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LIST OF CONTENT
THE PROGRESS ON BASIC ASSUMPTIONS AND PRINCIPLES OF FISCAL POLICIES OF THE REVISED BUDGET FOR THE FISCAL YEAR 2010
I-1 I-2 I-6 I-9 I-9 I-14 I-15 I-17 I-19 I-19 I-20 I-23
1.1 1.2 1.3 1.4 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 1.4.6 1.4.7 1.5
Introduction ............................................................................................. Global Economy ...................................................................................... General Remarks in The Indonesian Economy ......................................... Growth in Macroeconomic Indicators in 2010 .................................... Economic Growth .................................................................................... Inflation ......................................................................................................... Rupiah Exchange Rate ............................................................................ Three-Month SBI Interest Rate ................................................................. Indonesia Crude Price (ICP) ........................................................................ Lifting ............................................................................................................ Balance of Payment ................................................................................... Principles of Fiscal Policy of APBN 2010 ...................................................
2.1 2.2 2.2.1 220.127.116.11 18.104.22.168 22.214.171.124 126.96.36.199 2.2.2
REVENUES AND GRANTS IN THE REVISED INDONESIAN BUDGET 2010
II-1 II-1 II-2 II-2 II-5 II-10 II-10 II-13
Introduction ............................................................................................. Changes in Revenues and Grants 2010 ................................................. Domestic Revenues .................................................................................. Fundamental Changes in Tax Revenue ................................................. Tax Revenues in The APBN-P 2010 ....................................................... Fundamental Changes in Non-Tax Revenues ....................................... Non-Tax Revenues in APBN-P 2010 ..................................................... Grants in 2010 ...........................................................................................
List of Content
3.1 3.2 3.2.1 3.2.2 3.2.3 3.3 3.3.1 188.8.131.52 184.108.40.206 220.127.116.11
REVISIONS IN EXPENDITURE
III-1 III-2 III-4 III-12 III-14 III-23 III-24 III-24 III-28 III-29 III-33 III-33 III-34
Introduction ............................................................................................. Fundamental Revisions in Policy And Central Government’s Expenditure 2010...................................................................................... Revision of Central Government Expenditure by Economic Classification ............................................................................................. The Revision in Education Budget .......................................................... The Revision in Central Government Expenditure by Organizations .... Principles of Allocation Revision of Transfer to Region in 2010 ............. Revisions in Balanced Fund ................................................................... Revision in Revenue Sharing Fund (DBH) ............................................. The Revision in the General Allocation Fund (DAU) ............................ Revision in Specific Allocation Fund (DAK) .............................................
3.3.2 Revision in The Special Autonomy and Adjustment Fund ....................... 18.104.22.168 Revision in Special Autonomy Fund ......................................................... 22.214.171.124 Revision in Adjustment Fund .....................................................................
4.1 4.2 4.2.1 4.2.2 4.2.3 4.3
PRINCIPAL CHANGES IN BUDGET DEFICIT AND BUDGET FINANCING
IV-1 IV-2 IV-2 IV-9 IV-14 IV-16 IV-16 IV-16 IV-18 IV-20
Introduction ............................................................................................. Budget Deficit Financing .......................................................................... Non Debt Financing ................................................................................ Debt Financing (Net) .............................................................................. Standby Loan (Public Expenditure Financing Facility / Contingency Loan) ......................................................................................................... Fiscal Risk .................................................................................................
4.3.1 Sensitivity Analysis .................................................................................. 126.96.36.199 Sensitivity Of Macroeconomic Assumptions .......................................... 188.8.131.52 Sensitivity Of Macroeconomic Variables On BUMN Fiscal Risks ........... 4.3.2 Central Government Contingent Liabilities: Infrastructure Develop ment Project ..............................................................................................
...................................4 Table II.......2 Table IV................................ 2010 ...................2010 .1 Table I....... 2009 – 2010 .................................................................................................7 Table IV......... Taxes Borne by Government (DTP)...3 Table IV............................3 Table II..................... Macroeconomic Assumption Sensitivity to APBN-P Deficit 2010 ................................4 Table IV.....................7 Table II........... iii I-5 I-9 I-11 I-13 I-22 I-26 II-2 II-3 II-5 II-6 II-7 II-8 II-9 II-11 II-12 III-3 III-8 III-15 III-35 IV-3 IV-8 IV-10 IV-13 IV-15 IV-16 IV-18 IV-20 ...........4 Table I..... 2009 – 2010 ............. GDP Growth By Sectors........... Standby Loan That Have Been Signed .5 Table IV................................. Macroeconomic Basic Assumptions 2010 . 2009 ..............................................2 Table I.............. Subsidy Expenditure..6 Table II... 2008 – 2009 .6 Table IV.......................1 Table III. Domestic Value Added Taxes Revenues by Sectors............. Revision in Expenditures of Line Ministries/Agencies.............................................3 Table III.... Financing Gap of PT............................ Indonesia Balance of Payment.6 Table II......... Transfer to Regions....................... GDP Growth By Sectors........... and Interest Rate to BUMN Fiscal Risk .3 Table I............................................ The Largest Line Ministries Contributing to The Non-Tax Revenues....8 Table II.................... 2010 ................. Non-Debt Financing in APBN 2010 and APBN-P 2010 ....... Subsidiary Loan in APBN-P 2010 .5 Table II... Summary of The 2010 Indonesian Budget and Revised Budget Revenues and Grants............. Discrepancy Between Macroeconomic Assumption and Realization ............................................ 2010 ........ PLN (Persero) .....List Of Tables LIST OF TABLES Page Table I................ Government Expenditure............................... 2008 – 2010 ....2 Table III.......................5 Table I..... Debt Financing in APBN 2010 and APBN-P 2010 ........9 Table III.................................. 2008 – 2010 ........... Stress Test of Economic Growth Change....... 2009–2010 ..... Non-Tax Revenues in 2009 – 2010 .............................................................................. 2009 .......... 2009 – 2010 Import Value Added Tax Revenues by Sector.1 Table IV........ Oil Price..........................8 World Economic Growth....1 Table II............4 Table IV......................................... 2010 ........... Non-Oil and Gas Income Tax Revenues by Sector.......................................... 2010 .. Exchange Rate........ 2009 – 2010 ......................2 Table II............ Tax Revenues............................ Import Duties Revenues 2010 .........................
........... Economic Growth in China and India...9 Graph I............ Indonesia Oil Lifting.................... Usa and Europe........17 Graph I.................... 2009 – 2010 .............. 2008 – 2010 .. 2008 – 2010 ....... Inflation Components..2 Graph I....... Global Economic Growth Projection. Lending Rate and Deposit Rate....... supply.......26 Graph II.. 2008 – 2009 ................ Non-Oil and Gas Income Tax..24 Graph I...... 2008 – 2009 ...... Economic Growth in Developed Countries in Asia Regions....................21 Graph I.................................. 2005 – 2010 Rupiah And JCI Index.......... Net Foreign Buying of Stock ..... BI Certificate REPO & Overnight Inter-Bank Money Market............................. Net Foreign Buying/Selling SUN ...............20 Graph I.. BI Deposit Facility....................... 2008 – 2009 WTI Oil Price.................... Inflation by Group Of Commodities ...........15 Graph I...... Growth of Balance of Trade and Global Inflation.... and World Oil Price.............. 2008 – 2009 .................................. Growth of GDP in 2008 – 2010 .... GDP and Its Consumption Growth ... 2008 – 2009 . Growth of demand............................... 2009 – 2010 ................. 2008 – 2009 ............................... Inflation Growth and Interest Rate........4 Graph I......................................23 Graph I................................................2 Economic Growth in Developed Countries...........7 Graph I... Oil & Gas Income Tax Revenue...................... 2008 – 2009 .......List Of Graphs LIST OF GRAPHS Page Graph I.................14 Graph I....................... Economic Growth in The ASEAN Regions......................8 Graph I...........................16 Graph I...................10 Graph I...................................................3 Graph I............. Source of GDP Growth and Its Consumption..................13 Graph I.... 2008 – 2009 ...... 2008 – 2009 .. Inflation Rates................... 2009 – 2010 ...............11 Graph I............... 2008 – 2009 ..............6 Graph I.... GDP by Expenditure Growth...1 Graph II...... I-3 I-3 I-4 I-4 I-4 I-5 I-5 I-6 I-7 I-7 I-8 I-8 I-10 I-10 I-12 I-13 I-14 I-15 I-15 I-16 I-17 I-17 I-18 I-19 I-19 I-19 II-6 II-6 iv .......................19 Graph I...... 10-Year CDS (Credit Default Swap) ................................ 2009 – 2010 . July 2009 & 2010 ...1 Graph I..... July 2009 – 2010 ............18 Graph I..... Global Manufacturing Index (PMI) ..... 2009 ............................25 Graph I......22 Graph I.......12 Graph I............ 2008 – 2010 ..................................5 Graph I......................................... 2009 – 2010 . BI Rate..... Rupiah Exchange Rate and Foreign Exchange Reserve.... Yield SUN Growth ......
... Public Service Agency Revenues.2 Graph IV.. 2009 – 2010 ................. 2009 – 2010 ........ 2009 – 2010 .........9 Graph II...........8 Graph II.... Dividend From BUMN................................... Government Investment Fund and PMN APBN 2010 and APBN-P 2010 ........4 Graph IV......... BUMN Contribution to APBN ............... Foreign Loan in APBN 2010 and RAPBN-P 2010 ........................... 2009 – 2010 ... Grants ...3 Graph IV............ Oil & Gas Natural Resources Revenues............ Revolving Fund in APBN 2010 and RAPBN-P 2010 ....1 Graph III.... 2009 – 2010 ......................................................... Export Duties Revenues....5 Graph II....... The Duties On Land & Building Transfer Revenue.............. 2009 – 2010 .......................................1 Graph IV. 2009 – 2010 ......................... Central Government Expenditure...................4 Graph II...... Budget Deficit Financing APBN 2010 and APBN-P 2010 .................2 Graph IV............................................. II-7 II-8 II-8 II-8 II-9 II-9 II-11 II-12 II-12 II-13 II-13 III-4 III-14 IV-2 IV-5 IV-5 IV-7 IV-13 IV-18 v ....................10 Graph II......12 Graph II............................... 2009 – 2010 ....... 2009 – 2010 . 2009 – 2010 ...................................................... Government Capital Participation In APBN 2010 and APBNP 2010 .............11 Graph II............................7 Graph II........................ Central Government Expenditure........5 Graph IV............................. Customs Revenue............ 2009 – 2010... 2010 ................6 The Value Added Tax And The Sales Tax on Luxury Goods Revenue. 2009 – 2010 ..........List Of Graphs Page Graph II.......................13 Graph III............................................ Other Tax Revenues............................. Other Non Tax Revenues............3 Graph II.................................6 Graph II. Land And Building Tax Revenues................................
in the half of 2009. Japan. Many countries in various regions were affected by the crisis.8 percent. In addition. Nevertheless. and South Korea grew by 6.Basic Assumption and Fiscal Policy Highlights. namely.7 percent. The national economy was able to accelerate and to reach the positive growth 4. APBN-P 2010 Chapter I CHAPTER I THE PROGRESS ON BASIC ASSUMPTIONS AND PRINCIPLES OF FISCAL POLICIES OF THE REVISED BUDGET FOR THE FISCAL YEAR 2010 1. which was the second best after Shenzen China. another Financial Note and Indonesian Revised Budget 2010 I-1 . which reached the highest appreciation in Asia. In addition to these indicators. Singapore raised by 3.76 percent since March 2009 up to the end of 2009. electricity and consumption credits. Malaysia and Thailand. the growth in consumer confidence index. and the applicable interest rate policies in each country in order to minimise the impact of crisis. Japan was minus 1. the global economic recovery was marked by the improvement in manufacturing industries.1 Introduction Global economic condition in 2009 has been sluggish.78 percent.5 percent in 2009 amid the global economic which was not fully recovered. Despite having suffered from the global crisis. other indicators such as Government Bond Yield (SUN – Surat Utang Negara) and the level of Credit Default Swap (CDS) have decreased.8 percent and 15. In the fourth quarter of 2009. Besides consumptions. the United States grew by 0. The global economy recovery also occurred in a number of developed and developing countries. Inflation rate was managed to a modest 2. namely the United States. This economic improvement was strengthened by the policies issued by the Government and the central banks of each country through their fiscal stimulus packages. the increase in retail sales.1 percent.2 percent. and the improvement in capital market reflected by the increase in Jakarta Composite Index – Indeks Harga Saham Gabungan (IHSG) around 101. the slow expansion in housing-sector. and the increase in commodity prices in the world. some countries were able to boost their economy acceleration growth compared with the previous quarters. China increased by 10. as a affect of the global financial crisis that hit the country in the mid of 2007.0 percent. countries within Europe. Indonesia was one of three countries that have delivered its best economy performance after China and India. and some ASEAN countries including Singapore. resulting in negative growth during the first two quarters respectively in 2009. the global economy performance recovery was indicated by the economic improvements in some Asian countries. This has indicated that the national economy performance in 2009 was promoting the period of recovery. The driven factors were the consumption of the households and Government that grew respectively 4. The national economy stability was maintained shown by the more strengthening of rupiah exchange rate since April 2009. which showed a positive growth up to fourth quarter of 2009.7 percent supported by the improvements in some indicators such as motor vehicle and car sales.
Having highly intensive discussions in the plenary session of the House of Representatives of the Republic Indonesia on 3 May 2010. most developed countries experienced a low level of growth in the first semester. which was normally proposed after the implementation of the Indonesian Budget in the first semester. particularly in relation to macroeconomic variables that had significantly changed. The slowing economic growth started to perceive since the second semester of 2008. In 2009. 1. Entering the second semester some improvements showed. many countries experienced the negative growth amid further escalation in other economic problems. however. In relation with the above matters. The macroeconomic basic assumptions that have been determined in the APBN 2010 (APBN 2010) are deemed necessary to be adjusted to the current conditions. This condition is slightly different from the one which was previously predicted. Further. The purpose of the rapid submission of the Revised Bill on the Indonesian Budget was not only to address the current national economy conditions.3 percent in 2009. This was faster than the regular schedule. the Draft of Law of the Revised Bill on the Indonesian Budget (RUU APBN-P) has been approved to be passed the Law. On the other hand. the growth rates were still negative. the contribution of external sectors such as exports and imports also made recoveries since the middle of 2009. Entering 2009. so that it is important to be prepared and to anticipate the impacts that may arise. such as: the low level of productivity and economy activities. The economy recovery and macroeconomic indicator behaviour are predicted to continue. The Indonesian economy is predicted to improve in 2010. in which the global economy has reached a faster recovery than it had been previously estimated. the Government has expeditiously submitted the 2010 Draft of Law on the Revised Bill on the Indonesian Budget (Revisi RUU RAPBN). This phenomenon was clearly appeared in some developed countries that had been the engine for economic growth in the world. as well as the growth in capital inflows. and it fell down dramatically in the third quarter of the second semester of 2009. and an increase in unemployment.2 Global Economy The first half of 2009 was the period of weak for the global economy. This was based on the provision under article 27 of Law Number 47 Year 2009 regarding APBN 2010. Economy activities are predicted to develop which will result in the increase in prices of the main world commodities. Impact of the global financial crisis prevailed over the real sector. This trend mainly occurred in the United States and Europe. declining economic growth was more devastating. APBN-P 2010 economic expansion was driven by the growth of investment which was 3. especially the Credit Investment which still grew by two digit points. supported by the increase in demand and the prices of commodities. These efforts brought about fairly well results. During this period. The investment growth was reflected by the increase in total credit. the Revised Bill on the Indonesian Budget was enacted by the Law Number Year 2010 dated 25 May 2010. The United States whose economy contribution to the world was 28 percent of the total GDP I-2 Financial Note and Indonesian Revised Budget 2010 .Chapter I Basic Assumption And Fiscal Policy Highlights. but also to contain the additional prioritised expenditures that had not been included in the Law of the APBN 2010. This condition encouraged various countries to work together to formulate the joint strategic and focused policies aiming at devoting efforts effectively to survive the crisis. a rise in inflation and the interest rate.
third and fourth quarters growing by 7. which had positive impacts on the countries in the Asia region.1 -4. the growth Financial Note and Indonesian Revised Budget 2010 I-3 .8 -2. the growth of England has improved slightly to minus 5. These countries achieved their growth in the following quarters. Entering the third and fourth quarter.9 percent.8 -3.9 -3.1 percent and 10.7 0. which were 1.2 percent in the first quarter of 2009. China’s economy was back to improve in the second.4 -0.7 percent.9 percent. the third and Source : Bloomberg the fourth semester the economic growth in Japan recovered.2 0.8 USD U.1 percent respectively. 2008-2009 (y-o-y.5 -5.7 -2.5 growth increased to minus 2.7 percent respectively.8 percent in the first quarter of 2009. 9.6 -2. During the next period. England recorded its -8 economy growth of minus 5.9 economic growth was minus 8.9 2 and minus 4.2 1-0. Germany and France reached their lowest growth in the first quarter. GRAPH 1. APBN-P 2010 Chapter I achieved a negative growth in the first and GRAPH I.4 3. USA AND EUROPE. in which its -10 -8.0 which was slightly different from what 5.2 percent.9 percent in first two quarters of 2009. Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Nevertheless.8 -5. South Korea was able to reach its positive growth in the third and fourth quarters.3 0.8 percent 4 2.Basic Assumption and Fiscal Policy Highlights.9 1.4 Jepang Korsel ‐1.3 percent in 2008.3 -5 -4. in particular China and India.2). and also to become driving force of economy recovery in the Asia region.8 -5.0 percent and 6. minus 3. percent) The economic growth in Japan and South Korea was relatively better compared with the economic growth in other developed countries.9 -4. and minus 1.2 -2. percent) second quarters of 2009. among others the conducive economy condition in Asia region. This was caused by.K Germany France -0. after encountering the negative growth in the first and the second quarters of 2009.2 ECONOMIC GROWTH IN DEVELOPED COUNTRIES IN ASIA REGIONS.2 percent and minus 0.2 percent. Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 The rate of economic growth in developed countries in Asia reflected a faster recovery. Yet. China experienced an economic downturn reaching 6.7 the third and fourth quarters the economy 0 1.1).1 ECONOMIC GROWTH IN DEVELOPED COUNTRIES.1 -3.8 -2.9 percent. Japan was the most -0. Despite the impact of global crisis and having encountered economic slowdown.2 1.9 -6.2 devastating country hit by the hardest crisis -3. Similarly. and dropped to 5.5 percent respectively (Graph I.7 percent and -2 -2 -1.3 -5.1 -1.7 countries in Europe. which was mainly sustained by the economy performance in some developing countries.5 percent and Source : Bloomberg minus 5. The similar improvement was -4 -2.7 in the first quarter of 2009. 2008-2009 (y-o-y.8 0.2 -5.5 4.9 percent. these two countries still maintained s moderate rate of economic growth.1 percent respectively.0 percent (Graph I. which were minus 6. although it still recorded a negative growth of minus 5. During 2 1. minus 5. although China had shown a consistent growth in the last few years at a level of 10 percent or above.3 also demonstrated by some developed -6 -5.3 5 happened in developed countries in North 1.1 -4.4 -2. 10 6. In the fourth quarter of 2009. in the second.7 percent and minus 3.9 1. in India its economic growth reached 7. These two countries were big countries initially expected to become the “key” to reduce crisis.3 percent and 2.0 0 America and Europe.2-0. the rate of economic growth in these two countries reached minus 2.
