## cr18302

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---

### Summary of mission outcomes
- A technical assistance mission (SECO) visited Jakarta, Indonesia, during January 8–12, 2018, to develop capacity to compile integrated sectoral accounts and balance sheets. The mission reviewed progress implementing September 2017 recommendations.
- Integrated sectoral accounts and balance sheets use the System of National Accounts 2008 (2008 SNA) framework and are critical to detect systemic risks, vulnerabilities, and contagion. Compiling and disseminating these data is Recommendation 8 of the Group of Twenty Data Gaps Initiative, Phase II.
- Formal inter-agency steering, working, and technical groups have been implemented. Sectoral accounts and balance sheets will be a joint output of Badan Pusat Statistik (BPS) and Bank Indonesia (BI). Financial Services Authority (OJK), Ministry of Finance (MOF), and Ministry of State Owned Enterprises (MOSOE) are key data suppliers.
- Project progress:
  - Annual sectoral accounts assembled for 2010–2015 (provisional).
  - Quarterly estimates for 2015 scheduled to be prepared by the end of 2018 to serve as basis for subsequent quarterly estimates.
  - Some slippage in target dates; revised action and target dates agreed. Mission emphasized that no further slippage is possible without endangering deliverables agreed at project initiation in January 2017.
- Mission suggested using indicator series to develop quarterly data where current sources are inadequate, specifically for nonfinancial corporations, households, and regional governments.
- A follow-up mission scheduled for September 3–7, 2018, to review annual data for 2010–2015 and progress on quarterly series; remote follow-up will also occur.

### Priority recommendations (high-level targets)
- June 2018
  - Complete the compilation of provisional annual current, capital, and financial accounts sectoral accounts from 2010–2015.
  - Responsible: BPS, with input from, and collaboration with, BI, OJK, MOF, MOSOE.
- July 2018
  - Complete the compilation of provisional annual financial balance sheet sectoral accounts from 2010–2015.
  - Responsible: BPS, with input from, and collaboration with, BI, OJK, MOF, MOSOE.
- December 2018
  - Quarterly sectoral current, capital, financial accounts and financial balance sheets for 2015, to serve as basis for developing quarterly sectoral accounts for following years.
  - Responsible: BPS, with input from, and collaboration with, BI, OJK, MOF, MOSOE.
- Further details and milestones are in the action plan under Detailed Technical Assessment and Recommendations.

### Recommended operational actions
- BPS to hold regular, minuted technical group meetings; unresolved technical issues to be escalated to the working group, then to the steering committee if needed. (Ongoing)
- Use indicator series and regression analysis to develop quarterly estimates where direct quarterly sources are inadequate (nonfinancial corporations, households, regional governments).
- OJK to provide BPS with listed enterprise data in machine-readable format (Excel or similar) to replace manual extraction from PDF sources.

### Follow-up mission
- Next mission: September 3–7, 2018 (review annual 2010–2015 and quarterly development), plus remote follow-up.

### Regression analyses and indicators for unlisted enterprises
- BPS conducted a regression for the years 2011 to 2014 and found a very high correlation and statistical significance between changes in positions in equity of unlisted enterprises and changes in equity positions of listed enterprises.
- Mission recommendation:
  - BPS conduct another regression analysis of changes in positions in equity of unlisted against changes in equity positions of listed enterprises to determine whether the latter could serve as an indicator for transactions of the former. (June 2018)
  - Data permitting, BPS do the same exercise for “other accounts receivable/payable.” (June 2018)
- OJK data access recommendation:
  - OJK provide BPS with data of private listed enterprises, on an individual enterprise basis, in a machine-readable format (Excel or another software package). (March 2018 and ongoing thereafter)

