Government Regulation Number 23 2003

Original Language Title: Peraturan Pemerintah Nomor 23 Tahun 2003

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Read the untranslated law here: http://peraturan.go.id/inc/view/11e44c4ed1e2b940c0e7313231363534.html

PP 23-2003 Text copy _?.
Back COUNTRY SHEET Republic of INDONESIA No. 48, 2003 (Additional explanation in the State Gazette of the Republic of Indonesia Number 4287) GOVERNMENT REGULATION of the REPUBLIC of INDONESIA NUMBER 23 in 2003 ABOUT the CUMULATIVE AMOUNT of BUDGET DEFICIT CONTROL of INCOME and EXPENDITURE of the State, and the BUDGET of INCOME and EXPENDITURE AREA, as well as the CUMULATIVE NUMBER of LOANS to the CENTRAL GOVERNMENT and LOCAL GOVERNMENTS, the PRESIDENT of the REPUBLIC of INDONESIA, Considering: a. that in order to achieve and maintain macroeconomic stability required a healthy fiscal performance and continuous improvement;
., b., that in order to realize a healthier fiscal performance and continuous cumulative sum control to do deficit Budget revenue and Expenditure of the State (STATE BUDGET), and the budget of income and Expenditure area (GRANT), as well as the cumulative number of loans to the Central Government and local governments;
.,, c. that to keep the NATIONAL BUDGET and a GRANT arrangement is done in accordance with the financial capabilities of the State, as mandated in article 12 and article 17 of Act No. 17 of 2003 about the finances of the State, hence the need to establish a government regulation on the control of the amount of the cumulative STATE BUDGET Deficits and BUDGETS, as well as the cumulative number of Loans to the Central Government and local governments;
.,, Considering: 1. Article 5 paragraph (2) of the 1945 Constitution as amended by the fourth Change the Constitution of 1945;
., ,2. Act No. 25 of 1999 regarding Financial Equalization between the Central Government and the regions (State Gazette of the Republic of Indonesia year 1999 Number 72, State Gazette Supplementary Number 3857);
., ,3. Act No. 17 of 2003 about State Finances (State Gazette of the Republic of Indonesia Number 47 in 2003, an additional State Gazette Number 4286);
DECIDED:.,, set: GOVERNMENT REGULATION ABOUT CONTROL of the AMOUNT of the CUMULATIVE DEFICIT BUDGET of REVENUE and EXPENDITURE of the State, and the BUDGET of INCOME and EXPENDITURE AREA, as well as the CUMULATIVE NUMBER of LOANS to the CENTRAL GOVERNMENT and local governments.
CHAPTER I GENERAL PROVISIONS article 1 In this Government Regulation is:.,, 1. The Central Government is the unitary State of the Republic of Indonesia which consists of the President along with his ministers.
., ,2. The regional government is the head of the region along with other autonomous devices as regional executive body composed of the provincial government, County Government, and the City Government.
., ,3. Budget revenue and Expenditure of the State, hereinafter referred to as NATIONAL BUDGET, the annual financial plan is the Government of a country that was approved by the House of representatives.
., ,4. Budget revenue and Expenditure areas, hereinafter referred to as BUDGETS, annual financial plan is local governance approved by the House of representatives of the region.
., ,5. Central Government loan is a loan the Central Government from within the country and abroad with a period of more than one year.
