The Conference of Relevant Ministries and Agencies on the Unification and Standardization of Core Business Systems of Local Governments (5th) (held on June 16, 2025)

Last Updated:: Jul 3, 2025

Overview

Date and time: Monday, June 16, 2025, from 11:00 a.m. to 11:40 a.m.
Location: Online
Agenda:
1. Opening
2. Message from the Chairman
3. Agenda
  1. Standardization of Local Government Information Systems and Comprehensive Measures for Operational Costs after Migration to the Government Cloud
  2. Financial Measures for Local Government System Improvement Expenses in Line with Institutional Revision, etc. after the Transition to standard compliance system
  3. Other:
4. Adjournment

Material

Relevant policy

Unification and standardization of mission-critical systems for local governments

Summary of the Proceedings

Date and

Monday, June 16, 2025, from 11:00 a.m. to 11:40 a.m.

US>

On-line

Attendees

Seiji Ninomiya (Vice-Minister for Digital Policy)
Seiya Tanaka (Deputy Director-General, Cabinet Secretariat Cabinet (Assistant Deputy Chief Cabinet Secretary Cabinet Secretariat))
KUSUNOKI Masanori (Director-General, Digital Agency)
Kazuhiko Mihashi (Deputy Director-General, Digital Agency)
Tsuyoshi Fukuda (Deputy Director-General, Economic and Social System Division, Cabinet Office's Secretariat)
Hidemasa Nakamura (Director-General of the Children and Families Agency Commissioner's Secretariat)
Tomoaki Abe (Director-General of Local Administration Bureau of Ministry of Internal Affairs and Communications)
Tsutomu Takeuchi (Director of Ministry of Justice Civil Affairs Bureau)
Shuichi Sakamoto (cybersecurity of Ministry of Education, Culture, Sports, Science and Technology's Secretariat, Deputy Director-General in charge of Policy Planning)
Ya Fumi Okabe (Director (in charge of Information), Ministry of Health, Labor and Welfare's Secretariat) * Deputy Attendance

Message from the Chairman

This Inter-Ministerial Meeting is held on a regular basis in order to smoothly advance efforts to unify and standardize the core business systems of local governments. It was the first meeting held since December last year when the Basic Policy on Standardization was revised.
The national government, local governments, and business operators have been working together on this standardization effort toward the transition deadline at the end of this fiscal year (FY 2025) in principle. As a result, steady progress has been made so that many systems can be transferred within this fiscal year. We would like to once again express our gratitude to the ministries and agencies responsible for each system for their efforts so far.
Today's agenda includes "Comprehensive Measures for Operation Costs after Standardization of Local Government Information Systems and Migration to the Government Cloud," which was announced by Minister Taira at the Digital Administrative and Fiscal Reform Council held on June 13.
Currently, local governments are in the process of obtaining and confirming estimates for the operating costs of information systems after the transition to standardization and deregulation, and there are concerns about a significant increase. Therefore, based on instructions from Prime Minister Ishiba at the Digital Administrative and Fiscal Reform Council held on April 22 in Digital Agency, comprehensive measures were decided while also listening to the opinions of local governments.
Based on these measures, Digital Agency intends to take the lead in advancing the initiatives. We would like to strongly request the cooperation of the ministries and agencies with jurisdiction over the respective systems, including thorough enforcement of the "Rules for Revision of Standard Specifications in Line with Institutional Revisions, etc." established in the Basic Policies for Standardization of December last year, and appropriate implementation of financial measures in the event that local government systems need to be revised due to institutional revisions, etc. after the transition to standard compliance system.
In addition, the Government of Japan requests the Ministries and Agencies responsible for each system to continue their efforts to facilitate the transition work by local governments, including responding to questions from local governments on the standardization PMO tool.
As described above, today's agenda covers a wide range of topics, but we believe that the cooperation of the ministries and agencies responsible for each system is essential, and we ask that they continue to work together to advance standardization efforts.

