How Does Perpres 158/2024 Structure the Ministry of Finance?

Presidential Regulation (Perpres) Number 158 of 2024 establishes the organizational structure of Indonesia's Ministry of Finance, the central institution responsible for managing state finances, fiscal policy, tax administration, customs, treasury operations, and financial sector stability. Signed by President Prabowo Subianto on November 5, 2024, this regulation replaces Perpres 57/2020 and introduces a comprehensive framework for one of Indonesia's most critical government institutions.

The Ministry of Finance operates under direct presidential authority and manages functions spanning from macroeconomic fiscal strategy to regional fiscal transfers. This regulation details the ministry's composition, including 10 directorates general, 2 agencies, 9 staff expert positions, and regional implementation offices across Indonesia. The structural design reflects the ministry's dual mandate: formulating national fiscal policy while executing operational functions ranging from tax collection to state asset management.

The Finance Ministry Mandate: Fiscal Policy and State Finance Management

The Ministry of Finance holds constitutional authority over Indonesia's financial management system. Article 5 establishes the core mandate: "Kementerian mempunyai tugas menyelenggarakan urusan pemerintahan di bidang keuangan untuk membantu Presiden dalam menyelenggarakan pemerintahan negara" (The Ministry has the duty to conduct government affairs in the field of finance to assist the President in administering state governance).

This mandate translates into comprehensive functions enumerated in Article 6. The ministry formulates, establishes, and implements policy across economic and fiscal strategy, budgeting, non-tax state revenue, taxation, customs and excise, state treasury, state assets, fiscal balance, management of state financing and financial risk, and financial sector stability and development. These functions position the Ministry of Finance as both a policy-making body and operational executor across Indonesia's entire fiscal infrastructure.

The regulation recognizes modern governance challenges through specific functional mandates. Article 6(f) assigns responsibility for "pelaksanaan pengembangan dan pengelolaan teknologi informasi dan komunikasi, serta pengelolaan data, informasi, dan intelijen keuangan" (implementation of development and management of information and communication technology, as well as management of data, information, and financial intelligence). This provision acknowledges the digital transformation imperative in financial administration, reflecting contemporary demands for data-driven fiscal management.

Leadership structure follows a hierarchical model with provisions for deputy ministerial support. Article 3(1) states: "Dalam memimpin Kementerian, Menteri dapat dibantu oleh wakil menteri sesuai dengan penunjukan Presiden" (In leading the Ministry, the Minister can be assisted by a deputy minister according to Presidential appointment). The deputy minister's scope covers policy formulation and cross-unit coordination at the high leadership level, providing flexibility for managing the ministry's extensive operational range.

The regulation emphasizes coordination as a core ministry function. Article 6(c) mandates "koordinasi pelaksanaan tugas, pembinaan, dan pemberian dukungan administrasi kepada seluruh unsur organisasi di lingkungan Kementerian" (coordination of task implementation, guidance, and administrative support provision to all organizational elements within the Ministry). This coordination function becomes critical given the ministry's complex structure involving multiple directorates general, agencies, and thousands of regional offices.

Matrix 1: Core Ministry Functions and Implementation Scope

The Organizational Structure: Directorates General and Agencies

The Ministry of Finance operates through a multi-layered organizational structure designed to separate policy formulation from operational execution while maintaining coordinated oversight. Article 7 enumerates 22 organizational components: one Secretariat General, 10 directorates general, one Inspectorate General, 2 agencies, and 9 staff expert positions. This structure reflects both functional specialization and the scale of operations required for national financial management.

The Secretariat General functions as the ministry's administrative backbone. Article 9 defines its role: "Sekretariat Jenderal mempunyai tugas menyelenggarakan koordinasi pelaksanaan tugas, pembinaan, dan pemberian dukungan administrasi kepada seluruh unsur organisasi di lingkungan Kementerian" (The Secretariat General has the duty to conduct coordination of task implementation, guidance, and administrative support provision to all organizational elements within the Ministry). This coordination function spans planning, human resources, finance, legal affairs, and procurement across all ministry units.

