GOVERNMENT ISSUED REGULATION NO. 05/2015 AS DEFICIT EXCEED TARGET

The Minster of Financial Bambang P.S Brodjogonegoro had issued a Regulation of the Ministry of Finance (PMK) No. 163/PMK. 05.2015 on estimated deficit which exceeded targeted deficit in APBN Sates Budget 2015 and additional financing which was assumed to exceed targeted deficit of APBN 2015.

The OMK Regulation signed on August 2015 was execution of article 19 law 2015 as amended by Law No. 27 year 2014 on APBN 2015 as amended by Law No. 3/2015; targeted deficit of APBN 2015 as amended by Law No. 3/2015 as amended by Law No. 3/2015; target deficit of budget year 2015 as stipulated in Law No. 3/2015 amounting to Rp.222.506.897, 630.000.000,-

According to the said PMK, the for Asset Liability (ALM) the Ministry of Finance had today counted the magnitude of estimated deficit which exceed target deficit of APBN year 2015 based on:

a.   Projection of macroeconomic assumption

b.   Projection of State’s Income

c.    Projection of State’s Expenditure

d.   Projection of Budget of Budget Financing

In case of size of estimated deficit, which exceed targeted deficit in APBN 2015 according to the deficit would be financing by way of additional financing taken from the balance sheet, drawing of standby loan, and issuance of SBN bond which said. ̋ In Financing estimate extra deficit, the ALM Committee choose and count amount of additional financing as intended ̋

Furthermore based on calculation of ALM Committee as intended in Article 5, the Minister of Finance had stipulated:

a.    The amount of estimated Deficit which exceeded targeted Deficit of 2015 and the size of additional Deficit Financing which was predicted to exceed APBN Deficit of 2015

b.     The size of Additional Deficit

c.     Amount of additional financing

d.     The Source of additional financing

In case of additional financing from SAL fund, according to this Regulation the Director General of Treasury was transferring SAL fund from the Budget Account to the States Account in Rupiah. In case of extra financing from Stand by Account, the Director General of Financing and risk was drawing standby loan.

In case of additional financing the Director of SBN Bond issuance, Director of Financing Risk Management issued SBN in accordance with Article 10 PMK Regulation. 163/PMK.05.2015 that “Use of SAL fund drawing of Standby Loan and/or issuance of SBN bond as additional financing stipulated and reported in financial Report to the Central Government (LKPP) of 2015, The PMK Regulation was stipulated on the effective date i.e. August 25,2015 by the Minister of Low and Human rights Yosana H Laoly. (SS)

Business New - September 4, 2015