Agenda

Standardization of Local Government Information Systems and Comprehensive Measures for Operational Costs after Migration to the Government Cloud
- Digital Agency provided the following explanation in line with Attachment 1.
  - The background and purpose of the compilation of comprehensive measures for operation costs after the standardization of digital information systems and the transition to the Government Cloud are as follows. As a general rule, the transition work in each local government is making steady progress toward the deadline for the transition to standardization at the end of fiscal 2025. On the other hand, based on the current estimates, there are concerns from local governments that system operation costs after the transition to standardization and the transition to the Government Cloud will increase significantly. Therefore, based on instructions from Prime Minister Ishiba at the Digital Administrative and Fiscal Reform Council (held on April 22, 2025), a working team including representatives of three local organizations examined comprehensive measures, and Minister Taira reported on these measures to Prime Minister Ishiba at the Digital Administrative and Fiscal Reform Council on June 13.
  - The significance of using the Standardization and Government Cloud is to reduce the human and financial burden on local governments, enable them to focus on improved services for residents in line with local conditions, and enable the rapid deployment of new services. As we enter a society with a rapidly declining population, there is a common understanding that it is essential for local governments and businesses to maintain and manage their own information systems, ensure and advance security, and implement measures in preparation for large-scale disasters because of their limitations in terms of human resources and finance.
  - On the other hand, based on the current estimates, there are voices that the operation costs after the transition will increase. Therefore, we also interviewed local governments and business operators about the factors, and although there are different aspects for each local government and business operator, we classified the factors into three categories: structural factors, function strengthening factors, and external factors.
  - Specific structural factors include: standard compliance system packages are not optimized for cloud computing; frequent revisions of standard specifications have resulted in increased development costs for service providers; dual infrastructure and network management costs have been incurred. Other factors include the possibility that buffers have been added and that competition has not been sufficient. Factors for strengthening function include improved service levels. External factors include rising prices, increased labor costs due to wage increases, and changes in macroeconomic environments such as foreign exchange rates.
  - Based on these factors, we would like to take measures against structural factors, etc., after first taking immediate measures such as close examination of estimates. For example, as one of the immediate measures, we have set up a specialized team in Digital Agency to support cost optimization, focusing on support for close examination of estimates, so that we can respond to consultations from local governments not only for government cloud usage fees but also for the entire operation cost. In addition, we will negotiate various further discounts for cloud usage fees, and we would like to ask for the cooperation of each government agency in charge of the system for the thorough enforcement of the revision rules of standard specifications in accordance with the system revision.
  - As a countermeasure against structural factors, we will promote labor-saving and automation of system operation and management. In addition, we are in the process of taking transitional measures for some function regarding function requirements, and we would like each government agency responsible for systems to consider how to handle them in standard specifications by the end of FY 2027. In addition, we would like to promote competition by visualizing and analyzing system operation expenses.
  - These efforts are intended to control operational costs, but the plan also includes a study of financial measures based on the analysis of the cost structure of local government systems and the opinions of local governments that system operational costs will increase after the transition. We would like to accelerate the study in cooperation with the relevant ministries and agencies, and upgrade the overall efforts while verifying the achievement status and effects achieved so far.
  - As initiatives expected in the future, the national government is expected to steadily implement immediate measures and measures to address structural factors, etc. Business operators are expected to carefully explain the contents of estimates to local governments, including the basis for the estimates. Initiatives expected of municipalities include confirming the contents and performance of estimates, improving procurement methods, and conducting business process reengineering (BPR) for business operators. As support for municipalities, prefectural governments are expected to cooperate with Digital Agency to support municipalities in scrutinizing estimates of operation costs and promote joint use and joint procurement of Government Cloud operation and management assistants, etc.
  - Regarding the issues and prospects of the operation cost of local government information systems, since the operation cost is increasing due to external factors, function strengthening, and structural factors, we would like to reduce the operation cost by taking immediate measures and measures against structural factors. If it does not fall immediately, we plan to consider the ideal financial measures. After the specific transition support system moves to standard compliance system, we would like to develop an environment that allows long-term continuous use of high-quality systems, transition to cloud-optimized systems, and utilization of public SaaS.
Financial Measures for Local Government System Improvement Expenses in Line with Institutional Revision, etc. after the Transition to standard compliance system
- Digital Agency provided the following explanation in line with Attachment 3.
  - Financial measures for the cost of improving local government systems in line with institutional reforms after the transition to standard compliance system were also presented at the "Executive Meeting of the Relevant Office and Ministry Meeting on Standardization and Integration of Core Business Systems for Local Governments" held on January 29, 2025, but since they are related to the operation costs explained in Agenda 1, we would like to explain them again.
  - In principle, when modifications are made to the information systems of local governments due to the revision of the system by the ministries and agencies with jurisdiction over the system, the ministries and agencies with jurisdiction over the system are to request national funds or local financial measures as necessary.
  - After the transition to the standard compliance system system, the Government of Japan requests the ministries and agencies in charge of the system to consider the necessity of national expenditure or local fiscal measures and take appropriate measures, as in the past, when it is necessary to renovate the standard compliance system system due to the revision of the system.
  - In addition, in light of the fact that the operating costs of the standard compliance system correspond to the current system costs borne by local governments, they should basically be borne by each local government. However, if they increase due to institutional amendments, etc., it will be necessary for the ministries and agencies with jurisdiction over the systems to take appropriate measures. Therefore, we ask for your cooperation in this regard as well.
Other:
- The following notification was received from Digital Agency, and each ministry and agency then explained the status of efforts.
  - The standardization PMO tool should respond to issues from local governments as soon as possible.
  - With regard to transitional measures related to some function, the content of the application from the business operator shall be confirmed by the end of June at the latest.
  - What I would like you to prepare for the establishment of function standardization standards during FY 2025

Adjournment

Greater than or