The 10 directorates general represent specialized functional domains. The Directorate General of Economic and Fiscal Strategy handles macroeconomic policy and fiscal framework development. The Directorate General of Budget manages state budget preparation and non-tax revenue. The Directorate General of Tax administers Indonesia's tax system. The Directorate General of Customs and Excise oversees trade facilitation and excise collection. The Directorate General of Treasury manages state payments and accounting.

Additional directorates general address asset management, regional finance, financing and risk, and financial sector development. The Directorate General of State Assets handles property management, valuation, and auction services. The Directorate General of Fiscal Balance manages intergovernmental transfers and local tax policy. The Directorate General of Financing and Risk Management oversees state debt and financial risk mitigation. The Directorate General of Financial Sector Stability and Development regulates financial markets and institutions.

Each directorate general follows a standardized organizational pattern. Article 15(1) provides the template: directorates general consist of a secretariat and up to 6-15 directorates, depending on functional scope. The Directorate General of Tax, reflecting its operational complexity, maintains the largest structure with up to 15 directorates. Smaller policy-focused directorates general, such as Economic and Fiscal Strategy, maintain 6 directorates. This scalability accommodates varying functional demands.

Two agencies provide specialized support functions. The Agency for Technology, Information, and Financial Intelligence (Article 52) develops information systems and manages financial intelligence. The Agency for Education and Training in Finance (Article 56) conducts capacity building and professional certification for ministry personnel. These agencies operate with center-based structures rather than directorate hierarchies, reflecting their technical support missions.

Matrix 2: Directorates General and Maximum Directorate Capacity

The Inspectorate General (Article 48) provides internal oversight across all ministry operations. Its mandate encompasses performance audits, financial audits, monitoring, and special investigations at ministerial direction. With capacity for up to 8 inspectorates, this body ensures accountability and compliance across the ministry's extensive operational footprint.

Nine staff expert positions (Article 61) provide strategic advisory capacity directly to the Minister. These positions cover specialized domains: tax regulation and enforcement, tax compliance, tax oversight, state revenue, non-tax revenue, state expenditure, macroeconomic and international finance, financial services and capital markets, and legal and institutional relations. Three tax-focused expert positions reflect the complexity and revenue significance of Indonesia's tax system.

The Core Functions: Budget, Tax, Customs, Treasury, and Fiscal Policy

The Ministry of Finance executes five core operational functions that collectively constitute Indonesia's fiscal management system: budgeting, taxation, customs and excise, treasury operations, and fiscal policy formulation. Each function operates through dedicated directorates general with distinct mandates and operational approaches.

The budgeting function encompasses state budget preparation, allocation, and non-tax revenue management. Article 17 defines the scope: "Direktorat Jenderal Anggaran mempunyai tugas menyelenggarakan perumusan dan pelaksanaan kebijakan di bidang penganggaran dan penerimaan negara bukan pajak" (The Directorate General of Budget has the duty to conduct policy formulation and implementation in the field of budgeting and non-tax state revenue). This dual responsibility integrates expenditure planning with revenue collection from government services, natural resource exploitation, and state enterprise profits.

The budgeting process involves macrofiscal framework development, sectoral allocation planning, ministry budget review, and budget execution monitoring. Non-tax revenue management includes establishing tariff structures for government services, managing natural resource revenue-sharing arrangements, and administering state enterprise dividend policies. The directorate general coordinates with line ministries to align budget allocations with national development priorities while maintaining fiscal sustainability constraints.

Taxation constitutes the ministry's largest operational function. The Directorate General of Tax administers Indonesia's tax system, encompassing corporate income tax, personal income tax, value-added tax, luxury goods sales tax, and various withholding tax regimes. Article 21 establishes the mandate: "Direktorat Jenderal Pajak mempunyai tugas menyelenggarakan perumusan dan pelaksanaan kebijakan di bidang pajak" (The Directorate General of Tax has the duty to conduct policy formulation and implementation in the field of taxation).

Tax administration involves taxpayer registration, return processing, compliance monitoring, audit selection and execution, collection enforcement, dispute resolution, and legal proceedings. The directorate general maintains the most extensive field presence of any ministry unit, with tax offices in every district across Indonesia. Tax modernization initiatives focus on electronic filing systems, data analytics for compliance targeting, and third-party information integration to reduce tax gaps.

Customs and excise operations facilitate international trade while collecting border taxes and administering excise controls. Article 25 defines the scope: "Direktorat Jenderal Bea dan Cukai mempunyai tugas menyelenggarakan perumusan dan pelaksanaan kebijakan di bidang kepabeanan dan cukai" (The Directorate General of Customs and Excise has the duty to conduct policy formulation and implementation in the field of customs and excise). Functions include import-export clearance, tariff classification, valuation verification, trade compliance enforcement, and excise stamp administration for controlled goods.

Customs operations balance trade facilitation with revenue collection and enforcement objectives. The directorate general implements risk-based clearance systems that expedite low-risk shipments while targeting high-risk transactions for examination. Excise administration focuses on cigarettes, alcoholic beverages, and ethyl alcohol, combining production monitoring, distribution tracking, and stamp verification to prevent illicit production and smuggling.

Treasury operations provide the financial infrastructure for state transactions. The Directorate General of Treasury manages payment systems, cash flow optimization, state accounting, and financial reporting. Article 29 establishes the mandate: "Direktorat Jenderal Perbendaharaan mempunyai tugas menyelenggarakan perumusan dan pelaksanaan kebijakan di bidang perbendaharaan negara" (The Directorate General of Treasury has the duty to conduct policy formulation and implementation in the field of state treasury).

Treasury functions include processing ministry payment requests, managing government bank accounts, implementing cash management strategies to minimize borrowing costs, maintaining the state accounting system, and producing consolidated financial statements. The directorate general operates treasury service offices across Indonesia that interface with line ministry financial units to execute budget disbursements while maintaining expenditure controls.

Matrix 3: Core Functions and Operational Metrics

Fiscal policy formulation provides strategic direction for all operational functions. The Directorate General of Economic and Fiscal Strategy develops macroeconomic assumptions, revenue projections, expenditure frameworks, and financing strategies that underpin the annual budget. Article 13 defines the role: "Direktorat Jenderal Strategi Ekonomi dan Fiskal mempunyai tugas menyelenggarakan perumusan dan pelaksanaan kebijakan di bidang strategi ekonomi dan fiskal" (The Directorate General of Economic and Fiscal Strategy has the duty to conduct policy formulation and implementation in the field of economic and fiscal strategy).

This directorate general produces the fiscal policy guidance that constrains budget negotiations, establishes revenue targets for tax and customs operations, determines deficit levels and financing requirements, and assesses sectoral priorities. Policy analysis incorporates economic growth projections, inflation expectations, exchange rate assumptions, commodity price forecasts, and global economic conditions. The resulting fiscal framework provides the constraint envelope within which all ministry operations function.

The Regional Implementation: Regional Offices and Service Units

The Ministry of Finance extends national fiscal management to regional levels through an extensive network of vertical offices. These regional implementations transform central policy into operational reality across Indonesia's archipelago, addressing the challenge of delivering fiscal services to 280 million citizens spread across thousands of islands and hundreds of district governments.

Article 73(1) identifies four vertical office systems: "Instansi Vertikal Direktorat Jenderal Pajak, Instansi Vertikal Direktorat Jenderal Bea dan Cukai, Instansi Vertikal Direktorat Jenderal Perbendaharaan, dan Instansi Vertikal Direktorat Jenderal Kekayaan Negara" (Vertical Offices of the Directorate General of Tax, Vertical Offices of the Directorate General of Customs and Excise, Vertical Offices of the Directorate General of Treasury, and Vertical Offices of the Directorate General of State Assets). Each system maintains distinct operational structures tailored to functional requirements.

The Directorate General of Tax operates the largest field presence. Tax Service Offices (Kantor Pelayanan Pajak) function at the district level, providing taxpayer registration, return processing, payment collection, and basic compliance services. Regional tax offices coordinate multiple service offices and conduct audit operations. Large Taxpayer Offices handle corporate taxpayers above specified revenue thresholds. Special Tax Investigation Offices pursue serious tax evasion cases. This multi-tiered structure accommodates varying taxpayer sophistication levels and compliance risks.

Tax office distribution follows population density and economic activity patterns. Urban areas with high taxpayer concentrations support multiple specialized offices, including separate offices for individual taxpayers, corporate taxpayers, and high-wealth individuals. Rural areas receive coverage through smaller offices serving multiple districts. Mobile service units extend reach to remote islands and border regions. This geographic deployment strategy balances service accessibility with operational efficiency.

Customs and excise offices concentrate at entry points and production sites. Main Customs Offices operate at major seaports and airports, handling high-volume import-export clearance operations. Type B Customs Offices serve secondary ports and border crossings. Customs Monitoring Offices conduct post-clearance audits and compliance verification. Excise Supervision Offices monitor production facilities for cigarettes, alcoholic beverages, and ethyl alcohol, combining production measurement, stamp issuance, and distribution tracking.

Treasury service offices provide payment processing and financial reporting services to line ministry regional units. Treasury offices operate at provincial and district levels, interfacing with local education offices, health offices, public works offices, and other line ministry units to execute budget disbursements. Treasury officials verify expenditure documentation, process payment authorizations, maintain accounting records, and produce financial reports for submission to central treasury systems.

State asset offices manage government property portfolios at regional levels. These offices conduct property valuation, administer lease agreements, coordinate asset transfers, oversee state enterprise equity holdings, and provide auction services. Property management encompasses ministry office buildings, former state bank properties, seized assets from tax enforcement, and state enterprise facilities. Valuation services support government acquisition projects, asset sale transactions, and financial reporting requirements.

Matrix 4: Regional Implementation Structure

Regional office operations require continuous coordination with central directorates general. Policy implementation guidelines, system updates, performance targets, and operational procedures flow from central offices to regional units through hierarchical command structures. Regional offices report transaction data, compliance outcomes, revenue collections, and operational challenges to central offices for aggregation and analysis. This bidirectional information flow supports both central policy refinement and regional operational optimization.

The regulation acknowledges ongoing regional office adjustments. Article 95 mandates: "Kementerian melakukan penyederhanaan struktur organisasi pada jabatan administrasi secara bertahap paling lambat 2 (dua) tahun sejak Peraturan Presiden ini diundangkan" (The Ministry conducts organizational structure simplification at administrative positions gradually no later than 2 years from the promulgation of this Presidential Regulation). This simplification requirement reflects efficiency pressures and digital transformation opportunities that may reduce physical office requirements for certain functions.

Personnel deployment to regional offices constitutes the majority of ministry staffing. Approximately 80% of ministry employees work in regional offices rather than central offices. Tax offices employ the largest contingent, followed by customs offices, treasury offices, and asset offices. Regional assignment rotations aim to prevent collusion between field officers and local stakeholders, though remote location assignments create retention challenges for positions requiring specialized technical expertise.

The Coordination Role: Economic Policy and Financial Sector Integration

The Ministry of Finance functions as a central coordination node within Indonesia's economic policy architecture. This coordination role extends beyond internal ministry operations to encompass inter-ministerial policy alignment, financial sector oversight, and international financial relations. The regulation embeds coordination mandates throughout organizational assignments, reflecting the ministry's position at the intersection of fiscal policy, monetary policy, and financial sector regulation.

Internal coordination mechanisms ensure policy coherence across diverse functional domains. Article 77(1) establishes the framework: "Dalam mendukung optimalisasi pelaksanaan tugas dan fungsi secara terpadu antarunit organisasi di lingkungan Kementerian perlu didasarkan pada proses bisnis yang menggambarkan tata hubungan kerja yang efektif dan efisien dengan menerapkan prinsip koordinasi, integrasi, sinkronisasi, dan kolaborasi antarunit organisasi" (In supporting optimization of integrated task and function implementation between organizational units within the Ministry, it must be based on business processes that describe effective and efficient working relationships by applying principles of coordination, integration, synchronization, and collaboration between organizational units).

These coordination principles address the challenge of maintaining policy consistency when tax policy decisions affect customs enforcement, budget allocation decisions influence treasury operations, and fiscal policy frameworks constrain revenue collection targets. The Secretariat General coordinates cross-unit working groups, strategic planning processes, and performance monitoring systems that operationalize these coordination principles. Regular coordination meetings at directorate general level provide forums for resolving policy conflicts and aligning operational priorities.

