Indonesia

Debt Information System

by

Mr. Heri Setiawan

Head of Subdirectorate of Debt Portfolio and Risk

Ministry of Finance

Directorate General of Debt Management

Ninth DMFAS Advisory Group Meeting

Geneva, 14 - 15 November 2013

The views expressed are those of the author and do not necessarily reflect the views of UNCTAD

REPUBLIC OF INDONESIA MINISTRY OF FINANCEDirectorate General of Debt Management

Indonesia Debt Information System

UNCTAD – Ninth Debt Management Conference and DMFAS Advisory Group

in Geneva, Switzerland , 11-15 November 2013

Outline

� DGDM Business Process

� IT Strategy

� IT Portofolio

� DMFAS implementation in MOF

� IT Initiatives

� Statistic & Reporting

2

DGDM as part of MOF’s Business Process

Asset / Inventory Mgmt

Procurement/Purchasing

Mgmt of Budget Authorizations

Commitment of Funds

Payments and Receipts

Cash Management

Debt and Grant Management

Fiscal Reports & Budget Review

Audit and Evaluation

Budget Preparation

Policy and Review

Payroll HR Mgmt

Web PortalPublish/Monitor

Public Investments

Tax

GL & Accounting

Daily Operations

Non Tax Revenues

Customs

BILLING and MPN

Transfers(524 Daerah)

SPAN

PARTLY SPAN

RELATED TO SPAN

Market Interaction – Dealing Room

Spending Units(29,000)

DGDM

SPAN = Budget & Treasury Enterprise System; Indones ia IFMIS SystemCourtesy of Mr Suresh

3

DGDM’s Core Business ProcessBusiness Process Level 0

Debt Strategy

Debt Issuance

Debt Portofolio

MarketDevelopment

Settlement

Accounting

Monitoring Evaluation

Grant

Management

Contingent

Liabilities

Debt Business Process

Non Debt Business Process

4

DGDM Strategic Plan 2010 - 2014

� Debt Management goal is to improve cost efficiency fordebt management.� Securities

Liquidity and domestic market absorption improvement� Loan

Quality improvement for loan management

� For achieving those goals, it is needed supply debtdata that is available , reliable and integrate that is theIT of DGDM main function

5

MOF High Level IT Direction

1. Debt management (loans, securities, guarantees) under one system DMFAS 6.0

2. Implementing Asset Liability Management and Risk Analytics in phases

3. Coordinating with other units using DMFAS and preparing a grand design to implement DMFAS 6.0 � Indonesia Investment Agency, � On Lending- DG Treasury, � Local Govts, � Bank Indonesia

6

Keys Area of IT Strategy

Application System

Infrastructure

IT Governance

Business Process

Organization

▪ Integrated Application System▪ Data Warehouse▪ Asset Liability Management System

▪ Consolidated Into Data Center▪ Service Level Agreement Enhancement▪ Integrated Service Desk▪ Business Continuity Plan▪ Disaster Recovery Plan

