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Act No. 25 Of 1999

Original Language Title: Undang-Undang Nomor 25 Tahun 1999

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erning Duties are financed over the load of APBN.
., (4) Surrender or devolution of the authority of the Central Government to the Governor or the submission of the authority or assignment of the Central Government to the Regent/Mayor followed by its celebration.

BAB III
ACCEPTANCE SOURCES
DECENTRALIZATION EXECUTION

The First Part
Area Acceptance Sources

Section 3
Regional acceptance sources in the implementation of the Decentralization are:
a. Regional Original Income;
B. Balancing funds;
C. Regional Loans;
D. Other-other valid Acceptance.

The Second Part
Native Revenue Source

Section 4
The Regional Real Revenue Source as referred to in Article 3 of the letter a consists of:
a. Regional tax results;
B. result of the Regional levy;
.,, c. the results of the Regional-owned company and the results of other Regions ' wealth management which are separated;
D. Other-other valid Regional Original Income.

Section 5
., (1) The provisions of the Regional Tax and Regional Levy as referred to in Article 4 of the letter a and the letter b are governed by the Act.
., (2) The terms of the company belonging to the Regions and the management of other Regions of Wealth that are separated as referred to in Section 4 of the letter c are governed in accordance with applicable laws.

The Third Part
The Balance Fund

Section 6
(1) The Balance Fund consists of:
.,
., a., a. The Regions section of the Earth Tax receipts and Buildings, Land and Building Rights Acquisition, and the reception of natural resources;
B. General Allocation Funds;
C. Special Allocation Fund.
.,, (2) The State Reception of the Earth Taxes and Buildings is divided by a balance of 10% (ten percent) for the Central Government and 90% (ninety percent) for the Regions.
.,, (3) The Application of the State of the Customs Rights of the Land and Building was divided by a balance of 20% (twenty percent) for the Central Government and 80% (eighty percent) for the Regions.
.,, (4) 10% (ten percent) of the receipt of the Earth Tax and Building and 20% (twenty percent) acceptance of the Land and Land Rights Acquisition of the Land and Building which became part of the Central Government as referred to in paragraph (2) and paragraph (3) is shared to The whole county and town.
.,, (5) The state acceptance of the natural resources of forestry sector, the public mining sector, and the fisheries sector are divided by a 20% (twenty percent) balance for the Central Government and 80% (eighty percent) for the Regions.
.,, (6) The State Reception of the natural resources of the oil mining sector and natural gas produced from the region of the area concerned is divided by the following balance:
.,
., a., a. State acceptance of petroleum mining derived from the area of the Regions after minus the tax component in accordance with the applicable provisions divided by the balance of 85% (eighty-five percent) for the Central Government and 15% (fifteen percent) for the Regions.
., b. State acceptance of natural gas mining derived from the area of the Regions after minus the tax component in accordance with applicable provisions divided by a balance of 70% (seventy percent) for the Central Government and 30% (thirty percent) for the Area.

Section 7
.,, (1) The General Alocation Fund is set at at least 25% (twenty-five percent) of the Internal Reception set out in the APBN.
.,, (2) the General Alocation Fund for the Propinsi Region and for the County/City Regions is set each 10% (ten percent) and 90% (ninety percent) of the General Alocation Fund as specified in paragraph (1).
.,, (3) In the event of a change of authority between the Propinsi Area and the District/City Area, the percentage of the General Alocation Fund for the Propinsi Region and the District/City Regions as referred to in paragraph (2) is adjusted to such change.
.,, (4) The General Alocation Fund for a particular Propinsi Region is set on the basis of the number of General Alocation Funds for the entire Propinsi Region set out in APBN, with the portion of the Propinsi Region in question.
., (5) The Portion of the Propinsi Region as referred to in verse (4) is the proportion of the weight of the Province of Propinsi concerned over the weight of all Propinsi Regions across Indonesia.
.,, (6) the General Alocation Fund for a particular County/City Area is set based on the multiplicity of the General Alocation Fund for the entire County/City Area specified in APBN with the portion of the County/City area in question.
.,, (7) The County/City Area Portion as referred to in paragraph (6) is the proportion of the weight of the District/City concerned to the weight of all County/City areas across Indonesia.
(8) The Regional Bobot is set based on:
., a., a. the needs of the Regional autonomous region;
B. Regional economic potential.
.,, (9) The count of general allocation funds based on the formula as referred to in paragraph (4), paragraph (5), paragraph (6), paragraph (7), and paragraph (8) is performed by the Secretariat for the Central and Regional Financial Balance.