### Public nonfinancial corporations (NFCs)
- MOSOE provides quarterly data for the 18 largest public NFCs owned by the central government; these 18 enterprises account for a very large proportion of the total and are grossed up to a universe estimate. MOSOE provides these data to BPS on a timely basis.
- No data are available for public NFCs owned by other levels of government; BPS and MOSOE do not consider them significant.
- Previous MOU proposal:
  - A previous mission proposed an MOU between BPS and MOSOE to ensure timely reporting. MOSOE has been providing data on a timely basis; BPS and MOSOE will decide whether an MOU is necessary. (Decision to be taken in the weeks following the mission)
  - Recommended action: BPS and the MOSOE sign an MOU, if necessary, for ongoing delivery of data for sector accounts. (December 2018)

### General government data and issues
- Central government:
  - MOF collects current, capital, and financial accounts monthly and reports quarterly to BPS using Government Finance Statistics (GFS). These data largely meet BPS needs for quarterly sector accounts.
  - For balance sheets, MOF compiles quarterly financial assets and liabilities, using the most recent annual and semi-annual positions and adding transactions; adjustments made for exchange rate changes, not price changes.
  - Government pensions are treated on a pay-as-you-go basis; MOF does not recognize pension liability due to partial accrual basis; no plans to change this treatment.
  - Previous recommendation accepted: as sector accounts and balance sheets are experimental, this shortcoming is accepted without ad hoc adjustments.
- Reconciliation:
  - A reconciliation table between GFS and national accounts has been constructed, as previously recommended.
- Provinces and municipalities:
  - Annual data sufficient; quarterly data are less detailed and provided only semi-annually with a three-month lag. MOF estimates quarterly outlays using central government expenditure patterns based on provincial and municipal budgets.
- Villages:
  - MOF does not recognize villages as part of general government; no data reported.
  - Previous mission suggested using cash transfers from central government as a proxy for villages’ revenue (probably in excess of 90 percent), allocating quarterly using ratios from annual data and revising when newer annual data are available. This work has not yet started; mission recommended undertaking it as soon as possible.
  - Recommended action: MOF and BPS begin estimating quarterly revenue and expenditure for villages using cash transfers and ratios from annual data. (December 2018)
- Social security fund:
  - Set up in 2014; parties agree it should be part of general government but exact treatment unresolved. Previous mission recommended resolving treatment by the working/technical groups by the time of the current mission. Mission emphasized decision needed soon.
  - Recommended action: BPS and MOF, and any other agencies involved, determine the treatment of the social security fund and develop quarterly estimates from the first quarter of 2015 on. (This treatment is to be resolved as soon as possible)

### Financial corporations — central bank and ODTCs
- BI compiles current, capital and financial accounts and balance sheet data for the central bank and other deposit-taking corporations (ODTCs). Data are obtained monthly and reported, or will be reported, to BPS quarterly. No major issues identified.

### Financial corporations — other than central bank and ODTCs; mutual funds; valuation
- OJK obtains current, capital, and financial accounts and balance sheet data monthly for other financial corporations and reports them to BPS. Data are generally high quality but require further development in areas:
  - Mutual funds:
    - Currently maintained as segregated funds of securities companies and included with securities companies’ data.
    - Recommendation agreed: treat mutual funds as separate institutional units from parent securities companies and classify them as money market funds or nonmarket funds depending on assets and activities.
    - Recommended action: OJK, working with BPS, treat mutual funds as separate units and provide BPS with quarterly data from the first quarter of 2015 on. (June 2018 and ongoing thereafter)
    - OJK’s data show some mutual fund shares are held by nonresidents; BI does not currently include these in the balance of payments or IIP (see Rest of the World section).
  - Market valuation of equity liabilities:
    - Currently using own funds at book value approach for unlisted financial corporations; OJK and BPS plan to explore improved methodologies.
    - Recommended action: OJK and BPS develop an improved methodology for estimating market value of equity positions of unlisted financial corporations other than ODTCs, undertaken with BI. (June 2018)

