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Government Regulation Number 23 2003

Original Language Title: Peraturan Pemerintah Nomor 23 Tahun 2003

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SHEET COUNTRY
REPUBLIC OF INDONESIA

No. 48, 2003 (Explanation in Additional State Sheet of Indonesia Number 4287)

GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA
No. 23 YEAR 2003
ABOUT
CONTROL OF THE CUMULATIVE AMOUNT OF INCOME BUDGET DEFICIT AND
STATE SHOPPING, AND THE BUDGET AND SHOPPING AREA OF THE AREA,
AS WELL AS THE CUMULATIVE AMOUNT OF CENTRAL GOVERNMENT LOANS
AND THE LOCAL GOVERNMENT

PRESIDENT OF THE REPUBLIC OF INDONESIA,

.,, weighed: a. that in order to achieve and maintain the macroeconomic stability required a healthy and sustainable fiscal performance;
., b. that in order to ensure a healthy and sustainable fiscal performance needs to be done controlling the cumulative amount of the State Revenue and Shopping Budget deficits (APBN), and the Regional Revenue and Shopping Budget (APBD), as well as the cumulative amount of loan of the Central Government and the Local Government;
., c. that to keep the drafting of APBN and APBD done in accordance with the country ' s financial capabilities, as mandated in Section 12 and Article 17 Act Number 17 Years 2003 on State Finance, then the need to establish Government Regulation on the Controlling of the APBN and APBD deficits, as well as the Cumulative Amount Of Central Government Loans and Local Governments;

.,, Given: 1. Section 5 of the paragraph (2) of the Basic Law of 1945 as amended by the Fourth Amendment of the Basic Law of 1945;
., 2. Act No. 25 of 1999 on the Financial Balance between the Central and Regional Governments (State of the Republic of Indonesia 1999 No. 72, Additional Gazette State Number 3848);
., 3. Act No. 17 of 2003 on State Finance (State Sheet of the Republic of Indonesia Year 2003 Number 47, Additional Gazette Number 4286);

DECIDED:

.,, SET: GOVERNMENT REGULATIONS ON CONTROLLING THE CUMULATIVE AMOUNT OF INCOME BUDGET DEFICITS AND STATE SPENDING, AND THE BUDGET AND SHOPPING AREAS OF THE AREA, AS WELL AS THE CUMULATIVE AMOUNT OF CENTRAL GOVERNMENT LOANS AND LOCAL GOVERNMENT.

BAB I
UMUM PROVISIONS

Section 1
In this Government Regulation referred to by:
., 1. The Central Government is a State of the Republic of Indonesia which is composed of the President and his ministers.
., 2. The Regional Government is the Regional Head and other Autonomous Region's device as the regional executive body consisting of the provincial government, the county government, and the municipal government.
., 3. The State Revenue and Shopping Budget, later called the APBN, is the annual financial plan of the state government approved by the People's Representative Council.
., 4. The Regional Revenue and Shopping Budget, later called the APBD, is an annual financial plan of local government approved by the Regional People's Representative Council.
. .5. Central Government loans are the Central Government loans from within the country and abroad with a term of more than a year.
., 6. Regional Government loans are the loans of the State Government in the country and abroad for over a year.
., 7. The APBN deficit is a less difference between state income and state spending in the same budget year.
., 8. The APBD deficit is a less difference between regional income and area spending in the same budget year.
., 9. Gross Domestic Product, subsequently called GDP, is the total end value of all goods and services produced in Indonesia within a given year that is calculated according to market prices by the Central Bureau of Statistics.

BAB II
THE HIGHEST LIMIT ON THE CUMULATIVE AMOUNT OF THE DEFICIT
AND THE CUMULATIVE AMOUNT OF LOANS

Section 2
.,, (1) APBN is drafted in accordance with the needs of the holding of state government and the ability in raising state revenue.
.,, (2) APBD is compiled in accordance with the needs of the holding of local governance and regional revenue capabilities.
.,, (3) In order of fiscal management, the Finance Minister has the task of compiling a fiscal policy and macroeconomic framework.