Section 8
.,, (1) Special Alocation Funds may be allocated from APBN to certain Regions to help finance special needs, with regard to availability of funds in the APBN.
(2) The special needs as referred to in paragraph (1) are:
.,
., a., a. needs that cannot be estimated by using the general allocation formula; and/or
B. needs that are a national commitment or priority;
.,, (3) Special Alocation Funds as referred to in paragraph (1) include those derived from reboization funds.
(4) The reboization fund is divided by balance:
.,
., a., a. 40% (forty percent) was distributed to the producing area as the Special Alocation Fund.
B. 60% (sixty percent) for the Central Government.
.,, (5) Unless in order of rebozation, the Region which gets the financing of special needs as referred to in paragraph (2) provides a companion fund of the APBD in accordance with the relevant Regions ' ability.

Section 9
The magnitude of the Balance Fund as referred to in Article 6 of the paragraph (1) is set each year of the budget in the APBN.
., 19. The Special Allocation Fund is a fund derived from APBN, which is allocated to the Regions to help finance certain needs;
., 20. The Regional Documents are all documents published by the Government of the Regions which are open and placed in the Section Sheet.

BAB II
FINANCING BASICS
LOCAL GOVERNMENT

Section 2
.,, (1) The event of the Regional duties in the framework of the Decentralization is financed over the load of APBD.
.,, (2) The compliance of the Central Government tasks implemented by the Propinsi Regional device in order for the implementation of Deconcentration is financed over the load of APBN.
.,, (3) The hosting duties of the Central Government implemented by the Regional and Village devices in the framework of the Govto in paragraph (1) is set with the Regional Regulation.
.,, (4) All reserve funds acceptance as referred to in paragraph (1) and all expenses on the backup of the reserve funds are administered in the APBD.

Section 23
.,, (1) The provisions of the areas of the Regional financial management are set up with the Regional Regulations.
.,, (2) The System and Regional financial management procedures are governed by the Decree of the Regional Head in accordance with the Regional Regulation as referred to in paragraph (1).

The Second Part
The Regional Financial Accouncanswer Report

Section 24
.,, (1) The Regional Chief delivers a report of accountability to the DPRD regarding:
.,
., a., a. Area's financial management as referred to in Article 19, Section 20, Section 21, and Section 22;
., b. Regional financial performance in terms of efficiency and financial effectiveness in the implementation of the Decentralization.
.,, (2) The DPRD in the open plenary session accepts or refuses by asking to fine-tune the account of the accountability as referred to in paragraph (1).
3) The Regional financial accountability report is the Regional Document.

The Third Part
Area Finance Check

Section 25
The examination of the implementation, management, and financial accountability of the Regions is conducted in accordance with the applicable laws.

Section 26
The provisions of the underlying point of management and financial responsibility of the Regions as referred to in Article 23 and Section 24, are governed by the Government Regulation.

BAB VII
THE AREA FINANCIAL INFORMATION SYSTEM

Section 27
(1) The Central Government organizes a Regional financial information system.
.,, (2) The information contained in the Regional financial information system as referred to in paragraph (1) is an open data that people can know.
., (3) Further provisions concerning the hosting of the Regional financial information system as referred to in paragraph (1) are governed by the Decree of the Minister of Finance.