### Rest of the World, balance of payments, and IIP coherence
- BI compiles and publishes quarterly balance of payments and IIP.
- Exports and imports of goods and services in balance of payments should match expenditure side of GDP by BPS, but discrepancies exist for many years.
  - BI and BPS agreed to use the supply and use table (SUT) for 2010 as final figures for that year; no SUTs for succeeding years, so differences remain.
  - Mission view: statistical integration must ensure consistency; resolving one inconsistency by creating another (e.g., adjusting reinvested earnings) is not desirable.
  - BPS and BI plan coordinated efforts to improve coherence; mission recommended BPS compile the SUT annually to avoid repeat issues and provide a benchmark for goods and services in GDP.
  - Recommended action: BPS and BI determine causes of, and eliminate, differences in goods and services imports and exports between the balance of payments and the expenditure side of GDP from 2011 on. (September 2018)
- Nonresident holdings of mutual fund shares:
  - OJK data show nonresident holdings in resident mutual funds for several years.
  - BI agreed with mission to include these changes in the rest of world from 2015 onwards in quarterly balance of payments and IIP.
  - Recommended action: Using data from OJK, BI include in quarterly balance of payments and IIP nonresident holdings of shares in resident mutual funds, from 2015 on. (June 2018)
- Valuation of equity of unlisted enterprises with nonresident ownership (notably direct investment enterprises):
  - Current approach: own funds at book value.
  - BI and BPS will explore other possibilities to develop a better methodology, working with OJK which is undertaking a similar exercise for unlisted financial corporations.
  - Recommended action: BI and BPS develop improved methodology for estimating market value of unlisted corporations’ equity positions with nonresident ownership, in conjunction with OJK. (June 2018)
- SUT compilation:
  - Recommended action: BPS begin compiling the SUT annually. (December 2018)

### Households — quarterly production estimation
- Previous mission recommended using regressions between households’, listed and unlisted NFCs’ annual production in agriculture, manufacturing, and wholesale and retail trade (these industries account for about three quarters of household production) to see if NFCs can serve as indicators for household quarterly production.
- BPS analysis:
  - BPS ran regression analysis for 2010 to 2015 and found high correlation and statistical significance between unlisted NFCs’ production and household production. However, no quarterly production data for unlisted enterprises exist, so they cannot serve as quarterly indicators.
  - Correlation with listed NFCs:
    - Manufacturing: 87 percent correlation (reasonably good) but failed statistical significance test.
    - Trade: 75 percent correlation (reasonably good) but failed statistical significance test.
    - Agriculture: 45 percent correlation (weak), but industry dominated by household enterprises.
- Mission recommendations:
  - Given high correlations and absence of alternatives, use listed NFCs’ production data as indicator for quarterly distribution of household production for manufacturing and trade.
  - For agriculture, use quarterly agricultural production data for the whole economy to derive household agricultural production distribution.
  - For all other industries, use the average of all NFCs’ production data (excluding agriculture, manufacturing and trade) as quarterly indicator before the quarterly household survey conducted in 2018.
- Recommended actions:
  - BPS estimate the quarterly distribution of household production for manufacturing and trade using listed NFCs’ production data an indicator. (June 2018)
  - BPS estimate the quarterly distribution of agricultural production by households from total quarterly data for agricultural production for the whole economy. (June 2018)
  - BPS estimate the quarterly distribution of household production for all other industries using the average of all NFCs’ production data (other than agriculture, manufacturing and trade) as the quarterly indicator. (June 2018)