Section 3
.,, (1) In terms of the APBN estimated the deficit, set the financing sources to close those deficits in the Act on APBN.
.,, (2) In terms of the APBD estimated the deficit, set the financing sources to close those deficits in the Regional Regulation on APBD.

Section 4
.,, (1) The cumulative amount of APBN and APBD deficits is limited not to exceed 3% (three percent) of the GDP of the year concerned.
.,, (2) The cumulative amount of Central Government loans and Local Government is limited not to exceed 60% (six-30 percent) of the GDP of the year concerned.
., (3) The cumulative amount of Government Central and Local Government loans as referred to in paragraph (2) is the total loan of the Central Government after minus the loans provided to the Local Government plus the total loan of the entire State Government after minus the loans granted to the Central Government and/or other Local Government.

Section 5
.,, (1) In terms of the cumulative amount of the APBN and APBD deficits not exceeding 3% (three percent) of GDP and/or the cumulative amount of the loan of the Central Government and the Regional Government not exceeding 60% (sixty percent) of GDP:
.,
., a., a. The Central Government can conduct loans both within the country and abroad.
., b. The Local Government can conduct loans either from the Central Government and from other sources.
., c. Regional loans sourced from abroad, carried out through the lending mechanism of the loan.
.,, (2) The implementation of Local Government loans from the Central Government and from other sources as referred to in paragraph (1) is conducted in accordance with the provisions of the applicable laws.

BAB III
MONITORING OF THE DEFICIT AND THE DESIGNATION
THE MAXIMUM LOAN LIMIT

Section 6
.,, (1) the Finance Minister is monitoring the development of the APBD deficit and the Regional Government loan in order not to exceed the provisions as referred to in Article 4.
.,, (2) The guidelines of execution and monitoring mechanisms as referred to in paragraph (1) are set forth by the Minister of Finance.

Section 7
With regard to the current state and forecast of national economic development, the Minister of Finance every August sets the overall limit on the Regional Government loans for the next budget year.

Section 8
.,, (1) In terms of conducting a loan, the Local Government is obliged to meet the requirements as follows:
.,
., a., a. The amount of remaining area loans plus the amount of loans to be withdrawn does not exceed 75% (seventy-five percent) of the general admission of APBD the previous year;
B. The Debt Service Coverage Ratio (DSCR) is at least 2.5;
., c. The two-year financial statements of the previous budget have been audited by the Financial Examiner ' s Agency;
., d. It has no arred loans to the Central Government and/or overseas lenders.
.,, (2) The requirements as referred to in paragraph (1) of the letter d are not enforced if the area loan is referred to in order to correct the loan profile.

BAB IV
THE TRANSITION PROVISION

Section 9
.,, (1) The provisions as referred to in Article 4 already must be met at least 2 (two) years after this Government Regulation is promulred.
.,, (2) The provisions as referred to in Article 8 of paragraph (1) of the letter c are enacted 2 (two) years after this Government Regulation is promulred.

BAB V
CLOSING PROVISIONS

Section 10
This Government Regulation shall come into effect at the specified date.

In order for everyone to know it, order the invitational of this Government Regulation with its placement in the State Sheet of the Republic of Indonesia.

.,, Set in Jakarta
on April 5, 2003
PRESIDENT OF THE REPUBLIC OF INDONESIA,

MEGAWATI SOEKARNOPUTRI
Promulgated in Jakarta
on April 5, 2003
STATE SECRETARY OF THE REPUBLIC OF INDONESIA,

BAMBANG KESOWO

ADDITIONAL
STATE SHEET RI

No. 4287 (Explanation Of 2003 State Sheet Number 48)

EXPLANATION
Above
GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA
No. 23 YEAR 2003
ABOUT
CONTROL OF THE CUMULATIVE AMOUNT OF INCOME BUDGET DEFICIT
AND STATE SPENDING, AND THE BUDGET AND SHOPPING AREA OF THE AREA,
AS WELL AS THE CUMULATIVE AMOUNT OF CENTRAL GOVERNMENT LOANS
AND THE LOCAL GOVERNMENT

UMUM

.,, Act No. 17 of 2003 on State Finance stipulating that APBN and APBD are drafted in accordance with the needs of the holding of state governance and the capability in setting up state revenue. The principle of careful and continuous fiscal management wants a balanced budget. However, in certain circumstances the Central Government and the Local Government may run surplus or deficit budgets in accordance with the financial conditions of the state/region and the economic circumstances facing the Central Government/Local Government. In terms of APBN estimated to be surplus, the Central Government may submit a plan of using the budget surplus to the People ' s Representative Council. Similarly in terms of APBD is estimated to be surplus, set to use the budget surplus in the Regional Regulation on APBD.
., in terms of the APBN estimated the deficit, set sources of financing to close those deficits in the Act on APBN, likewise in terms of APBD expected deficit, set sources of financing to close the deficit It's in the Regional Rules of the APBD. In order to maintain fiscal continuity the Government needs to control the cumulative amount of the APBN and APBD deficits, as well as the cumulative amount of Central Government loans and the Regional Government in order not to inflict heavy burden on the Government. State finance.

SECTION BY SECTION

Section 1
.,, pretty clear.

Section 2
.,, pretty clear.

Section 3
.,, pretty clear.

Section 4
.,, under certain circumstances, the Central Government or the Local Government can run the deficit budget according to the financial and economic circumstances that it faces. In order for the budget deficit and/or the amount of loans did not bring a negative impact on macroeconomic stability in the short and medium term, both the deficit and the total loans needed to be controlled. In accordance with the good rules of fiscal management, the cumulative amount of APBN and APBD deficits are at least 3% (three percent) of GDP, while the cumulative amount of government loans in the Central Government and Local Government is at least 60%. (sixty percent) of GDP.
The cumulative amount of Government Central and Local Government loans is calculated with the formula as follows:
Net Loan Government Center = Total Loan The Central Government is reduced Pidebt to the Local Government
Net Loans Local Government = Total Regional Government Loans Reduced the debt to the Central Government and/or the debt to the Other Local Government.
Cumulative number of loans from the Central Government and Local Government = Net Loan The Government of the Centre plus Net Local Government Loans

Section 5
.,, pretty clear.

Section 6
.,, pretty clear.

Article 7
.,, pretty clear.

Article 8
.,, Verse (1)
.,, the letter a
.,, referred to the general acceptance of the APBD is that all APBD receipts do not include Special Alocation Funds, Emergency Funds, old loan funds, and other receipts whose usedness is restricted to financing certain expenses.
In question, the remainder of the Local Government's loan is the retracted Regional Government loan minus the paid loan, whereas the intended loan to be withdrawn is the loan plan of the loan fund year in question.
Letter b
.,, Debt Service Coverage Ratio (DSCR) is a comparison between the Regional Original Income summation, the Regional Section of the Earth Tax and Building, the Land and Building Rights Acquisition, the Natural Resources Reception, and other parts of the Regions such as the Personal Income Tax, as well as the General Alocation Fund, after minus the Wajib Shopping, with the summation of the underlying installment, interest, and other borrowing costs due.
The Debt Service Coverage Ratio (DSCR) can be written with the formula as follows:
DSCR = (PAD + BD + DAU)-BW > 2.5
---------------------------
P + B + BL
DSCR = Debt Service Coverage Ratio;
PAD = Regional Original Revenue;
BD = Regional Parts of the Earth Taxes and Buildings, Acquisition of the Right Lands and Buildings, and acceptance of natural resources, as well as other parts of the Regions such as of the Individual Income Tax;
DAU = General Alocation Fund;
BW = Wajib Shopping, i.e. shopping of employee and shopping DPRD within the budget year in question;
P = the underlying installment of the loan that is due in the budget year in question;
B = loan interest maturing in the corresponding budget year;
BL = other costs (commitment costs, bank fees, and others) due.
Letter c
.,, pretty clear
Letter d
.,, pretty clear
Verse (2)
.,, which is referred to the area ' s loan profile is a loan requirement that covers the term and cost of the loan.

Article 9
.,, pretty clear.

Article 10
.,, pretty clear.