Section 28
.,, (1) The area is obliged to convey information relating to the Regional Finance to the Central Government including Regional Loans.
.,, (2) The implementation of the provisions as referred to in paragraph (1) is governed with the Government Regulation.

BAB VIII
FINANCE BALANCE FIELD SECRETARIAT
THE CENTER AND THE AREA

Section 29
.,, (1) the Secretariat of the Financial Balance Field and the Regions in charge of preparing the recommendation of the Regional Autonomy Advisory Council on the financial balance of the Centre and Regions as well as other matters relating to the management of the Regional Finance.
.,, (2) Further provisions on the Secretariat as referred to in paragraph (1) are governed by the Presidential Decree.

BAB IX
THE TRANSITION PROVISION

Section 30
.,, (1) The laws relating to Regional Finance throughout the non-contradictory and unadjusted Act of this Act still remain in effect.
(2) The adjustment as referred to in paragraph (1) is exercised at least 2 (2) years after the Act is enacted.

Section 31
.,, (1) In APBN it can be allocated funds to directly finance the Decentralization affair other than the Regional acceptance source as referred to in Article 3.
.,, (2) The provisions of paragraph (1) apply only to the most lasting 2 (two) year of the budget since the promulgations of this Act.
.,, (3) the direct financing of the APBN as referred to in paragraph (1) is excluded from the provisions of Article 19 of the paragraph (1).
.,, (4) Each year of the budget, the related technical ministers compiled a report of all the projects and activities detailed according to:
., a., a. sectors and subsectors for development shopping;
., b. Department/non-department organization organization units for routine spending;
.,, c. projects and activities that are implementation are managed by the Central Government, as well as projects and activities that activities are managed by the Regions for all shopping.
(5) The report as referred to in paragraph (4) is delivered to the DPR.

BAB X
CLOSING PROVISIONS

Section 32
By The Law Of This Act, The Law Number 32 Of 1956 On The Financial Balance Between The States And The Areas, Which Was To Take Care Of The House Of Its Own (the State Sheet Of 1956 Number 77, The Number Of State Leaves. 1442) is declared not valid.

Section 33
This law goes into effect on the promulgated date.

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

.,, Dislocated in Jakarta
on May 19, 1999
PRESIDENT OF THE REPUBLIC OF INDONESIA

BACHARUDDIN JUSUF HABIBIE
Promulgated in Jakarta
on May 19, 1999
MINISTER OF STATE SECRETARY OF STATE
REPUBLIC OF INDONESIA,

-PROF. -DR. H. MULADI, S.H.

ADDITIONAL
STATE SHEET RI

No. 3848. (Explanation Of State Sheet 1999 Number 72)

EXPLANATION
Above
CONSTITUTION OF THE REPUBLIC OF INDONESIA
Number 25, 1999
ABOUT
FINANCIAL BALANCE
BETWEEN THE CENTRAL GOVERNMENT AND THE AREA

UMUM
.,, in order to host state government and national development to achieve the fair, prosperous, and evenly divided society based on Pancasila and the Basic Law of 1945, Article 1 of the Basic Law of 1945 establishes the State of Indonesia is Republic of the Republic of the Republic. Further in Article 18 of the Basic Law of 1945 and its explanation states that the regions of Indonesia are divided into autonomous or administrative regions.
.,, Development of the area as an integral part of national development is exercised based on the principle of regional autonomy and the setting up national resources that provide opportunities for increased democracy and regional performance to improve Society's welfare to the tapestry is free of corruption, collusion, and nepotism. The establishment of local government as a sub-system of state government is intended to improve the purpose and outcome of the governmenThe APBD calculation is set at least 3 (three) months after the end of the year of the budget year in question.

Section 21
The spending budget in APBD should not exceed the admissions budget.

