Data: Using SMART Big Data, Analytics and Metrics to Make
Better Decisions and Improve Performance. John Wiley & Sons.
52
Nevertheless, the understanding of data needs to be present on every
level, both on management level and on executive level30.
One of initial initiatives of implementation of analytical was
done by Customs and Excise Main Office Type A Tanjung Priok. Starting
from 2017, Customs and Excise Main Office Tanjung Priok implemented
data mining approach to determine target entities in DJP-DJBC Join
Program activities. In the beginning, the Joint Program activities faced
various challenges. One of which was that the list of companies to be
exchanged between the two echelon I units was not clearly defined yet.
It was because the related parties were not transparent yet in explaining
the process of analysis they conducted in producing the suggested list of
companies that became the targets of the program.
To escape from the problems, the team of Customs and Excise
Main Office Tanjung Priok suggested the data mining approach that
combines taxation data and customs data. The result of the project was
a list of scores called as Quality Assurance Scores, namely the scores that
illustrated the level of taxation obedience of every entity. In addition, the
data mining approach also produced Antareja Dashboard that illustrated
the potential state revenues at the same time became the list of targets
in the Joint Program activities. The approach made analysis of targets of
Joint Program quicker, more effective, and more efficient. A year after
the project was completed in 2018, the Joint Program has generated
state revenue of more than Rp2.7 billion. In addition, the preparation of
list of targets based on data mining has directed the Joint Program to a
new stage without having hampered by trust issues and incompatibility
of list of targets.

30
World Customs Organization 2018). Handbook on Data Analysis.
53
 Data analytics project competition on the 74th Banknote Day of
the Republic of Indonesia (HORI) in 2020 became the moment of
escalation of lots of discussions about data. The competition was
expected to improve the culture of data utilization importance in
decision making. Unexpectedly, the event was able to collect 67 data
analytics projects distributed in all Echelon I units 31. Through the
competition, many parties eventually realized that the utilization of data
analytics could give great benefits to the Ministry of Finance. It was
because the winning project in the competition was proved to bring
benefits for state revenue 32. It is not impossible that such things could
also be implemented in other tasks and functions in the working units of
the Ministry of Finance.
The competition has generated awareness that data analytics
can give new colors to the Ministry of Finance. There is a hope that data-
based decision making is a culture that has to be embraced by every
working unit. Analysis and decision making not only use the data from
the unit internals, but also the data exchanged via Data Service System
of the Ministry of Finance (SLDK) and external parties. The goal is to
make decisions taken more effective, more comprehensive, and quicker.
In accordance with the mandate of the Minister of Finance, in
information transparency era and collaboration era, employees of the

31 Atmaja, I. (2020). Announcement of Data Analytics Competition Winners.

Accessed from http://www.itjen.kemenkeu.go.id/baca/742 on 14th June 2021.
32 The competition winner was the team of Directorate General of Customs and

Excise consisting of Canrakerta, Dewa Gde Adi Murthi Udayana, Yohanes Bella
Kurniawan, and Yuafanda Kholfi. Their project was entitled Implementation of
Data Mining as Risk Management in Import Documents: A Case Study at
Directorate General of Customs and Excise.
54
Ministry of Finance have to be open to data that can be utilized together
for national interest33.

Strategic Initiative of Data Analytics

The seriousness of the Ministry of Finance related to data

utilization culture is contained in the strategic initiative related to data
analytics. The strategic initiative is arranged in all themes, namely
central, fiscal, revenue, spending, as well as treasury, state wealth, and
financing themes as presented in Figure 6. There is a hope that the
arranged project can reinforce the strategic initiative of bureaucracy
reformation and institutional transformation that has been arranged
earlier.
It does not only stop at the strategic initiative related to
data analytics, the Ministry of Finance also appoints Expert Staff of State
Revenue as Daily Chief Executive II at Central Transformation Office who
is in charge of formulating policies, coaching, coordinating, monitoring,
and evaluating the implementation of data management and utilization
in the Ministry of Finance34. In addition, the Ministry of Finance also
appoints Chief Data Management Officer (CDMO) as a new position that
is in charge of realizing data culture in the the Ministry of Finance 35.

33 Central Transformation Office. (2021a). Transformation Actual News

(BERAKSI). 2nd Edition. Ministry of Finance.
34 Ministry of Finance. (2020). Decision of Minister of Finance Number 601 of

2020 on Establishment of Central Bureaucracy Reformation and Institutional

Transformation Team (Central Transformation Office) of Ministry of Finance
Year 2021.
35 Ministry of Finance. (2021). Decision of Minister of Finance Number 94 of 2021

on Appointment of Civil Servants as Members of Management Team of Central

Bureaucracy Reformation and Institutional Transformation Team (Central
Transformation Office) of Ministry of Finance Year 2021.
55
CDMO is expected to be able to arrange strategies to realize data culture
throughout the Ministry of Finance. Similar to data analytics strategic
initiative projects, the impact of data culture strategies is how the
organization produces benefits from the data that have not been used
optimally.

Figure 6
Strategic Initiative of Bureaucracy Reformation and Institutional
Transformation Year 2021

Source: the Ministry of Finance

As learning media, every echelon I unit has two analytical

projects or more that will be done in 2021 (Figure 7). The projects are
expected to give sustainable positive impacts and added values for the

56
organization. Overall projects are also encouraged to be the enablers of
business process improvement, the drivers of digital acceleration in the
Ministry of Finance, the drivers of organization transformation, the
supporters of organization effectiveness and efficiency, and insights for
formulation of policies for ministries, institutions, and regional
governments.
The implementation of strategic initiative of data analytics
becomes a specific challenge for the Ministry of Finance. There is a gap
of understanding of data analytics both on management level and
executive level so it needs to arrange some strategies to implement the
strategic initiative. Some strategies used are building capacities related
to data analytics and collaborating with MoF-DAC to give insights and
inputs in terms of concepts and technical to the data analytics projects
they work on.
Capacity building is facilitated by BPPK General Financial
Education and Training Center. It is conducted in two stages of
bootcamps, namely bootcamp 1 to discuss data analytics in general and
bootcamp 2 to discuss data analytics in technical manner. The
curriculum of the activity has been prepared since 18 th January 202136.
The bootcamps involve many parties. The educators are employees of
the Ministry of Finance who have utilized data analytics earlier and
belong to MoF-DAC.

36
Central Transformation Office. (2021b). Transformation Info (INTRA). 2 nd
Edition. Ministry of Finance.
57
58
 The bootcamps are expected to be able to give an understanding
that the utilization of data analytics requires good cooperation between
the management and the executive. In addition, the utilization of data
analytics also requires cooperation between business process owner
unit and data processing unit. On the other hand, the bootcamps also
reaches technical matters to help the learning process. Not exaggerated,
MoF-DAC as one of the champions in the strategic initiative is directly
requested to play an active role in explaining the material at the
bootcamps or to assist every data analytics project in the Ministry of
Finance.

Lessons to Learn

Although it is still ongoing, the data analytics initiative has

opened new perspective and produced promising learning process, both
for individuals involved in their respective projects and for the
institution as a whole.
One of important lessons from the implementation of strategic
initiative of data analytics is the importance of coordination between
business process owner unit and information technology management
unit in every echelon I unit. The data analytics project is a collaboration
project that not only constitutes joint work, but also requires
contribution from both parties. In the project, the business process
owner unit plays the role to explain the business process, problems
faced, and desired results. While the information technology
management unit contributes to providing and processing data as well
as finding the most effective model to be the solution to the problems
faced. Therefore, dialogue between the two teams is definitely required

59
to ensure that the data analytics project they are working on is relevant
and produces solutions that can be implemented.
The second lesson from the data analytics project is the
importance of data sharing among echelon I units or even among
ministries/institutions. It frequently happens that a data analytics
project that becomes the responsibility of an echelon I unit turns out to
require data from another echelon I unit. The situation is caused by the
business processes of echelon I units that are related to each other as
illustrated in the enterprise architecture of the Ministry of Finance.
The data analytics project worked on by DJPK that develops
Ministry/Institution Spending Analysis Model with Physical DAK
(education sector and roads) can be an example. In addition to requiring
the data managed by DJPK, the project also requires data from DJA, DJPb,
and the Ministry of Public Works and Public Housing. The data required
from DJA are the budget for education sector and roads. The data
required from DJPb are the realization of budget for education sector and
roads. While the data required from the Ministry of Public Works and
Public Housing are the location coordinates of education and road
projects they are working on. The data from the Ministry of Public Works
and Public Housing are used to validate whether there are similar road
projects done in the same locations. In addition, the data are also useful
to ensure that coordination between related institutions one different
government levels can be done well.
To overcome bureaucracy obstacles related to data sharing,
Data Management Office (DMO) at Central Transformation Office of the
Ministry of Finance plays a strategic role as the catalyst and becomes a
bridge for communication and coordination among echelon I units
including related ministries/institutions. DMO also plays the role as a

60
resource person and reviewer along with MoF-DAC to discuss the
substances and work procedure of teams that work on the data analytics
projects. Eventually, all data analytics projects can give significant
benefits to the Ministry of Finance as a whole.

61
62
 SUCCESS FACTORS IN BUILDING A DATA CULTURE

Commitment of Leaders
Previous reviews show that the greatest obstacles in building a
data-driven organization are not technical factors but cultural
challenges. Illustrating and explaining how to use data as basis for
decision making will be easier that making them a habit and normal
things. The problems in building a data culture are the challenges in
building a data-driven organization.
In building a data culture, commitment of leaders is the key
factor. The role of leaders is not only important in viewing the big picture
of organization transformation, but also in producing added values for
organization and public. There are many statements by experts and
practitioners regarding the importance of role of leaders as the
developer of culture (Table 2).
Table 2
Importance of Role of Leaders in Data Culture 37

1. The support of top management is absolutely essential and we

have it on a daily basis (Thoen, 2011).
2. Senior leaders must understand and apply open innovation
(Slowinski & Sagal, 2010).
3. Executive-level leadership is required, as is constant focus to
reinforcing the message, and a clear understanding of the stakes
(Bingham & Spradlin, 2011).
4. Top management gives a fundamental push to establish an open
innovation implementation tam, and its support is instrumental in

37 Thestatements are the summary presented in The Role of Top Management in

Open Innovation and accessed from
https://innovationmanagement.se/2014/02/19/the-role-of-top-management-
in-open-innovation.
63
 achieving open innovation rollout across the whole organisation
(Mortara et al., 2009).
5. Executive sponsorship is needed [to] remove roadblocks and
mandate participation (Sloane, 2012).

The questions above show that strong support from leaders is

the enabler for change of organization culture. By showing commitment
and support, strong leadership becomes key instrument in handling
resistance from people who go against changes. When data culture
becomes a habit, it will get attached to every line of organization. The
shift of decision-making pattern into based on data and facts requires
direct involvement of leaders. Intervention and encouragement from
leaders will encourage the officials and executives in technical
operations to believe the importance of data culture. Management and
changes echoed by leaders become the fuel for changes towards a more
data-cultured organization.
In building data culture in the Ministry of Finance, the leaders
play three crucial roles, namely as the builder, the sticker, and the
grower38. As the culture developer, the leaders have to have belief,
values, and ability to reflect the benefits of data in realizing the
organization’s visions. They also have to be open and learn new things
brought by data analytics at the same time placing understanding of data
analytics as a part of and the supporter of the organization’s future.
As the culture sticker, actions of the leaders have to reflect
supportive attitude for data culture. The main actions of the leaders as
the culture sticker include budget and resource support in data analytics

38
Schein, E. H. (2004). Organizational Culture and Leadership. Third Edition. San
Francisco CA: Jossey Bass.
64
projects, grant of feasible status to data analytics projects, as well as
career development and grant of awards to data analytics practitioners.
The leaders can also attach data culture in the organization by showing
attention to details and being regular toward data analytics initiative
done in their working units. The actions in Table 3 can also be taken by
the leaders to attach data culture in the the Ministry of Finance.
Table 3
Instruments for Leaders to Build A Data Culture

1. Forming organization structure by integrating data analytics

functions.
2. Establishing systems and procedures with data as the main
elements.
3. Making dialogue about data as a habit.
4. Designing buildings, workspaces, and public spaces with data-
based messages.
5. Using the stories of important figures and history related to the
use of data.
6. Establishing official attitude of organization in form of
philosophy, credo, and charter by inserting important messages
about data.

After data culture is attached, a leader will play the role as the
data culture grower. Data culture is not a binary concept where
organization is classified only into two categories, namely not yet or
already having data culture. It is a continuum in which an organization
can have better data culture after having data culture on certain level.
Therefore, as the data culture grower, leaders have to identify on which
stage data culture has been planted in their units. Furthermore, they
need to be creative to find what mechanisms can be implemented to keep
data culture growing and developing (Table 4).

65
 Table 4
Data Culture Stages and Growth Mechanisms

Data Culture Growth Mechanism that Can be

Stage Implemented
Laying a 1. Gradual changes of business process
foundation and 2. Promoting officials/employees with data
initial growth analytics competencies to strategic positions
1. Giving incentives in order of changes
Mature 1. Improving technology to support data
analytics into policy, regulation, and
transaction functions
1. Inviting external parties to give new
perspectives on data analytics
Derivation 1. Revitalizing strategic functions of
organization by obliging data analytics to be
the key elements
1. Reorganizing structure and working units

Management of Changes
The review above has analyzed the enabling factors of
development of data culture. In addition, we also need to recognize the
obstacles for data culture. The goal is that the development of data
culture and implementation of data analytics initiative in the Ministry of
Finance does not repeat the same mistakes done by other organizations.
The study by Gartner predicts that until 2022, the utilization of data
analytics will only meet 20% of business outcomes 39. Many data
analytics projects will fail.

39White, A. (2019). Our Top Data and Analytics Predicts for 2019. Accessed from
https://blogs.gartner.com/andrew_white/2019/01/03/our-top-data-and-
analytics-predicts-for-2019 on 24th June 2021.
66
 The failure of data analytics projects can be caused by some
reasons. Based on the survey conducted on 19 data analytics experts,
were obtained over 100 reasons that can cause failure of data analytics
projects classified into some factors (Table 5) 40. the Ministry of Finance
has to pay attention to the factors in developing data analytics projects
to reduce the risk of failure.
Building a data culture certainly takes time and needs to be
supported by management of changes. It aims to make a data culture the
mainstream in the Ministry of Finance. Management of changes needs to
be implemented to ensure that all involved parties and required facilities
are ready to support the changes of data culture. The parties who
become the goals of management of changes are not limited to
information system management unit only, but also business process
unit and leaders of all working units.
The focus of management of changes is change of mindset and
habit in the Ministry of Finance. In this case, the leaders are the people
who initiate and manage the changes, identify and overcome the
challenges, as well as monitoring and evaluating the results. Building a
data culture starts from the highest management. Leaders with high
expectation towards data-based decision-making habit will influence the
leaders below them because of the encouragement to participate.
In the practice, many ways can be taken as parts of campaign
and management of changes. The creativity of leaders and agents of
changes is required to determine the most proper strategy to support
the change of culture. No matter which way is chosen, the leaders’ direct

40
Becker, D. K. (2017). Predicting Outcomes for Big Data Projects: Big Data
Project Dynamics (BDPD): Research in Progress. In 2017 IEEE International
Conference on Big Data (Big Data) (pp. 2320-2330). IEEE.
67
involvement in management of changes is definitely required because
the leaders are the role models for transformation into a data-driven
organization. Some ways to support management of changes that can be
taken are among others:
1. Executive training on data culture and data analytics for leaders of
echelon I, II, and III units;
2. Training on data analytics for those who do not have data analytics
background;
3. Campaign on use of data analytics on every level of working units;
4. Implementation of data analytics hackathon in every echelon I unit;
5. Regular promotion on data analytics via social media;
6. Regular implementation of Financial Data Talk Show (NGOTAK);
7. Utilization of Project Management Office network to deliver the
important messages of data culture in every echelon I unit.

Obstacles for Data Culture

The review above has analyzed the enabling factors of
development of data culture. In addition, we also need to recognize the
obstacles for data culture. The goal is that the development of data
culture and implementation of data analytics initiative in the Ministry of
Finance does not repeat the same mistakes done by other organizations.
The study by Gartner predicts that until 2022, the utilization of data
analytics will only meet 20% of business outcomes 41. Many data
analytics projects will fail.

41White, A. (2019). Our Top Data and Analytics Predicts for 2019. Accessed from
https://blogs.gartner.com/andrew_white/2019/01/03/our-top-data-and-
analytics-predicts-for-2019 on 24th June 2021.
68
 The failure of data analytics projects can be caused by some
reasons. Based on the survey conducted on 19 data analytics experts,
were obtained over 100 reasons that can cause failure of data analytics
projects classified into some factors (Table 5)42. the Ministry of Finance
has to pay attention to the factors in developing data analytics projects
to reduce the risk of failure.
Table 5
Factors Causing Failure of Data Analytics Projects

Category of Issue Factor

Management of project and 1. Inadequate skills
organization 2. Incorrect goals of project
3. Not meeting returns on investment
4. Management resistance
5. Error in determining the scope of
project
6. Incorrect structure of project
7. Inadequate governance and
management
8. Poor communication
9. Avoiding problems
Technology 1. Complex technology
2. Data integration
3. Data management
4. Enterprise Strategy Match
5. Incorrect use of technology
6. Technology infrastructure and
architecture
7. Technology changes

Source: Processed from Becker (2017)

42
Becker, D. K. (2017). Predicting Outcomes for Big Data Projects: Big Data
Project Dynamics (BDPD): Research in Progress. In 2017 IEEE International
Conference on Big Data (Big Data) (pp. 2320-2330). IEEE.
69
70
 ORGANIZATION STRUCTURE OF DATA ANALYTICS

A research conducted by Ernst and Young and Nimbus Ninety in

2015 reports that the organization structure of analytical unit is one of
important factors in internalizing the utilization of data in the
organization43. Selection of organization structure not only affects the
procedure, but also determines the results of data utilization initiative.
Therefore, selection of appropriate organization structure is one of
important factors to support successful transformation into data-driven
organization.
From various literatures, there are a number of models and
their variants that can be used to determine appropriate organization
structure for the implementation of data analytics in the Ministry of
Finance. In general, there are two organization models in placing the
functions of data analytics, namely centralization and decentralization 44.
The two forms also have some variants and combinations, such as
centralized model, center of expertise model, functional model, and
distribution model.

Centralization Model

In accordance with its name, in the model all members of data

analytics team report their tasks and results of work in centralized
manner. Figure 8 is the generic form of centralization model when it is
implemented in the Ministry of Finance. There are some benefits

43 Ernst and Young (2015). Becoming an Analytics-Driven Organization to Create

Value.
44 Anderson (2015).

71
produced by centralization model. Firstly, centralization enables
standardization of expertise, training, and tools. At the same time, the
analysts can also share resources and efficiency of license cost. Secondly,
the analysts can also work across functions and across Echelon I units
with ease of coordination and ideas sharing among team members. The
model also enables us to work on projects with limited access to data. In
addition, centralization model enables the implementation of long-term
projects because of the centralized availability of budget.

Figure 8
Centralization Model of Data Analytics Unit in the Ministry of
Finance

However, the model also has a weakness, that the analysts will be
isolated from business process team and core goals of every working
unit. Therefore, it requires analysts who understand business process,
environment, and laws that becomes the context of data. Moreover, there

72
is a tendency for occurrence of data analytics unit bureaucratization that
the analysts can be reactive towards demands for data analytics because
there will be prioritization and competition of resources in the internals
of data analytics unit. Heavy workload can make central team less
responsive towards the needs of organization. There is a potential for
burnout if increase of workload is not accompanied by increase of
resources. The model also requires quite intensive training to produce
expert staff who understand business process across units properly.

Decentralization Model
In decentralization model, the analysts are classified into a
number of special teams. The analysts work according to the tasks given
to their respective teams. In the context of the Ministry of Finance, the
data analytics teams will be placed in every echelon I unit to echelon II
unit. Figure 9 is the generic form of decentralization model when it is
implemented in the Ministry of Finance.

Figure 9
Decentralization Model of Data Analytics Unit in the Ministry of
Finance

73
 The strength of the model is that the analysts will understand
more about the functions and goals of every working unit. In addition,
analytical projects are also relevant to the needs and missions of every
working unit. The result is that every working unit obtains direct
benefits from data analytics projects.
However, the model also has some weaknesses.
Decentralization of data analytics can cause an analyst to be isolated
from other analysts that may result in redundancy of data analytics
projects as well as divergence of expertise, training, and tools. Instead of
generating efficiency, without good coordination and communication
among the analysts and core management, data analytics projects
worked on by the model can result in inefficiency. Data analytics units in
the model will face difficulties to access other competencies and
experiences of other data analytics units in other units. The dimension
and scope of data analytics projects produced by the model are also
limited because they are not connected to the needs and data analytics
projects in other working units.

Center of Expertise Model

Center of Expertise Model is a variant of organization model

which is a hybrid and combination between centralization and
decentralization models. Center of Expertise Model is a model that
combines the strengths of centralization and decentralization models in
which every echelon I unit maintains their data analytics units, but their
activities are coordinated by a small team on central level called as
Center of Expertise. Center of Expertise is responsible for training, use of
latest data analytics tools, innovation, facilitation of communication

74
among data analytics units in every echelon I unit. Figure 10 is the
generic form of Center of Expertise model when it is implemented in the
Ministry of Finance.
Figure 10
Center of Expertise Model in the Ministry of Finance

The model has some strengths that are the combination of

centralization and decentralization model. Data analytics units stay close
to business process owner that means they can understand the problems
and needs in the field better. Development of human resources and
coordination are also done in centralized manner so as to be in line with
the major needs of the Ministry of Finance. It can encourage the data
analytics unit in every echelon I unit to focus on the essence of data
analytics activities, such as data exploration, modelling, and deployment.
Center of Expertise can also understand the needs for data analytics on
every organization level and coordinate the needs with the data analytics
unit in echelon I. Moreover, echelon I unit maintains its discretion to

75
distribute its analysts in accordance with the unit’s needs by
coordinating with Center of Expertise.
However, the model also has some weaknesses. Center of
Expertise may not have adequate control on the effectiveness of work of
data analytics unit in echelon I unit because the data analytics unit is not
directly below Center of Expertise. The priority of work in echelon I units
can be considered higher by the leaders of echelon I units, which
hampers the achievement of goals of data analytics for the Ministry of
Finance in broad sense. If Center of Expertise does not get sufficient
budget support, the implementation of data analytics will be hampered
and split up in every echelon I unit. Therefore, Center of Expertise has to
be supported by proper facilities to eliminate divergence of technology
existing in echelon I units.

Functional Model

Slightly different from the three models above, the model is

formed based on the function or theme of organization unit. The model
places data analytics units based on the group of functions/themes
existing in organization. As an example, for the group of data analytics
functions in field of revenue, the data analytics units will carry out data
analytics activities based on the business process of DJP, DJBC, and DJA
involved in state revenue. For public relation function, the data analytics
units of the Ministry of Finance will coordinate with all public relation
units both at the center and every working unit of echelon I. Figure 11 is
the generic form of functional model when it is implemented in the
Ministry of Finance.

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 Figure 11
Functional Model in the Ministry of Finance

The model has some strengths. Data analytics units will be in all
functions of organization. Therefore, values and benefits of data
analytics projects will have more impacts because analyst units are
concentrated in the sector. The model also enables the expansion of
benefits of data analytics projects beyond initial scope. The limitations
in developing data analytics in a function can be transferred to increase
the benefits of other functions. For example, data analytics in
supervision unit that aim to increase obedience can be developed to
translated the obedience into optimization of state revenue.
However, the model also has a number of weaknesses.
Considering the limited resources, prioritization of function will occur in
the Ministry of Finance. If it is only focused on some functions, the other
functions will run without data analytics. Additionally, budgeting
procedure becomes more complicated because every group of functions
consists of various units of echelon I. The model is more suitable for

77
organizations that divide their units based on groups of functions or
organizations that do not have duplication of functions among their
units.
The description above has discussed about the four models in
general so that their implementation can be adjusted to the condition of
respective organization. Moreover, before selecting organization
structure of data analytics, all of the models above need to be discussed
in broader dimension and more diverse aspects, such as permit for
formation of new unit, range of control, human resource support,
availability of budget, and compatibility with the strategic plan of the
Ministry of Finance. The goal is that the form and organization structure
of data analytics produced can be accepted more widely and can
overcome bureaucratic deadlock, which is one of important goals of data
analytics projects. Selection of organization model of data analytics
depends on internal decision of the organization and is adjusted to
individual needs and condition.

Principles of Data Analytics Unit

Regardless of the organization model or form to be selected in

the future, there are three principles that have to be maintained in data
analytics structure of the Ministry of Finance, namely cross-functional,
accessible, and integrated with tasks and functions of working units.
1. Cross-Functional
Data analytics cannot be monopolized by a unit only or
understand certain functions only. Data analytics units have to be
able to view and solve problems across functions and across units.

78
 We should not let data analytics units produce new partitions in
organization that should be able to be overcome.
2. Accessible enterprise-wide
Data analytics units have to be inclusive and open for all other
units from different levels. For echelon I units that have vertical units
in regions, there can occur problems in the field that need to be solved
using data analytics.
Even data analytics function also has to be present in public
services as the forefront facing the public. If potential problems on
operational level are not ease to be delivered by vertical unit to data
analytics unit, the organization’s goals in utilizing data analytics
become suboptimal. Ideally, data analytics units can provide a
cohesive platform that supports the collaboration among all units to
realize supportive environment and ecosystem.
3. Integrated with tasks and functions of working units (integrated with
business)
Data analytics units have to be connected and can be easily
connected to business process owner units. Data analytics units that
are not connected to business process owner units tend to produce
data analytics projects with minor impacts. The survey conducted by
McKinsey in 2018 gives an example of an insurance company that
recruited a large number of data scientists and worked on over 50
pilot projects. Because the insurance company placed its data
analytics unit separated and isolated from its business process owner
unit, eventually the data analytics unit did not produce anything for
the company.

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 DATA ANALYTICS AND DATA CONFIDENTIALITY

The ability of data analytics to open up new perspectives toward

the data owned has the potential to generate enormous benefits for
organizations. Data analytics can help provide better services for public.
Data analytics can also simplify supervising tasks and strengthen policy
design.
In the process of data analytics, data from various sources are
frequently required to be accessed, processed and presented to users.
This certainly needs to become a serious concern if the data used turn
out to be classified as confidential or have the potential to open up
individual privacy. However, ignoring these data from the activities of
data analytics will limit the potential benefits of data analytics.
Therefore, organizations need to determine a strategy in the use of data
that are confidential and contain individual privacy in order to maintain
data confidentiality and individual privacy.
There are several guidelines that can be followed to optimize
data utilization while maintaining data privacy, namely data de-
identification, governance of data confidentiality and privacy,
understanding data, and risk management.

Data De-identification

De-identification is the process of removing information that

can be used to identify something that is personal and unique such as
name and address. This process has been undertaken by the Australian
Government as an effort to become in line with the country's privacy

81
regulations. This process is also needed in the application of data
analytics in the Ministry of Finance because some of the data they
currently own already include personal data of individuals and business
entities. Further information on data de-identification can be found in
the Guide to Data Analytics and the Australian Privacy Principles
published by Office of the Australian Information Commissioner (2018).
Broadly speaking, the process of data de-identification is as
follows:
1. Identifying data that can be direct identifiers of individuals or legal
entities, namely unique attributes of individual, such as name,
National Identification Number, Taxpayer Identification Number,
Employee ID Number, and Soldier Registration Number. Due to
current development of the use of unstructured data, facial
photographs and voice recordings are also included in the direct
identifiers group.
2. Identifying data that can become indirect identifiers, namely non-
unique attributes, such as height, age, skin color, hair color.
3. Performing pseudonymization, or better known as masking data.
4. After masking the identity data, the data can be further de-identified
using methods such as k-anonymization or randomizing to avoid re-
identification by unauthorized persons.
5. The unit that performs data masking and de-identification must be
able to retrieve the data that have been processed to their initial
condition.
De-identification can be applied in analysis of inter-entity
relationships in connection to tax payments. The data used may contain
information such as TIN, name of entity, address of business entity,
company deed number, telephone number, or company electronic mail.

82
If those who will perform an analysis of the data are parties who are not
entitled to access the tax data, then those parties will process the data
that have been de-identified.
Data analytics projects within the Ministry of Finance need to
consider whether individual and business entity data that have been de-
identified enable the organizations to use, share, or publish such data
without violating the provisions of data confidentiality and privacy. Data
de-identification can be carried out at various stages of a data analytics
project such as:
1. As soon as business entity data, personal data or other confidential
data are obtained,
2. Prior to analysis of the data, and/or
3. When data are used, shared or published, either in the internals or
externals of the Ministry of Finance.

Governance of Data Confidentiality and Privacy

Governance of data confidentiality and privacy needs to be

embedded in the process of data analytics from the initial planning to the
completion of project using a privacy-by-design approach. The privacy-
by-design principle was first developed in the 1990s by Ann Cavoukian,
former Canadian Commissioner of Information and Security. Since then,
this approach has been adopted by private and public sectors
internationally. For more information, see Information and Privacy
Commissioner of Ontario's Privacy by Design at
www.ipc.on.ca/resource/privacy-by-design.
Some principles in the concepts of privacy-by-design are:

83
1. Proactively managing data confidentiality and privacy before issues
related to data confidentiality and privacy are revealed,
2. Understanding that effective and innovative use of data along with
maintaining data confidentiality and privacy is possible, and
3. Ensuring that all confidential data and personal information are
always stored securely in the series of data analytics projects.

Understanding the Data Owned

The spirit of data analytics is often distributed into a project that

starts with collecting, withdrawing, or requesting all available data from
data managers without unclear data analytics goals. This is due to a lack
of understanding of the required data and the business processes
associated with the data. This condition can increase the risk of breach
of data confidentiality and privacy.
Data related to personal and confidential information need to be
reasonably limited in accordance with the purpose, function, and
activities of data analytics. In addition, in terms of data analytics unit, it
is necessary to emphasize continuous awareness of the data accessed,
collected, processed, or generated from data analytics activities. If the
data have the potential to be classified as confidential data or privacy
data, they must be de-identified.
The following story can become an illustration of the application
of this principle. One of the government agencies organized a
competition with the theme of data analytics. The participants who
participated in the competition were welcome to choose the data used in
their projects. One of participants requested for data with a total number
of more than 40 columns including detailed identity data of business

84
entity, but this was not followed by a clear definition of problems and
research objectives. This happened because the participants thought
that a data analytics project could be carried out by collecting as much
data as possible. A request for data without understanding business
processes will result in failure to achieve the goals of data analytics and
potentially violate data confidentiality.

Risk Management of Data Analytics

One of the stages in data analytics activities is data collection. In

a data analytics project, it is very possible to collect large and detailed
data. These large datasets can store sensitive and confidential
information, so organizations need to develop the steps to monitor and
prevent risks arising from these datasets and data analytics activities.
The Ministry of Finance has issued Decision of the Minister of
Finance Number 577/KMK.01/2019 on Risk Management within the
Ministry of Finance. Points such as context formulation, risk
identification, risk analysis, risk evaluation, risk mitigation, monitoring,
and review including communication and consultation described in the
Decision of the Minister of Finance can be considered in carrying out risk
management in data analytics projects.

85
86
 MODELING TECHNIQUES FOR DATA ANALYTICS

Data analytics has enormous potential to encourage and

optimize the implementation of tasks and functions in the Ministry of
Finance. Based on Decision of the Minister of Finance Number 269 of
2021 on Governance of Data in the Ministry of Finance, data analytics is
defined as a data processing and/or exploration service to produce
information/analytical results that are in accordance with the needs
descriptively, diagnostically, predictively, and prescriptively. However,
the term data analytics itself is actually very broad and continues to
evolve (evolving term). This chapter will introduce the concepts and
methods which are commonly encountered in the world of data
analytics.

Data Mining

Data mining is the process of analysis of the datasets owned,

usually in large quantities, to find unexpected connections and conclude
something from the data to be understood and utilized by data owners 45.
Data mining can be useful for automatic decision making without any
human judgment based on previous data. This is because data mining is
able to provide interesting information or patterns that are extracted
based on previous data. In general, the use of data mining can be
classified as in Table 6.

45Hand, D. J., Mannila, H., & Smyth, P. (2001). Principles of Data Mining (Adaptive
Computation and Machine Learning). MIT Press.
87
 Table 6
General Methods Used in Data Mining

Example of
Method Explanation
Algorithm
Association Used to observe the causal relations Apriori, FP
rules that occur based on association and Growth, and
correlation among data Eclat
Example of Use:
- At DJBC: To observe the
correlation between import and
export commodities
- At BPPK: To observe the
relevance of education and
training attended by employees
Classification/ Used to predict future events by Logistic
Prediction studying past events regression,
naive bayes,
Example of Use: support vector
- In Procurement Bureau/ machine,
Department: To predict the decision tree,
success of a procurement neural network,
- At DJBC: To perform risk and ensemble
management in import services method
and to predict the price of
imported goods.
- At Inspectorate General/internal
compliance unit: To detect fraud
Cluster Used to perform classification of the K-means,
analysis data owned DBSCAN,
Example of Use: agglomerative
- At DJBC: To perform clustering, and
segmentation of customs service BIRCH
users
- At DJP: To perform segmentation
of taxpayers
- At DJKN: To classify BMN
- At BPPK/HR Division/ Bureau: To
classify employees based on
certain criteria
Outlier Used to observe anomalies that Distance-based,
analysis occur from the datasets owned. density-based,
local outlier

88
 Example of Use: factor,
- At DJPb: To detect misuse of connectivity-
government credit cards based outlier
- At Financial Technology and factor, and
Information System Center: To isolation forest
detect network intrusions and to
check for anomalies that occur in
computer networks
- At DJPb: To detect unusual
transactions
- In DJBC: To detect unusual ship
movements
Time series Used to observe trends that occur by Autoregressive,
analysis utilizing time components in data. moving average,
autoregressive
Example of Use: moving average,
- At DJBC: To predict the number of autoregressive
imports and exports that will integrated
occur in the future moving average,
- At DJP: To predict tax revenue and exponential
- At DJPb: To predict state spending smoothing
- At HR Department/Bureau: To
predict the number of employees
needed in the future.

The problems that are solved by data mining can generally be

categorized into two learning methods, namely supervised learning and
unsupervised learning46. The supervised learning method utilizes data
that already have data labels to conduct trainings and the results are
used to determine data that do not have data labels yet. This learning
method is used to provide predictions of output variables derived from
a given set of input data. The output variable is commonly referred to as
a class label. The supervised learning method requires a number of data
that already have sufficient data labels to produce a model that can be
used to determine the next class label.

46Kotu, V., & Deshpande, B. (2015). Data mining process. In Predictive Analytics
and Data Mining (p. 26). Elsevier.
89
 Meanwhile, the unsupervised learning method is used to see
hidden patterns from unlabeled data. When referring to Table 6, an
example of supervised learning method is when solving problems using
classification/prediction method, while an example of unsupervised
learning method is solving problems using clustering method.

Text Mining

In general, both text mining and data mining have the same goal,
which is to obtain interesting information or patterns from data. Unlike
data mining which uses structured data, text mining tends to use
unstructured data. For example, text on social media, text on news in
conventional media, and text on regulatory documents. The text data
require special treatment until they become structured forms. The
process carried out starting from the source of required data until the
data can be analyzed is presented in Figure 12.

Figure 12
General Framework for Text Mining

Source: Adapted from Aggarwal and Zhai (2012)

In text mining, there are many analytical approaches that can be
used to help produce important and relevant information. These
approaches are presented in Table 7.

90
 Table 7
Approaches in Text Mining

Examples of
Method Explanation
Algorithm
Text Used to classify or predict Logistic
classification information from a text. regression,
naive bayes,
Example of Use: support vector
- KLI Bureau/Public Relation machine,
Division: To analyze public decision tree,
sentiment through social media neural network,
and online media upon a policy and ensemble
taken method
- Financial Technology and
Information System Center: To
predict incoming spams in official
e-mails.
Text clustering Used to classify text data that do not K-means,
have labels yet. DBSCAN,
agglomerative
Example of Use: clustering, and
- KLI Bureau/Public Relations BIRCH
Division: To classify news written
in media about the Ministry of
Finance
- Legal Bureau: To classify types of
regulations existing in the
Ministry of Finance.
Information Used to extract interesting Rule learning
extraction information from text data. based,
classification
Example of Use: based method,
- Organization and Management and sequential
Bureau/OTL Division: To extract labeling based
information from presentation
delivered by leaders
- Financial Technology and
Information System Center: To
extract information from official
e-mails
Topic modeling Used to extract topics from text data. Latent dirichlet
allocation

91
 Examples of
Method Explanation
Algorithm
Example of Use: (LDA), non-
- KLI Bureau/Public Relations negative matrix
Division: To determine the topics factorization
written in news related to the (NMF),
Ministry of Finance latent semantic
analysis (LSA),
parallel latent
dirichlet
allocation
(PLDAA), and
pachinko
allocation
model (PAM)
Text Used to determine important Textrank,
summarization information from text data. sentence
scoring based,
Example of Use: and k-means
- KLI Bureau/Public Relations clustering
Division: To draw conclusions on
news related to the Ministry of
Finance
- Secretariat/General Bureau: To
draw conclusions on instructions
from leaders in the Ministry of
Finance
Information In contrast to the other methods,
retrieval information retrieval approach is a
process starting from collection,
indexing, to filtering. Used to form
text datasets to make it easier to find
information quickly.

Example of Use:
- Legal Bureau: To create a corpus
related to the Ministry of Finance
and link it with applicable
regulations.

92
Social Network Analysis

In representing the linkages among objects, it requires data

visualization approach that is easier to be understood by users. If
presentation of data is generally displayed in form of information table,
the presentation of data that has linkages among objects is easier to
translate if it is done in form of a graph or a network. This issues another
approach in the process of analyzing data, namely social network
analysis.
The process of analysis will focus on the patterns generated
from a connected graph or network and provide an understanding of the
phenomena that occur in the graph or network. An example of use of this
approach is the analysis and mapping of linkages among taxpayer
business entities, linkages among owners or shareholders of some
companies, linkages among regulations in the Ministry of Finance,
linkages among partners, and cashflow that occurs within international
and domestic trade activities.

Data Visualization

Making a decision is a common activity for top management. In

the decision-making process, it will certainly be better if it is based on
the data presented so that the decisions taken are close to accuracy.
These data can be obtained from transactional activities carried out by
the organization. Generally, the presentation of data in decision making
can be described through visualizations that are easily translated into
business language. As a supporter, the development of visualization

93
certainly requires the right design of data warehouse to ensure that the
data flow that will be presented has a good quality.
In simple way, a data warehouse can be defined as a gathering
place for data that are produced to support decision making. Data
warehouse can also be defined as a collection of current or past data that
have their own appeals for decision making. The data warehouse itself
consists of transactional data that have passed through the process of
extraction, transformation, and loading (ETL). Theoretically, the
creation of data warehouse can be described through the data
warehouse architecture as outlined in Figure 13.

Figure 13
Data Warehouse Architecture47

Source: Adapted from Connolly & Begg (2005)

47Connolly, T. M., & Begg, C. E. (2005). Database Systems: A Practical Approach to

Design, Implementation, and Management. Pearson Education.
94
The following is a short explanation of Figure 13 above:
1. Operational data are the sources of data used in data warehouse.
2. Operational data store (ODS) is current data repository that has
been integrated for analysis needs and can be used as a source of
data used in data warehouse.
3. ETL manager is a person who performs data extraction,
transformation, and loading operations into data warehouse from
existing sources of data.
4. Warehouse manager is a person who performs the entire operations
related to the setting of data warehouse such as data transformation
or merging from temporary storage to data warehouse.
5. Query manager is a person who performs the entire operations
related to the setting of user queries.
6. Detailed data is a storage area in data warehouse that contains
detailed data as a supplement to data aggregation.
7. Lightly and highly summarized data is a storage area in data
warehouse that contains data with more concise and aggregated
scheme. This aims to speed up queries made by users (end-users).
8. Archive/backup data is a storage area to perform backups or
archiving on a running data warehouse.
9. Metadata is “data related to data” formed in a data warehouse. There
are several purposes of using metadata, one of which is as a query
management process.
10. End-user access tools are stages of analysis process that can be
carried out using several tools related to utilizing the data
warehouse. These tools can be categorized into three major groups,
namely: (a) reporting and query tools; (2) OLAP tools; and (3) data
mining tools.

95
Development Process of Data Analytics

A data analytics project is a representation of a process. The

process needs to be carried out in a sequential manner to generate value
for the organization. There are many options to determine the process
standards that need to be implemented. The three most popular
standards are Knowledge Discovery from Data, Cross-Industry Standard
Process for Data Mining, and SEMMA. CRISP-DM is the most widely used
among the three standards.
CRISP-DM is a data mining process developed by a consortium
consisting of NCR Systems Engineering Copenhagen, DaimlerChrysler
AG, SPSS Inc., and OHRA Verzekeringen en Bank Groep B.V. In CRISP-DM,
the data analytics process model developed consists of six stages (Figure
14)48. The stages in CRISP-DM take place sequentially with the
opportunity to return to the previous stage if the stage being worked on
encounters difficulties.

Chapman, P., Clinton, J., Kerber, R., Khabaza, T., Reinartz, T., Shearer, C., &
48

Wirth, R. (2000). CRISP-DM 1.0: Step-By-Step Data Mining Guide. SPSS inc, 9, 13.
96
 Figure 14
Stages of CRISP-DM

Source: Chapman et al. (2000)

The followings are short explanation of Figure 14 above:

a. Business Understanding
This stage defines the formulation of problem, research
objectives, and discussions related to business processes. At this
stage, it is necessary to ascertain the objectives of the work unit or
the problems being faced. The data analytics projects also need to be
prepared in terms of resources, data, risks, costs, and benefits.
Besides, the project management needs to be formulated which
includes the objectives of the project and project planning.
b. Data understanding
This stage is focused on understanding the data and selecting
the data that supports the research objectives. Activities included in
this stage include: collecting initial data, understanding the data that

97
 have been collected, exploring data, verifying the quality of data,
understanding the condition of anomalous data or outliers,
anticipating the correlations between variables, and visualizing to
understand data.
c. Data preparation
This stage includes selection of attributes that can be compiled
into a dataset that will be used in modeling. The activities on this
stage are selection of data to be used, cleaning of data that will not be
used, formation of new variables if required, and integration of data.
d. Modeling
On this stage, data mining techniques or methods are
implemented to obtain modeling in accordance with the research
objectives. A number of activities need to be carried out on this stage,
namely determining the model to be used, compiling or sorting data
to be used as samples, forming models, and evaluating the model
produced to observe the important variables and consulting with the
business process owner.
e. Evaluation
This stage is carried out to evaluate the modeling that has been
previously made to achieve the research objectives. Some of the
activities that need to be carried out include evaluating the entire
results whether the project objectives are fulfilled or not, evaluating
the technical and practical aspects of the model such as performance
and speed, reviewing the processes carried out, and determining
whether the model produced will proceed to the deployment stage or
not.

98
f. Deployment
This stage indicates that the modeling carried out is in
accordance with the research objectives so that it is ready to be used.
If the evaluation results show that the model is ready for production,
then the steps that need to be prepared include determining the
deployment plan, monitoring and maintenance, and preparing the
final documents of project.
The series of processes above is not a one-time process. If the
model produced is already running in the production sector, the model
must still be evaluated periodically to see if there is a need for changes
of the previous model. The changes of model need to be made when the
model being used is rated to be ineffective based on calculations that can
be measured in terms of the objectives of the business process owner.

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 DATA ANALYTICS ROADMAP

This chapter will elaborate the strategy of data analytics in form

of a roadmap that is measurable, can be implemented, and its
achievement is monitored. The roadmap contains ideas about directions
and strategies of data analytics for the Ministry of Finance. It can also be
a guide for stakeholders in observing the transformation process of the
Ministry of Finance based on data analytics. Considering that there is no
official document containing the data analytics roadmap, this chapter
can be used as a baseline in the preparation of data analytics roadmap in
the Ministry of Finance.
The data analytics roadmap departs from an assessment of
current needs and capabilities, projections of future needs, and plans to
meet those needs. In organizations with new ability of data analytics, no
one has the formal authority to develop the roadmap. However,
considering the importance of data analytics for the future of the
organization, the solution is that the analysts get together and create an
informal roadmap before there is an official document of the data
analytics roadmap. Furthermore, the data analytics roadmap needs to be
reviewed regularly every year to be adjusted to the development of
needs and available resources.
The data analytics roadmap is arranged with four main
dimensions, namely strengthening management, improving human
resources, creating digital infrastructure, and treating data as assets49.

49The approach is adapted from a document entitled A Data Strategy Roadmap

for the Federal Public Service Government of Canada Year 2018.
This document is available at https://www.canada.ca/en/privy-
council/corporate/clerk/publications/data-strategy.html.
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The purpose is not only to support the creation of a data analytics
ecosystem, but also to make sure that the development of roadmap
involves all dimensions of organization and resources.
The data analytics roadmap is presented in two-time frames
namely short term and medium term (Table 8). In the short-term
framework, the entire program aims to generate moving momentum as
a foundation for development on the next stage. In medium-term
framework, programs are structured to produce long-term impacts for
institutions and communities. Even though the programs on the data
analytics roadmap are structured in a directed manner with a clear time-
dimension, the roadmap still provides flexibility so that its
implementation can be customized to the needs of the organization that
becomes the key to success of data analytics implementation.

Table 8
Data Analytics Roadmap

Short Term Medium Term

Governance 1. Improving 1. Developing

regulations in field programs and job
of governance descriptions that
2. Establishing a data support data
management office literacy
as a think tank and 2. Implementing
data analytics ministry-level
strategist procedures to
3. Performing facilitate data-
calibration and fine driven views and
tuning of data decisions
analytics activities

Human 1. Mapping employees 1. Updating future

Resources who have data workspace-based

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 Short Term Medium Term

analytics data analytics HR

competence management
2. Organizing training strategy
and bootcamp 2. Setting up
3. Organizing data functional position
analysis of data analytics
competition 3. Integrating data
(hackathon) analytics in
4. Conducting data organizational
literacy assessment tasks and functions
5. Forming data 4. Improving PKN
analytics units STAN curriculum
and BPPK trainings
5. Recruiting
functional position
talents through
public universities

Digital 1. Setting up the 1. Developing

infrastructure environment and standard operating
collaboration procedures for
platform of data utilization of
analytics environment and
2. Setting up tools for tools
data analytics 2. Improving standard
operating
procedures related
to data utilization
between echelon I
units

Data as assets 1. Implementing 1. Working on

strategic initiatives projects with data
of data analytics analytics
2. Establishing data 2. Improving data
forum to define management
data analytics within the scope of
projects the Ministry of
3. Setting up data Finance
service system of 3. Developing public
participation in

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 Short Term Medium Term

the Ministry of utilization of data of

Finance the Ministry of
Finance

Governance

In dimension of governance, the initial foundation that needs to

be built is improving the regulations in field of governance and forming
a think tank unit that develops data strategies on ministry level. This is
important considering that to realize a data-driven organization in the
Ministry of Finance, it requires a good governance and a unit that
formulates strategies for transformation of the Ministry of Finance. From
the regulatory aspect, the Ministry of Finance has issued Decision of the
Minister of Finance Number 269 of 2021 on Data Governance within the
Ministry of Finance to strengthen data governance that already exists in
the Ministry of Finance. As a think unit, the Ministry of Finance has
established a Data Management Office under the Secretariat General
whose function is to formulate priority programs and data analytics
strategies on ministry level and to design the contribution of the Ministry
of Finance to strengthen data analytics of public sector on national level.
Still in governance dimension, calibration and fine tuning of data
analytics project are carried out to maintain project direction so that it
remains relevant to strategic directions and operational needs. In
medium term, the reinforcement of data analytics governance will focus
on programs and job descriptions that support data literacy and the
implementation of ministry-level procedures to facilitate data-driven
views and decisions.

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Human Resources

In human resource dimension, the short-term program contains

strategies of management of changes to form a data-driven mindset. The
plans that can be carried out in short term include mapping the
employees who have data analytics competencies, organizing training
and bootcamps, organizing data analysis competition (hackathon),
assessing data literacy, and establishing data analytics units.
In medium term, the formation of programs can be directed to
take advantage of the number of young people who are interested in data
analytics to build data analytics talents of the Ministry of Finance that
are superior and ready-to-use through effective education and training.
Some of the programs that can be carried out include improving HR
management strategies of data analytics to support future workspaces,
preparing the functional positions of data analytics, improving the
curriculum of PKN STAN and BPPK trainings, and recruiting data
analytics talent through public universities. Internalization of data
culture is also carried out by integrating data analytics in organizational
tasks and functions. The goal is that data utilization results in an
improvement of quality of tasks and functions of every working unit in
the Ministry of Finance.

Digital Infrastructure

The data analytics roadmap is also prepared with a digital

infrastructure dimension. To be efficient, budgeting and procurement of
information technology investments for digital infrastructure need to be
done centrally. However, its utilization is not limited to working units at

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the center, but is also open to working units in regions. To formulate this,
it is necessary to make a consensus on the environment and tools of data
analytics that will be used by the Ministry of Finance. Then, in medium
term, if the investments made have been carried out according to plans
and needs, it is necessary to develop standard operating procedures
related to the use of environment and tools of data analytics for all
working units, including the mechanisms of data utilization and the
projects of data analytics between echelon I units.

Data as Assets

In the dimension of data as assets, the short-term program is

intended to build awareness of data utilization in working unit of the
Ministry of Finance. For starters, short-term programs include strategic
initiatives of data analytics, data forums to determine data analytics
projects, and data service system of the Ministry of Finance. To
strengthen the dimension of data as assets, the medium-term programs
include joint projects of data analytics across echelon I units and
completion of data management across echelon I units that are already
running. In parallel, the Ministry of Finance can involve public
participation in the use of the Ministry of Finance’s data in form of
collaboration with scientists and civil society, both as data sources, data
analysts, and data users. In the context of democracy, this program is a
form of public involvement and participation in the formulation of public
policies.
As an initial reference, all programs on the roadmap are
designed to be dynamic and open to changes and needs of the
organization. The content is designed to be incomplete and detailed so

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that it can develop along with the maturity process of data analytics in
the Ministry of Finance. Likewise, the estimated costs, sources of
funding, and the person in charge of the program have not yet been
determined to provide room for discussion and improvement.
Some programs need to be conceptualized and require further
analysis from related units, including identification of resources for their
implementation. For example, human resource management strategies
of data analytics to support future workspaces require views from
human resource management unit, policy makers in field of organization
and governance, as well as technical and operational units so that there
is a link and match between organizational needs, provision of data
analytics talents, and strategic directions from leader. In the end, the
ideas on this roadmap are expected to be a trigger for discussion and
consensus so that everyone can use the data to transform the Ministry of
Finance into a more reliable public institution.

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 CLOSING

Data-driven transformation opens up a great potential to bring

a lot of changes and innovations to all sectors. This book has discussed
the basic and essential elements that need to be understood in order for
this transformation to work. However, the transformation into a data-
driven organization is not an easy process. Likewise, building a data
culture is not a one-time process. The biggest challenge in building data
culture is how to maintain continuity and consistency of every effort
over time. The reality is that building a data culture is a continuous and
ongoing process that must continue to occur. Building a data culture
requires hard work and discipline. Building a data culture is about a test
of patience.
Transformation into a data-driven organization also requires
imagination, determination, and consistency. The process of converting
data into values certainly requires interaction with human elements,
technology, and organization structure determined by organization
culture. Data culture is an important factor for successful transformation
of data-driven organizations. Data culture must be built within the
organization by involving everyone's participation to build awareness
about common goals.
The contents of this book do not discuss in detail about data
analytics technology. It focuses more on how everyone has the right
mindset and becomes an agent of change that fosters data culture in their
respective working units. The use of data analytics is not only about
technology, but more about how to create and grow data culture so that
everyone can do great things using the data they have. Data culture
enables the transformation into a data-driven organization to be carried

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out. Certainly, the process is not an easy one. It takes determination,
consistency, and the right ecosystem to grow data culture.
As the closing, being an organization with data culture does not
guarantee that the entire transformation program will be easy to be
implemented. Firstly, the Ministry of Finance is a public institution that
lives in a very dynamic state constellation. Changes can occur quickly.
Values can change. Strategic themes can also change. Secondly, the
programs and strategies of transformation are led and implemented by
humans. The human factor remains to be the final determinant of the
goals of the transformation journey. Mistakes in setting goals and
strategies will direct to failure even though every decision is supported
by data.
In the end, efforts to build a data culture will pay off. By having
data culture, the Ministry of Finance can formulate policies more
effectively. Decisions and actions are also generated faster, better, and
more innovatively. Data culture also makes the Ministry of Finance an
inclusive public organization where everyone can participate and
contribute to the success of the Ministry of Finance as a reliable fiscal
authority and State General Treasurer and that brings prosperity to all
Indonesian people.

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 Epilogue

Change is a necessity
That hits various sectors including the Ministry of Finance
Leader's job is to create trust
Leaders who drive innovation and pave the way

Leaders who do not worship perfection

But leaders who are always oriented to the learning process
Now we are in the era of digital transformation
We have an ocean of potential data and resources

Aspiring to be able to compete on global level

But not forgetting the generation left behind
From various data of actual transactions and interactions
Digital progressivity and transformation are created

To not only give a description but also a prediction

But also be able to provide transformation recommendations
It is neither a mere digitalization nor visualization
But an integrated ecosystem that builds collaboration culture

O supervisor of state finance, responsibility awaits you

Where will you take the data later?
Building a data culture is not only a dream
But a hope that must be realized

Let's get together towards Indonesia's advanced civilization

By developing human resources together
Superior generation not only on Asian level
But also throughout the world

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