., ,6. Local government loans are loans of local government in the country and abroad with a period of more than one year.
., ,7. STATE BUDGET deficit is the difference between State income and less spending countries in the same fiscal year.
., ,8. BUDGETS deficit is the difference between income less area and shopping districts in the same fiscal year.
., ,9. Gross domestic product, hereinafter referred to as the GDP is the total value of the entire final goods and services produced in Indonesia in a given year are calculated according to market prices by the Central Bureau of statistics.
CHAPTER II the CUMULATIVE AMOUNT of the HIGHEST LIMIT DEFICITS and CUMULATIVE NUMBER of LOANS, article 2, (1) BUDGET drawn up in accordance with the needs of the State and Government of the Organization of the ability in the muster State revenue.
.,, (2) GRANT BUDGET drawn up in accordance with the needs of organization of local governance and the ability of regional income.
.,, (3) within the framework of fiscal management, the Minister of Finance has the task of putting together a fiscal policy and macroeconomic framework.
Section 3.,, (1) in terms of the BUDGET deficit, predicted to set out the sources of financing to cover the deficit in the law on the STATE BUDGET.
.,, (2) in the event of a GRANT estimated deficit, set out the sources of financing to cover the deficit in the BUDGETS of local regulations.
Section 4.,, (1) the amount of the cumulative deficit of the STATE BUDGET and a GRANT limited does not exceed 3% (three percent) of the GDP of the year concerned.
.,, (2) the cumulative amount of loans to the Central Government and local governments is limited not exceeding 60% (six plutonium-luh percent) of the GDP of the year concerned.
.,, (3) the cumulative amount of loans to the Central Government and local Government referred to in paragraph (2) is the total Central Government loan after deducting the loans granted to local Governments plus the total loans of the entire local government after deducting loan granted to the Central Government and/or other local government.
Article 5, (1) in terms of the cumulative STATE BUDGET deficits and BUDGETS do not exceed 3% (three per cent) of GDP and/or the amount of cumulative lending to the Central Government and local governments do not exceed 60% (sixty percent) of GDP:.,,.,, a. Central Government can do loans in both domestic and foreign.
.,, b. local authorities can do a loan from either the Central Government or from other sources.
.,, c. Regional Loans are sourced from abroad, carried out through mechanisms of forwarding a loan.
.,, (2) loan execution of local governments from the Central Government as well as from other sources referred to in subsection (1) is carried out in accordance with the provisions of the applicable legislation.
CHAPTER III MONITORING of DEFICITS and the DETERMINATION of the MAXIMUM LOAN LIMITS, article 6, (1) the Minister of finance deficit BUDGETS and monitor the development of the local government borrowing in order not to exceed the provisions as referred to in article 4.
.,, (2) implementation of the Guidelines and monitoring mechanisms referred to in subsection (1) is designated by the Minister of finance.
Article 7 having regard to circumstances and the estimated development of the national economy, the Minister of finance each August set a limit of a maximum loan of local government as a whole for the next fiscal year.