Section 22
(1) The area may form a reserve fund to finance certain needs.
.,, (2) The reserve funds as referred to in paragraph (1) are reserved from the Regional acceptance source.
.,, (3) Any form of backup funds as referred for the smooth. implementation of the submission and the devolution of such authority.
Meanwhile, the assignment of the Central Government to the Regions in the framework of the Buyer's duties is accompanied by a budget allocation.

Section 3
.,, the letter a
.,, referred to as the Regional Original Income is the admission obtained by the Regions from the sources within its own territory that are levied under the Regional Regulations in accordance with applicable laws.
Letter b
.,, pretty clear
Letter c
.,, pretty clear
Letter d
.,, Other-Other valid admissions, among others, grants, Emergency Funds, and other admissions in accordance with applicable laws.

Section 4
.,, the letter a
.,, pretty clear
Letter b
.,, pretty clear
Letter c
.,, the types of admissions that include the results of other Regions 'wealth management are separated, among other things, the profit portion, the dividend, and the sale of the Regions' shares.
Letter d
.,, Other-other Legal Native Revenue, among others, the proceeds of the sale of fixed assets of the Regions and the services of giro.

Section 5
.,, Verse (1)
.,, the Regional Tax Types and the Regional levy is adjusted to the authority submitted to the Propinsi Region and the District/City Area. The adjustments were made by changing the Law No. 18 of 1997 on Regional Taxes and Regional Retribution.
Verse (2)
.,, pretty clear

Section 6
.,, Verse (1)
.,, the letter a
., referred to as the Regions section of the acceptance of natural resources is the Regional part of the acceptance of the State derived from the management of natural resources, among others, in the field of general mining, oil and natural gas mining, forestry, And fishery.
Letter b
.,, the use of this fund is set entirely by the Regions.
Letter c
.,, pretty clear
Verse (2)
.,, further divisions between the Propinsi Area and the District/City Regions are governed in accordance with the applicable laws.
Verse (3)
.,, further divisions between the Propinsi Area and the District/City Regions are governed in accordance with the applicable laws.
Verse (4)
.,, pretty clear
Verse (5)
.,, the Regions Section derived from the acceptance of natural resources from the forestry sector, the general mining sector, and the fishing sector received from the Central Government are set to be the following:
a. The forestry sector is divided as follows:
.,
.,, 1) 80% (eighty percent) of the Forest Service Entrepreneurial Privileges are shared with the details:
., a., a. Propinsi section of 16% (sixteen percent);
B. County/City of producing cities is 64% (sixty-four percent).
.,, 2) 80% (eighty percent) of the Forest Resource Provision acceptance is shared with the details:
., a., a. Propinsi section of 16% (sixteen percent);
B. County/City part of producing size 32% (thirty-two percent);
.,, c. other County/Town sections in the Propinsi in question amounted to 32% (thirty-two percent).
B. The mining sector is generally divided as follows:
.,
.,, 1) 80% (eighty percent) of Fixed Iuran admissions (Land-rent) are shared with the details:
., a., a. Propinsi section of 16% (sixteen percent);
B. County/City of producing cities is 64% (sixty-four percent).
.,, 2) 80% (eighty percent) of exploration dues and dues (royalty) receipts are shared with the details:
., a., a. Propinsi section of 16% (sixteen percent);
B. County/City part of producing size 32% (thirty-two percent);
.,, c. district/other parts of the City in the Propinsi concerned by 32% (thirty-two percent).
., d. 80% (eighty percent) of Fisheries and Fisheries Service levies are distributed evenly to the rest of the District/City in Indonesia.
Verse (6)
.,, the letter a
.,, Section Section as referred to in paragraph (6) of this letter is shared with the following details:
i. The Propinsi section is concerned by 3% (three percent);
ii. District/City of producing cities by 6% (six percent);
iii. Other districts/cities in the Propinsi are concerned at 6% (six percent).
Letter b
.,, Section Section as referred to in paragraph (6) the letter b is shared with the following details:
i. The Propinsi section is concerned by 6% (six percent);
ii. District/City of producing cities by 12% (twelve percent);
iii. Other parts of District/City in the Propinsi are concerned with 12% (twelve percent).