### Nonprofit institutions serving households (NPISHs)
- Data coverage:
  - NPISH data are reasonably complete both quarterly and annually.
  - Annual survey indicates non-market output accounts for ninety-six percent of NPISH output and transfers account for ninety-four percent of NPISH revenue.
  - BPS uses annual expense breakdown ratios to apportion quarterly expenses; cross-checked with Labor Force Survey compensation and transfers from regional government budgets.
- Areas for further work:
  - Accounting for election cycle and political party expenditures (political parties classified as NPISHs).
    - For 2018 provincial/municipal elections and 2019 presidential and People's Consultative Assembly elections, recommended allocation: prorate political parties’ expenditure by quarter based on the number of days the election campaign is conducted in each quarter; campaigning usually for sixty days.
    - Recommended action: BPS prorate political parties’ expenditure by quarter based on campaign days. (June 2018)
  - Religious holidays:
    - Five major religious holidays (Christmas fixed; Ramadhan, Idul Fitri, Idul Adha, and Easter not fixed). Quarterly survey provides pattern by quarter but not level.
  - Gross fixed capital formation (GFCF):
    - No sources to estimate NPISH GFCF quarterly.
    - Residual approach considered (deduct identifiable sector GFCF from total to leave NPISH residual) but mission expressed reservations due to error accumulation and potential for negative GFCF (NPISH GFCF usually less than 5percent of total).
    - Alternative recommended: use ratio of NPISH annual GFCF to total annual GFCF and apply that ratio to total quarterly GFCF; use average of the ratio for the previous five years to mitigate nonrepresentative recent years and revise when new annual data available.
    - Mission suggested comparing residual and ratio approaches before the next mission.
    - Recommended action: BPS explore two approaches to estimating quarterly NPISH GFCF — residually, and using the ratio of NPISH annual GFCF to total annual GFCF applying the five-year average ratio. (June 2018)

*International Monetary Fund — Detailed Technical Assessment and Recommendations (1. Priority Recommendations).*

### 1. Priority Recommendations _____________________________________________________________________ 5

### 1. Priority Recommendations

### Summary of mission outcomes
- A technical assistance mission (SECO) visited Jakarta, Indonesia, during January 8–12, 2018, to develop capacity to compile integrated sectoral accounts and balance sheets. The mission reviewed progress implementing September 2017 recommendations.
- Integrated sectoral accounts and balance sheets use the System of National Accounts 2008 (2008 SNA) framework and are critical to detect systemic risks, vulnerabilities, and contagion. Compiling and disseminating these data is Recommendation 8 of the Group of Twenty Data Gaps Initiative, Phase II.
- Formal inter-agency steering, working, and technical groups have been implemented. Sectoral accounts and balance sheets will be a joint output of Badan Pusat Statistik (BPS) and Bank Indonesia (BI). Financial Services Authority (OJK), Ministry of Finance (MOF), and Ministry of State Owned Enterprises (MOSOE) are key data suppliers.
- Project progress:
  - Annual sectoral accounts assembled for 2010–2015 (provisional).
  - Quarterly estimates for 2015 scheduled to be prepared by the end of 2018 to serve as basis for subsequent quarterly estimates.
  - Some slippage in target dates; revised action and target dates agreed. Mission emphasized that no further slippage is possible without endangering deliverables agreed at project initiation in January 2017.
- Mission suggested using indicator series to develop quarterly data where current sources are inadequate, specifically for nonfinancial corporations, households, and regional governments.
- A follow-up mission scheduled for September 3–7, 2018, to review annual data for 2010–2015 and progress on quarterly series; remote follow-up will also occur.

### Priority recommendations (high-level targets)
- June 2018
  - Complete the compilation of provisional annual current, capital, and financial accounts sectoral accounts from 2010–2015.
  - Responsible: BPS, with input from, and collaboration with, BI, OJK, MOF, MOSOE.
- July 2018
  - Complete the compilation of provisional annual financial balance sheet sectoral accounts from 2010–2015.
  - Responsible: BPS, with input from, and collaboration with, BI, OJK, MOF, MOSOE.
- December 2018
  - Quarterly sectoral current, capital, financial accounts and financial balance sheets for 2015, to serve as basis for developing quarterly sectoral accounts for following years.
  - Responsible: BPS, with input from, and collaboration with, BI, OJK, MOF, MOSOE.
- Further details and milestones are in the action plan under Detailed Technical Assessment and Recommendations.

### Recommended operational actions
- BPS to hold regular, minuted technical group meetings; unresolved technical issues to be escalated to the working group, then to the steering committee if needed. (Ongoing)
- Use indicator series and regression analysis to develop quarterly estimates where direct quarterly sources are inadequate (nonfinancial corporations, households, regional governments).
- OJK to provide BPS with listed enterprise data in machine-readable format (Excel or similar) to replace manual extraction from PDF sources.