▪ Reorganization▪ Capacity Building

▪ Reorganization▪ Capacity Building

▪ Business Process Map▪ Implementation of Business Process Management

7

Application Priority

High Potential

Data Warehouse

Strategic

DMFASSettlement System

Support

Office Automation

Key Operational

Supporting System

Value Added

Operational Dependency

Low

High

8

Application Alignment

9

Debt Information System’s Features

DMFASDMFASDATA

WAREHOUSE

DATA

WAREHOUSE

Auction

System

Auction

System

Dealing

Room

Dealing

Room

DMFAS

Interface

DMFAS

Interface

IT

ALM

IT

ALM

Settlement

System

Settlement

System

Accounting

System

Accounting

System

Issuance

Reopening

Switching

Retail Bonds

Allotment

Bloomberg

Reuters

CEIC

CMP

Bond Index

Yield Curve

Primary Dealers Quotation

Bond Holders

Buyback

Deal Ticket

Budget Authorization

Payment Order

Projection

General Information

Term & Condition

Amortization Schedule

Transaction

Outstanding

Projection

Auction Participant

Exchange Rates

I Account

Chart of Account

Posting Roles

Ledger

Financial Statement

Cashflow Projection

Risks Indicator

Maturity Profile

Timely Data Frozen

Statistic

Standard Reports

Ad-hoc Reports

Analysis *

HedgingHedging

GrantGrant

Stock Exchange

Central Registry

Central Bank

DG TreasuryPrimary Dealers

Consolidated Instrument

Loan

Bonds

Grant

Contingent Liability

Data Provider, Etc

Interest Rate Swap

Currency Swap

On

Lending

On

Lending

StakeholdersStakeholders

Application SystemApplication System

BondsBonds

Investor

Creditor

Market

Surveillance

Market

Surveillance

Underlying Asset

Contingent

Liabilities

Contingent

Liabilities

10

DGDM IT Initiatives

� More integration with IFMIS (SPAN)� Settlement system in payment order (DG Treasury)� Populating data for ALM system (DG Treasury)� Populating data underlying asset for Sharia Securities

� Project (DG Budget)� Asset (DG Asset Management)

� More integration with new modules� Derivative instrument (hedging)� Contingent Liabilities instrument� Grant database (new business process)� Integration with on Lending database (DG Treasury)� Accounting System� Data warehouse improvement for reporting and analysis

� Establishment Data Quality Management Framework –DMFAS Data Validation Calendar

11

Statistic & Reporting Strategic Purpose

� DEBT STRATEGY 2013-2016 (Medium Term)� Issuance target:

� in what currency� in instrument type� in domestic market vs international

� Target Debt Portofolio� Traget Debt Indicators

� CALENDAR OF ISSUANCE (Annual)� Government Securities Issuance� Islamic Securities Issuance

� DEBT PORTOFOLIO AND RISKS (Annual)� Risks monitoring:

� Interest Rate� Exchange Rate� Refinancing

12

Statistic & Reporting Operational Purpose (1)

� EXTERNAL DEBT STATISTIC OF INDONESIA (Monthly)� Joint Publication with Bank Indonesia since 2009� Three Sectors of debt :

� Government (MOF)� Central Banks (Central Bank)� Private Sector: Loan data from Central Bank, Securities data from Custodian

� Exclude (Contingent Liabilities); Resident to Non Resident� Following IMF's External Debt Statistic: Guide for compilers and Users

� CENTRAL GOVERNMENT DEBT PROFILE (Monthly)� All of debt instument: Loan and Bonds� Maturity Profile� Bond Holders� State Budget Deficit� Debt Performance & Indicator Compare to pair countries� Debt Rating by Rating Agency

� LOAN MONITORING (Quarterly)� Monitor slow disbursed of active loan� Line Ministry as executing agency� Detail per project and per loan

� PAYMENT PROJECTION (Monthly)� Per Instrument� Per currency� In IDR conversion for budget allocation� Used by DG Treasury for cash management

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Statistic & Reporting Operational Purpose (2)

� RECONCILIATION with BI (Monthly)� Outstanding� Transaction : Disbursement and Payment

� RECONCILIATION with TREASURY OFFICE (Monthly)� Payment� Budget Realization

� GOV. SECURITIES OUTSTANDING (Daily)� MARKET SURVEILLANCE (Daily)

� PD’s quotation� GS trading in secondary market (Volume & Frequency)� Monitoring foreign ownership in DMFAS security� GS yield� CMP Primary Indicator & Secondary Indicator

� CONTINGENT LIABILITIES� Exposure of project guarantee� Budget allocation

� OTHERS

14

Kementerian Keuangan Republik Indonesia

Direktorat Jenderal Pengelolaan Utang

Ministry of Finance of The Republic of Indonesia

Directorate General of Debt Management

Frans Seda Building

Jalan Wahidin Raya Nomor 1, Jakarta Pusat

Phone : +6221 351 0714

Fax : +6221 351 0715

Website : www.djpu.depkeu.go.id