DEWAN PENGURUS NASIONAL IKATAN AKUNTAN INDONESIA (THE INDONESIAN INSTITUTE OF ACCOUNTANTS) REPORT CHAIRMAN OF THE NATIONAL COUNCIL

INDONESIAN INSTITUTE OF ACCOUNTANTS REGIONAL PUBLIC SECTOR CONFERENCE II Jakarta, 8 November 2011 Honourable: Vice President of the Republic of Indonesia, Prof. Dr. Boediono Minister of Administrative Reform and Bureaucratic Reform, Mr. Aswar Abubakar Deputy Minister of Finance, Ms. Anny Ratnawaty Respected guess: President of ASEAN Federation of Accountants, En. Abdul Rahim Abdul Hamid Delegates and Speakers from the ASEAN countries Representatives of Ambassadors from the ASEAN countries and Timor Leste

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DEWAN PENGURUS NASIONAL IKATAN AKUNTAN INDONESIA (THE INDONESIAN INSTITUTE OF ACCOUNTANTS) Advisory Council members, National Council members, and members of Indonesian Institute of Accountants, and the Compartment of Public Sector Accountants Participants from Ministries and Institutions, Local Authorities, and State-Owned Companies Ladies and gentlemen Bismillahirrahmanirrahim, Assalamualaikum Warahmatullahi Wabarakatuh, Best of greetings for all of us First, let us say our praise to Allah SWT, for all His blessings we are here present today to attend the official opening ceremony of the 2nd Regional Public Sector Conference. In this opportunity, please allow us to express our sincere gratitude to His Excellency, Vice President of the Republic of Indonesia, who are willing to set aside some of his time to officiate the opening of the 2nd Regional Public Sector Conference. This event is a part of the 19th ASEAN Summit 2011 held in Indonesia, expected to improve the level of good governance in the ASEAN region, and strengthen Indonesias
GRAHA AKUNTAN, Jalan Sindanglaya No. 1, Menteng, Jakarta 12120 - INDONESIA Telp.: (62-21) 3190 4232 Hunting, Fax.: (62-21) 724 5078, E-mail: iai-info@iaiglobal.or.id, Home Page: http://www.iaiglobal.or.id

DEWAN PENGURUS NASIONAL IKATAN AKUNTAN INDONESIA (THE INDONESIAN INSTITUTE OF ACCOUNTANTS) strategic role and contribution as the incumbent head of ASEAN. Aligned with the objective of strengthening the management of state and regional/local finance, that is effective, efficient, accountable, and auditable, this event is fully supported by the Ministry of Home Affairs of the Republic of Indonesia. Honorable Mr. Vice President, ladies and gentlemen, The 2nd Regional Public Sector Conference will be held on the 8-10 November 2011 at the prestigious J.W. Marriott Hotel in Jakarta. This event will be attended by public sector accountancy and finance practitioners from both Indonesia and some of the ASEAN countries, responsible for the management of state finance, from the central government, institutions, local government, state-owned enterprises, and other relevant institutions. The 2nd Regional Public Sector Conference is designed to provide different point of views, practical knowledge, and current information for all of the participants. It will also discuss success stories of general development in Indonesia in
GRAHA AKUNTAN, Jalan Sindanglaya No. 1, Menteng, Jakarta 12120 - INDONESIA Telp.: (62-21) 3190 4232 Hunting, Fax.: (62-21) 724 5078, E-mail: iai-info@iaiglobal.or.id, Home Page: http://www.iaiglobal.or.id

DEWAN PENGURUS NASIONAL IKATAN AKUNTAN INDONESIA (THE INDONESIAN INSTITUTE OF ACCOUNTANTS) the last 10 years, compared to the practice in some of the ASEAN countries. Honorable Mr. Vice President, ladies and gentlemen, As a member of the ASEAN Federation of Accountants (AFA), the Indonesian Institute of Accountants (IAI) is currently the leader in the development of public sector accounting. In the practice, IAI formulate the concept of Accounting for Society, that is for accounting or accountancy to be able to provide benefits in achieving public wealth, not only as a mere instrument to generate financial reports as a form of responsibility. In regard to this, this event has chosen the theme of Public Sector for Public Welfare. Through this theme, it is hoped that strategic role of accounting or accountancy in achieving public wealth can be formulated. Honorable Mr. Vice President, ladies and gentlemen, As we all know, the issue of public welfare is a common issue in many countries, especially in the developing countries where the level of poverty is still in fact a major issue faced by its society. A major amount of resources, including fund has been allocated to support various public welfare programs and
GRAHA AKUNTAN, Jalan Sindanglaya No. 1, Menteng, Jakarta 12120 - INDONESIA Telp.: (62-21) 3190 4232 Hunting, Fax.: (62-21) 724 5078, E-mail: iai-info@iaiglobal.or.id, Home Page: http://www.iaiglobal.or.id

DEWAN PENGURUS NASIONAL IKATAN AKUNTAN INDONESIA (THE INDONESIAN INSTITUTE OF ACCOUNTANTS) activities, coming from the government, donor institutions, or the private sector. Therefore, accountancy especially the public sector is expected to play its active role in supporting these programs and activities, through means which lead to supply of good financial decision management making, information. and This the will drive the and improvement of accountability for financial management, regulations, efficiency effectiveness of the resource allocation. Management of fund, including those allocated for public welfare through a cycle started from the planning and budgeting phase, execution, monitoring, and auditing. In every phase the role of accountancy is crucial in ensuring the accountability of financial management, by ensuring that every transaction have been properly recorded and reported according to its purpose. In turn, this is expected to minimize the level of unnecessary use of fund. Other than this, the availability of reliable financial reports will guarantee the availability of decent information to be relied on in making decisions on resource allocation by managers working in public sector. Hopefully this will improve the efficiency and effectiveness of resources being allocated.
GRAHA AKUNTAN, Jalan Sindanglaya No. 1, Menteng, Jakarta 12120 - INDONESIA Telp.: (62-21) 3190 4232 Hunting, Fax.: (62-21) 724 5078, E-mail: iai-info@iaiglobal.or.id, Home Page: http://www.iaiglobal.or.id

