Public Financial Management as Economic Infrastructure
An Economic Perspective from Indonesia's Statistical Performance
DOI:
https://doi.org/10.62012/h8hkqw66Kata Kunci:
Public Financial Management, Economic Infrastructure, Fiscal Governance, Economic Growth, Public Investment, IndonesiaAbstrak
Public Financial Management (PFM) is traditionally viewed as an administrative mechanism for budget allocation, expenditure control, and fiscal accountability. However, its broader role in supporting economic development remains underexplored in economic policy discussions. This perspective article argues that PFM should be recognized as a form of economic infrastructure that facilitates sustainable growth, investment expansion, macroeconomic stability, and public service delivery. Drawing upon data from Statistical Yearbook of Indonesia 2026, the article examines recent economic performance indicators, including gross domestic product growth, inflation, domestic investment realization, foreign direct investment, and per capita income. The analysis demonstrates that Indonesia's stable economic growth, controlled inflation, increasing domestic investment, and rising per capita income are closely associated with the effectiveness of fiscal governance and public financial institutions. Rather than functioning merely as an administrative support system, PFM creates the institutional environment necessary for economic actors to make long-term investment decisions and participate in productive economic activities. The article proposes a conceptual shift that positions public financial management as economic infrastructure comparable to transportation, energy, and digital systems. Such a perspective expands the understanding of fiscal governance beyond compliance and accountability, highlighting its strategic contribution to economic resilience and sustainable development. The article concludes by identifying key policy priorities for strengthening Indonesia's fiscal infrastructure in support of future economic transformation.
Unduhan
Referensi
[1] BPS-Statistics Indonesia, Statistical Yearbook of Indonesia 2026. Jakarta, Indonesia: BPS-Statistics Indonesia, 2026.
[2] International Monetary Fund, Fiscal Transparency Code. Washington, DC: IMF, 2019.
[3] International Monetary Fund, Fiscal Transparency Handbook. Washington, DC: IMF, 2018.
[4] International Monetary Fund, Public Financial Management and Its Emerging Architecture. Washington, DC: IMF, 2013.
[5] PEFA Secretariat, Public Expenditure and Financial Accountability Framework. Washington, DC: PEFA, 2016.
[6] PEFA Secretariat, Global Report on Public Financial Management 2022. Washington, DC: PEFA, 2022.
[7] World Bank, World Development Report 2017: Governance and the Law. Washington, DC: World Bank, 2017.
[8] World Bank, World Development Report 2022: Finance for an Equitable Recovery. Washington, DC: World Bank, 2022.
[9] OECD, Recommendation of the Council on Budgetary Governance. Paris, France: OECD Publishing, 2015.
[10] OECD, Government at a Glance 2023. Paris, France: OECD Publishing, 2023.
[11] OECD, Public Governance for Trust and Growth. Paris, France: OECD Publishing, 2021.
[12] International Public Sector Accounting Standards Board, Handbook of International Public Sector Accounting Pronouncements. New York, NY: IFAC, 2024.
[13] INTOSAI, The Lima Declaration of Guidelines on Auditing Precepts. Vienna, Austria: INTOSAI, 1977.
[14] INTOSAI, The Mexico Declaration on SAI Independence. Vienna, Austria: INTOSAI, 2007.
[15] United Nations, E-Government Survey 2022: The Future of Digital Government. New York, NY: United Nations, 2022.
[16] D. North, Institutions, Institutional Change and Economic Performance. Cambridge, UK: Cambridge University Press, 1990.
[17] D. Acemoglu and J. A. Robinson, Why Nations Fail: The Origins of Power, Prosperity, and Poverty. New York, NY: Crown Business, 2012.
[18] A. Schick, “Why most developing countries should not try New Zealand reforms,” The World Bank Research Observer, vol. 13, no. 1, pp. 123–131, 1998.
[19] M. Cangiano, T. Curristine, and M. Lazare, Eds., Public Financial Management and Its Emerging Architecture. Washington, DC: International Monetary Fund, 2013.
[20] R. Allen, R. Hemming, and B. H. Potter, Eds., The International Handbook of Public Financial Management. London, UK: Palgrave Macmillan, 2013.
