Indonesia public financial management and planning framework has been undergoing major institutional reforms. The present structure and the procedures for preparing and deciding on the budget are the result of a series of reforms initiated and implemented in a very short time starting in 2001.The impetus to the reform came from the financial and economic crises affecting the government finances at the end of the 1990s. Law 17/2003 on State Finances consolidated routine and development expenditures into a unified budget and provided for medium term expenditure planning and performance-based budgeting. Law 1/2004 on State Treasury stipulated provisions on budget execution, debt and asset management, and a consolidated Treasury Single Account for the whole of government administration. Law 25/2004 on Development Planning paved the way for better integrating planning and budgeting processes.
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