### Follow-up mission
- Next mission: September 3–7, 2018 (review annual 2010–2015 and quarterly development), plus remote follow-up.

### Contextual notes
- Steering committee established including Chief Statistician of BPS, Governor of BI, Executive Director of OJK; Minister of Finance agreed to chair. This high-level group met in November 2017.
- Working group: managers providing data; addresses issues technical group cannot resolve.
- Technical group: compilers and technical specialists; mission recommended regular, minuted meetings to accelerate resolution of problems.

### Key procedural recommendation (Nonfinancial Corporations)
- For private NFCs:
  - Annual unlisted enterprise survey by BPS provides annual data.
  - Listed-enterprise data from Indonesian Stock Exchange (IDX) exist for annual and quarterly, but are available only in PDF; manual entry is slow and error-prone.
  - Recommendation: OJK, which obtains listed enterprise data, should provide BPS with data on an individual enterprise basis in a machine-readable format (Excel or another software package) to allow efficient aggregation.
- For quarterly data on unlisted private NFCs:
  - BPS currently uses ratios between annual data of listed and unlisted NFCs for current and capital accounts; equity data for unlisted NFCs lack current sources.
  - Previous recommendation: run regression between annual equity data for listed and unlisted enterprises to assess correlation and potential use as a quarterly indicator.

---

*International Monetary Fund — Detailed Technical Assessment and Recommendations (1. Priority Recommendations).*

### 15. The BPS had conducted a regression for the years 2011 to 2014 (the only years for

### cr18302 - 15. The BPS had conducted a regression for the years 2011 to 2014 (the only years for

### Regression analyses and indicators for unlisted enterprises
- BPS conducted a regression for the years 2011 to 2014 and found a very high correlation and statistical significance between changes in positions in equity of unlisted enterprises and changes in equity positions of listed enterprises.
- Mission recommendation:
  - BPS conduct another regression analysis of changes in positions in equity of unlisted against changes in equity positions of listed enterprises to determine whether the latter could serve as an indicator for transactions of the former. (June 2018)
  - Data permitting, BPS do the same exercise for “other accounts receivable/payable.” (June 2018)
- OJK data access recommendation:
  - OJK provide BPS with data of private listed enterprises, on an individual enterprise basis, in a machine-readable format (Excel or another software package). (March 2018 and ongoing thereafter)

### Public nonfinancial corporations (NFCs) and data provision
- MOSOE provides quarterly data for the 18 largest public NFCs owned by the central government; these 18 enterprises account for a very large proportion of the total and are grossed up to a universe estimate. MOSOE provides these data to BPS on a timely basis.
- No data are available for public NFCs owned by other levels of government; BPS and MOSOE do not consider them significant.
- Previous MOU proposal:
  - A previous mission proposed an MOU between BPS and MOSOE to ensure timely reporting. MOSOE has been providing data on a timely basis; BPS and MOSOE will decide whether an MOU is necessary. (Decision to be taken in the weeks following the mission)
  - Recommended action: BPS and the MOSOE sign an MOU, if necessary, for ongoing delivery of data for sector accounts. (December 2018)

