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Micromacro Consultants
Micromacro Consultants


In May 2000 MMC won an international World Bank tender for a project for technical assistance to Ministry of Finance of Indonesia in building a macro-economic and fiscal model and the training of Indonesian economists. In a period of one year the Macroabc model for Indonesia, called MODFI, has been constructed. MODFI is an advanced macro model, still it runs in Excel. This was done by a team of four part-time MMC consultants who came to Jakarta successively, three full-time local consultants, four economists of MoF Indonesia that co-operated intensively and many others that joined workshops. Furthermore twelve MMC consultants gave workshops during three two-week visits of four Indonesian economists to MMC's office in The Hague. Furthermore co-operation happened through an intensive using of telework. MMC used 367 working days of consultants from Europe and 480 of local consultants.

The fiscal and macro economic model MODFI is operational since May 2001 and has since then been used in the budget cycle, for calculation of the economic effects of decrease in world trade (11/9/2001), the production of policy variants for the coordination team, for monitoring of the fiscal and economic development, and in the preparation of meetings with the World Bank and the IMF. As a consequence of the successful completion of the project MoF Indonesia started a new department: “the Centre for Macro Economic Analysis”, with 45 employees including 14 economists. The Indonesian task manager of the MODFI project became the director of the Centre and two of the Indonesian counterparts in the MODFI project became head of a division (the Centre consists of three divisions: real sector, balance of payments and the monetary sector).

In October 2001 a two and a half-year follow up project started. The goal of this project is to increase the sustainability of the model. The main task of MMC in this follow-up project is to train also eleven new economists, who had not been involved in the MODFI project before. In 2004 MMC has been invited to support the Ministry of Finance of Indonesia gain in 2004 and 2005, to give advanced training, to support the construction of several supplementary modules, to build a ‘’university version’’ that will be as shareware on the Internet,  again using the telework approach:

    * In total eight  MMC consultant’s visits to Indonesia of ten calendar days
    * Three  three-week visit of four economists of MoF Indonesia to MMC in The Hague
    * Cooperation by telework in between