National Development Planning Minister Bambang Brodjonegoro attended an Indonesia-International Monetary Fund (IMF) bilateral meeting to discuss public investment management assessment (PIMAs) at the IMF headquarters in Washington on Saturday.
Bambang said he had received an initial PIMA finding, but was still waiting for a final PIMA report from the IMF.
“An initial PIMA finding shows the public investment effectiveness gap in Indonesia was at 37 percent, indicating a low performance compared to other emerging markets,” Bambang said in a press statement received on Monday.
The statement says the PIMA identified the strengths and weaknesses of Indonesia’s public investment management in terms of institutional design and effectiveness.
Based on the finding, the IMF recommended six action plans: a greater focus on capital projects and feasibility studies; the identification of capital projects in the National Medium-Term Development Plan (RPJMN), strengthening the annual budget frameworks for capital spending; better project selection and preparation; modernizing capital portfolio oversight and monitoring and improving capital project management.
“Based on the aforementioned points, the Indonesian government has prepared action plans focusing on three areas, starting with the improvement in quality of national planning and consistently implementing capital projects and feasibility studies for the 2020-2024 RPJMN as strategic guidance for ministries, institutions,” Bambang said.
“Second is the development of project appraisals and a project ownership mechanism and third is improving portfolio management and oversight.”