### General government data and issues
- Central government:
  - MOF collects current, capital, and financial accounts monthly and reports quarterly to BPS using Government Finance Statistics (GFS). These data largely meet BPS needs for quarterly sector accounts.
  - For balance sheets, MOF compiles quarterly financial assets and liabilities, using the most recent annual and semi-annual positions and adding transactions; adjustments made for exchange rate changes, not price changes.
  - Government pensions are treated on a pay-as-you-go basis; MOF does not recognize pension liability due to partial accrual basis; no plans to change this treatment.
  - Previous recommendation accepted: as sector accounts and balance sheets are experimental, this shortcoming is accepted without ad hoc adjustments.
- Reconciliation:
  - A reconciliation table between GFS and national accounts has been constructed, as previously recommended.
- Provinces and municipalities:
  - Annual data sufficient; quarterly data are less detailed and provided only semi-annually with a three-month lag. MOF estimates quarterly outlays using central government expenditure patterns based on provincial and municipal budgets.
- Villages:
  - MOF does not recognize villages as part of general government; no data reported.
  - Previous mission suggested using cash transfers from central government as a proxy for villages’ revenue (probably in excess of 90 percent), allocating quarterly using ratios from annual data and revising when newer annual data are available. This work has not yet started; mission recommended undertaking it as soon as possible.
  - Recommended action: MOF and BPS begin estimating quarterly revenue and expenditure for villages using cash transfers and ratios from annual data. (December 2018)
- Social security fund:
  - Set up in 2014; parties agree it should be part of general government but exact treatment unresolved. Previous mission recommended resolving treatment by the working/technical groups by the time of the current mission. Mission emphasized decision needed soon.
  - Recommended action: BPS and MOF, and any other agencies involved, determine the treatment of the social security fund and develop quarterly estimates from the first quarter of 2015 on. (This treatment is to be resolved as soon as possible)

### Financial corporations — central bank and ODTCs
- BI compiles current, capital and financial accounts and balance sheet data for the central bank and other deposit-taking corporations (ODTCs). Data are obtained monthly and reported, or will be reported, to BPS quarterly. No major issues identified.

### Financial corporations — other than central bank and ODTCs; mutual funds; valuation
- OJK obtains current, capital, and financial accounts and balance sheet data monthly for other financial corporations and reports them to BPS. Data are generally high quality but require further development in areas:
  - Mutual funds:
    - Currently maintained as segregated funds of securities companies and included with securities companies’ data.
    - Recommendation agreed: treat mutual funds as separate institutional units from parent securities companies and classify them as money market funds or nonmarket funds depending on assets and activities.
    - Recommended action: OJK, working with BPS, treat mutual funds as separate units and provide BPS with quarterly data from the first quarter of 2015 on. (June 2018 and ongoing thereafter)
    - OJK’s data show some mutual fund shares are held by nonresidents; BI does not currently include these in the balance of payments or IIP (see Rest of the World section).
  - Market valuation of equity liabilities:
    - Currently using own funds at book value approach for unlisted financial corporations; OJK and BPS plan to explore improved methodologies.
    - Recommended action: OJK and BPS develop an improved methodology for estimating market value of equity positions of unlisted financial corporations other than ODTCs, undertaken with BI. (June 2018)

### Rest of the World, balance of payments, and IIP coherence
- BI compiles and publishes quarterly balance of payments and IIP.
- Exports and imports of goods and services in balance of payments should match expenditure side of GDP by BPS, but discrepancies exist for many years.
  - BI and BPS agreed to use the supply and use table (SUT) for 2010 as final figures for that year; no SUTs for succeeding years, so differences remain.
  - Mission view: statistical integration must ensure consistency; resolving one inconsistency by creating another (e.g., adjusting reinvested earnings) is not desirable.
  - BPS and BI plan coordinated efforts to improve coherence; mission recommended BPS compile the SUT annually to avoid repeat issues and provide a benchmark for goods and services in GDP.
  - Recommended action: BPS and BI determine causes of, and eliminate, differences in goods and services imports and exports between the balance of payments and the expenditure side of GDP from 2011 on. (September 2018)
- Nonresident holdings of mutual fund shares:
  - OJK data show nonresident holdings in resident mutual funds for several years.
  - BI agreed with mission to include these changes in the rest of world from 2015 onwards in quarterly balance of payments and IIP.
  - Recommended action: Using data from OJK, BI include in quarterly balance of payments and IIP nonresident holdings of shares in resident mutual funds, from 2015 on. (June 2018)
- Valuation of equity of unlisted enterprises with nonresident ownership (notably direct investment enterprises):
  - Current approach: own funds at book value.
  - BI and BPS will explore other possibilities to develop a better methodology, working with OJK which is undertaking a similar exercise for unlisted financial corporations.
  - Recommended action: BI and BPS develop improved methodology for estimating market value of unlisted corporations’ equity positions with nonresident ownership, in conjunction with OJK. (June 2018)
- SUT compilation:
  - Recommended action: BPS begin compiling the SUT annually. (December 2018)