5 percent.8 4.4 8 6 4 2 0 6.3). Singapore achieved Source : Bloomberg a positive growth by 3. however. there has been a positive development in which optimism about the faster proceeding of economy recovery has prevailed than it had been initially expected. Meanwhile.2 percent and 5.1 percent in the second quarter.2 2.1 4. 2008-2009 (y-o-y.9 4.2 4.5 1. In the region of South East Asia.2 -2.9 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Source : Bloomberg Entering the second semester of 2009.8 7. Singapore.1 2.2 2 0 percent.8 6. 0.2 percent and 2.6 0. and fourth quarters of 2009 (Graph I. whereas in the second.5 Thailand -4.2 Phillipines Singapore -1.4 7.0 percent.7 -2.0 three countries recorded the lowest growth 4 in the first quarter of 2009. Indonesia is one country of the ASEAN-5 countries attaining the highest economic growth whose economic rate grew in the range of 4. 10 GRAPH I. the economic contraction occurring in 2009 has also been faced by the three of five main 12 10. minus 6.4 percent and 5.5 4.0 5.5 percent.7 -4.9 7. In the first quarter of 2009 Indonesia economic had grown by 4. In the first quarter of 2009.7 10.2 ‐2 ‐4 ‐6 ‐8 Indonesia Malaysia -3. This optimism prevailed amid the economic activity indicators and international trades in several indicators.3 ECONOMIC GROWTH IN CHINA AND INDIA. 8. APBN-P 2010 rate in India increased again achieving 6.8 6 6.0 percent.1 ‐10 -8. the economic growth in Philippine reached 0.6 percent. third and fourth quarters of 2009 it has increased by 1. however. the Purchasing Managers Index (PMI) published by JP Morgan as one indicator of manufacturing industrial activities in the world has indicated an economic expansion in the middle of 2009 (Graph I. percent) 7.4 5.2 0.2 Malaysia.9 percent.5 10.1 6. it declined 4. third. Baltik Dry Index indicator that had plunged sharply in the mid of 2008.5). started to increase in the beginning of 2009 Sumber: ISM Source : ISM Sumber: ISM marking the beginning of an increased activities in shipping and trading among countries.0 10 ASEAN countries (ASEAN-5).4 percent (Graph I.3 4.1 6.8 percent in the fourth quarter of 2009.4 3.9 -6.2 0. In the third and fourth quarters of 2009.3 6.5 8 6.9 0. Whereas.2 -7.5 GLOBAL MANUFACTURING INDEX (PMI) (Point) I-4 Financial Note and Indonesian Revised Budget 2010 .1 percent.7 2.9 percent and minus 7.1 Cina India Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 percent respectively.5 6.4 ECONOMIC GROWTH IN THE ASEAN REGIONS.4). GRAPH I.8 2. and Thailand.4 5. GRAPH I. minus 8.4 5.9 4.9 1.2 percent.6 3.6 9.5 percent in the second. percent) Philippine and Indonesia are two of ASEAN countries that are undergoing economic expansion at slow speed.8 6. Malaysia and Thailand grew by each 4. The 5. 2008-2009 (y-o-y. the Indonesian economic growth improved 4.4 6.1 9. namely 8.1 7. and 6.9 -1.Chapter I Basic Assumption And Fiscal Policy Highlights.6 8. in the next Q2 2009 Q3 2009 Q4 2009 period it has improved.
On the other hand. IMF minus 3.801 7. July 2010).951 2.714 4. Whereas the economic growth in developing countries has increased from 2.3 -13 Source : WEO.6 2.1 -1 1 . The growth of goods and services trading volume is projected to increase from minus 11.3 according to July 2010 publication.5 percent to 6.53 9.6 percent in April 2010 (Table I. APBN-P 2010 Chapter I The optimism about global economy recovery and current indicators is a consideration in revising the estimation of economic growth rate in the world in 2009 to a higher level.0 4. The economic growth in developing countries in the Asia region has indicated the highest level of growth compared with that in other regions.6 percent in 2010.9 percent and had been revised to 4.2 percent in 2009. IMF again made a revision to the projection on the economic growth in the world from minus 0.769 3. 2009-2010 economy has also exerted on the revision of (y-o-y.6 -1 1 .7). The growth in -2 developed countries had improved from -4 -3.3 -1 1 .8 Oct 08 Apr 09 3.7 percent in April 2010.1). Financial Note and Indonesian Revised Budget 2010 I-5 . GRAPH I.8 which had been initially estimated to reach 6 4.0 Oct 09 Jan 1 0 -1 .1 WORLD ECONOMIC GROWTH. which will also be revised to 11. 9. percent) the global economy projection in 2010 8 2009 2010 6.5 percent (WEO – World Economic Outlook.3 percent to minus 10.64 Apr 08 3. IMF The revision in the economic growth projection above is also supported by the revised projection in the international trade volume growth in the world together with an increase in demand in the world.8 -1 2.6 World Developed Countries Developing Counries percent (WEO.6 GLOBAL ECONOMIC GROWTH PROJECTION.2 4 2. TABLE I.6 -1 0.33 6. In this case the projection on the international trade volume in the world was also revised from minus 12.05 7. and later was revised to 4.8 percent (published in January 2010) to an increase by minus 0.3 15 10 5 0 -5 -10 -15 5.893 2005 2006 Inflation 2007 2008 2009 2010 Goods and Services Goods -12.3 percent in 2009 to 9.6). 2005-2010 (Percent) 7.1 -1 .3 Apr 1 0 -0.8 5. 2 April 2010). The improvement in such demand is estimated to have an impact upon the global inflation level. became 2.9 -0.095 9.6 0 -0.983 3. Having undertaken some downward revisions.8 5.7 Jul 1 0 -0.6 2.2 Source : WEO.8 percent.72 2. 2009 (Percent) Publication GDP Growth Trade V olume Source : WEO.548 2.7 2.Basic Assumption and Fiscal Policy Highlights. IMF also revised the growth in the international trade volume to its lower level.2 percent (Graph I.005 2.7 GROWTH OF BALANCE OF TRADE AND GLOBAL INFLATION. IMF The current development in the global GRAPH I.0 percent in the following year (Graph I.
9 percent and 15.34 percent. 2009 Rp/US$ Point 12. or it would show an appreciation around 14.500 1.100 Source: Bloomberg In line with the decline in inflation and a relatively stable rupiah exchange rate. By these progresses. The rupiah exchange rate by the end of 2008 was in a close position at the level of Rp. the average interest rate of three-month Bank Indonesia Certificate reached approximately 7.5 percent in August 2009. 10.8).59 percent.8 11. and the relatively stable rupiah exchange rate. the realisation of economic growth in 2009 reached 4. in line with the increases in demand and the commodity prices in global market. which was lower than it had been estimated in the 2009 Indonesian Budget. This declining BI rate was transmitted to the inter-bank money market rate of interest shown in the daily average decrease of the interest rate from 9.600 kurs Rp/US$ IHSG 29/01/2010. This level of BI rate would constantly be maintained until the end of 2009. the stable purchasing power of people and the growing confidence of the people about the economic growth.Chapter I Basic Assumption And Fiscal Policy Highlights. 10.44 percent by the end of 2008 to 6.58 percent by the end of 2009.78 percent (y-o-y). This was bolstered by considerable optimism for the global and domestic economic improvements. I-6 Financial Note and Indonesian Revised Budget 2010 .500 2. The export performance which dropped in the first semester was starting to improve in the second semester in 2009.100 29/01/2010. lower than previous year reached 9. The low rate of inflation in 2009 was mainly influenced by the decline in subsidized fuel price (BBM – Bahan Bakar Minyak) in early 200.500 1.256. GRAPH I.7 percent in 2009.16 percent in 2009. 2. 4.3 General Remarks in the Indonesian Economy Approaching the end of 2009.5 percent. 1.5 percent.8 RUPIAH AND JCI INDEX.365 8.1 9. The swift capital inflow penetrating domestic financial market has encouraged the appreciation of rupiah exchange rate. Thus. 9.600 10.013 3. the monetary authority has undertaken loose monetary policies reflecting in declining BI (Bank Indonesia) rate from 275 bps to 6.610. The growth of household and government consumptions which were persistently high at the level of 4. and maintained stability of macroeconomic. The average level of rupiah exchange rate during 2009 reached about Rp. the inflation rate in 2009 reached 2. have strengthened the optimism among business actors to increase the investment. 11. The increased global economy has extended positively over the development of export and investment. Meanwhile.500 2. The indicators of the increased investment reflected in the improved demand of cement and the growth of capital import commodities.9 percent by the end of 2008 to 6.47 percent by the end of 2009. the control of supply and distribution of food mainly rice.400/USD by the end of 2009.100 02/03/2009. APBN-P 2010 1.408/USD (Graph I.500 05/01/2009. The decline in BI rate was followed by the average interest rate of Bank Indonesia Certificate (SBI – Sertifikat Bank Indonesia) from 11. 9. Meanwhile. and the improved export performance. the progress in macroeconomic indicator of Indonesia showed a continuous improvement. have promoted the level of consumption to be maintained at the significant high level. during 2009.950/ USD inclining toward a strong level up to Rp.
11 point. as well as promote the improvement of good corporate governance to business actors by enforcing a discipline within business actors to obey the prevailing rules. on 31 8 6 December 2009 the SUN yield of all tenures. and educate the public about the capital market.Basic Assumption and Fiscal Policy Highlights.10 YIELD SUN GROWTH (Percent) Financial Note and Indonesian Revised Budget 2010 I-7 .6 bps 10 respectively.8). The growth of capital market performance has brought about the Indonesia index to the second highest level amongst the capital market performance in Asia. the value of foreign buying stock in December 2009 reached Rp.511 2044.76 percent.2 1793.367 2601.06 percent and 10. Conventional Based Government Securities Market (SUN) had improved.8 point (Graph I.83 3839.852 3000 2000 1000 0 -1000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan -561.610.982 1815. GRAPH I.546 -2000 -1160. due to mortgage crises attack.36 point (the highest level during 2009) having the increase by 101.9 bps and 120. 18 10-year-tenure and 30-year-tenure in the 16 period of end of December 2008 until end of 14 12 2009 by 282.84 trillion which was the highest value of buying by foreign parties during 2009 (Graph I.412 924. the Government will continuously maintain the economy condition. so that it will remain conducive for the development of capital market.79 percent and 10. In addition.102 Source : Bloomberg To stimulate the growth of capital market. With this growth. although in the beginning year of IHSG it had plunged down reaching the lowest level at 1. By the end of December 2009.9) GRAPH I.81 percent respectively (Graph I. APBN-P 2010 Chapter I Capital market performance also improved.10).242 -3000 -4000 -3118.99 percent respectively. which was well maintained. followed by the Shanghai and China index at the third level. 10 and 30-year-tenure decreased by 8.98 39749 39813 30 June 09 31 Dec 09 29 Jan 10 Source: Bloomberg percent. Meanwhile. The return of foreign investors to the market during 2009 has indicated a growing confidence in a tremendous potential of Indonesian economy supported by macroeconomic stability. 1Y 3Y 5Y 7Y 10Y 15 Y 30 Y 5. in which the Shenzhen index was at the first level. 182. reflecting in the 22 20 decrease in the SUN yield of 5-year-tenure. the IHSG closed at the level of 2.338 1973. Indonesia capital market performance exceeded that of other countries.534.9 NET FOREIGN BUYING STOCK ( Rp Billion ) 5000 4000 3089. During 2009. This positive sentiment would entice more investors into Indonesian market either capital market or real sector. the IHSG increased significantly.4 bps. the Government together with related institutions will pursue its maximum endeavours in facilitating a forum for investor protection through the supervision of infrastructure or a series of stock exchange regulations. 10. and on 31 January 2010 these value decreased again by 8. encourage dissemination information. 3.924 430. This condition was continuously improving up to 31 January 2010 in which the IHSG reached the level of 2. Furthermore.54.256. 9. the IHSG price started to increase in 2009.807 746. After experiencing a severe hit stemming from the financial and global economic crisis resulting in a decrease interest of foreign and domestic investors in investment.
12). 8.86 trillion until 31 January 2010 (Graphic I. the improvement in global perception about Indonesia. foreign investors constantly bought the SUN making the total of net foreign buying of SUN Rp. Non Performing Loan/NPL ratio was 3.918 -2. Other indicators of the growth of bank such as credit ratio to third party fund reached 74.1 billion. The significant increase in the foreign exchange reserve was enormously contributed by the increase in the capital inflows and the improvement of the export performance. The growth of asset up to 2009 reached 9.7 percent. third party fund (DPK) grew by 12.5 percent.464 5. the Fed Fund Rate cut.6 months of imports and foreign debt repayment.75 1.187 0. 23.442 0.17 -1. GRAPH I.9 percent by end of December 2009. APBN-P 2010 The decrease in the SUN yield was influenced by abundant liquidity in the 1400 Indonesia global market.Chapter I Basic Assumption And Fiscal Policy Highlights. and banking loan grew by 8.389 Source : Ministry of Finance -12.19 4.649 5.0 on 31 December 2008.53 -5.12 NET FOREIGN BUYING/SELLING SUN (Billion Rp) 5. and 1200 Brazil the decline in risk premium reflecting in the 1000 Columbia 800 decrease in credit default swap (CDS) from Phillipine 600 its highest rate of 1.43 2. I-8 Financial Note and Indonesian Revised Budget 2010 . and Net Interest Margin was 11. Banking sector performance in 2009 in general was improving.5 percent.172 -1. and the sustainability of fiscal has given a positive sign for investors to invest their assets in SUN (Graphic I.19 8.0 percent).4 on 24 October 400 2008 to 626. Besides.679 The growth of Balance of Payment has also improved shown by an increase in a surplus of Balance of Payment Surplus. or equivalent to 6.8 percent.11 10-YEAR CDS (CREDIT DEFAULT SWAP) Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 9 7 5 3 1 -1 -3 -5 -7 -9 -11 -13 2010 2009 2008 GRAPH I. This 200 further decreased by 224.11).45 4. and Capital Adequacy Ratio/CAR was 17. the decline in the inflation growth.4 percent (far above the CAR required by Bank Indonesia.911 3.88 5.42 6.308 2. so that the foreign exchange reserve by the end of 2009 was projected to reach the amount of USD 66.6 on February 2010.02 3. The level of decrease in CDS in Source : Blooomberg Indonesia was the largest compared with other countries having the same rate of obligation. Since September 2009.582 -1.05 3.07 7.122 -6.604 -1.236.0 on 31 December 0 2009 and increase by 245.7 percent.
253.8 5. These adjustments are required to determine the variables of Indonesian Budget in order to face the changing economy condition.0 6.2). the following are basic assumption of macroeconomic in the APBN-P 2010 : (1) the projection of the economic growth about 5. In 2009 economic grew by 4.0 percent.5 percent.5 percent .Basic Assumption and Fiscal Policy Highlights.1 Economic Growth Economic growth until end of 2009 was marked by the sharply fall in the performance of external sector as the impact of the decline in global demand which had started in the mid of 2008.981 . which was lower compared with Financial Note and Indonesian Revised Budget 2010 I-9 . (4) Rupiah exchange rate by Rp10. economic growth was slowdown compared with the realisation in 2008. (2) the increase in inflation by 5.4.3 percent (3) the stable average interest rate of SBI at 6.5 percent. and current development. and (6) oil lifting by 0. T ABLE I. and (6) the stable price of lifting oil at 0.37 3.8 percent.2 MACROECONOMI C BASIC ASSUMPT IONS 2010 Description Gross Domestic Product (billion Rp) Economic growth (%) Inflation (%) y -o-y Three-month interest rate of BI Certificate (%) Ex change Rate (Rp/USD1 ) Oil Price (USD/barrel) Oil lifting (thousand barrel/day ) Sou r ce : Min ist r y of Fin a n ce APBN 5.5 5. (4) Rupiah exchange rate appreciation by Rp9.200/USD.3 6. (5) the average price of Indonesia crude oil by approximately USD 65.0 per barrel. basic assumption of economic variables used as the reference in calculating variables in the APBN 2010 are considered to be adjusted.000 65 965 APBN-P 6. In order to up-date basic assumption of macroeconomic to be more realistic. As a result.200 80 965 1. (3) the interest rate of SBI by 6. so that the target and economic goals will be more realistic. APBN-P 2010 Chapter I 1.5 9.5 percent (y-o-y). (5) the average increase in Indonesia crude oil price by USD 80 per barrel.965 million per barrel per day.5 1 0.5 5. Having taken into account global and domestic economic growth within 2009. (2) the inflation rate by 5.965 million barrel per day (Table I.1 5.000/ USD.4Growth in Macroeconomic Indicators in 2010 According to the Indonesian Budget Law of 2010.7 89. basic assumptions of macroeconomic are projected as follows: (1) economic growth by 5.
This economic growth was bolstered by household consumption 4.32 percent in 2009 (y-oy). Meanwhile. which was lower than the realisation in the period of 2008 around 5. 10.97 percent respectively.7 15 11. showed by a drop in capital import goods.72 percent.8 3. Cons.32 percent and the contraction of export-import minus 9. the investment on building in 2009 still recorded a positive growth by 7. The GDP BY EXPENDITURE GROWTH.86 percent in 2008 to 3. the fiscal stimulus namely the fiscal incentives. 2008 .4 percent relating to the Legislative Election 10 5. cement sale.34 percent. which was slightly lower compared with the realisation in the previous year by 7. The investment decline was indicated in the reduction of the capital import commodities.14 Transfer (BLT) for the poor.05 percent. In addition. 2008-2009 (Percent) 20 consumption of non-food grew by 5. 6. Household consumption grew significantly within 2009 by 4. investment 3. as well as the payment for the thirteenth month salary. Investment fell down drastically from 11.2009 (Percent) 10% 4.0% GRAPH.5 10 0 brochures).97 15.6% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -10% 2008 2009 -20% -30% Household Cons.3 4.7 -15 2008 2009 -5 food increased by 3. due to the decrease in the production as a result of sluggish global activities and the drop in domestic demand. The majority types of investment grew negatively mostly investment of non-building.13 SOURCE OF GDP GROWTH AND ITS CONSUMPTION. Foreign Investment – Domestic Investment (PMA-PMDN).7% 4. the consumption of -9.43 percent. as well as the distribution of the Unconditional Cash GRAPH I. The implementation of the National Election and the Legislative Election has boosted the increase in the good consumption to 21. Gov.10 percent relating to the policy on the increase in the base salary and pension. -20 Sourse: Central Bureau of Statistics The growth of the household consumption & the Ministry of Finance reflected in the increase in real disposable income along with the decrease in the inflation rate and the rise in the exchange value of the farmers as well as the labour wages (Graph I.14). This decline was caused by a reduced in purchasing power of public as the impact of global crisis. The cyclical Household Consumption Government Consumption -10 Investment/Gross Fixed Capital Formation push factor by end of year boosted the -15 Export Import household consumption to remain strong. This was due to the I-10 Financial Note and Indonesian Revised Budget 2010 .85 percent.06 percent.57 percent. PMTB Export Import The Government Consumption grew by 15. whereas.9 10.2% 1.01 percent.Chapter I Basic Assumption And Fiscal Policy Highlights.3 campaigns (for example: shirts/banners/ 5 9. some factors that were able to restrain from dramatic fall of the household consumption were : the implementation of Source: BPS dan Ministry of Finance National Election.70 percent and minus 14. 20% 17. However. the employee expenditures grew by 5. Government consumption 15. which was greater than with the realisation during the same period of the previous year.85 percent (y-o-y). and the payment for the thirteenth month salary for government civil servants (PNS) / members of Indonesian Armed Forces (TNI) / the Republic of Indonesia Police Force (POLRI) and the Retirees.0% 3. APBN-P 2010 the previous realisation.51 percent.72 percent (y-o-y). the increase in the base salary.
Construction 6. due to tumbling global demand and the decline in the export-import value because of the drop in the global oil price.22 100.70 percent and minus 14. Electricity.93 5.47 16.37 1. Financial Note and Indonesian Revised Budget 2010 I-11 . three sectors recorded a higher growth than those in the previous year.03 5.85 9.51 6.73 (0.69 5.61 5.97 6.17 12.19 4.28 14.91 2. of the existing nine sectors.29 10.82 8. Minning and Quarrying 3.Basic Assumption and Fiscal Policy Highlights.26 6.3).00 * provisional figures ** Very very provisional figures Meanwhile.20 10.22 3. and the conducive climatic investment after the National Election.43 9.03 4.41 7.99 8. gas and water supply.75 18.95 6.23) 16.20 1.80 percent as a result of the use of cellular telephones.56 percent and service imports grew minus by 1.53 2. the economy growth performance within 2009 was marked by the global economic slowdown in the majority economic sectors due to the plunge on the global economic (Table I.78 6. and Business Services 9. Meanwhile. This was chiefly due to the telecommunication sector growing by 23. APBN-P 2010 Chapter I continuing development in property sector and the rehabilitation programme following the Padang earthquake disaster that was starting to commence.21 4.59 15.32 4.23 11.44 (1.90 6.37 6.53 percent (y-o-y) by 2009. Forestry. namely mining and quarrying.68 16. as well as service sector. either online speaking or text sending messages (SMS-Short Message Services). On the supply side. and the falling prices of several commodities in the first semester of 2009.5 percent and minus 10.3 GDP GROWTH BY SECTORS. Nevertheless. the export-import reached minus growth by 9.09 (0. In 2009. the export growth was starting to improve.34 5.70 4. Agriculture.25 5. In conjunction with the improving global demand and the increase in the prices of international commodities.28 7. which were lower than the realisation in the previous year minus 9.33 7. Transportation and Communication 8. electricity.38 0.25 0. The indicator of the export growth was demonstrated by the volume growth of the international trade. Table I. The import was projected to grow significantly along with the increases in household consumption and investment.29 6.0 percent.07 percent.43 14.66 6.97 percent. Gas and Water Supply 5.12 8.34 5.45 4.20 6.16 4.08 3. good imports reached minus 18.77 8.60 6.89 0. Livestock. Manufacturing Industries 4.63 16.50 11.43 1.53 15. On the international trade side.62) 4.34 8.22 4.31 7.53 percent.83 9. Hotels and Restaurant 7.12 7.57 percent and service exports reached minus 2.89 13. Financial.04 4.00 15.28 12. the decrease in the production of domestic crude oil.77 5.25 6. y-o-y) 2008 BUSINESS SECT OR I II Quarter Quarter 2009 III IV Quarter Quarter Distribution 2008 2009 IV III I II Quarte Quarter Quarter Quarter r 1. Good exports grew by minus 10.31 7.37) 4.16 13.81 (0. primarily the increase in the raw material import and capital goods for activities of production. transport and telecommunication sectors recorded the most significant in growth by 15.02) 17. Trade.48 13.61 1.25 2.54 26.64 8. and Fisheries 2. 2008 . the export-import activities contracted sharply.27 5.95 3.57 8.30 3. Real Estate.46 10.31 10.88 5.12 2.52 6.42 5.92 27.29 6.73 100.47 7.76 7. This number also showed that the investment by end of year was improving amid the global and domestic demand recovery. Services GROSS DOMESTIC PRODUCT Source : BPS & the Ministry of Finance 6.2009 (Percent.
66 percent. The growth of these sectors was buttressed by the restaurant subsector performance reaching up by 7. which mainly relates to the Government capital expenditure to serve the purpose on the infrastructure developments. Within 2010. The increase in the household consumption was in line with the gradual recovery in global and domestic economy.83 percent. Investment is projected to grow by 8.20 percent. the government consumption will be directed to consistently support the education budget. The manufacturing sector within 2009 slightly grew by 2.5 percent. This is due to the fiscal stimulus that is no longer provided in the consumption in 2010. I-12 Financial Note and Indonesian Revised Budget 2010 . Looking at the current conditions. Oil and gas industrial sectors contracted by 2.5% 5.9 percent in 2009 has increased to 5.15 GROWTH OF GDP IN 2008 . Nevertheless.87 percent.2010 (Percent) 6% 5% 4% 3% 2% 1% 0% 2008 2009 the 2010 Revised State Budget 6. In addition. the improvement in global economy has brought about an impact to domestic economy.52 percent which was mainly bolstered by food and beverage and tobacco industries.7 percent in 2010.14 percent (y-o-y) within 2009 which was slowdown compared with the realisation in the previous year reaching 6. and other subsidies that will be expected to reduce the growth of household consumption. The most significant growth was achieved by the fisheries sub sector by 5. namely the Conditional Cash Transfer Program (PKH). as well as paper and printed material industries growing by 11. In the APBN 2010.53 percent. and good consumption goods. the assumptions of domestic economic growth is projected to grow about 5.8 percent in 2010. the government consumption is projected to decline from 15.8% During 2009. livestock. hotel and restaurant industries recorded a positive growth by 1.0% 4. forestry and fisheries sectors grew by 4. electricity consumption.2 percent in 2010.27 percent respectively.21 percent. which was slowdown compared with that in the previous year reaching 3. it is forecasted that its source of growth will change.71 percent.Chapter I Basic Assumption And Fiscal Policy Highlights. to precede the bureaucracy reforms and to manage the sustainability of people’s welfare. Several policies will be issued. The household consumption that previously reached 4.11 percent (y-o-y). Meanwhile. the agriculture. the most substantial contribution came from food crop subsector growing by 4.7 percent in 2009 to 8. which was lower than those in the same period of the previous year. 4. APBN-P 2010 GRAPH I. the School Operational Assistance (BOS). non oil and gas industrial sectors increased by 2. The consumption indicators were reflected in the following: car and motor vehicle sales.29 percent and 6. the projection on economic growth has applied the corrections that are projected to grow by 5. Entering 2010.5 percent surpassing the that in 2009 by 4. This was due to the sharp contraction in import performance since the fourth quarter of 2008.13 percent (y-o-y).8 percent. Source : Ministry of Finance Trade sectors. On the other hand.
Manufacturing Industries 4. TABLE I. On the banking side. 2009 .9 percent. Another Financial Note and Indonesian Revised Budget 2010 I-13 . Meanwhile.Construction 6.5 5.4 4.7 1 0. agriculture sector.9 1 6.0 8. the pillars of Indonesian economy that will start to grow substantially are the following: manufacturing industry. In line with the improvement in domestic and export demand. Trade.5 6.1 1 5. the increase in export also relates to the characteristics of Indonesia export commodities having a basis in primary commodities allowing a rapid recovery from the counterparty demand. Trade.5 5.1 4.4 2. Financial. Minning and Quarrying 3.1 6.9 7 .4 GDP GROWTH BY SECTORS.0 1 .1 4.7 4.0 percent.1 1 3. and the improvement of export followed by the increase in business activities. Export is predicted to grow considerable.7 3.8 0.2 15.3 7 . exports and imports in 2010 are forecasted to start reaching a positive growth due to the global economic recovery.2010 (Percent) 17.8 8. the manufacturing sector is expected to return to increase as it was before the crisis growing by 4. Livestock.2 percent in 2010. Transportation and Communication 8.8 7 .2 6. import is growing from minus 15.0 percent in 2009 to 17. livestock.6 8.4). This is in line with the global economic recovery which will result in the rise of demand of Indonesian products (Table I. Services GROSS DOMESTIC PRODUCT Notes : (*) Estimation of APBN-P Source : BPS & Ministry of Finance The agriculture. the investment growth is bolstered by the acceleration in the household consumption increase. compared with other sectors.2 6.2 2009 -9.7 Household Consumption Investment/Gross Fixed Capial Formation 2010 -15 Government Consumption Export Source : Ministry of Finance On the international trade side. and Fisheries 2. forestry and fisheries sectors are forecasted to grow by 4. During the same period. APBN-P 2010 Chapter I Besides. y-o-y) SECT ORS 2008 4.2 8. This is in line with the beginning of the improvement in the global trade volume and commodity prices. 2008-2010 (Percent.16 GDP AND ITS CONSUMPTION GROWTH. Gas and Water Supply 5.5 1 1 .8 1.2 6. 20 15 10 5 0 -5 -10 -15 -20 GRAPH I.5 2010* 4. from minus 9. and Business Services 9. the decline in the credit rate interest has encouraged the building and non-building investment.7 14.0 2009 4.0 percent in 2010. Agriculture. In 2010. transport and telecommunication sectors are predicted to remain growing most significantly reaching about 11.9 7 .9 5.Basic Assumption and Fiscal Policy Highlights.3 5. Forestry. Real Estate.5 percent. Hotels and Restaurant 7. the economy prospect improvement is expected to stimulate the investors’ interest in investing capital inflows. trade sector and hotel and restaurant. In addition. In the international perspective.0 3. Electricity.7 percent in 2009 to 14.2 percent in 2010. hotel and restaurant sectors which closely relate to import activity are projected to grow by 7.9 3.
2 Inflation The global economic slowdown occurring in the first semester of 2009 and the positive contribution of domestic policies have influenced the decline in inflationary pressures in 2009. have pushed down the rate of inflation in 2009.06 percent.17).37 1. including the transportation tariffs. Several factors above have caused a sharp GRAPH I.15 2.14 According to its group. cigarettes and tobacco as well as the category of clothing reaching about 7.0 14. The BBM price and local transportation tariff were particularly the two commodities contributing to the sharp deflation rate in IHK growth in 2009 (Graphic I.0 -0.05 0.30 0.97 6.0 8.51 0. the global economic slowdown followed by the inflation decline in the counterparty countries have caused the decline in imported inflation.84 0. 2008 . The decrease in international commodity prices particularly crude oil price has pushed the Government to reduce the BBM price at the beginning of 2009 as a continuation of the fuel price reduction at the end of 2008. and November reaching about 0. Rupiah exchange rate appreciation of US dollar and public expectation of inflation having improved gradually. On the yearly basis.5 10. These deflationary components occurred as a result in the Government policy in reducing subsidised fuel prices (regular and diesel fuel).04-0.Chapter I Basic Assumption And Fiscal Policy Highlights. the inflation in 2009 was caused by the rise in nearly all prices of the expenditure categories except the groups of transportation. the inflation rate in 2009 reached down the lowest inflation in the last 10 years.67 percent (y-o-y).45 0. This is in line with the beginning of the operation of new electric power plant and the completion of water supply projects in the regions.57 0.17 INFLATION RATES. the yearly inflation decline in 2009 was mainly caused by deflationary components of administered prices.5 2.5 percent. The relatively high inflation rate was in the category of prepared food.78 percent (y-o-y).97 1. 0.0 2.9 percent. as a result in the decline in BBM price in December 2008 and January 2009. APBN-P 2010 sector that is predicted to be able to achieve the most significant increase in 2010. Based on its component. gas and water supply sectors by 8.0 1. communication and financial services.77 1. Historically. On the other hand.56 0.65 0.07 -0. namely electricity.31 -0.0 4. April.57 1.11 0. beverages. which was about minus 3. The realisation of inflation in 2009 was extremely lower than the assumption of inflation in the APBN-P 2009 by 4.12 0. and the improvement in the inflation I-14 Financial Note and Indonesian Revised Budget 2010 Jan Feb Mart Apr May Jun July Agust Sept Oct Nov Des Jan Feb Mart Apr May Jun July Agust Sept Oct Nov Des Jan Feb Mart Apr May Jun July 2008 2009 2010 .33 0. which finally caused in the decline in other domestic commodities. which was lower than that in 2008 of 11. based on headline inflation (IHK – Consumer Index Price).0 0.81 percent (y-o-y) and 6. 3. and 0.0 0.26 percent. the transportation category recorded a deflation at 3.19 0.46 12.2010 (percent) decline in inflation.03 percent respectively that have Source : BPS inflation rate inflation rate contributed to the decline in the inflation rate in the fiscal year (Graphic I.00 (y-o-y) respectively.0 2.5) -0. 1.45 0.21 0.07 percent.18). in January. This policy had brought about an impact in a decline in transportation tariff which finally pushed down the inflation significantly.22 0.95 0.0 1.5 0.04 0. Furthermore.03 (0.41 1. core inflation has declined in response to pressure on external factors.29 0. Besides. the rate of inflation in 2009 recorded about 2.4. Deflation occurred three times within 2009.31 percent.
71 4.74 4. In addition.4 8.57 percent (m. -0. Cigarettes and Tobacco Food Stuff -10 -5 0 39995 Juli 2009 4. JULY 2009 & 2010 forecasted to have a tendency toward an (y-o-y. volatile foods inflation showed a sharp fell as a result of security of supplies and distribution of several main people’s commodities as well as the impact of global food commodity prices within 2009.22 Core Administered Price Volatility Source : Ce ntral Bure au Of Statistics 399952009 Juli 40360 Juli 2010 1.3 14.3 Rupiah Exchange Rate During 2009 in general the rupiah exchange rate tended to appreciate. Communication and Financial Se rvice s Education.22 percent (y-o-y). 16. In February Financial Note and Indonesian Revised Budget 2010 I-15 .167/USD. The beginning improvement of global economy is predicted to push the increase in global commodity prices and the inflation rate in the main Indonesia’s counterparty countries.28 percent and 3.95 percent respectively (Graph I. percent) increase.3 percent. 0.56 4. JULY 2009 .Basic Assumption and Fiscal Policy Highlights.78 percent (y-o-y). The inflationary pressures from the external factors are predicted to have an impact in the public inflation rate.31 -3.2 5 10 15 403602010 Juli 20 Source : Central Bureau Of Statistics expectation. In July 2010 the inflation rate reached about 1.18 INFLATION BY GROUP OF COMMODITIES. 11. Recreation and Sport Medical Care Clothing Housing. Having considered the inflationary factors mentioned. percent) Transportation.89 5. In 2010.97 5 percent respectively. the core inflation and volatile food inflation have recorded 4.71 2.14 3. APBN-P 2010 Chapter I GRA PH I.30 percent. Entering 2010. In January 2009.14 10 percent. 0. On the internal side. Until the end of 2009. In the same period.0 8.1 -6.19 INFLATION COMPONENTS .19).0 t-m) or 6.51 4.84 percent.2010 (y-o-y.18 5.4.19 3.0 percent. 0.34 4. which were -5 higher than those in December 2009. the inflationary pressures are GRAPH I.15 percent.53 3. the increase in domestic demand is in line with the national economy recovery which is projected to push the inflation rate in 2010. the Government policy in the main commodity prices is also predicted to drive the inflation rate in 2010. the inflation rate 20 (m-t-m) in January until June 2010 reached 15 about 0. Ele ctricity and Water Supply Prepared Food. the rupiah exchange rate in average recorded the value of Rp. which had reached 2. Beverages.29 percent and 0.56 2. the inflation rate assumptions in the APBNP 2010 would increase to 5. which is slightly higher than the assumptions in the APBN 2010 by 5.
deposit rate and lending rate was followed by the decline in the three-month SBI rate. the Fed as the monetary authority is predicted to commence its tight monetary policy. BI. and longterm (Treasury Bonds).growth BI Rate Fed Fund Rate 3-month BI Certificate 2008 2009 2010 Source : The Fed.42 trillion or about 10 percent to its Gross Domestic Product (GDP). APBN-P 2010 The transmission of BI rate cut onto lending rate was slowly shown and more limited.Chapter I Basic Assumption And Fiscal Policy Highlights. During JanuaryJuly 2010. same as the average rate in December 2009.23).23 INFLATION GROWTH AND INTEREST RATE. Two main factors have influenced the rise in the 3-month SBI rate. which was at the range of 9.58 percent. Considering this condition. the average rate of the three-month SBI within 2009 reached into 7. the average rate of the 3-month SBI has tended to continuously decline consistently. GRAPH I. The abovementioned progress is projected to influence in the growth of 3-month SBI interest rate. lower than that in 2008. 2008 . Overall. the high inflation expectation is also bolstered by the policy on the rise in tobacco excise tax rates issued the Government at the beginning of 2010. Statistics In 2010. the realisation of 3-month SBI rate in average will reach into 6. During 2009 (January until December) the aggregate of lending rate in average has declined by 99 bps. within 2010 Bank Indonesia is estimated to take tight monetary policies. The inadequate response of lending rate has connected to several factors such as: high inter-bank perception about the real sector risk. which was at the level of 6.2010 (percent) 14 12 10 8 6 4 2 0 Jan Feb Mart Apr May Jun July Agust Sept Oct Nov Des Jan Feb Mart Apr May Jun July Agust Sept Oct Nov Des Jan Feb Mart Apr May Jun July Infl. within 2010 the US is predicted to issue government bonds to cover its state deficit in the 2010 budget reaching in USD 1. In addition.5 percent same as that of the APBN 2010. the assumption of 3-month SBI rate is forecasted to increase. This is connected to the high inflation expectation in 2010 triggered by a global strong demand as an impact of global economic recovery and the increase in prices of international commodities particularly global crude oil. I-18 Financial Note and Indonesian Revised Budget 2010 . In line with the increase in the issuance of government bond and the beginning process of the US economy recovery. The issuance of the US Government Bond will take the form of short-term obligation (Treasury Bills). The transmission of BI rate cut onto PUAB. medium-term (Treasury Notes). the interest rate of the Fund Rate will be predicted to be above 0. On the external side. The assumption of the average interest rate of 3-month SBI is predicted to be at the level of 6.25 percent. Within 2009.34 percent (Graph I. On the internal side.58 percent.59 percent.
4. SUPPLY.25 WTI OIL PRICE.4 per barrel compared with the average ICP in 2009 reaching about USD61.24 GROWTH OF DEMAND.0 83. An institution in the US.5 Indonesia Crude Price (ICP) The global economy recovery has brought about an increase in a world demand of oil.4. EIA has predicted that the high world demand of oil will remain within 2010 amid China’s economy recovery as one of the biggest oil consumer in the world.2010 (million barrel per day) Financial Note and Indonesian Revised Budget 2010 I-19 .9 either the projects delay or unplanned 2008 2009 2010* shutdown. APBN-P 2010 Chapter I 1.96 0. EIA & Ministry of Energy and Mineral Resources 1.5 per barrel.0 0 Demand Supply WTI Brent ICP Source: Bloomberg. EIA & Ministry of Energy and Mineral Resources The ICP in 2010 is predicted to increase in accordance with the trend in the international oil price. particularly in the last semester of 2009.965 0. Source: Ministry of Finance & BP Oil & Gas Furthermore. at the end of December 2009. which was lower than the target 0.7 per bareel Average realisation S$61.93 I.92 0. Until the end of July 2010.960 million barrel per day (Graph 0. In 2010. AND WORLD OIL PRICE. ICP was estimated to rise approximately amounting to USD80 per barrel or it increased to USD18.6 percent from the average of crude oil price of WTI in 2009 reaching by USD61. Some problems preventing 0.7 per barrel 50 40 30 39814 39904 39995 Oct 2009 40179 40269 Source: Bloomberg. which is higher than the realisation in the period of 2009 amounting to USD53. GRAPH I. EIA has estimated that the world crude oil price WTI in 2010 will be at the level of USD78.91 target in 2009 were.0 120 100 80 84.6 per barrel.965 0. such as bad weather and *) the Revised Budget the damage in electric facilities.944 million per barrel per Target Realisation 0. 2009-2010 (USD per barrel) Average estimation =US$78.Basic Assumption and Fiscal Policy Highlights.95 to 0.0 85. 2008-2009 (USD per barrel) 88.927 0.96 set up for the APBN-P 2009 amounting 0.26).26 INDONESIA OIL LIFTING.0 81. problems faced by some counterparty contractors failing to reach the production target was caused by the delay in a development of production GRAPH I. the price average ICP will reach about the level of USD77.0 60 40 82.0 20 80.7 per barrel.7 per barrel or increasing in 27. among others.944 0. namely the Energy Information Administration / EIA has recorded a total realisation of the oil global demand reaching about 85.9 million barrel per day.0 160 140 86.94 0.6 Lifting The realisation of oil lifting in 2009 (December 2008-November 2009) has reached 0. 90 80 70 60 GRAPH I. 0.0 87. 2008 .4 per barrel.97 day. Along with the increase in the world demand of oil.936 from the achievement of oil production 0.
166 billion to USD10. two Presidential Rules/ Presidential Decree. and from PT Pertamina and its counterparty about 131. two Laws. and enhancing an effective communication with the contractors having worked under a joint contract to improve the performance on the production in order to achieve the target. This was due to the decrease in imports relative to exports. Until 30 December 2009 the realisation of investment in oil and gas reached about USD12.874 billion. 32 Minister of Energy and Mineral Resources Regulations.800 barrel per day. Based on this progress. in form of project loans and loan programmes. The Government has set up to reach the target of investment in oil and gas sector in 2010 by USD15.746 million. and other 390 legal products. optimising oil production from oil wells having been abandoned. among others. the Government has taken a number of precautionary steps in achieving the target on oil production. which was slightly lower than that in the previous year. granting tax incentives on import oil and gas equipment. which was greater than that in the previous year amounting to USD22.916 million. The balance of trade in 2009 showed a surplus of USD35. The current account in 2009 was expected to record a surplus of USD10.184 billion below the target. In the APBN 2010. These steps are as follows: issuing the provision of not to peg the cost recovery (replacement cost of exploration and production activities).7 Balance of Payments Along with the improving outlook on the global and domestic economy. In 2010 additional oil lifting is predicted from an area operated by PT Chevron Pacific Indonesia about 364. Within the same period the realisation of upstream investment in oil and gas dropped down from the target about USD13. balance of payments performance in 2009. APBN-P 2010 facilities. In order to stimulate sound investment in oil and gas sector.800 barrel per day. which is same as the assumption on the APBN 2010.965 million barrel per day. although the balance of services showed a deficit.628 billion and investment in downstream sector by USD2.778 billion. Considering the realisation of oil lifting in 2009 that was lower than the target set up in the APBN-P 2009.988 billion consisting of investment in upstream sector by USD13.4. the Government and the House of Representatives have agreed on the target of oil lifting about 0. USD13. as well as direct and portfolio investments. the target on oil lifting of crude oil in the APBN-P 2010 is set up by 0. and the realisation of downstream investment grew from the target about USD612 million to USD1. technical problem of equipment / production facilities and problem in procuring floating production facilities (Floating Storage Offshore / FSO). 51 Minister of Energy and Mineral Resources Decrees. The achievement of oil lifting in 2009 that was below the target set up was influenced by the realisation of oil and gas investment.133 million. the Government issued a series of regulation in 2009. driven by an increase in the surplus in the balance of trade and a deficit in the balance of income. I-20 Financial Note and Indonesian Revised Budget 2010 . three Government Regulations. in terms of both current account and capital and financial transactions are expected to improve compared to its performance in previous years. 1.310 billion.965 million barrel per day. the increase in deficit in the balance of service was mainly influenced by the increase in service spending. Meanwhile. The improvement on balance of payments performance was mainly due to the increasing demand from exports and capital inflows.360 billion.Chapter I Basic Assumption And Fiscal Policy Highlights.
This additional allocation of SDR was aimed at strengthening the position of foreign exchange reserves of developing countries. Another investment performance was boosted by additional allocation of special drawing rights. While the balance of transfer is estimated to generate a surplus USD4. as an effort to handle the global economic crisis.Basic Assumption and Fiscal Policy Highlights.5 percent compared with the conditions in 2009.5). In line with this.105 million or equal to equivalent to 6.506 million. as a result of rising surplus in the capital and financial accounts. so that the foreign exchange reserve was estimated to reach by USD 66. reaching USD11. Meanwhile. which is higher than that in 2009 amounting to USD3. a slight growing of economic activities and investment will encourage an increase in imports of raw materials and capital goods.889 million. capital and financial accounts in 2010 are estimated to have a surplus of USD12. In 2010. The increase surplus in financial and capital accounts are caused by the balance sheet of public sector increasing in 8. Deficit in the balance of revenue is estimated to reach USD17. Financial Note and Indonesian Revised Budget 2010 I-21 . On the other hand.958 million. the capital and financial account in 2009 were estimated to record a surplus amounting to USD3. Export performance improvement connected with economic recovery and the volume of world trade is moving to the positive growth. the general equilibrium was estimated to generate a surplus in USD 12. alongside with a decline in the current account surplus. The more conducive investment and the liquidity recovery in the global financial market is estimated to encourage foreign capital inflows. This is primarily due to the increase in imports of transportation (freight) and expenditures of other services. including Indonesia.2 percent. in line with an estimated increase in direct investment in oil and gas sector and improving perception of the risk in the domestic market. imports are expected to increase significantly to 35.548 million. the deficit in the balance of trade is estimated to reach USD15. 660 million. whereas in 2009 it had a deficit of USD7. On the other hand. APBN-P 2010 Chapter I and imports of transportation of goods.720 million which was under the agreement of the G-20 leaders (Group of 20).548 million. and shibosai bonds by the Government. Balance of trade as one component of the current accounts is supported by the improved performance of exports and capital inflows.0 percent larger than the realisation in 2009.960 million or 2. the performance of balance of payments is projected to remain fairly strong. Considering these conditions. In 2010.6 months of imports and foreign debt repayment (Table I.0 percent increase when compared with that in the previous year. Based on development in balance of payment variables in 2009. or Special Drawing Rights (SDR) amounting to USD2. exports are expected to grow by 24. Considering these conditions.1 percent higher than the realisation in 2009. although at the same time imports are also expected to rise. in line with an improvement of in domestic economic absorption that have encouraged the increase in imports. foreign currency of sukuk.565 million. Surplus on portfolio investment was supported by the issuance of global bonds.609 million. Meanwhile.051 million. the balance of trade will generate a surplus in USD34. and also by the balance sheet of private sector returning to positive.050 million. This surplus was mainly from a large surplus in direct investment and portfolio investment. which is approximately 13.4 percent reaching USD148.561 million which is 16. the current account in 2010 is estimated to produce a surplus USD6. so the balance sheet of private sector will generate a surplus USD830 million.
364 -1.Project Loan .5 INDONESIA BALANCE OF PAYMENT. Income 4.294 -1.597 -5.436 2.882 3.337 14.Debt repay ment .451 99. Public Sector .Chapter I Basic Assumption And Fiscal Policy Highlights.Financial Transaction a.Capital Transaction .642 -1 5.063 -84.7 20 -7 .Portfolio Inv estment c.Financial Transaction a.606 31 .660 25.202 -1 4. D. Import. E.885 -1 1 6. CAPIT AL AND FI NANCIAL ACCOUNT 1 .889 1 2.0 66.7 43 2.5 * Provisional figures **Projection Source : Bank Of Indonesia I-22 Financial Note and Indonesian Revised Budget 2010 .6 83.998 -1 5.1 08 -1 5.Allocation of SDR (Special Drawing Right) 2.935 -92.548 1 1 .928 7 58 -1 0. Portfolio Inv estment b.861 3.639 4.Programme Loan . net b.31 5 1 09. Ex port.1 40 4.347 -1 2. 2008-2010 (in billion of USD) Items A.7 46 35.7 24 2. Trade Balance a.7 21 1 07 .1 1 3 -7 2.201 -6.7 7 8 27 3 -4.7 50 -195 -1.939 -263 18.052 3.459 356 -6.Non-Oil and Migas 2.567 -6.650 1 .609 1 48.506 2010** 6.01 4 1 1 .051 -1 4.87 6 1 .048 18.87 3 -1.958 -1 7 .07 5 0 830 62 7 67 6. Direct Inv estment.81 9 -6.7 55 -1 2.91 6 1 39.Oil and Gas .Oil and Gas .188 6.1 55 5.Capital Transaction .7 88 12. Priv ate Sector . APBN-P 2010 TABLE I.105 6.690 -23.565 85 -7 .484 -1 1 4.1 1 3 11 1 1 .561 4. Other Inv estment .223 7 92 2.41 9 -1 .1 03 9. Current Transfer B.1 33 1 1 9.444 2.Non-Oil and Gas b.960 12. CURRENT ACCOUNT 1 . fob .480 20.31 7 -1 .050 34.945 2009* 10.962 2.059 45 1 2. T OT AL (A+B) NET ERRORS AND OMMISSIONS OVERALL BALANCE (C+D) 2008 126 22.57 8 1 .525 2.380 0 -3. Serv ices 3.1 1 2 -89. Other Inv estment C.67 6 Mem orandum International Reserv e (in m onths of im ports and official foreign debt repay m ent) 51.903 21 1 . fob .
compared with the performance of other countries that have also been affected by the sharp global crisis. the implementation of national development still continue to face challenges that need to be anticipated in the future.844. especially crude oil prices which will also affect the posture of the APBN 2010.4 billion. the realisation of net financing has amounted to Rp12. From the external side. the performance of national economy in 2009 is able to survive from the pressure of the global crisis. while the realisation of the state expenditures reached 93.2 billion. in which verse (1) gives a mandate to the Government to propose the Bill on the Indonesian Budget for the 1010 fiscal year. the implementation of the APBN-P 2009 and its impacts on the implementation of the APBN 2010.5 percent.Basic Assumption and Fiscal Policy Highlights. The foreign exchange reserve is projected to reach USD83. which was below the target of Rp129.118 million in 2010.6 percent of GDP). The legal basis of the APBN-P is under the article 27 of Law Number 47 year 2009 regarding the APBN 2010. 1. This is as a consequence of the realisation of the revenues and grants reaching 97. These indicators and effective polices introduced by the Government have buttressed the economic growth to remain positive and relatively high in 2009 reaching about 4. the Government has deemed it necessary to make some revisions in the APBN 2010. Considering the evaluation in the economy performance in 2009. as reflected in the deficit realisation of APBN-P 2009 amounting to Rp88. the growth of inflation is predicted to rise surpassing its target in 2009. the strengthening of rupiah particularly in the second semester of 2009 and the decline in the inflation rate have created a positive impact on the decline in the interest rate of Bank Indonesia Certificate.964.583. as a result of the increase in purchasing power of people and the policy on administered prices.7 percent of the ceiling. In addition. On the other hand.4 percent of GDP). the national development will continuously put in a great deal of effort to reduce the rate of unemployment and poverty.5 Principles of Fiscal Policy of APBN 2010 Since the end of the year 2009 and at the beginning of the implementation of the APBN 2010. so that it generated a surplus net financing (SILPA – a surplus/deficit of budget and net financing in the budget year) amounting to Rp.78 percent. APBN-P 2010 Chapter I The improving balance of payments is reflected in the increase in foreign exchange reserve which is expected to support the domestic stability and economic growth. in the event that : Financial Note and Indonesian Revised Budget 2010 I-23 . including removing impediment in building the infrastructure. and the economic growth as well as the national development in 2010. 23. On the internal side.8 billion (1. Achievement in the national economy and global economic conditions have also exerted impacts on the realisation of the APBN-P 2009 variables. the Government continues to monitor global and domestic economic developments. In general the realisation of APBN-P 2009 was managed well. From the macroeconomic perspective.618. In addition. the global economic recovery is predicted to improve indicated by the growing prices of primary commodities especially crude oil price which will finally affect primary commodities. As a result of this monitoring process.4 percent of the target. and to build basic and supporting infrastructure. the inflation rate was managed to reach 2. 9 billion (2. although signs of global economic recovery have appeared. Entering 2010.
c. and cooking oil subsidies. change comes from a combination ceiling of the addition of a new state budget. the APBN-P 2010 also allocated funds for I-24 Financial Note and Indonesian Revised Budget 2010 . The addition of the goverment expenditure in APBN-P 2010 was due to the addition of the central government budget. The changes in the APBN 2010 are made comprehensively. the adjustments in the target variables are made based on the changes in the macroeconomic variables projection in the APBNP 2010. Conditions exist that have caused a budget shift between organisational units. by retaining the current fuel prices. d. and the realisation of tax revenues in 2009. either in the plan of projection on of tax revenue or and PNBP. (b) maintaining the stability of prices of goods and services within the country. changes in the APBN 2010 are aimed at: (a) anticipating the changes in macroeconomic indicators in 2010. Third. fertilizer and HET policy adjustments in electricity based tariffs. In addition. budget deficit and financing the budget. On the tax revenue side. the changes occur. and the addition of transfers to local budgets. b. particularly the projection of higher oil prices into USD80/barel. In addition. a deviation in the realisation of tax revenue in 2009 from the target set in the APBN-P 2009 will be incorporated as a baseline of revising the projection on of the new tax revenue in 2010. The change in basic macroeconomic assumptions in 2010 affecting the tax revenue is mainly the change in the projection on Rupiah exchange rate against the US dollar. Within this framework. As stipulated in Presidential Instruction Number 1 Year 2010 regarding the Implementation Acceleration of the National Development Priorities in 2010. First. Changes in central government expenditure in APBN-P 2010 is influenced by several factors. Second. easily obtained.656. expenditure. Meanwhile. the Government’s policy to maintain stability of prices of goods and services. so that it will include all changes in the budgets of income. and / or inter types of expenditures. or 4. On the goverment expenditure side. Progress of macroeconomic is unsuitable with the assumption supported on the Indonesian Budget for the 2010 fiscal year. Conditions exist that have caused a budget surplus in the previous year to be spent for financing the budget year of 2010.8 billion. Based on these development. Changes in principles of fiscal policy have occurred. to accommodate budget for priority development programs that have not been accommodated in Law Number 47 Year 2009 regarding APBN 2010. APBN-P 2010 expected to be Rp992. APBN-P 2010 a. resulting in increased energy subsidy. On the national income side. adjustments of food subsidies in the form of additional allocation of subsidized rice to targeted households and price adjustment purchase of rice.1 billion. tax incentives. and budget reallocation. non-tax revenues estimated to increase related to higher ICP assumption as a basic for calculating revenue oil and gas resources and increase on government’s revenue target based on estimate State Owned Enterprises financial performance improvement in 2009 .398.5 percent higher than the target of APBN 2010 amounting to Rp949. changes in macroeconomic assumptions.Chapter I Basic Assumption And Fiscal Policy Highlights. and (c) accelerating the implementation of prioritised national development programmes both in the medium-term and in 2010. The main objective of price stabilization policies are directed to the needs of goods and services can be maintained it’s availability. programmes. as well as with good quality and price.
the budget financing planned in the APBN-P 2010 will be Rp.6. In addition. and the source of financing is mostly from domestic fund. Besides the addition of the budget. deficit budget in the APBN-P 2010 2010 is surpassing 36.5 billion contained in the APBN-P 2010 resulting from a revision. Summary of the Indonesian Budget and the 2010 Revised Indonesian Budget are presented in Table I. Overall additional required state spending estimated at Rp78. Meanwhile. the level of increase in the budget deficit is still below the level of tolerance in accordance with the statutory provisions. Furthermore. 0 billion. and to improve the protection for the public. keep the ratio of education spending remains 20 percent. 5 billion. Having the target on the state revenue and grants of Rp992. 7 billion. Secondly. (2. The budget financing planned in APBN-P 2010 will be used to finance the budget deficit. Additional funding requirements to expenditure met from the reallocation of expenditures that are already available.480. the APBN-P 2010 will have a deficit amounting to Rp133.747. and the lack of allocation of funds to pay for oil and gas results in previous years. Compared with the deficit in the APBN 2010 reaching by Rp98. transfers to the regions also increased relating to the transfer of grants to the area. which was originally housed in central government spending.126. estimated that there are additional budget for education amounted to Rp15. and to contain the financing required for increasing the Government investment (including the endowment fund for education). the utilisation of the SILPA 2009 and the Cumulated Budget Surplus (SAL) in the previous years. Fourth.9 billion (1. from mortgage interest subsidy program for KPRSh to investment capital in the financing country.1 percent of GDP).381.5 percent of the target set in the APBN 2010 valuing in Rp.7 billion.000. the source of financing in the APBN-P 2010 will be obtained from the followings: the withdrawal of foreign loan. and also met from other funding sources.398.9 billion.310. transfers to the regions of Rp1. to enhance the micro credit. In addition. surpassing 36. so in 2010 state budget spending is estimated to be Rp1. and the estimate expenditure of Rp 1.8 set.747.5 percent. 3 billion.126.6 percent of GDP).4 billion.691. the increase in the budget deficit will enable the implementation of the prioritised programs to accelerate the achievement of the development targets. The plan to increase the budget deficit in the 2010 Revised State is at least based on two factors.Basic Assumption and Fiscal Policy Highlights.145. the central Government spending will also be carried out reallocation of spending to finance. 133.009. and through financing in the form of endowment fund that management education undertaken by public service agencies (BLU) in the education sector amounted to Rp1.7 billion. consisting of additional education spending through central Government expenditure amounted to Rp13. APBN-P 2010 Chapter I rehabilitation programs and post-disaster reconstruction in West Java and West Sumatra. Financial Note and Indonesian Revised Budget 2010 I-25 . the additional budget in APBN-P 2010 derived from increase in revenue sharing from natural resources due to rising oil and gas targets which some non-tax revenues distributed back to regions. 4 billion. in the expenditure transfers to the regions.009.98. to maintain the stability of prices of goods and services in the country. and to assist the development of small housing. Firstly. In APBN-P 2010. and the capital investment to support the infrastructure building. both from the revenue side as well as from the financing side.146.
605. Foreign Loan (gross) 2.7 344.1 133.363.5 1.7 78.6) (54.470.3 2.765. Revenue Sharing b.0 725.5) 992.485. Subsidies 1) Fuel Subsidy 2) Non-Fuel Subsidy c.480. Domestic Banks 2.9 5.502.146.2 100.1 32. Domestic Taxes b.3 (9.561.926.506.399.1 (16.486.Subsidiary Loan Agreement 3.820.5 781.133.006.290.3 5.9 32.230.8) (58.1 948.0 340.594.792.714.3 30.353.6 0.9 720.7 51.9 29.666.707.5) 57.365. International Trade Taxes 2.0 715.985.997.726.171.606.4 247.0 13.656.4 164.0 389. Special Allocation Funds 2.8 22.5 21.023.719.Chapter I Basic Assumption And Fiscal Policy Highlights. FOREIGN FINANCING (net) 1.8 203.7 231.3 742. GOVERNMENT EXPENDITURES I.5 56.436.6 (2.534.8 38.477.747.1 (155.8 990.777.500.2 9.404.5 205.6 121.642. Special Autonomy and Adjustment 3.000.9 314. Profit c.011.9 8.5 24.486.4 203.2) (4.850.1 88.462. Other Non-Tax Revenues Revenues from Public Service d.5 22.2 45.696.529.0 (98.0 39.3 132.189. Loan Interest Payment 1) Domestic Loan 2) International Loan b.7 151.891.009.843.972.398.506.8 (8.762.742.4 16.500. Other Expenditures II.0 Items A.9 (12. REVENUES AND GRANTS I.2 1.7 42.203.796.894.2 21.3 (8.3 106.0 0.347. CENTRAL GOVERNMENT EXPENDITURES (K/L & Non K/L) 1.Badan Layanan Umum) / Bank Indonesia II.500.047. SLA .5) 70.9 13.B) % of Deficit to GDP D.293.1) 41.0) 35.Oil and 2) Non-Oil and Gas b.8 157. General Allocation Funds c. NON-TAX REVENUES a. DOMESTIC FINANCING 1.8 115.533.009. Regional Grants C.6 25.757.9 8.339.213.2 120.764. APBN-P 2010 TABLE 1. K/L Expenditures 2.305.4) (5.6 201.3 743.3 (9.9 322.903.4 5. Natural Resources Revenues A 1) Natural Resources .0 306.8 9.612.857.134.5 27.6 33.093.1) (0.211.249. Agencies (BLU .149.2 26.6 30.737. Non-Domestic Banks II.2 71.426.4 5.5 31.7 37.263.0 43.1 57.0 3.5 415.149.5 7.8 1.6) 98.8 38.423.4 81. REGIONAL EXPENDITURES 1.030.399.1 105.738.896.0 133.568.8 11.526.9 184.108.40.206.6 0. TAX REVENUES a.0 13. Amortization 949.650.881.579. Balanced Funds a.336.6 366.944.243.6 SUMMARY OF THE 2010 INDONESI AN BUDGET AND REVISED BUDGET (in billion rupiah) 2010 BUDGET 2010 REVISED BUDGET 2010 Deviation from the Budget 42.l a.4) 133.411.0 587.6 0.0 (4.0 143.8) 4.4 30.325.152.726.126.190. FINANCING (I + II) I.176.157.9) (1.2 385.2) 9.618.9 1. Non K/L Expenditures a.2) 43.9 107.6 77. DOMESTIC REVENUES 1.643.5 Source : Ministry of Finance I-26 Financial Note and Indonesian Revised Budget 2010 .3 89. GRANTS B.265.747.442. SURPLUS/ DEFICIT BUDGET (A .
consisting of domestic revenue and grants amounting to Rp990.1. Introduction Entering 2010 the ongoing growth of global and domestic economic are still facing challenges. Firstly.398. Another factor determining the change in the APBN 2010 is that the realization of some revenue items did not reach the targets.5 percent compared with that in the APBN 2010 at Rp949. To anticipate the negative impacts of the rising prices. Secondly. the revenues and grants determined in the APBN-P 2010 are exceeding Rp42.9 percent of the GDP) growing up by 4. the world economy developments.7 billion or 4. The realization of revenue and grants in 2009 was 97. Compared with the target set in the APBN 2010 at Rp949. exchange rate.8 billion. 2. changes made in macroeconomic assumptions in 2010. The increase occurred in either domestic revenue items and grants growing by 4.9 percent and 13. and ICP. Considering the above factors. This was caused by the change in the ICP assumption from USD 65 per barrel to USD 80 per barrel.1 billion.3 billion and Rp1.1 billion.763. while non-tax revenue reached 104. The revenues and grants in the APBN-P 2010 are estimated to exceed the target set in the APBN 2010.8 billion (15.398.656. the Government has decided to make some changes in the APBN 2010 according to the current economic development conditions.5 percent and 25.635.6 billion or 16.Revenues and Grants Chapter II CHAPTER II REVENUES AND GRANTS IN THE REVISED INDONESIAN BUDGET 2010 2. The revenues and grants in the APBN-P 2010 are estimated to reach Rp992.742.5 percent.656.502. include the resilience and the preventive actions taken by domestic businesses. Furthermore. the realization of revenue and grants being achieved in 2009.2 billion.1 Financial Note and Indonesian Revised Budget 2010 II-1 . the revenues and grants in the APBN 2010 have risen by 16. Meanwhile.8 percent respectively.1 percent. The growth of revenues and grants from 2009 to 2010 are shown in Table II. although the realization of the revenues in 2009 was slightly below the figure in the APBN-P 2009. Details are as follows: domestic revenue and grants grow by 16. This was triggered by a trend in the increasing international oil prices encouraging the commodity prices to rise simultaneously. the revenues and grants in the APBN 2010 are expected to change.9 percent respectively.2 Changes in Revenues and Grants 2010 The preparations for revising the estimate figures of revenue and grants in 2010 are influenced by several important factors. and its impact on the Indonesian economy. revenues and grants determined in the APBN-P 2010 grow by Rp143.9 percent surpassing the realization in 2009 at Rp848.9 percent exceeding the realization achieved in 2009.2 percent.896. Thirdly.5 billion respectively. particularly in inflation. The revenues and grants in the APBN-P 2010 are estimated to increase to Rp992.4 percent of the target set in the APBN-P 2009 detailing the followings: tax revenue achieved 95.