DEWAN PENGURUS NASIONAL IKATAN AKUNTAN INDONESIA (THE INDONESIAN INSTITUTE OF ACCOUNTANTS) Aligned with this, IAI acknowledges the condition of local governments with responsibilities in preparing and delivering many types of reports to various central government institutions, also the fact that the local government and central governments reports are not consolidated. IAI will take this issue into its attention, and to conduct further study and to design simplified form of report to achieve the objective of having the single report that can fulfill the needs of most users and able to illustrate the national financial condition. In the end this can be used as a basis in making decisions on formulation of public financial regulations and resource allocation for the public wellbeing. Mr. Vice President, ladies and gentlemen, The pressure to provide reliable information on financial management, in driving transparency and public accountability needs to be resolved through availability of competent human resources, both from quality and quantity. Accounting education program in Indonesia still focusing on bisnis/commercial sector, causing limited number of qualified individuals with appropriate accounting background in the public sector. Therefore, as an effort to build the human resource with good quality and high competence, IAI in this
GRAHA AKUNTAN, Jalan Sindanglaya No. 1, Menteng, Jakarta 12120 - INDONESIA Telp.: (62-21) 3190 4232 Hunting, Fax.: (62-21) 724 5078, E-mail: iai-info@iaiglobal.or.id, Home Page: http://www.iaiglobal.or.id

DEWAN PENGURUS NASIONAL IKATAN AKUNTAN INDONESIA (THE INDONESIAN INSTITUTE OF ACCOUNTANTS) opportunity will launch the

Sertifikasi

Ahli

Akuntansi

Pemerintahan (Certificate of Government Accounting Expert)

which will be marked with the handing over of Government Accounting Expert Competence Standards to the Vice President. This program can hopefully be used as an instrument to measure the quality standard of human resource in the field on government accounting, and also as a base in making decision on government regulations, in term of employees allocation, based on competencies. Honorable Mr. Vice President, ladies and gentlemen, The 2nd Regional Public Sector Conference is expected to be the place for accountants in government sector in Indonesia and the Indonesia government in general to learn various issues, practices, and success from some countries in ASEAn region and also Australia. Other than this, this event can be a mean for the government of Indonesia to showcase various programs that have been introduced and executed, and the successes that accountants. have been attained by public sector

Therefore, in this opportunity we can report to the Vice President that the 2nd Regional Public Sector Conference will include keynote speeches from the Minister of Home Affairs,
GRAHA AKUNTAN, Jalan Sindanglaya No. 1, Menteng, Jakarta 12120 - INDONESIA Telp.: (62-21) 3190 4232 Hunting, Fax.: (62-21) 724 5078, E-mail: iai-info@iaiglobal.or.id, Home Page: http://www.iaiglobal.or.id

DEWAN PENGURUS NASIONAL IKATAN AKUNTAN INDONESIA (THE INDONESIAN INSTITUTE OF ACCOUNTANTS) Minister of National Development Planning, Minister of Stateowned Enterprises, and Deputy Minister of Finance of the Republic of Indonesia. This Conference will also be attended by speakers from various institutions in Indonesia, to share their experiences and success stories, such as the representative of the Yogyakarta Special Region, Governor of East Java, Govenor of North Sulawesi, Inspector General of the Ministry of Industry, Inspector General of the Ministry of Public Works, Inspector General of the Ministry of Marine Affairs and Fisheries, and the Deputy Head of the Indonesian National Police, who have obtained a clean opinion on their respective financial (audited) report(s), and also the Mayor of Semarang who has succeed in implementing accrual basis government accounting. As an effort on learning some success stories, this event will also attended by speakers from state-owned enterprises, sharing their valuable experiences in providing public services. We can also report that on Wednesday evening the Governor of Jakarta will host a Gala Dinner, and share their experience in managing their finance, especially in managing state/local assets.
GRAHA AKUNTAN, Jalan Sindanglaya No. 1, Menteng, Jakarta 12120 - INDONESIA Telp.: (62-21) 3190 4232 Hunting, Fax.: (62-21) 724 5078, E-mail: iai-info@iaiglobal.or.id, Home Page: http://www.iaiglobal.or.id

DEWAN PENGURUS NASIONAL IKATAN AKUNTAN INDONESIA (THE INDONESIAN INSTITUTE OF ACCOUNTANTS) Finally, in this opportunity, we on behalf of the National Council of the Indonesian Institute of Accountants, with all respect would like to invite the Vice President to accept the document of Government Accounting Expert Competence Standards as a mark of launching the Certificate of Government Accounting Expert, and on time, to kindly give direction and to officially open the 2nd Regional Public Sector Conference. May Allah SWT always provide us with His blessings and to ease the path of our effort in together achieving our objectives in this 2nd Regional Public Sector Conference. Amin ya Robbal alamin

Wabillahi taufiq Walhidayah, Wassalamualaikum Warahmatullahi Wabarakatuh

Jakarta, 8 November 2011

Prof. Mardiasmo, PhD

GRAHA AKUNTAN, Jalan Sindanglaya No. 1, Menteng, Jakarta 12120 - INDONESIA Telp.: (62-21) 3190 4232 Hunting, Fax.: (62-21) 724 5078, E-mail: iai-info@iaiglobal.or.id, Home Page: http://www.iaiglobal.or.id