REPUBLIC OF INDONESIA STATE NEWS

No. 285, 2010 MINISTRY OF FINANCE. Fiscal Decentralization. Guidelines.

REGULATION OF THE REPUBLIC OF INDONESIA FINANCE MINISTER

NUMBER 118 /PMK.07/ 2010 ABOUT

GENERAL GUIDELINES AND ALLOCATION OF FUNDS FOR FISCAL DECENTRALIZATION AND ACCELERATION

CONSTRUCTION OF THE 2010 BUDGET YEAR AREA

WITH THE GRACE OF GOD ALMIGHTY THE FINANCIAL MINISTER OF THE REPUBLIC OF INDONESIA,

DRAW: that in order to establish the allocation of the Financial Decentralization and Acceleration Fund of the Budget Year 2010 for provincial and county/municipal areas which have been allocated in the Law Number 47 Year 2009 of the Budget Income and Shopping of the State of the Year 2010 Budget as amended by Law No. 2 of 2010, need to establish the Finance Minister's Regulation on the General Guidelines and the Allocation Of Strengthening Financial Decentralization and Acceleration Regional Development of the Budget Year 2010;

Given: 1. Law No. 32 of the Year 2004 on Local Government (Indonesian Republic Year 2004 Number 125, Additional Gazette of the Republic of Indonesia No. 4437) as has been several times amended by the Act

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Number 12 of 2008 (Indonesian Republic of Indonesia Gazette 2008 number 59, Additional Gazette Republic of Indonesia Number 4844);

2. Law No. 33 of 2004 on the Financial Balance between the Central Government and the Local Government (State Gazette Indonesia Year 2004 Number 126, Additional Gazette of the Republic of Indonesia Number 4438)

3. Law No. 47 of 2009 on Budget and Shopping of the State of the Year 2010 (Indonesian Republic of Indonesia Year 2009 number 156, Additional Gazette of the Republic of Indonesia Number 5075) as amended by Invite- Invite Number 2 In 2010 (sheet Of State Of The Republic Of Indonesia In 2010 Number 69, Additional Gazette Of The Republic Of Indonesia Number 5132);

4. Government Regulation No. 58 of 2005 on the Financial Management Of The Area (sheet Of State Of The Republic Of Indonesia In 2005 Number 140, Additional Gazette Of The Republic Of Indonesia Number 4578);

5. President's Decision No. 56/P of 2010;

6. Regulation of Finance Minister Number 21 /PMK.07/ 2009 on the Implementation and Accouncability of the Budget Transfer to the Regions as amended by the Regulation of Finance Minister Number 89 /PMK.07/2010;

SPECIFIES:

SET: REGULATION THE FINANCE MINISTER ON THE GENERAL GUIDELINES AND ALLOCATION OF FUNDS FOR THE STRENGTHENING OF FISCAL DECENTRALIZATION AND ACCELERATED DEVELOPMENT OF THE AREA OF THE 2010 BUDGET YEAR.

section 1

(1) Fiscal Decentralization Strengthening and Regional Development Acceleration (DPDF and PPD) allocated to provincial and county/municipal areas is part of the 2010 Budget Year Adjustment Fund as specified in Law Number 47 of the Year

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2009 on Budget and State Shopping of the Year of Budget 2010 as amended by Act No. 2 of 2010.

(2) The Alocation of DPDF and PPD as referred to in paragraph (1) is set to be Rp7.100.000.000.00 (seven trillion hundred billion rupiah).

(3) DPDF and PPD are used to help support the strengthening of fiscal decentralization and for the acceleration of regional development through the deployment and development of infrastructure fields, and non infrastructure, as well as other supporting means. be an area business.

Article 2 (1) of the provincial and county districts/cities that received DPDF and PPD

and its allocation of magnitude is set in the State Shopping Working Committee meeting or the Republican House of Representatives of the House of Representatives. Indonesia.

(2) The details of the recipient area and the magnification of DPDF and PPD for each field is as defined in Appendix I that is inseparable from this Financial Minister Regulation.

(3) The Alocations of DPDF and PPD as referred to in paragraph (2) are the amount of expenditure as high as the allowed for each field.

Article 3 (1) The area is required to use DPDF and PPD in accordance with the field

as specified in Appendix I inseparable from this Financial Minister Regulation.

(2) the Regions receiving the allocation of DPDF and PPD is not allowed to undertake shifts in allocation between fields.

Article 4 DPDF and PPD as referred to in Section 1 are part of the Regional Revenue and Budgeted in the Regional Revenue and Shopping Budget (APBD) of the Budget Year 2010 or APBD Change of Budget Year 2010.

Article 5 Activities that cannot be funded from DPDF and PPD include: a. Special Alocation Fund companion fund;

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b. rent (e.g. office building, operational vehicle); c. administrative activities (example: salary, honor, overtime, office stationery); d. research; e. training; and f. Section 6

Article 6

(1) DPDF and PPD services of 2010 are conducted by means of a transfer from the State Public Cash Account to the Local Public Cash Account.

(2) DPDF and PPD Alignment as referred to on verse (1) is done in stages, with details as follows:

a. Phase I of 45% (forty-five percent);

b. Phase II is 45% (forty-five percent); and

c. Stage III by 10% (ten five percent). (3) Alignment gradually as referred to in paragraph (2) not

can be executed at once.

(4) Phase I of the Stage I was executed after the recipient area delivered the APBD Regional Regulation of the Year of the Budget 2010 with attach a letter of Statement of Work to the Finance Minister c.q. Director General of the Financial Balance.

(5) The Statement of Statement of Work and Schedule of the Activities Settlement Plan as contemplation on paragraph (4) each compiled according to the format specified in Appendix II and Appendix III that are inseparable from this Financial Minister Regulation.

(6) The Letter of the Activities and Schedule of the Activities Settlement Plan as referred to in paragraph (4), is received at the slowest date of 30 June 2010.

(7) Stage II and Phase III Alignment can be implemented after reports of absorption of DPDF and PPD stages were previously accepted by Minister of Finance c.q. Director General of Financial Balance.

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(8) The absorption report as referred to in paragraph (7) is compiled using the format as specified in the inseparable Annex IV of Regulation of this Finance Minister.

Article 7

(1) The absorption report using DPDF and PPD as referred to in Section 6 of the paragraph (7) is delivered after the use of the fund has reached 90% (ninety percent) of the funds that have been transferred to the General Cash Accounts of the Region.

(2) Use of DPDF and PPD Phase I or Phase II usage as referred to in Section 6 verses (7), received most slowly on December 15, 2010.

Article 8 (1) Implementation of DPDF-funded activities and PPD must be completed the most

slow date of December 31, 2010. (2) The results of DPDF and PPD funded activities were already able to be utilized

at the end of the 2010 Budget Year. Section 9

(1) DPDF and PPD recipient regions do optimize the use of the amount of the funds it receives.

(2) Optimizing as referred to in paragraph (1) may only be performed for the same field.

Article 10 Functional oversight/examination of the execution of activities and financial management of DPDF and PPD is conducted in accordance with the provisions of the laws.

Article 11 of the Finance Minister ' s Regulation is beginning to take effect on the date of the promulctest.

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For everyone to know, ordered the Chief of the Financial Services Regulation with its placement in the News of the Republic of Indonesia.

Specified in Jakarta on 14 June 2010 MINISTER FINANCE REPUBLIC OF INDONESIA, AGUS D.W. MARTOWARDOJO

PROMULRED IN JAKARTA ON JUNE 14, 2010 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, PATRIALIST AKBAR

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