506.9 247.8 billion.0 869.4 97.4 1.8 percent respectively.738.4 billion. Compared with the target set in the APBN 2010. 2009-2010 (billion rupiah) 2009 2010 Items APBN-P 870.4 95. the additional facilities on the Value Added Tax (PPN) Borne by Government on cooking oil is intended for stabilising the cooking oil price in the domestic market to anticipate the increase in the price of Crude Palm Oil (CPO) in the international market.502.872.2.2 165.6 1.4 1.096.1 Domestic Revenues Domestic revenues in the APBN-P 2010 are estimated to reach Rp990. 3 billion.656.3 1.7 billion or 16.5 100.5 percent. detailing the following: tax revenues and non-tax revenues grew up by 0.3 125. To anticipate the crisis.8 218.1 REVENUES AND GRANTS. to encourage the real sector.2 847.922. the increase in domestic revenues was due to the growth in oil and gas revenue as a result of the changes in the assumption of ICP (Indonesia Crude oil Price) in the APBN-P 2010. The total value of DTP provided in the APBN 2010 is Rp16. whereas in the APBN-P 2010 the DTP value is planned for II-2 Financial Note and Indonesian Revised Budget 2010 .5 % to APBN 104.325. Meanwhile.176.5 651.5 104.3 percent respectively.763. compared with the realization in 2009. the provision of customs duty facility namely the Tax Borne by the Government policy (DTP) serves the purposes as follows: to supply goods and services for the public.9 percent. the Government will continue providing fiscal stimulus in taxation.006. 2. The increase occurred in tax revenue and non-tax revenue amounting to 19. Meanwhile.6 % to APBN-P 97.037.6 APBN 949. In accordance with the recommendation from the ministries as the supervising sector. the import duty subsidy will be granted to some selected industrial sectors having met the certain criteria. and (c) improve the competitiveness of business and industry.954.3 743. and to improve the competitiveness of certain industries in the country.411.325.2 227.666.1 Fundamental Changes in Tax Revenue World economic conditions in 2010 are projected to improve. 9 billion and non-tax revenues Rp247. compared with those in 2009 amid the pressures stemming from the global economy crisis. In general. (b) maintain the business resilience to the global crisis.896.174.999. As a continuation of the tax stimulus programme in 2009.502.1 120.992. the projection of domestic revenues in the APBN-P 2010 increased by Rp143.8 990.3 742.405.1 948.1 104. Domestic Revenues 1 Tax Revenues 2 Non-Tax Revenues B.2.6 619.1 percent and 20.8 APBN-P 992. consisting of tax revenues Rp743. domestic revenues increased to 4.9 Revenues and Grants A. especially to (a) increase people’s purchasing power.398.Chapter II Revenues and Grants TABLE II.149. Grants Source : Ministry of Finance 2. All DTP facilities provided in order to continue the programme of fiscal taxation stimulus are part of the policy of DTP or general tax subsidies.5 LKPP 8220.127.116.11 percent and 8.0 205.
Tax on import of oil and gas exploration (PDRI) 2. Income tax on grants and international financing from multilateral financial institutions d. Import Duties 3. 2010 duties DTP.500. taking the collections of claim and undertaking the investigations.0 Islamic banking the citizens of the victims of mud disaster of Sidoarjo and PT Minarak Lapindo Jaya Lapindo e.3 624. The total of Value Added Tax DTP provided for murabahah Islamic banking transactions is Rp328.292.424.872. VAT on Murabaha transactions of Islamic banking on the former National Bank g.0 328. The changes are required in the following: the Value Added Tax on TABLE II. Income Taxes 3.000.500. VAT on fuel.5 5. (2) exploiting the potential taxpayers by implementing the programme on optimizing data of taxation. Account receivable taxes from the former National Bank Restructuring Agency (BPPN) and 495.5 f.0 and DTP on murabaha 1.2 cooking oil DTP .4 billion.0 billion. the income tax of DTP on bio fuel and the Value Added Tax of DTP on adaptation and mitigation of climate change.1 billion.3 Total of Taxes Borne by Government (DTP) Source : Ministry of Finance billion. (4) enforcing the level of compliance with the regulation on the tariff reduction along with the programme provided such as counselling and service rendered for taxpayers having used Financial Note and Indonesian Revised Budget 2010 II-3 .4 billion increasing by Rp1. VAT on adaptation & mitigation of climate change DTP income taxes receivables e.4 billion. (3) encouraging law enforcement for potential taxpayers that have not used the Sunset Policy facility.6 billion.5 12.6 a.5 billion.0 transactions.0 2.000. VAT on Biofuel (BBN) 1. the Regional Office of the Directorate General of Tax for Large Taxpayers.PMK 135/2007) 3.000.3 Owned Enterprises (BUMN).0 851.03 Restructuring Agency 3.8 amounting to Rp495.434. or providing the taxpayers with counselling through conducting the inspections. Bank Negara Indonesia Rp150.330 Television of the Republic of Indonesia (TVRI) on receivable taxes of several 10.0 1. VAT on the imports of cooking oil and wheat / wheat flour 900. as well as continuous monitoring the potential individual and treasurer taxpayers. and the Special Regional Office Jakarta. and (b) conducting intensification activities as the following: (1) exploiting the potential tax on the basis of profile-based for all taxpayers within the regions of the following: the Medium Tax Office (KPP Madya).8 BUMN will amount to 2. VAT on the Account receivable taxes from the former BPPN and TVRI 1.000.3 billion consisting of b.3 4. TVRI and Indonesia Train Company (PT. Income Tax on the geothermal commodity 624.292. The strategy and protection of policies on tax revenue in 2010 are formulated by the following steps: (a) conducting extensification activities to increase potential income from the new taxpayers. geothermal commodities and 3-kg subsidized LPG 5. Income tax for interest on the Government Securities issued in the international markets 2. and the DTP Value Added Tax receivable on the former IBRA.0 2. The total DTP f.0 d.000 taxpayers within the region of Small Tax Office (KPP Pratama).624. and (billion rupiah) additional DTP on tax APBN APBN-P receivables of some State.0 2.8 c. Income tax on the transfer of transactions on land ownership rights and / or buildings owned by 205.000.5 Rp1.4 16. Income tax on Biofuel (BBN) 100.009.4 billion and Bank Bukopin Rp76. having the purposes for stimulating investment and increasing the competitiveness in the field of renewable energy.787.561. in line with the Government’s efforts to develop the utilisation of renewable energy sources in 2010. the Government has provided tax incentives.897. Value Added Taxes a. income tax .897. which will be distributed to Bank Muamalat Rp76.000.2. 1. Bank Syariah Mandiri Rp25. namely.0 (BPPN) and the Republic of Import Duties Facilities (except the Ministry of Finance Regulation No 135 of 2007 .0 Indonesia Television (TVRI) 18. Details of DTP in 2010 are presented in Table II. b. Furthermore.091. The facilities are provided for entrepreneurs working in the field of renewable energy resources.248.0 c. exploiting the potential taxpayers on the High Rise Building.434.000.1. KAI) amounting to Rp1.0 1.0 2. import TAXES BORNE BY GOVERNMENT (DTP ).000.Revenues and Grants Chapter II Rp18.000.
2 billion.9 billion. tax revenue in the APBN-P 2010 grew by Rp123.325. without hampering the attainment of income tax target. For this reason.Chapter II Revenues and Grants the facility of Sunset Policy. these taxpayers are expected to pay the taxes correctly after having been provided the programmes such as : tax education and counselling to increase the compliance. and counterfeit excise taxes. The intensistification programme capable of additional tax revenue of Rp61. II-4 Financial Note and Indonesian Revised Budget 2010 . the Government has implemented the established FTA policies focusing on the implementation of Early Warning System on the imported goods that may threaten the domestic industries.257.802. increasing by Rp587.322. (d) improving the supervision efforts in the excises. and maximises the benefits from the international trade under the regional. On the other hand.7 billion or surpassing that in 2009 at 19.6 billion compared with that in the APBN 2010 at Rp58.000 Yearly Annual Income Tax Reports (SPT). The increase was primarily due to changes in the basis used for making calculation (baseline). while the baseline applied in the APBN-P 2010 is the realization of 2009.9 percent.6 billion.322.1 percent of the target set in the APBN 2010. Considering the fundamental changes abovementioned. a various policies on trade came into effect to protect the domestic industries. Thus. which will create a conducive climate to encourage the competitiveness of Indonesian products. The estimation of tax revenue in 2009-2010 is presented in Table II.6 billion compared with APBN 2010. (c) establishing mode modern excises service offices as part of a modernisation programme in customs and excise administration. Furthermore. strategies and policies issued to achieve the revenue target in 2010 are as follows : (a) implementing various intensification and extensification policies.125. plantation. tax revenue in the APBN-P 2010 is estimated at Rp743.403. intermediary and downstream industrial raw material imports. bilateral and multilateral co-operation schemes.0 billion or increased by Rp5. in the co-operation in international goods trade (Free Trade Agreement or FTA). growing by Rp5.867. The implementation of above strategy and protection policy have resulted in the optimal tax revenue in the APBN-P 2010 amounting to Rp64. and the realization of tax revenue in 2009 as well as the changes in macroeconomic assumptions in 2010. and (6) providing potential taxpayers with responses given to a number of 1. the Government continuously takes an active participation in. and (e) implementing risk management in excise taxes. The baseline applied in the APBN 2010 was the figure in the APBN-P 2009. the Government will continuously take steps in reforming and improving the tax policies and tax administration (tax policy and administration reform). In addition. Compared with the realization in 2009. Similarly. which will encourage the roadmap on the national industrial development policy. 9 billion or 0. and manufacturing industry sectors.6 billion. In addition. On the excises side. (b) improving several excises regulations. Tariff adjustment and improvement of harmonious rates between customs import tariff for upstream.3. the government will continue to provide the business sector with the tax facilities (tax incentives). (5) developing the potential of particular sectors such as mining. The extensification programme on tax implemented for both employees and non-employees has resulted in an additional income tax amounting to Rp2. especially in the distribution of illegal cigarettes. the policies in customs in 2010 are formulated by enhancing the import duties tariff harmonisation programme.
2 3.0 97 .369.9 66.615.4 7 1 .0 50.4 1 7 .399. income tax and oil gas are estimated at Rp55.8 82.209.958.5 billion and Rp22. In the APBN-P 2010.2.9 7 20.8 1 01 .5 99.5 350.219.325 .106.1 7 .023.0 percent.980.561.0 47 .Revenues and Grants Chapter II TABLE II.0 billion.8 5.1 91 .67 0.5 59. or surpassing those in the APBN 2010 plan at 17. domestic tax has increased by 0.1 percent.1 95 .5 1 9.95 4.7 1 03.2 percent from Rp350.57 1 .27 0.023.922.255.084. Dom esticT axes i.261.0 1 20.9 22.5 362. domestic and international trade taxes are projected to reach Rp720.5 1 .0 percent respectively of the total tax revenues.043.7 25. Import Duties ii. Compared with the APBN 2010. This increase has occurred because the ICP assumptions supported in the APBN-P 2010 is USD80 per barrel higher than that for the APBN 2010 at USD65 per barrel.623.633. These changes have given significant influence in increasing the target in income tax revenue.692.265.7 95.2010 (billion rupiah) 2009 Item s APBN-P 65 1.604.5 T ax Rev enu es a. 4 billion. The estimation of income tax oil and gas revenue in 2009-2010 is shown in Graph II.2 6.61 5.6 24.Import Value Added Tax iii Land and Building Tax iv Duties on Land & Building Transfer v .0 1 67 . In the APBN-P 2010 .6 1 04.4 291 .9 80.4 303.0 billion or 14.0 95.2 40.382.209.931.841.5 56.251.6 2010 APBN-P 7 43. or each has contributed 97.4 1 01 .1 55.0 billion in the APBN 2010.0 7 15 .3 49.1 1 6.5 3.0 % to APBN-P 95 .1 1 8.2 601.561.067 .0 55.4 1 02.0 27 .81 1 .7 percent. International T rade T ax es i.4 APBN 7 42. Income Tax es 1 Oil and gas 2 Non-Oil and Gas ii.6 269.1 100.0 20.5 565.9 26.289.9 87 .391 .250.7 267 .0 3.9 95.6 1 05.7 64.3 TAX REVENUES.958.4 billion respectively. income tax revenue in the APBN-P 2010 is estimated at Rp362.836.5 96.3 billion.392.1 percent.4 7 .7 18. although the basis figure used as a baseline in calculating income tax revenue had declined.7 92.454.569.033.9 3.863.0 billion.1 80.0 1 7 7 .1 91.203. As a major contributor to tax revenues. Value Added Tax es .0 18.0 54.934. Customs v i Other tax es b.7 340.0 billion or 3.8 percent.8 1 03.1 05.1 67 . making the total tax revenue has increased by 0.21 9.4 306.2 23.9 57 .8 203.851 .1 1 05.1 1 02.6 LKPP 619.31 9.6 262.1 93.764.8 631.7 38. This increase has occurred because of the changes in the ICP assumptions. Whereas in the APBN 2010 the data used as baseline is the APBN-P 2009 having achieved Rp340.9 93.454.9 7 . Financial Note and Indonesian Revised Budget 2010 II-5 . Ex port Duties Source : Ministry of Finance 2.2 82.2 Tax Revenues in The APBN-P 2010 Tax revenues consist of domestic and international trade taxes.Domestic V alue Added Tax . encouraging the increase in oil and gas income taxes.5 1 26.545.0 percent and 3.4 1 8.537 .1 7 5. The data used as baseline in making the APBN-P 2010 calculation is the realization of income tax revenue in 2009 having only achieved Rp317.382.1. Compared with its realization in 2009. and international tax has decreased by 17.2 97 .963.8 82.3 1 93. increasing to Rp11. the income tax revenue in the 2010 APBN-P has grown up Rp44.6 % to A PBN 100. 2009 .464.6 6.2 11 7 .5 34.506.1. The increase was driven by an increase in ICP assumptions supported in the APBN-P 2010.7 317 .
4 52.785. the plan for income tax oil and gas in the APBN-P 2010 grew up 10. The estimation of nonoil and gas income tax revenue in 2009-2010 is presented in Graph II.6) occurred because the sectors of trade.8 Real 2009 Source : Ministry of Finance APBN 2010 APBN-P 2010 By sector. so that when the economy Electricity.4 31. Thus. The growth in manufacturing industry is bolstered by the increase in consumption in 2010.1 24.2 NON-OIL AND GAS INCOME TAX 2009 .3 will decline by 21.4 greatly to the manufacturing industry.6 billion.1 Total 243.319. the increase in income tax oil and gas have also been affected by the increase in lifting from 0. This consumption rise will influence in the growth on food and beverage as well as motor vehicle industries that finally have contributed TABLE II.3 22.836.4 percent.5 327.7 (2. surpassing that in 2009 at 24.755.592. Real Estate and Business Service 67.6 20. income tax non-oil and gas in the APBN-P 2010 is estimated at Rp306. real estate and business service sectors.924. non-oil and gas income tax revenue in the APBN-P 2010 will be mainly supported by the financial. In addition. This increase has Agriculture.0 47.Chapter II Revenues and Grants GRAPH II.9 percent compared with the realization in 2009.1 billion or 2.0 258.838.9 306.360.4) Excavation and restaurants are closely linked with public 267.0 percent.8 (11.5 billion.2.4 II-6 Financial Note and Indonesian Revised Budget 2010 .1 OIL AND GAS INCOME TAX 2009-2010 (trillion rupiah) 60 50 40 30 20 10 0 50. or surpassing that in the APBN-P 2010 1.1 14.6 61.4 percent.0 consumptions. Non-oil and gas Other Undefined Activities 2.683. In addition.0 billion.0 55.535.3 Furthermore. 350 300 250 200 150 100 50 0 GRAPH II.755.732.4 Transportation and Communication 16.7 percent due to the realization of the ICP in 2009 achieving USD58.0 percent.5 7. the impact on the Sunset Policy will increase the number of taxpayers.4 15.4 Real 2009 Source : Ministry of Finance 2010 2010 Compared with its realization in 2009. declining Rp6.0 improves then the growth will be high. estimated at Rp61.965 MBCD in 2010. The NON-OIL AND GAS INCOME TAX REVENUES BY SECTOR.3 16. Furthermore.1 2. non-oil and gas mining sectors Finance.574.1 17.285. This increase was influenced by the economic growth assumptions in the APBN-P 2010. Gas & Water Supply 5. non-oil and gas income tax revenues from these sectors are projected to decline in 8.2 (21.091. Furthermore.5) Oil and Gas 8.458.743.7 Construction 6. Trade. * Income tax from foreign currency & General Treasury (BUN ).9 14.3 3.4. which is predicted to reach Rp77.322.3 8.2 9.1 billion in 2010.9) Other Services 17.4 3.5 (8.530.432. offline transactions as well as restitutions have not been included Source : Ministry of Finance The estimation in the Value Added Tax (PPN) and the Sales Tax on Luxury Goods (PPnBM) revenues in the APBN-P 2010 are Rp262.8 77.822.963.4 Manufacturing Industry 62. 2009 2010 hotels and restaurants are expected to Items Audited Projected y-o-y increase to 16. Livestock.594.567.4 6.5 per barrel (December 2008-November 2009).426. hotels Non-Oil and Gas 17.016. Forestry and Fisheries 10.2010 (trillion rupiah) 267.235.3 income tax revenue by sectors in 2009 and 2010 are shown in Table II.944 MBCD (million barrels of crude oil per day) in 2009 to 0. Hotels and Restaurants 27.567. the second contributor is the manufacturing industry sector. 2009-2010 (billion rupiah) income tax revenues from sectors of trade.9 8. which will boost non-oil and gas income tax revenue.384. which was higher than that in the APBN 2010.6 303.
1 7 2.1 billion (62.0 billion.8 1 2.8 billion. The THE VALUE ADDED TAX AND THE SALES TAX ON LUXURY GOODS REVENUES decline in the value added tax and the sales 2009 .7 51 . tobacco A griculture.544.0 28.1 billion (38. However. 2009-2010 (billion rupiah) conditions are beginning to improve 2009 201 0 boosting private consumptions.5 billion.1 (26. Improvement in world economic has impacted on the enhancement of international trade activities that will also affect the increase in VAT and sales tax on luxury goods revenue. * V A T a n d bu y in g tr a n sa ct ion s m a de by Lin e Min ist r ies offlin e t r a n sa c tion s.3 1 68.0 7 .1 38. surpassing than the realization in 2009 at 34. the domestic VAT by sector is Rp152.0 percent).3 2005 amounting to Rp19.1 ) Oil and Gas 3.97 4. A significant Non-Oil and Gas 1 .837 .9 Finance. in which the APBN-P 2010 baseline had been reduced by the arrears on DTP of value added tax on fuel for the period of 2003GRAPH II.907. Forestry and Fisheries 3. TABLE II.895.5 The increase accured because the economic DOMESTIC VALUE ADDED TAX REVENUES BY SECTOR. especially from imports.3 938. The VAT and sales tax on luxury goods revenue in 2009-2010 are shown in Graph II. Hotels and Restaurants 23.3 1 2.5.2 24.2) Trade.7 1 9.1 and communication sectors increasing from Electricity .0 percent in the APBN 50 2010 to 5. The decline has occurred because of the decline in baseline.4 1 3. Gas & Water Supply 7 1 8. which is estimated at Rp67.6) and motor vehicle industries. especially in Items Audited Projected y -o-y the subsectors of food.345.363.51 2.294.1 increasing from 5.0 34.9 27 .294. the 269. making the projection of the PPN and PPnBM revenue in the APBN-P 2010 is lower than that in the APBN 2010.537.7 Rp9.9 billion in the realization in 2009 Construction 1 2.330. the impact on Source : Ministry of Finance the arrears owed in DTP of Value Added Tax on fuel is greater than that of the inflation assumption.1 percent.Revenues and Grants Chapter II percent from the target set in the APBN-P 2010 of Rp269.200 in 150 the APBN-P 2010.2 presented in Table II.5 263. The growth of domestic Other Serv ices 3.651 .000 in the APBN 2010 to Rp9.651.2 billion.9 percent. From the composition by sectors.880.329. Real Estate and Business Serv ice 1 0.3 percent in the APBN-P 2010 has 0 boosted the VAT and sales tax on luxury real 2009 APBN 2010 APBN-P 2010 goods revenues.6 1 52.9 1 2.2 3.438. the domestic VAT revenue in the APBN-P 2010 will be supported primarily from the manufacturing industry sector.0 billion. Therefore.2 percent.6 3.4 37 .7 30.6 28.5 67 .360.009. beverages.9 1 6. The VAT revenues of sectors in the APBN-P are estimated at Rp247. Liv estock.086. the VAT and sales tax on luxury goods revenue in 2010 are forecasted to increase Rp69.303.2 (6.0 percent.985.1 21 .2010 300 tax on luxury also triggered by the changes in the exchange rate assumptions of which 250 the rupiah against USD has appreciated from 200 Rp10.0 to Rp12.0 billion in 2010 or growing by Transportation and Communication 9.0 percent) and the import VAT by sector is Rp94.7 Manufacturing Industry 50.0 1 2. In term of sector.6 revenue by sectors in 2009 and 2010 is Other Undefined A ctiv ities 6.481 .3.438.345.7 increase also occurred in the transportation Ex cav ation 1 22.7 (2.680. & r est itu t ion s h a v e n ot been in c lu ded Sou r c e : Min ist r y of Fin a n ce Trillion Rupiah Financial Note and Indonesian Revised Budget 2010 II-7 .0 2.0 100 changes in the inflation assumption 193.5 2.084. or surpassing than that in 2009 at 31.864.7 Total 1 25. On the other hand. or surpassing than that in 2009 at 36.
20 Furthermore.1 1 0.3 84. The decline was due to the change in the baseline used in the APBN 2010 which is lower that that in the APBN-P 2009.5.13 5 9. 2009-2010 (billion rupiah) 2009 Items A griculture. Forestry and Fisheries Oil and Gas Non-Oil and Gas Excav ation Manufacturing Industry Electricity .226.001. the estimation of the land and 15 26.3 24.0 billion or 4.6 Land and Building Tax Revenue (PBB) in the APBN-P 2010 is estimated at Rp25. Liv estock.1 68.0 billion surpassing the 7 realization in 2009 at 10.0 percent respectively. The increase 6 5 is as a result of the estimate increase in the 4 7. In addition. the revenue GRAPH II. As a consequence.7 * V A T a n d bu y in g t r a n sa ct ion s m a de by Min ist r ies.1 6 63.0 1. the import VAT revenue by the import sector in the APBN-P 2010 is predicted to reach Rp94. an increase of Rp1.3 billion or 4.3 percent.6) 5 4. The increased import VAT was due to the direct impact of world economic recovery and was supported by the ASEAN China Free Trade Agreement (ACFTA).7 31.1 ) 47 .928.2010 8 to increase to Rp691. This increase has occurred because of the increase in the baseline as a result of the higher realization in 2009 than that in the APBN-P 2009. GRAPH II.5 percent compared with that in the APBN 2010. The revenues from the import VAT by sector are greatly influenced by the sector of manufacturing industry and trade.6 246. The revenue from the excise taxes in the APBN 2010 is estimated at Rp59.0 (5 .4 A udited 95.6 249.1 billion.976.985.3 10 compared with the realization in 2009 has grown 5 up Rp1.69 40. offlin e t r a n sa ct ion s.2 5 54.7 969.5 billion or 3.049. a decline of Rp1.200.1 (29.0 49.2 percent compared with that in the APBN 2010.5 building tax revenue in the APBN-P 2010 25. hotels. 2009 .5 ) 321 .47 9. This decline was due to the enactment of Law Number 28 Year 2009 regarding the Regional Tax and Retribution (UU PDRD).1 2. The growth of the VAT import revenues by sectors in 2009-2010 is shown in.4 the authority to manage the land and building LAND AND BUILDING TAX REVENUES.1 1.1 50.5 from the BPHTB in the APBN-P 2010 is forecasted THE DUTIES ON LAND AND BUILDING TRANSFER REVENUES. 2009 .0 21 .6 IMPORT VALUE ADDED TAX REVENUES BY SECTOR.2010 30 tax of urban and rural areas is gradually granted 25 to each regional government upon its readiness. Source : Ministry of Finance Source : Ministry of Finance The revenue from the duties on land and building transfer (BPHTB) in the APBN-P 2010 is predicted to decline in Rp7.5 94.17 6.985 .5 1.3 (9.2 property transactions that will be taxable items 6.4 (7 3.265.9 billion.4 7.155.319.1 457 .1 y -o-y 362.3 7 86. and restaurants having contributed 63.4 percent compared with the realization in 2009. & r est it u t ion s a r e n ot in clu de On the other hand.8) 48.6 1 . The land and 0 Real 2009 APBN 2010 APBN-P 2010 building tax revenues in 2009-2010 are shown in Graph II. Real Estate and Business Serv ice Other Serv ices Other Undefined Activ ities Total Sou r ce : Min ist r y of Fin a n ce 2010 Projected 440. The revenue from PPnBM for beverage containing ethyl alcohol (MMEA) was Trillion Rupiah II-8 Trillion Rupiah Financial Note and Indonesian Revised Budget 2010 .5 3 2 of BPHTB in line with the projection of the 1 improved economy in 2010.7 percent. Gas & Water Supply Construction Trade.4 1.7 1 8.1 91 5. the increase is as a result of the shift of revenue.4. The revenue from 0 Real 2009 APBN 2010 APBN-P 2010 the duties on land and building transfer in 20092010 is shown in Graph II.31 94.258.3 (18.187.0 percent and 30.Chapter II Revenues and Grants TABLE II.7 28. Besides.5 per cent compared with that in the APBN 2010.597 .1 billion or an increase of 49.9) 1 22. Hotels and Restaurants Transportation and Communication Finance.8 billion or 3.5 37 . Table II.
930.116.860.2 2.7. Nevertheless.0 billion.94 2.111.09 Borne By Government 2.6 percent.90 1. In addition.1 1 0 3. The revenue from excise taxes in 20092010 is shown in Graph II.8 Source : Ministry of Finance Financial Note and Indonesian Revised Budget 2010 II-9 . in line with the economic recovery in 2010.0 billion or 95.000.9 5.0 Total Import Duties 19.18 14.5 billion.7 IMPORT DUTIES REVENUES.3 570.000. Compared with its realization in 2009 amounting to Rp56. a decrease of Rp2. This is as a result of the realization of other tax revenues in 2009 used as the baseline.9 17.5 percent. the estimate revenue from excise tax in the APBN-P 2010 has increased by 4. the revenue on import duties in the APBN-P 2010 has decreased by 5.5 percent.2010 60 50 40 30 20 10 0 Real 2009 APBN 2010 APBN-P 2010 56.9 percent of the APBN-P 2009.106.218. This is mainly due to the commencement of the implementation of ACFTA.841.8 478.569.9 3.179.8 16.73 1.0 billion to Rp2. the revenue from export duties in the APBNP 2010 increased by 865.8 6.000. The improved world economic conditions having been started in 2010 is expected to drive an increase in the volume of palm oil exports.106. On the other hand.463.7.37 1. The target of import tax revenue in 2010 is shown in Table II.9 Others (MFN) 29. Other tax revenues in the APBN-P 2010 are estimated at Rp3.7 2.3 2.3 percent.172.5 percent.3 deleted and was replaced by an increase in excise tariff on MMEA.423.1 2. lower than that in the APBN 2010.69 1. the revenue on import duties declined by Rp2.Revenues and Grants Chapter II GRAPH II. the decline in DTP on import duties from Rp3.178.83 Total 79. which was only Rp3.0/USD from the previous assumption on Rp10.1 billion compared with that in the APBN 2010.8 The import duties revenue in the APBN-P 2010 is Source : Ministry of Finance estimated at Rp17.0 2.6 II China (AC-FTA) Japan (IJEPA) 15.512.8 12.200. The increase is predicted due to an increased number of economic transactions using stamped documents. 2010 (billion rupiah) Dutiable import 2010 (million USD) APBN APBN-P No Source of Countries Impor Duties (billion Rp) Effective Tariff Average (%) APBN APBN-P APBN 1.000.000.6 EXCISE REVENUES.390. This was because of the change in foreign exchange rate assumption to Rp9.960.8 billion.7 57. Compared with the APBN 2010.0 20. 2009 .0 3.2 88.1 4.793.4 16. Other tax revenues in 2009-2010 are presented in Graph II.1 32.9 3.4 1.0 billion has directly the reduced the revenue on import duties.2 1.6 billion. the tariff on export duties will be applicable about 4.960.0/USD.6. so that the revenue from export duties in the APBN-P 2010 will considerably increase. the low TABLE II.718.2010 4 Trillion Rupiah 3 2 3.375.818.5 percent. Compared with the realization in 2009.8 3.569.9 billion.1 billion or 12. in line with the trend in increasing international oil prices. other tax revenues in the APBN-P 2010 are projected to increase by Rp725.7 OTHER TAX REVENUES.44 III IV V Korea (AK-FTA) 2. the increase in the export volume still considers the needs. Real 2009 APBN 2010 APBN-P 2010 The revenue from export duties in the APBNP 2010 is forecasted about Rp5.9 3. Considering this assumption.910.000.308.898.0 15.937.54 APBN-P 1.9 billion or 23.504.262.3 59. Compared with the realization in 2009. which has affected in the decline of import tax on goods from China. 2009 . Trillion Rupiah Source : Ministry of Finance GRAPH II.826. Compared with the realization in 2009.00 2.57 I ASEAN (AFTA) 18.454. including the DTP of Rp2. This estimation was based on the assumption of the increase in reference price of CPO (Crude Palm Oil) commodity in the international market that was above USD800 per ton.
One of the policies introduced by the Government in 2009 is to provide a margin to PT PLN (Persero) (National Electricity Company) at 5. so that the revenues from these items will be optimal. in 2009 PT PLN (Persero) has successfully earned a net profit valuing Rp10. which will be applied.176. Regarding the BLU. II-10 Financial Note and Indonesian Revised Budget 2010 . which was higher than the assumptions made in the APBN 2010 of USD65 per barrel. and the changes in macroeconomic assumptions. Other optimising of non-tax revenues will be from the line ministries (K/L) through the intensification and extensification activities and the improvement in regulations regarding PNBP.0 percent to enable PT PLN to meet the requirement of investment financing. crude oil lifting.6 realization on the export duties in 2009 was caused by the low CPO Reference Price.4 billion.8. The assumption of crude oil lifting in the APBN-P 2010 will be maintained at the level of 0. The growth in world oil prices that is increasingly rising recently will affect the growth of ICP.1. Trillion Rupiah 0. the applicable tariffs on export duties will be zero percent. efforts will be continually devoted to improve the revenue reporting system. 2009 . the Government will relentlessly pursue other PNBP and public service agency revenues (BLU). Having this policy implemented. Meanwhile. the Government will constantly strive to meet the target set in 2010. These macroeconomic assumptions include ICP. 2. If the Reference Price of CPO is below USD700 per ton.6 5. and the rupiah exchange rate against the USD.355. The revenue from import duties in 2009-2010 is presented in Graph II. To meet these targets. The predominant source of PNBP is the natural resources (SDA) revenues. The world oil price in the middle of January 2010 has expanded in a range of USD80 per barrel.200.0/USD the estimation figure in the APBN 2010 to Rp9. Fundamental Changes In Non-Tax Revenue The changes in some macroeconomic assumptions made in the APBN-P 2010 have directly affected non-tax revenue variables as the source of revenues.0/USD.3.2010 8 7 6 5 4 3 2 1 0 7.8 EXPORT DUTIES REVENUES.7 billion (audited). Furthermore. Although the target on Indonesia crude oil production in 2009 was not achieved. along with the depreciation of USD against other currencies. so that the Government will likely receive dividends from PT PLN (Persero).1.4 Non-Tax Revenues in APBN-P 2010 Based on the policy fundamentals on non-tax revenues (PNBP).000. In line with effort to improve the performance of BUMN. the Government will increase the production from major fields such as Cepu Block that is expected to cover the natural decline in other oil fields.Chapter II Revenues and Grants GRAPH II.965 MBCD. PNBP in the APBN-P 2010 are estimated at Rp247.2.6 Real 2009 Source : Ministry of Finance APBN 2010 APBN-P 2010 2. which was below USD700 per ton. the Government has consistently taken various steps to reform the internal organisation of BUMN. The trend in the increased oil price will have impact on the increase in the revenue from oil and gas SDA.2. the rupiah exchange rate is projected to appreciate from Rp10.
4 98.653. Oil and Gas Natural Natural Resources . The oil and gas SDA revenues are predicted to make the largest contribution to the PNBP SDA at 92.9 13.0 400. While the rupiah exchange rate is predicted to be in the range of Rp9.Geothermal Mining b.2 APBN 205.000.8 61.1 8.765. While natural gas revenue is estimated to increase by Rp7.8.0 35.204.1 125.4 98.894.8 The increased of revenue from oil and gas SDA was caused by the change in ICP assumption set in the APBN 2010 from USD65 per barrel to USD80 per barrel in the APBN-P 2010.1 billion or 20.8 9.411. The growth of PNBP in 2009-2010 is presented in Table II. Revenues from BLU Source : The Ministry of Finance 10. which is strengthened compared with the macro assumptions set out in the APBN 2010 at Rp10.231.4 138.288.369.9 113.965 MBCD as aimed at the APBN 2010.4 164.0 billion.486.4 92.0 127.8 billion respectively.1 118.000.0 39.500.030. The projection on PNBP in the APBN-P 2010 has increased by Rp41.5 8.0 244. The natural resources revenues in the APBN-P 2010 are estimated at Rp164.6 billion or 26.1 percent.0 per USD.0 320.Mining .7 % to APBN 120.959.901.7 billion surpassing the target set in the APBN 2010 at 24.Oil .0 100.9 billion.515. Financial Note and Indonesian Revised Budget 2010 II-11 .9 142.2 9.Revenues and Grants Chapter II especially from oil and gas revenues.1 percent.0 122.303.462. the oil revenue has risen in Rp23. TABLE II.6 138.174. Compared with the target set in the APBN 2010.726.5 120.006.257.1 125.3 100.204.9 136.5 31.696.1 39. The oil revenue has included the revenue planned from the payable oil and gas settlement of PT Pertamina (Persero) amounting to Rp5.2 1.4 2.411.7 44.056.369.4 29.874.4 150.0 98.4 150.2 billion.0 119. Other Non-Tax Revenues d.200.748.529.9 13.0 per USD.2 percent.1 91.515.8 89.9 112.486.0 28.000. The oil and gas SDA revenues in 2009-2010 are shown in Graph II.049.207.4 26.5 53.5 121.2 151.037. the Government will devote its efforts to achieve the target of crude oil lifting of 0.9 126.719.9 9.8 NON-TAX REVENUES IN 2009 .176.726.0 244. Non.1 11.6 2.Fisheries .905. Revenues from oil and gas SDA in the APBN-P 2010 gained from the oil and gas revenue are estimated at Rp112.720.0 2.2 2010 APBN-P 247.Tax Revenues on 1.874.1 billion and Rp39.738.2 % to APBN-P 104.4 125.0 150. In addition. Non-Oil and Gas Natural Resources Revenues .2 91.9.3 124.878.0 90.Forestry .614.0 36.9 100.9 108.3 billion.1 118. Dividends from BUMN c.2 100.030.890.500.0 100. This amount will be paid to PT Pertamina (Persero) for the use of oil fuel and lubricants (BMP) by Indonesia Armed Forces (TNI).7 5.Gas 2.715.2010 (billion rupiah) 2009 Description Non-Tax Revenues a.3 10.2 APBN-P 218.491.8 125.3 percent of the target set in the APBN 2010 amounting to Rp205.8 percent amounting to Rp132.345.0 43.4 Real 227.226.2 8.3 132.752.4 24.796.719. The increase was primarily due to the increased revenues from oil and gas resources estimated at Rp151.5 billion or 25.
fishery resources.9 1. as a result of the implementation of the payout-ratio policy for PT PLN (Persero) determined as 38. Other non-tax.2010 30 25 TrillionRupiah 20 15 10 5 0 Real 2009 APBN 2010 29.462.1 89.0 104.0 Graph II.250.485. The increase was partly derived from the additional revenue.6 2. forestry resources.2 1. Non oil and gas natural resource revenues consist of revenues from general mining resource.0 5.10.500. increasing by Rp5.032. and (c) sale of mining product. 100.721.6 APBN-P 10.4 billion respectively. (b) the domestic market obligation (DMO) of crude oil.0 1.981.738. 2009 .001. The six K/L contributing in to non-tax revenue in 2009-2010 are shown in Table II.800.4 billion surpassing that in the APBN 2010 at Rp11.3 90. 2009 .0 billion. The figure of other non100.8 6.8 billion.200. exceeding 8. as reported in the audited financial statement of PT PLN (Persero) of 2009.Chapter II Revenues and Grants 160 140 120 Trillion Rupiah GRAPH II.9 T HE LARGEST LI NE MI NI ST RI ES CONT RIBUT ING T O T HE NON-T A X REVENUES.001.981. 2009 . non-oil and gas revenues are estimated at Rp13.11.2 3.8 billion.400.9 43. The dividends from BUMN in the APBN-P 2010 is projected to reach Rp29.763.0 tax revenue in 2009-2010 is indicated in 100.9 percent or Rp3.006.5 26.5 1.0 25. Other non-tax revenues came from: (a) activities relating to the provision of services and regulations by each related Line Ministries (K/L) according to its duty and function .2010 60 50 Trillion Rupiah 40 30 20 10 0 Real 2009 APBN 2010 APBN-P 2010 53.9 APBN 9.8 39. APBN and the deposit put down on the Investment 113.4 billion.0 19.0 24.568.10 DIVIDENDS FROM BUMN.6 6.9 percent of the target set in the APBN 2010.874.9.283.2 100 80 60 40 20 0 35.0 billion and Rp244. compared with that in the APBN 2010. The dividends transfer from BUMN in 2009-2010 is presented in Graph II.5 1.0 APBN-P 2010 Source : Ministry of Finance GRAPH II.6 percent of the total net profit earned in 2009 amounting to Rp10.022. revenue in the APBN-P 2010 is estimated at Rp43.128. The increase of other non-tax revenue is primarily derived from the increase in crude oil DMO revenue.2 billion.9 OIL AND GAS NATURAL RESOURCES REVENUES.0 billion.500.9 Real 2009 Source : Ministry of Finance APBN 2010 APBN‐P 2010 GRAPH II.0 billion or 22.894.5 billion from the target set in the APBN 2010 amounting to Rp39. as a result of the followings: the change in oil price assumption increasing from USD65 per barrel in the APBN % to 2010 to USD80 per barrel in the APBN-P 2010.5 1.500.5 Source : Ministry of Finance T ABLE I I.500. an increase of Rp1.11 OTHER NON-TAX REVENUES.9 1.500.388.5 billion.721.5 Meanwhile.506.022. Rp2.8 Non-tax revenues in the APBN-P 2010 derived from the K/L are projected to change.355. Rp150.0 100.0 100.0 4. Non-tax revenue from the six largest K/L contributors in the APBN-P 2010 is targeted at Rp25.5 Fund Account (RDI).0 4.0 24. 2009-2010 (billion rupiah) 2009 2010 No 1 2 3 4 5 6 Ministry / I nstitution Ministry of Communications and Informatics (Directorate General of Post & Telecommunication) Ministry of National Education (Directorate General of Higher Education) Ministry of Health Indonesian National Police National Land Agency Ministry of Law and Human Rights APBN 6.2 112.9 billion. mining and geothermal resources amounting to Rp 9. Source : Ministry of Finance Total non-tax revenues from 6 Line Ministries II-12 Financial Note and Indonesian Revised Budget 2010 .7 31.485.7 billion.6 2.367.2010 Oil Gas 39.
5 9. The revenue from BLU is shown in Graph II. on the other side it will decrease other PNBP. Until the end of the year.5 mutually agreed between the Government of Indonesia 0.8 billion.12.4 percent.5 and the donor based on the MOU (Memorandum of 0.3 billion or 13.13 GRANTS .5 Source : Ministry of Finance Revenues from Public Service Agency (BLU) in the APBN-P 2010 are expected to remain the same as that in the APBN 2010 amounting to Rp9.9 1.0 several programmes and projects that have been 1. However.0 Understanding).4 9.5 billion.2 Grants In 2010 The revenue from grants in the APBN-P 2010 is estimated at Rp1.0 Some other fund will be allocated to lines ministres in 1.5 billion.8 billion (25.2. Fund allocation policy states that fund derived from grants will be focused at funding the programmes GRAPH II. and health (Directorate General for Medical Service) to the revenue of BLU.506. This is mainly due to the number of business units implementing the financial management of BLU that will be likely to increase. the grant fund will be allocated to finance 1.Revenues and Grants Chapter II 10 GRAPHI II.12 PUBLIC SERVICE AGENCY REVENUES.2010 Trillion Rupiah 8 6 4 2 0 Real 2009 APBN 2010 APBN-P 2010 8. the BLU revenue has increased by Rp1.9 billion. 2.9 percent) compared with that in the APBN 2010 amounting to Rp1. Compared with the realization achieved in 2009 by Rp8.5 addition. The increase number of business unit applying the BLU management model continuously on one side will increase the BLU. Trillion Rupiah Financial Note and Indonesian Revised Budget 2010 II-13 . 2.7 1. number of business unit implementing of BLU reached 84 unit and will be likely to increase. an increase of Rp389.896. 2009-2010 of mitigation and adaptation to climate change impacts.117. Revenue from grants in 2009-2010 is Re al 2009 APBN 2010 APBN-P 2010 Source : Ministry of Finance presented in Graphic II. the transfer of the placement of revenue will not affect the total amount of PNBP as both are elements of the total PNBP.489.369. This is caused by the shift of some sources from other PNBP such as: non-tax revenue from education ( Directorate General for Higher Education). 2009 .13.
which was prepared by the Government together with the DPR. The Revision in macroeconomic basic assumptions included the followings: (1) inflation rate that was previously assumed in APBN 2010 to be 5. without disrupting the continuity of governance during the transition. (2) price stabilization program implementation plan for some basic and vital commodities. Thus.6 percent to GDP in APBN 2010 to 2. the APBN 2010 was a transition APBN. completion of the Eastern flood canal (BKT) project. and (3) ICP that was previously assumed to be US$65 per barrel. (2) rupiah exchange rate to US dollar was expected to appreciate. First.1 percent to GDP. was expected to increase to 5. Financial Note and Indonesian Revised Budget 2010 III-1 .000 in the APBN 2010 to Rp9. from 1. which increased the burden of energy subsidies. from Rp10. and platform of newly elected President. Therefore. and raised the revenue sharing fund for oil producing region in transfer to region post. and cooking oil.Revisions in Expenditure Chapter III CHAPTER III REVISIONS IN EXPENDITURE 3. such as the construction of correctional/detention facility. there were revisions in the fundamentals fiscal policy in 2010 as an impact of economic and social development progress and efforts to accelerate the achievement of development targets. Third. as stated in Law Number 47 Year 2009 regarding the APBN 2010. the APBN 2010 should be revised to accommodate and support the policies and programs that were prioritized by the government elected in 2009 to be completed in the year 2010. fertilizer. the APBN 2010 was a baseline budget that only calculated the basic needs (principal) for smooth administration and public service.200 per US$. and provide high pressure on government spending. (3) program of earthquake post-disaster rehabilitation and reconstruction in West Sumatra and West Java. primarily the increase of ICP. and maintaining government sustainability. Kualanamu airport development. such as rice. there had been a development of macroeconomic indicators that were used as basic assumptions in the preparation of the APBN 2010. (5) programs of other priority activities that have not been accommodated in the budget year 2010. and other important activities that were prioritized in RPJMN 2010-2014 to be completed in fiscal year 2010. Second. mission.1 Introduction Revisions made to APBN fiscal year 2010 as set by Law Number 47 year 2009 were urgently needed due to the following considerations.0 percent. Such Revisions included: (1) loosening of budget deficit. electricity. which service periods ended in 2009. which was aimed to provide space and flexibility for the new government to implement programs and activities in accordance with vision. Various revisions in the macroeconomic assumptions would affect the various quantities in the APBN 2010.3 percent. which was no longer suitable to the current real conditions and the future year estimation. and (6) the use of part of the Cumulative Budget Surplus (SAL) in 2009 to finance the increased budget deficit in 2010. however was carried out by the new Government elected in the national election in 2009. was expected to reach US$80 per barrel. This was intended to fill in the gap in budget planning. (4) budgetary support for the implementation of Presidential Instruction Number 1 Year 2010 on the Acceleration of the Implementation of the Year 2010 National Development Priorities. both in fuel subsidies and electricity subsidies. activities in response to climate change.
With the existence of the new initiative programs.6 percent was allocated for transfer to region. in order to accommodate the prioritized programs of the new government (new initiatives).Chapter III Revisions in Expenditure In Government expenditure side. while 30. The revisions to the APBN 2010 was conducted in accordance with the provisions of article 27 paragraph (1) of Law Number 47 Year 2009 concerning the APBN for Fiscal Year 2010 that mandates “APBN Adjustment for Fiscal Year 2010 with the development and/or revisions of circumstances.5 percent higher if compared with the budget ceiling set in APBN 2010 that amounted to Rp1.0 percent to GDP). and to provide protection to the poor.1. In order to maintain trust and credibility of the implementation of the APBN 2010. the revisions and adjustments to current economic progress. Summary of expenditure allocations in the APBN and APBN-P 2010 is presented in Table III. it was necessary to accelerate the submission of the draft of APBN-P 2010.480. (c) there were circumstances that led to budget transfer that should be made between organizational units. both at the central government budget allocations and transfer to region. (2) the delay in the increase of the highest retail price (HET) of fertilizer that was supposed to be applied in January 2010 to begin in April 2010 in order to adjust to the planting season period that was usually conducted in October-March.4 percent of the total APBN.126. (d) there were circumstances that led the cumulative budget surplus of the previous years that be used to finance in 2010 budget financing. and internal or external growth factors.5 billion (18. The above revisions was very dynamic combinations of the increasing budget needs III-2 Financial Note and Indonesian Revised Budget 2010 . so it could function as a motor of the economic growth. was allocated for central government expense. (3) policy to increase the buying price of the harvested dry-mill rice in order to reduce the impact of increasing fertilizer HET on farmers income and to improve food stability. among programs.146. Most of it. the expenditure volume in APBN-P 2010 reached Rp1. to create employment. are jointly discussed between The DPR and The Government in order to prepare the revisions estimation on APBN 2010. in the event of: (a) macro economic developments were inconsistent with the assumptions used in the APBN 2010. and/or between types of expenditure. This amount had increased by Rp78. but also to accommodate the fiscal implications on the revisions of the policy implementation that had been or would be done by the government.047. various policy measures revisions in price stabilization.0 billion. or 7. about 69. which had not been accommodated in the APBN 2010.2 Fundamental Revisions In Policy Government’s Expenditure 2010 and Central The Revision in the central government expenditure in APBN 2010 was carried out not only to accommodate the proposed programs or activities of the United Indonesia Cabinet (Kabinet Indonesia Bersatu) II of the newly elected President in 2009. included: (1) the delay in the increase of the basic electricity tariff (TDL) that was originally planned to be implemented in January 2010 to be applied only in the beginning of Semester II 2010. 3. as well as The Revision in various macroeconomic indicators. and revisions in basic macroeconomic assumptions that significantly affected the amount of expenditure. as well as the various policies that have been and will be implemented by the Government in 2010. revisions in fiscal policy principles that had implications on increasing the expense of non-Line Ministry/Institution (K/L).666.5 billion. (b) there were revisions in fiscal policy fundamentals.
364.8 1 .Revisions in Expenditure Chapter III T ABLE III.146.1 92.0/barrel to an average of U.7 344.3 30.6 1 .659.6 1 05.4 5.263.363.594.141.5 APBN-P Am ount 7 81.024.8 32.7 1 .5 18.0 0. and (c) policy of stabilization of vital and principal commodity price.650.1 2.0 64.5 % to GDP 12. especially energy subsidies for both subsidized fuel and electricity. as follows.023.6 1.7 1 5. Second. which caused the increase in subsidy.0 82.0/US$. First.5 5 .1 1 60.3 7 .1 7 5.6 1.4 1 6.2 30.S$80.3 1 07 . Grant Expenditures 7 . delay in the implementation of fertilizer HET that was supposedly started in January 2010 to be applied in April 2010.423.926.0/ US$ to Rp9. (b) the increase in purchase price of rice from Rp5.2 7 1 . Capital Expenditure 4.775/kg to Rp6.5 1 62.0 % to GDP 12.5 5.399.2 201 .5 33. development of demographic information and administration system (SIAK) program. Social Assistance 8. either as the impact of the development of macroeconomic assumptions or the impact of policies taken by the Government.0 1 1 2. such as: (a) the change in the composition of debt financing and the assumption of yield decrement caused by the improving domestic financial market conditions that made it possible for interest payment saving in 2010 that amounted to Rp3. which was originally planned to start in January 2010 to be applied in the second semester of 2010.1 1 . Interest Payments 5. Special Autonomy and Adjustment Fund T OT AL Source : Ministry of Finance Am ount 7 25.0 306.291 .0 1 .820.5 2.285/kg. which was accompanied by the expenditure savings in some other activities.243. which were the revision of the assumption of exchange rate from Rp10. Central Gov ernm ent Expenditure 1 .0 95.9 31 4. which was carried out by increasing the volume of Raskin (rice for the poor) from the previous allocation of 13 kg/month/RTS to 15 kg/month/RTS.1 0.5 1 .594. The Revision in central government expenditure were mainly related to several factors.0/barrel.090. the fiscal implications of revisions of the basic assumptions in the preparation of the APBN 2010.1 0. which were: the rehabilitation and reconstruction of West Sumatra province after the earthquake. the fiscal implications of the new prioritized programs (new initiatives).1 0.8 1 . and the delay in the increase of the electricity TDL.4 1 .7 3.6 0. 2010 (billion Rupiah) APBN Description I.126.6 1 57 . T ransfer T o Regions 1 .047 . Personnel Expenditure 2.200.1 7 2.9 billion.0 for specific prioritized activities. Financial Note and Indonesian Revised Budget 2010 III-3 .1 GOVERNMENT EXPENDIT URE.9 2.249.3 17 .0 322. Material Expenditure 3.0 243. Other expenditures II.666.5 5 .000. Balanced Fund 2. the fiscal implications of the revisions of parameters and policy implementation. Subsidy 6.612. and the revision in assumption of Indonesian Crude Oil Price (ICP) from the average of US $ 65.2 0.5 1 1 5. Third.
Revisions in Expenditure
construction of correctional facility, Kualanamu airport development, construction of road and bridge infrastructure, completion of the Eastern flood canal (KBT), preparation of the Sea Games, geothermal exploration, the provision of special allowances for Indonesian Armed Forces soldiers who served in outermost islands and border areas, the additional budget for K/L remuneration, revitalization sugar factory, and payments for oil and lubricants (BMP) debt of The Ministry of Defense to PT.Pertamina. With the above developments, the central government expenditure budget in APBN-P 2010 reached Rp781,533.6 billion or 12.5 percent to GDP. This amount had increased by Rp56,290.6 billion or 7.8 percent higher if compared with the allocation of budget ceiling of central government GRAPH III.1 CENTRAL GOVERNMENT EXPENDITURE, expenditure set in APBN 2010 amounting to 2009-2010 Rp725,243.0 billion. This higher estimation of the central government expenditure budget in 2010 781.5 800 was particularly related to higher expenditure in 725.2 691.5 750 subsidies, and requirement of an additional 700 628.8 budget to accommodate new programs. If 650 compared with the central government 600 expenditure in 2009 that amounted to 550 Rp628,812.4 billion, the estimated allocation of 500 2009 2010 central government expenditure in APBN-P 2010 had increased by Rp152,721.2 billion or 24.3 Source : Ministry of Finance percent higher.
3.2.1 Revision of Central Government Expenditure by Economic Classification
The revision of central government expenditure budget by economic classification occurred in the entire expenditure types, which included: (1) personnel expenditure; (2) material expenditure; (3) capital expenditure; (4) interest payment; (5) subsidy; (6) grant expenditure; (7) social assistance; and (8) other expenditures. In APBN-P 2010, the personnel expenditure budget reached up to Rp162,659.0 billion, which had increased by Rp2,294.7 billion or 1,4 percent higher than the budget ceiling in APBN 2010 that amounted to Rp160,364.3 billion. In comparison with the realization in 2009 that amounted to Rp127,669.8 billion, the expenditure budget allocation in APBN-P 2010 had increased by 27.4 percent. Such increment was a net impact from the revision in budget allocation of salary and allowance, honorarium, reward money, overtime, etc, as well as the social contribution expenditure. In APBN-P 2010, the salary and allowance expenditure budget was allocated for Rp81,064.9 billion, which had increased by Rp1,543.5 billion (1.9 percent) from the ceiling in APBN 2010 that amounted to Rp79,521.4 billion. The additional budget for salary and allowance was mainly aimed to cover the budget in providing special allowances for TNI soldiers and the Ministry of Defense’s employees placed in outermost islands and border areas, in covering the personnel expenditure shortage, in providing teacher profession allowance in the National Administration Agency, budget for additional new personnel in KPK, and additional budget for allowances of PTT midwives and medical doctors/dentists. Aside from the above, the
Financial Note and Indonesian Revised Budget 2010
Revisions in Expenditure
increment of salary and allowance budget was also influenced by the additional education budget used to pay the arrears in teacher profession allowance, and additional PNS teacher salary to reach Rp.2 million. Meanwhile, the personnel expenditure budget for honorarium, reward money, overtime, etc, in APBN-P 2010 was allocated to amount to Rp27,267.7 billion, which increased by Rp1,834.5 billion (7.2 percent) from the ceiling in APBN 2010 that amounted to Rp25,433.3 billion. Such increment was especially planned to cover the additional remuneration budget in several K/L that was related to the completion of several phases in bureaucratic reform program implementation that amounted to Rp3,300.0 billion, therefore causing the remuneration budget to increase by Rp10,616.8 billion in APBN 2010 to reach Rp13,916.8 billion in APBN-P 2010. The increment in K/L remuneration budget derived from the reallocation of transit personnel expenditure budget. The personnel expenditure budget for social contribution in APBN-P 2010 was allocated to reach Rp54,326.4 billion, which decreased by Rp1,083.3 billion from the ceiling in APBN 2010 that amounted to Rp55,409.7 billion. Such decrement was mainly caused by the lower estimation of realization of pensioner expenditure budget that was managed by PT ASABRI and the pensioner expenditure budget reserves. In APBN-P 2010, the material expenditure budget was allocated to reach Rp112,594.0 billion, which increased by Rp5,504.0 billion (5.1 percent) from the ceiling in APBN 2010 that amounted to Rp107,090.0 billion. In comparison with the material expenditure realization in 2009 that amounted to Rp80,667.9 billion, the allocation in APBN-P 2010 had increased by Rp31,926.1 billion, or around 39.6 percent higher. Such increment was related among others to the additional budget for correctional facility construction, and addition budget related to climate change such as tree planting for reforestation of 100,000 Ha area, preparation for Sea Games 2011, food stability programs, honorary workers verification and validation activities, and procurement of special measures for Presidential Security Forces (Paspampres) and Commando Special Forces (Kopassus). Aside from the above, the increase in material expenditure in APBN-P 2010 was also influenced by the additional education budget that was used to support: (1) the nine-year compulsory education program through BOS management activities and new national Islamic school operational assistance; (2) non-formal education program through development of society entrepreneurship and enhancement of regional vocation agencies; (3) higher education program through entrepreneurship and student activities, and to availability of medical specialist scholarship; and (4) quality improvement program for educator and education workers through training activities for school principals and supervisors, and implementation of quality control system in education units. In line with the above, the capital expenditure budget in APBN-P 2010 was allocated to Rp95,024.6 billion, which increased by Rp12,849.1 billion, or 15.6 percent higher from the budget ceiling in APBN 2010 that amounted to Rp82,175.5 billion. In comparison with the capital expenditure realization in 2009 that amounted to Rp75,870.8 billion, the allocation in APBN-P 2010 had increased by Rp19,153.9 billion or 25.3 percent higher. Such increment was mainly related to the additional budget allocation in several K/L to accommodate various new prioritized programs/activities (new initiatives) in RPJMN 2010 – 2011 of the United Indonesia Cabinet (KIB) II that needed to complete in 2010 as stipulated in the Presidential
Financial Note and Indonesian Revised Budget 2010
Revisions in Expenditure
Decree (Inpres) Number 1 Year 2010 regarding the Acceleration of National Development Priorities Implementation in 2010. The programs were as follows: (1) correctional facility development plan by the Ministry of Law and Human Rights; (2) road and bridge infrastructure development in order to increase domestic connectivity by the Ministry of Public Works; (3) Kualanamu airport continued development by the Ministry of Transportation; (4) development of demographic administration information system by Ministry of Domestic Affairs; (5) geothermal exploration program to support the national climate change response actions by the Ministry of Energy and Mineral Resources; and (vi) sport facility and infrastructure development in preparation for Sea Games 2011, which required an additional capital expenditure budget. Aside from the above, the increment of capital expenditure budget allocation in APBN-P 2010 was also related to the need of budget support in several important programs/activities that would be carried out by several K/L in 2010, however was not accommodated in APBN 2010, like: (1) activities of the Ministry of Communication and Informatics that needed additional budget to carry out the Improvement on Television Transmitting Station (ITTS) project as an effort of community empowerment in border areas and isolated areas through development of broadcast infrastructure, and to support dissemination activities of government’s program information and socialization; (2) rehabilitation of Ministry of Law and Human Right’s office in West Sumatra after the earthquake; and (3) rural facility and infrastructure improvement program through acceleration of development of rural underdeveloped infrastructure, which would be carried out by the Ministry of Underdeveloped Area Development. Aside from the above, the increment of capital expenditure budget in APBN-P 2010 was also related to the additional budget allocation to implement programs related to educational function in several K/L, such as in the Ministry of National Education, Ministry of Religious Affairs, Ministry of Health, and Ministry of Transportation, budget allocation addition for the above function was planned to support program implementation in: (1) the nine-year compulsory program that would be used to carry out rehabilitation and development of elementary education facility and infrastructure, such as development of library and laboratory; (2) secondary education program that would be used to support rehabilitation and development of secondary education facility and infrastructure, such as the development of library, and science and language laboratory, and (3) higher education program that would be used for rehabilitation and development of higher education facility and infrastructure, acceleration of teaching hospital development and development of university dormitory. In APBN 2010, the interest payment was originally planned to amount to Rp115,594.6 billion, which consisted of domestic interest amounting to Rp77,436.8 billion and foreign interest Rp38,157.8 billion. The interest payment budget planning was arranged in consideration to the economic condition in the end of 2008 up to the beginning of 2009. The above consideration on the national economic condition was used as the basis in setting the yield assumption of ABN that would be issued in 2010, the average 3-month SBI rate assumption, and rupiah exchange rate to US Dollar assumption. During the arrangement of APBN 2010 draft, the SBN yield that would be issued in 2010 was assumed to be around 14 percent for long-term SBN, and averagely 11 percent for shortterm SBN. Such assumption referred to yield progress in the end of 2008 up until the first
Financial Note and Indonesian Revised Budget 2010
such decrement did not occur drastically due to the appreciation of exchange rate assumption from Rp10. The Revision in the allocation of food subsidies in the year 2010 mainly caused by the increase of government purchasing price (HPP) for rice in the beginning of January 2010 and the revisions of the quantum allocation of RASKIN from 13 kg/month/RTS to 15 kg/month/RTS.944. The 3month SBI rate and Rupiah exchange rate to US Dollar referred to the assumption that was set in APBN. The factors that influenced interest payment were among others.2.5 percent. the interest payment in APBN-P 2010 was estimated to decrease by Rp9. the budget subsidies. and the rupiah exchange rate especially to US Dollar that was appreciated significantly since the third quarter of 2009.5 percent and Rp10. Furthermore. Financial Note and Indonesian Revised Budget 2010 III-7 .6 percent lower than the budget ceiling in APBN 2010) to reach Rp105.6 billion. Crude oil price progress on global markets also had an impact on ICP estimation in the APBN-P 2010. with an assumption of 3-month SBI rate averagely 6. or US$15/barel higher than the ICP assumption used as the basis for preparing the APBN 2010 that amounted to US $ 65/barel. which was projected at an average of US$80/barel. Fertilizer subsidy budget in 2010 was revised due to delays in increasing Highest Retail Price (HET) of subsidized fertilizer from January 2010 to April 2010.3 billion. the decrement of domestic interest payment was also caused by the decrease of gross domestic SBN issuance that resulted from the reallocation planning of a part of domestic SBN issuance target to foreign exchange SBN in a measured amount to prevent crowding out effect. due to revisions in global crude oil prices. In relation to the above various progress. In late 2009 and early 2010.6 billion.200/US$.2 percent of the budget ceiling in APBN 2010) was caused by the decrease in yield assumption for 2010 SBN issuance that reached averagely 11 percent for long-term SBN and averagely 7.2 billion (7. crude oil prices tended to rise over the crude oil price assumption in the APBN year 2010. Based on the above progress. Aside from the above.2 billion (11.4 percent from the budget ceiling in APBN 2010) was caused by the decrease of foreign exchange SBN issuance.792. fertilizer subsidies. especially energy subsidies.365. the budget of food subsidies. credit program interest subsidy and tax subsidies in the year 2010 were also expected to be revised. However. Meanwhile.2 billion. The decrement of domestic interest payment by Rp5.171.000 per US$. each of an average of 6.579. the decrement of foreign interest payment that amounted to Rp4.857. then went down to 10 – 12 percent in December 2008.000/US$ to Rp9. and foreign interest Rp33. the revision details of subsidy in year 2010 is shown in Table III. had given a positive impact on the estimation of interest payment in 2010. were estimated to increase significantly. The improving national economic condition in 2009 until the present day. even though there was an additional financing that derived from foreign drawings.2 billion. and came back up to 11 – 15 percent in March 2009.Revisions in Expenditure Chapter III half of 2009 that fluctuated around 16 to 18 percent in October 2008. either in program loan or project loan that amounted to Rp13. Such amount consisted of domestic interest amounting to Rp71. seed subsidies.2 billion. Meanwhile.5 percent for short-term SBN.365. and in foreign interest by Rp4. The decrement of interest payment plan was caused by the decrease in domestic interest by Rp5.650.579. the SBN yield progress that tended to decrease. consisted of fuel subsidy and electricity subsidy in 2010.4 billion (8.