### Households — quarterly production estimation
- Previous mission recommended using regressions between households’, listed and unlisted NFCs’ annual production in agriculture, manufacturing, and wholesale and retail trade (these industries account for about three quarters of household production) to see if NFCs can serve as indicators for household quarterly production.
- BPS analysis:
  - BPS ran regression analysis for 2010 to 2015 and found high correlation and statistical significance between unlisted NFCs’ production and household production. However, no quarterly production data for unlisted enterprises exist, so they cannot serve as quarterly indicators.
  - Correlation with listed NFCs:
    - Manufacturing: 87 percent correlation (reasonably good) but failed statistical significance test.
    - Trade: 75 percent correlation (reasonably good) but failed statistical significance test.
    - Agriculture: 45 percent correlation (weak), but industry dominated by household enterprises.
  - Mission recommendations:
    - Given high correlations and absence of alternatives, use listed NFCs’ production data as indicator for quarterly distribution of household production for manufacturing and trade.
    - For agriculture, use quarterly agricultural production data for the whole economy to derive household agricultural production distribution.
    - For all other industries, use the average of all NFCs’ production data (excluding agriculture, manufacturing and trade) as quarterly indicator before the quarterly household survey conducted in 2018.
  - Recommended actions:
    - BPS estimate the quarterly distribution of household production for manufacturing and trade using listed NFCs’ production data an indicator. (June 2018)
    - BPS estimate the quarterly distribution of agricultural production by households from total quarterly data for agricultural production for the whole economy. (June 2018)
    - BPS estimate the quarterly distribution of household production for all other industries using the average of all NFCs’ production data (other than agriculture, manufacturing and trade) as the quarterly indicator. (June 2018)

### Nonprofit institutions serving households (NPISHs)
- Data coverage:
  - NPISH data are reasonably complete both quarterly and annually.
  - Annual survey indicates non-market output accounts for ninety-six percent of NPISH output and transfers account for ninety-four percent of NPISH revenue.
  - BPS uses annual expense breakdown ratios to apportion quarterly expenses; cross-checked with Labor Force Survey compensation and transfers from regional government budgets.
- Areas for further work:
  - Accounting for election cycle and political party expenditures (political parties classified as NPISHs).
    - For 2018 provincial/municipal elections and 2019 presidential and People's Consultative Assembly elections, recommended allocation: prorate political parties’ expenditure by quarter based on the number of days the election campaign is conducted in each quarter; campaigning usually for sixty days.
    - Recommended action: BPS prorate political parties’ expenditure by quarter based on campaign days. (June 2018)
  - Religious holidays:
    - Five major religious holidays (Christmas fixed; Ramadhan, Idul Fitri, Idul Adha, and Easter not fixed). Quarterly survey provides pattern by quarter but not level.
  - Gross fixed capital formation (GFCF):
    - No sources to estimate NPISH GFCF quarterly.
    - Residual approach considered (deduct identifiable sector GFCF from total to leave NPISH residual) but mission expressed reservations due to error accumulation and potential for negative GFCF (NPISH GFCF usually less than 5percent of total).
    - Alternative recommended: use ratio of NPISH annual GFCF to total annual GFCF and apply that ratio to total quarterly GFCF; use average of the ratio for the previous five years to mitigate nonrepresentative recent years and revise when new annual data available.
    - Mission suggested comparing residual and ratio approaches before the next mission.
    - Recommended action: BPS explore two approaches to estimating quarterly NPISH GFCF — residually, and using the ratio of NPISH annual GFCF to total annual GFCF applying the five-year average ratio. (June 2018)

*INDONESIA  INTERNATIONAL MONETARY FUND.*

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_Source: https://www.imf.org/-/media/files/publications/cr/2018/cr18302.pdf_