External coordination with financial sector regulators constitutes a critical ministry function. Article 46(d) assigns the Directorate General of Financial Sector Stability and Development responsibility for "pelaksanaan fasilitasi sekretariat Komite Stabilitas Sistem Keuangan" (implementation of secretariat facilitation for the Financial System Stability Committee). This committee brings together the Ministry of Finance, Bank Indonesia (central bank), and Otoritas Jasa Keuangan/OJK (Financial Services Authority) to coordinate macroprudential policy and financial crisis management.

Financial System Stability Committee coordination addresses systemic risks that transcend individual regulatory jurisdictions. Banking sector stress affects government revenue through reduced corporate tax collections while potentially requiring fiscal resources for crisis resolution. Capital market volatility impacts government financing costs for bond issuance. Insurance sector solvency affects state asset valuations and pension fund investments. The committee's coordination function prevents regulatory gaps while avoiding conflicting policy signals that could destabilize financial markets.

International financial relations coordination reflects Indonesia's integration into global financial systems. The Directorate General of Financial Sector Stability and Development manages relationships with international financial institutions, participates in multilateral financial forums, and negotiates financial sector cooperation agreements. Ministry representatives engage with the International Monetary Fund, World Bank, Asian Development Bank, and regional financial arrangements. These engagements influence Indonesia's access to development financing, emergency liquidity facilities, and technical assistance.

Intergovernmental coordination with regional governments addresses fiscal decentralization challenges. The Directorate General of Fiscal Balance coordinates central-regional fiscal relations, managing the transfer of Dana Alokasi Umum (general allocation fund), Dana Alokasi Khusus (special allocation fund), and Dana Bagi Hasil (revenue-sharing fund) to 34 provincial governments and 514 district governments. Article 37 defines the scope: management of "alokasi dan pengelolaan dana perimbangan dan transfer ke daerah lainnya, dan pajak daerah dan retribusi daerah" (allocation and management of balanced funds and other transfers to regions, and local taxes and regional levies).

This coordination function balances regional autonomy with national fiscal objectives. The ministry establishes transfer fund allocation formulas, monitors regional government fiscal performance, provides technical assistance for local revenue optimization, and coordinates regional borrowing to prevent unsustainable debt accumulation. Coordination mechanisms include annual regional fiscal forums, technical working groups on specific sectors, and bilateral consultations with individual regional governments on fiscal challenges.

Matrix 5: Coordination Mechanisms and External Stakeholders

The regulation's coordination mandates extend to digital integration. Article 80(2) requires that coordination principles be "didukung dengan melakukan interoperabilitas data dan informasi" (supported by conducting data and information interoperability). This provision recognizes that effective coordination in modern governance depends on integrated information systems that enable real-time data sharing between ministry units and external agencies.

The Agency for Technology, Information, and Financial Intelligence (Article 52) supports coordination through system integration. This agency develops platforms enabling the Directorate General of Tax to share taxpayer data with the Directorate General of Customs for import verification, the Directorate General of Budget to access spending data from the Directorate General of Treasury for budget monitoring, and the Directorate General of Financial Sector Stability to receive banking transaction data for macroprudential surveillance. Data interoperability reduces coordination frictions while improving policy effectiveness.

Economic policy coordination encounters recurring challenges. Divergent institutional mandates create tension between the Ministry of Finance's fiscal consolidation objectives and line ministries' expenditure demands. Monetary-fiscal policy coordination faces complications when Bank Indonesia's inflation targeting requires interest rate increases that raise government debt service costs. Regional fiscal coordination struggles with asymmetric information when regional governments underreport local revenue to maximize central transfer receipts. The regulation's coordination mandates provide frameworks for managing these tensions without eliminating underlying conflicts.

Regulation Details:
- Title: Peraturan Presiden (Perpres) Nomor 158 Tahun 2024 tentang Kementerian Keuangan
- Enacted: November 5, 2024
- Effective: November 5, 2024
- Replaces: Perpres 57/2020
- Length: 98 articles across 12 chapters
- Source: Lembaran Negara 2024/354, https://peraturan.bpk.go.id/Details/306691

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