Article 7
.,, Verse (1)
.,, the General Alocation Fund as referred to in this paragraph is the sum of all common allocations for the Propinsi Region and for the District/City Area.
The Increase In General Allocation Funds will be in line with the submission and diversion of the Central Government ' s authority to the Regions in the Decentralization framework.
Verse (2)
.,, pretty clear
Verse (3)
.,, the percentage adjustment as referred to in this paragraph is set out in the APBN.
Verse (4) and Verse (5)
.,, The General Allocation Fund Formula as referred to in this paragraph is:

General Allocation Funds for one specific Propinsi =

 The amount of the Allocation Weight Allocation Of Propinsi ybs
General for Region X --------------------------
Propinsi The number of weights from All
of the Propinsi Region
Verse (6) and Verse (7)
.,, The General Allocation Fund Formula as referred to in this paragraph is:

General Allocation Funds for one County/Certain City =
 The Number of Allocated County/City Allocation Funds/ybs General
General for Area X -----------------------------------------------------------------------
Regency/City Number The weighting of all
County/City areas.
Verse (8)
.,, the Regional Bobot is determined based on the results of empirical studies by taking into account the relevant variables.
.,
., a., a. The needs of the least regional autonomy can be reflected in the variables of population, area, geography, and the level of income of the people with regard to poor community groups.
., b. Other regional economic potential can be mirrored by the acceptance of accepted areas such as the industrial potential, potential natural resources, potential human resources, and the Gross Regional Domestic Product.
Verse (9)
.,, the Central and Regional Financial Balance Fields Secretariat also compiles and or maintains the data updates that are variables in that />
.,, pretty clear
Verse (3)
.,, pretty clear
Verse (4)
.,, the Surrender or the devolution of authority of the Central Government to the Governor or Regent/Mayor can be conducted in the course of the Decentralization, Deconcentration, and Duty of the Buyer. Any submission or devolution of authority from the Central Government to the Regions in the Order of Decentralization and Deconcentration is accompanied by the diversion of human resources, and the means as well as the budgeting of the budget required iv> Verse (3)
.,, pretty clear
Verse (4)
.,, pretty clear
Verse (5)
.,, pretty clear
Verse (6)
.,, pretty clear
Verse (7)
.,, the subject matter of this Government Regulation, among others, the form and structure of the Budgeting Duties of the Government, the appropriation and administration of the financial execution of the Task Force by the Governor and its devices, which includes the system and the Planning procedures, implementation of financial oversight and accountability, as per the State's financial mechanism applicable to the APBN.

Section 19
.,, Verse (1)
.,, which is referred to as noted and managed in APBD is included noted and managed in the changes and calculations of the APBD.
Verse (2)
.,, in order to ensure that all receipts and expenses are managed by the Governor or Regent/Mayor with the device are classed in order to exercise Decentralization or in order to exercise Deconcentration or in order The execution of the master's duties. An example of the Puskesmas levy was the acceptance of the implementation of the Decentralization and was administered in the APBD.
Verse (3)
.,, pretty clear
Verse (4)
.,, pretty clear

Section 20
.,, Verse (1)
.,, pretty clear
Verse (2)
.,, pretty clear
Verse (3)
.,, pretty clear

Section 21
.,, the provisions of this section mean the Regions should not be able to spend uncertainties without certainty regarding the availability of its breeding resources and to encourage the Regions to increase the efficiency of its expenditures.

