Sunday, 26 February 2012


             Legislation Council (Baleg) of the House of Representatives expected that amendment of Law No. 17/2003 on State Finance which is currently being discussed should produce qualified and optimal result. This bill needs to be discussed more thoroughly by all members of the Legislation Council so that important inputs from members of the Work Committee on State Finance Bill are much expected. This matter was conveyed by Vice Chairman of Legislation Council, Dimyati Natakusumah, when chairing the meeting of the Work Committee on State Finance Bill at the House of Representatives building.

            It is stated that discussion of the bill requires prudence judgment considering that it is very urgent and important. The former State Finance Law is considered unsystematic and unqualified so it is easy for people to commit violations corruption, collusion, and nepotism (KKN).

            Executive, judicative, and legislative matters are expected to have bigger role, but they are restricted by Government Regulation. Take for example, the case involving the Budget Council of the House of Representatives which still adopts the old Government Regulation in state finance management. While, in fact, Government and legislation is still governed by a Government Regulation.

            Member of the Legislation Council, Nusron Wahid, added that amendment of State Finance Law was once proposed by the House of Representatives of the 2004-2009 period. At that time, there were two crucial matters that should be prioritized, namely why the Law needs to be amended, whether its implementation is considered not in line with legal demand, or whether there is finding of the Constitutional Council about constitutional violation against the substance of Law No. 17/2003. These two matters should receive priority attention before discussion of the bill.

            Other member of the Legislation Council, Rahadi Zakaria, has a similar opinion that the bill should have a strengthening point that could ensure that it will have a long durability. Based on second meeting of the Work Committee on January 19, 2012, there are some conclusions that should be paid attention to, amongst others, the State Finance Bill must be able to realize the relevance between planning document and budget.

            The bill must be able to increase discipline on planning so that APBN (State Budget) absorption will be optimal. It should also incorporate how to limit authority of the related Finance Ministry in state finance management.

            The bill should also incorporate how to manage Non-Tax State Revenue and APBN and should have the proper time for its implementation and accountability. The definition of State Finance should be re-considered if it is related to government’s capital in state-owned enterprises. Separated state assets should be included in APBN. 

Business News - February 10, 2012

No comments: