State Audit Reform Sector Development Program

Implementing a reform program that involved cross-agency coordination and cooperation needed the country's highest political support, while this program was supported mainly by the Ministry of Finance (MOF) as part of its public financial management reform program. The MOF by itself appeared to lack support to push for downsizing the BPKP as contemplated under the program. In the end, the government appeared willing to sacrifice the second tranche in the interests of political expediency. The $100 million involved in the second tranche was relatively small in the context of Indonesia's overall budget. Thus, its sacrifice would not have caused any budgetary problems.