Article 8.,, (1) in the case of doing a loan, local government is obliged to meet the requirements of the following:.,,.,, a. the amount of the remaining loan area plus the loan amount will be withdrawn does not exceed 75% (seventy five percent) from the previous year's public acceptance of a GRANT; b. Debt Service Coverage Ratio (DSCR) of at least 2.5;., c. financial report two previous fiscal year have been audited by the Financial Examiner;
.,, d. has no delinquent loans to Central Government and/or foreign lenders.
.,, (2) the requirements referred to in subsection (1) the letter d is not enforced when a loan intended areas done to improve loan profile.
CHAPTER IV TRANSITIONAL PROVISIONS article 9.,, (1) the provisions as referred to in article 4 must be filled with at least 2 (two) years after government regulation is enacted.
.,, (2) the provisions referred to in article 8 paragraph (2) Letter c came into force two years after the Government regulation is enacted.
Chapter V CLOSING PROVISIONS article 10 this Regulation comes into force on the date specified.

In order to make everyone aware of it, ordered the enactment of this Regulation with its placement in the State Gazette of the Republic of Indonesia.

.,, Set in Jakarta on April 5, 2003 the PRESIDENT of the Republic of INDONESIA, MEGAWATI SUKARNOPUTRI Enacted in Jakarta on April 5, 2003, SECRETARY of STATE of the REPUBLIC of INDONESIA, BAMBANG KESOWO RI STATE GAZETTE SUPPLEMENTARY No. 4287 (explanation of the 2003 State Gazette Number 48) EXPLANATION of GOVERNMENT REGULATION of the REPUBLIC of INDONESIA NUMBER 23 in 2003 ABOUT the CUMULATIVE AMOUNT of BUDGET DEFICIT CONTROL of INCOME and EXPENDITURE of the STATE , And BUDGET REVENUES and SHOPPING DISTRICTS, as well as the CUMULATIVE NUMBER of LOANS to the CENTRAL GOVERNMENT and LOCAL GOVERNMENTS, the PUBLIC, Act No. 17 of 2003 about the finances of the State stipulates that the NATIONAL BUDGET and a GRANT drawn up in accordance with the needs of the State and Government of the Organization of the ability in the muster State revenue. The principle of fiscal management prudent and sustainable requires the existence of a fiscal balance (balanced budget). However, in the specific form of the Central Government and local government could run a budget surplus or deficit in accordance with the financial condition of the country/region and State of economy facing the Central Government/local government. In terms of NATIONAL BUDGET estimated a surplus, the Central Government may submit plans use of surplus budget to the House of representatives. Similarly in terms of estimated surplus BUDGETS, assigned the use of surplus budgets in local regulations about BUDGETS.
.,, In terms of estimated STATE BUDGET deficit, set out the sources of financing to cover the deficit in the law on the STATE BUDGET, as well as in terms of estimated BUDGETS deficits, set out the sources of financing to cover the deficit in the BUDGETS of local regulations. In keeping with the Government's fiscal sustainability need to perform control of the amount of the cumulative STATE BUDGET deficits and BUDGETS, as well as the cumulative number of loans to the Central Government and local governments in order not to cause heavy loads for the finances of the State.

The SAKE ARTICLE ARTICLE article 1, article 2, clear enough, clear enough, article 3, article 4, is pretty clear

.,, In certain circumstances, the Central Government or regional government can run budget deficits in accordance with the financial and economic circumstances facing. In order for the budget deficit and/or the amount of the loan does not bring negative impact on the stability of macro-economy in the short and medium term, both the deficit as well as the total loan needs to be controlled. Appropriate norms in the areas of fiscal management, the amount of the cumulative deficit of the STATE BUDGET and the BUDGETS of most restricted high 3% (three per cent) of GDP, while the cumulative number of loans to the Central Government and local governments restricted most high 60% (sixty percent) of GDP.

The cumulative number of loans to the Central Government and local governments is calculated with the following formula: Net Lending = Lending Total Central Government Central Government reduced accounts receivable Net of loans to local governments local governments = Total loan Receivables reduced local governments to the Central Government and/or the Receivables to the Government.

The cumulative number of loans to the Central Government and local government Net Lending = Central Government plus Net Lending of local government section 5., pretty clear, article 6, article 7, is clear enough, clear enough, article 8, paragraph (1), letter a,.,, is a general acceptance of a GRANT is the entire acceptance of a GRANT does not include the Special Allocation Fund, emergency fund, loan fund, and other limited its acceptance to finance specific expenditure.

Is the rest of local government loans are loans of local government that has already drawn reduced loans already paid, whereas the definition of a loan which will be pulled is the loan disbursement plan in the year in question. Letter, b., Debt Service Coverage Ratio (DSCR) is a comparison between the Original sum of revenue areas, parts of the area from the Earth and building Tax, Bea acquisition of land rights and natural resources, revenues, and other parts of the Region such as Individual income tax, as well as the allocation of Public Funds, after deducting Mandatory Spending, with the sum in installments of principal, interest, and other loan fees due.

Debt Service Coverage Ratio (DSCR) can be written with the following formula: DSCR = (PAD + BD + DAU)-BW > 2.5 –-–-–-–-–-–-–-–-–-–-–-–-–-– P + B + BL DSCR = Debt Service Coverage Ratio;

PAD = Original Income Areas;

BD = Section Area of Earth and building Tax, Bea acquisition of Rights over the land and buildings, and acceptance of natural resources, as well as other Areas such as parts of the Individual income tax;

Allocation Of Public Funds = DAU;

BW = Mandatory, i.e. Shopping shopping shopping and LOCAL employees in the fiscal year concerned;

P = principal loan installment due in the fiscal year concerned;

B = interest loans due in the fiscal year concerned;

BL = other costs (bank charges commitment fee,, and others) are maturing. The letter c, letter d, clear enough, clear enough, subsection (2),, is a loan profile area is the loan terms include a period and the cost of the loan.

Article 9, article 10, is clear enough, clear enough,