Article 22
.,, Verse (1)
., the provisions of this paragraph give the State the opportunity to set up a reserve fund for the expenditure needs that require relatively large funds that cannot be charged within a single year of budget.
Verse (2)
.,, the reserve funds can be provided from the rest of the budget more last year and/or Regional revenue sources.
Verse (3)
.,, the Regulation of the Regions, among others, sets out the goals of reserve funds, a source of reserve funds funding, and the type of spending that can be financed with such reserve funds.
Verse (4)
.,, the reserve funds are set up and administrated publicly, not kept secret, stored in cash or easily cashed, and all transactions must be listed in the APBD.
It is administered in the APBD to mean the initial balance sheet, all receipts and expenses, as well as the final balance in the form of details of the reserve funds.

Section 23
.,, Verse (1)
.,, the Subject of the Regional Regulation charge, among other things, the framework and outline of the APBD drafting procedure, the Regional Head and DPRD financial authority, the principles of cash management, cash spending authorization, the procurement of goods and goods The services, the procedures of the loans, and the financial accountability.
Verse (2)
.,, the System and Regional financial management procedures include, among other things, organizational structures, documentation, and detailed procedures in the implementation of financial management, aimed at optimizing effectiveness, efficiency, and security. In addition, such systems and procedures should be able to provide information to the Central Government accurately and precisely in time.

Section 24
.,, Verse (1)
.,, the financial accountability report is expressed in one form of report.
Verse (2)
.,, the rejection of the report by the DPRD must be accompanied with a reason.
The further process of the Regional Head's accountability rejection follows the mechanism as referred to in the Law on the Local Government.
Verse (3)
.,, pretty clear

Section 25
.,, pretty clear.

Article 26
.,, the subject of the Government Regulation charge, among other things:
., a., a. the principles for transparency and accountability regarding drafting, alteration, and calculation of APBD, cash management, reporting methods, internal oversight, authorisation, and so on, as well as guidelines for systems and management procedures;
., b. The accountability report guidelines are related to the achieved service, the cost of the unit of activities, and the accounting standards of the Local Government, as well as the percentage of the receipt of the APBD to finance the general administration and the general government.

Section 27
.,, Verse (1)
.,, the source of information for the Regional financial information system especially is the APBD information report as referred to in Pasal24 paragraph (1).
Verse (2)
.,, pretty clear
Verse (3)
.,, the subject matter of the Finance Minister's Decision, among others, the agency responsible for compiling and maintaining the Regional financial information system, the necessary information acquisition procedures, and the manner of the information provision of information to Government agencies and the public.

Article 28
.,, Verse (1)
.,, pretty clear
Verse (2)
.,, the subject matter of the Government Regulation, among other things, the type of information, the form of information reports, the order of drafting, and the delivery of information to the related technical minister.

Article 29
.,, Verse (1)
., the recommendation, among other things, regarding the determination of the magnitude of the General Alocation Fund for each of the Regions based on the established formula and the Regional Financing policy.
Verse (2)
.,, the subject matter of the Presidential Decree, among others, the number and qualifications of members, the layout of the appointment, the working period, as well as the duties and responsibilities of the Secretariat member.

Article 30
.,, Verse (1)
.,, pretty clear
Verse (2)
.,, pretty clear

Article 31
.,, Verse (1)
.,, this paragraph allows the appropriation of the APBN fund to finance the Decentralization business directly for a two-year transition period. This provision, among other things, allows the APBN fund to complete the project that its implementation has started with a sectoral APBN fund before the enactment of this Act. These provisions aim to reduce gradually, within the two-year term, the amount of funding the financing of the Decentralisation ' s affairs previously financed directly from the Centre through the technical department.
Verse (2)
.,, pretty clear
Verse (3)
.,, pretty clear
Verse (4)
.,, Which is referred to each year of the budget in this provision is for 2 (two) budget years in the transition period.
.,, the subject matter of the Government Regulation, among others, the allocation and administration of the Deconcentration of Deconcentration by the Governor and its devices, which includes the system and the planning procedure, the implementation of the Government of the Government. examination/supervision and financial answers, in accordance with the State ' s financial mechanisms applicable to the APBN.

Article 18
.,, Verse (1)
.,, pretty clear
Verse (2)
.,, pretty clear