442.0 0. This amount had increased by Rp43.1 0.0 0.263.306.0 0. or 97.7 billion.106.Chapter III Revisions in Expenditure TABLE III.8 APBN-P 201. a series of policy would be taken in 2010 to reduce fuel subsidy.8 percent higher if compared with the electricity subsidy budget allocated in APBN 2010 that amounted to Rp37.6 11.263.4 In APBN-P 2010.5 billion. The increased of ICP estimation from US$65/barrel in the APBN year 2010 to US$80/barel in the APBN-P 2010 had brought a significant impact on the increment of fuel subsidies and electricity subsidies. If compared with the budget in the year 2009.6 0.3 0.820.2 0.2 0.2 percent higher. or 27. the allocation of subsidy expenditure was estimated to Rp201.0 billion. Energy 1) Fuel Subsidy 2) Electricity Subsidy b.2 0.3 billion.0 0.820.7 billion.9 13.526.337.563.872.0 billion.0 2.800. The increase of electricity subsidy in 2010.8 55.851. was III-8 Financial Note and Indonesian Revised Budget 2010 .106. To reduce such budgetary load.263.434.7 37.0 0. Meanwhile.8 billion.4 percent higher.0 5.8 1.6 1.3 Description Subsidy a. or 11.5 1.890.1 18.7 68.3 14. Non Energy 1) Food Subsidy 2) Fertilizer Subsidy 3) Seed Subsidy 4) PSO 5) Program Loan Credit 6) Tax Subsidy Source : Ministry of Finance APBN 157.0 51. which increased by Rp17.5 percent higher if compared to the subsidy budget set in the APBN 2010 amounting to Rp157.4 1.9 1.387.559.0/barrel in the year 2010.5 0.726.800.3 billion.9 0.757.5 2.375.1 0. the fuel subsidies in the APBN-P 2010 was estimated to be Rp88.3 106.2 SUBSIDY EXPENDITURE. The increase of fuel subsidies in 2010 if compared with the realization in 2009.1 88.0 143.3 billion or 45.726. the above estimation of electricity subsidies in 2010 had increased by Rp5.4 18.5 1.890.856.293.997. the budget for electricity subsidy in APBN-P 2010 was estimated to Rp55.7 16. such as: (i) continuing the conversion program from kerosene to LPG 3 (three) kg. If compared with the realization of fuel subsidies in 2009 that amounted to Rp45.3 1.925.375.3 % to GDP 3.4 2. the estimated budget of fuel subsidies in APBN-P 2010 had increased by Rp43. With the above mechanisms.4 billion.546. 2010 (billion Rupiah) % to GDP 2. and (ii) improving the control in subsidized fuel distribution.3 percent higher than the budget ceiling set forth in fuel subsidies in the APBN 2010 that amounted to Rp68.0 0.8 billion. the electricity subsidy that amounted to Rp49.4 billion.3 57. The increase of subsidies in the APBN-P 2010 was primarily related to the increment of ICP estimated assumptions to US$ 80/barel during the year 2010. which was 29. was caused primarily by the increase of ICP from estimated US$61/barrel in the period of January to December in 2009 to US$80.265.039.411.
000 MW phase I program completion and phase II program development. the estimated food subsidy budget in 2010 had increased by Rp938.387.3 percent higher than the food subsidy budget ceiling in APBN 2010 that amounted to Rp11. was particularly related to the delay in increasing the HET of subsidized fertilizer from the original plan in January 2010 to be applied only in April 2010.654. it would: (1) increase the Consolidated Interest Coverage Ratio (CICR) of PT PLN in accordance with the global bond requirements (bond covenants).1 billion or 7.9 percent higher than the fertilizer subsidy budget ceiling in the APBN 2010 that amounted to Rp14.8 billion.925. namely: (1) the automatic implementation of TDL that was based on the economical price for energy consumption above 30.2 percent higher.0/barrel to US$80.0% of national average consumption in 2009 for household customers (R). which increased by Rp2. (2) the delay in increasing electricity TDL that had previously scheduled to begin in January 2010 to be applied only in the second semester of 2010.3 billion. in relation to the financing of the 10. The increase of estimated seed subsidies from the budget ceiling in the APBN 2010 was mainly related to the increment of subsidized seed volume in order to support national food stability programs in 2010. By administering 8% margin. the Government would carry out a series of policies in 2010. The budget allocation for food subsidies in the APBN-P 2010 was estimated to Rp13.0 billion. such as daya max plus.987. and public (P) with power capacity above 6. which increased by Rp700. (2) the increase in CICR might improve the financial capacity of PT PLN to obtain other funding sources outside the government fund (bond issuance).1 billion.285/kg. or 44. the estimated fertilizer subsidy budget in APBN-P 2010 had increased by Rp82.3 billion or 41. If compared with the realization of seed subsidy in 2009 that amounted to Rp1.0 billion.563.0 billion.329.3 billion. and (4) the increase in PT PLN margin from 5% to 8%.5 billion. The margin adjustment would be more profitable for operations of PT PLN. therefore the quantum allocation of Raskin had increased from 2.8 percent higher than the seed subsidy budget ceiling in APBN 2010 that amounted to Rp1. the allocation of fertilizer budget subsidies in APBN-P 2010 was estimated to reach Rp18. In order to control the electricity subsidy load. due to the increase in rice HPP. Seed subsidy budget in the APBN-P 2010 was allocated to Rp2. Financial Note and Indonesian Revised Budget 2010 III-9 . was mainly related to: (1) the increase in quantum allocation of Raskin from 13kg/month/RTS to 15kg/month/ RTS commencing in April 2010. business (B). and (3) the implementation of new TDL after receiving approval from DPR.4 percent higher.2 billion. If compared with the food subsidy budget in 2009 that amounted to Rp12.000. and (2) the increase of rice purchase price (HPB) by the government to Perum Bulog from Rp5.Revisions in Expenditure Chapter III caused by: (1) the increase of ICP assumption in the RAPBN-P 2010 from US$65. (2) to maintain the implementation of tariff policy that encouraged electricity savings and special services. which in turn would reduce government’s load. or 22.5 billion. The increase of fertilizer subsidies that was higher than the budget ceiling in the APBN 2010.2 billion or 29.0/barrel. which increased by Rp3. If compared with the fertilizer subsidy budget in 2009 that amounted to Rp18.600 VA. or 0.0 billion.73 million tons to 2. the government’s fiscal load to PT PLN would reduce.263. The increase of estimated food subsidy budget from the budget ceiling in the APBN 2010.5 billion.537. (3) carry over/ arrears of 2009 electricity subsidy amounting to Rp4.5 billion.597. Therefore.97 million tons.775/kg to Rp6.7 percent higher.411.757. the seed subsidy budget in 2010 had increased by Rp666. Accordingly.
0 billion to Rp576. In APBN-P 2010.0 billion.000.3 billion or 46. Overall. The decrement of program credit interest subsidy in the APBN-P 2010 was mainly related to the reallocation of a part of KPRSh interest subsidy to government investment fund that amounted to Rp2.192.0 billion.292. PPN DTP for adaptation and mitigation of climate change amounting to Rp900.5 percent lower if compared with the budget allocation of program credit interest subsidy in the APBN 2010 that amounted to Rp5. The amount had increased by Rp6. (5) PPN DTP on Islamic Banking for Rp328.6 billion.8 billion.0 billion. The amount had decreased by Rp6.8 billion.561.0 billion.7 billion.872.434. the budget for social assistance was set to reach Rp71.6 billion. which decreased by Rp2.100.291. (4) PPN DTP on adaptation and mitigation of climate change for Rp900.7 billion from the grants expenditure allocation in APBN 2010 that amounted to Rp7. (2) PPN DTP facility to PDRI for upstream oil and gas exploration and natural gas amounting to Rp2.Chapter III Revisions in Expenditure Meanwhile. tax subsidies in the APBN-P 2010 were as follows: (1) income tax subsidy amounting to Rp4.481.881.0 billion. In APBN-P 2010.3 billion.000. the tax subsidy budget (tax expenditure) was estimated to reach Rp18.683. The increase in budget allocation of tax subsidies in the year 2010.7 billion.337. and (6) PPh DTP on BUMN amounted to Rp495.4 billion.000. even though on the other hand.009. Such increase was primarily related to the additional budget to carry out the educational function in the Ministry of National Education III-10 Financial Note and Indonesian Revised Budget 2010 .0 billion. The components of grant expenditures reallocated to transfer to region were the central government’s grant to local governments that amounted to Rp7.948. which increased by Rp1.5 billion. there was a projection revision of People’s Business Credit Imbal Jasa Panjang (IJP KUR) in 2010 from Rp375.172. the budget allocation of program credit interest subsidy in the APBN-P in 2010 was Rp2. and PPh DTP of BUMN that amounted to Rp495.091.292.7 percent higher than the ceiling in APBN 2010 that amounted to Rp64.0 billion.3 billion.8 billion.500. The decrease of grant expenditure ceiling in 2010 was related to the policy to reallocate grant expenditure to transfer to region grant.0 billion.6 billion or 9. The Import Duties DTP facility in the year 2010 was estimated to Rp2.6 billion. (4) PPh DTP on building and land transfer transaction of Sidoarjo victims from PT Minarak Lapindo Jaya amounting to Rp205.761. that consisted of the additional PPN DTP for cooking oil amounting to Rp240.8 billion. (2) PPh DTP on international bonds interest amounting Rp2.0 billion. (2) value added tax (PPN) subsidy amounted to Rp12.000.3 billion as a result of new PPh DTP that consisted of income tax on land and/or building transfer transactions of Sidoarjo victims from PT Minarak Lapindo Jaya that amounted to Rp205. was particularly related to: (1) Additional PPh DTP for Rp800. and (2) the increase in PPN DTP amounting to Rp1.0 billion. the PPN subsidy were as follows: (1) PPN DTP on the transfer of domestic fuel subsidy amounting to Rp5.3 billion. and (3) the import duty DTP amounting to Rp2. the grants expenditure in APBN-P 2010 was set at Rp243. The allocation and budgeting of DTP subsidies were conducted in accordance with the applicable tax regulations. and PPN DTP BUMN of Rp1. (3) PPN DTP on cooking oil and imported wheat/wheat flour amounting to Rp1. (3) PPh DTP on international cooperation grants amounting to Rp1.0 billion.3 billion.5 billion. PPN DTP Islamic Banking for Rp328. or 10. in order to support KUR expansion. PPh DTP on bio fuel (BBN) amounting to Rp100. Meanwhile.424. and (6) PPN DTP on BUMN amounted to Rp1.0 billion. PPh subsidies were another form of PPh DTP that consisted of: (1) geothermal PPh DTP for Rp624. (5) PPh DTP on biofuel (BBN) of Rp100.4 billion.2 billion.0 billion.0 billion.856.0 billion.8 billion.897.3 billion.3 percent of the tax subsidy budget ceiling in APBN 2010 that amounted to Rp16.0 billion. Meanwhile.
scholarships for poor students in SD.7 billion. which were also related to the policy to reallocate teacher profession allowance which was originally distributed through the Ministry of National Education. (6) additional budget for contributions to international institutions Rp50.0 billion.9 billion. operational assistance in package C implementation. MTs.0 billion. the budget allocation for social assistance in APBN-P 2010 had decreased by Rp2. (7) decrement of fiscal risk reserve funds amounting to Rp2.714. provide scholarship to poor students.0 billion. scholarships.0 billion. early age child education (PAUD) unit development fund. (2) additional budget for revitalization of sugar factory that amounted to Rp300. scholarship for government Islamic university (PTAN) students.813.9 billion. which was used to anticipate the risk of revisions in macroeconomic assumptions Financial Note and Indonesian Revised Budget 2010 III-11 . SMA and University. The Revision in other expenditure budget in APBN-P 2010 was caused by: (1) budget allocation for the rehabilitation and reconstruction of West Sumatra and West Java that amounted to Rp1.0 billion.640.211. healthy PTS development programs.Revisions in Expenditure Chapter III and the Ministry of Religious Affairs. health operational assistance for public health center (Puskesmas) amounting to Rp40. scholarship for talented and accomplished MA students. scholarship for talented students and students with special accomplishments in MTs. The other expenditures budget in APBN-P 2010 was set to reach Rp32. and internship for Islamic boarding school students.0 billion. additional education budget in APBN-P 2010 that was allocated to social assistance expenditure of the Ministry of Religious Affairs was used to: provide supplementary food for RA and MI students.625.7 billion or 7. operational assistance for quality management for SMA and SMK. teacher profession allowance. (3) additional budget for BMP debt payments of Ministry of Defense to Pertamina that amounted to Rp5.2 percent higher than the budget in the APBN 2010 that amounted to Rp30.926. (9) additional budget for arrears of TVRI personnel expenditure amounting to Rp25. (8) additional budget for funding of new agency Rp23. If compared with the realization of social assistance in 2009 that amounted to Rp73. providing supplementary food for kindergarten and elementary school students.8 billion. the additional reserve fund for natural disasters. which increased by Rp2.500.650. glides of DIPA PNPM in 2009 as an additional budget in 2010 that amounted to Rp379. which was originally a part of the budget reserve for natural disaster that was transferred to the rehabilitation and reconstruction programs/activities of West Sumatra after the earthquake. (4) additional budget for payment of bank services to manage SLA that amounted to Rp77.0 billion.0 billion. The fiscal risk reserve assistance in APBN-P 2010 was previously allocated to Rp8. and (10) additional budget for Ciliwung River channel and land acquisition amounting to Rp100.6 percent lower.0 billion.8 billion or about 3. internship for MA students.0 billion and reserve budget for Jabodetabek flood prevention amounting to Rp1. The decline was caused by the reallocation of reserve budget for natural disaster to other expenditure. SMP. as well as operational assistance for quality management of private MA. The budget ceiling of social assistance expenditure in the APBN-P 2010 had also considered the reallocation policy of social assistance spending to other spending that amounted to Rp450. Additional education budget in APBN-P 2010 was allocated to social assistance expenditure of Ministry of National Education which were used among others to pay special allowances of teachers in the leading areas and outermost regions.0 billion. Furthermore.625. and MA. to transferred to transfer to region in 2010. provide scholarships for poor students in MI.254.0 billion.9 billion. internship program in the industrial world.6 billion. (5) reserve budget allocation for Aceh integration that amounted to Rp200.
0 billion. food price stability reserve Rp1. and other fiscal risk reserves to be used in anticipating the failure in the achievement of lifting assumptions and risk of gas price changes for PT PLN amounting to Rp4.” The increment/additional education budget in APBN-P 2010 included an additional education budget through the Central Government expenditure that amounted to Rp13.Chapter III Revisions in Expenditure that amounted to Rp2.625.0 billion in APBN 2010 needed to be re-adjusted so that the fiscal risk reserve fund would reach to Rp6. and other fiscal risks Rp3.3 billion. 2009. In accordance with recent progress. as had been implemented in BBM.0 billion. social. so that the budget for BMP payment in the APBN-P 2010 was revised from Rp500. The elevated budget allocation for macroeconomic assumptions risk was mainly related with the uncertainty of international economic developments during the year 2010. In order to support rehabilitation and reconstruction of West Sumatra province after the earthquake in September 30.2. and had been stipulated in the Regulation Head of BNPB Number 11 Year 2009.625.0 billion.000.7 billion or 7. the fund allocated for the rehabilitation and reconstruction was Rp313. The BMP payment mechanism was carried out by considering PT Pertamina’s oil/gas obligations to the Government (set-off).6 billion. and 2011.0 billion. would amount to Rp6.537. when the APBN was being prepared.000.0 billion.0 billion. 3.650.000.200/USD and inflation rate from initially 5. In addition.000/USD to Rp9.229.000. as well as institutional sector.0 billion.0 billion.3 billion. the risk reserve fund in that was budgeted for Rp8. which consisted of food price stabilization reserve fund amounting to Rp1.0 billion. increased by Rp15. the budget allocated was Rp1.0 billion. With these assumptions revisions.0 percent to 5.1 trillion.000. LPG and electricity subsidy payment. the exchange rate from Rp10. an action plan for the post earthquake rehabilitation and reconstruction of West Sumatra in 2009 – 2011 was arranged through coordination of Agency of National Development Planning (Bappenas) and the National Disaster Management Agency (BNPB) by involving the related line ministries/institutions and the Provincial Government and all districts and cities in West Sumatra. Among a number of macroeconomic assumptions that had been adjusted were Indonesian crude oil price (ICP) which increased significantly from the initial US$65/barrel to US$80/barrel. additional education III-12 Financial Note and Indonesian Revised Budget 2010 . For the year 2009. In accordance with the action plan.2 The Revision in Education Budget The Education budget in APBN-P 2010 was set to reach Rp225. the revisions of other expenditure budget also accommodated additional expense for Government’s debt to Pertamina associated with the use of BMP by the Ministry of Defense that amounted to Rp5.0 billion to Rp5.691.200. land capping fiscal risk reserve Rp1. it had been determined that the estimated funding needs for rehabilitation and reconstruction in the area of West Sumatra in 2009. economy and businesses sectors. was applied in line with the mandate of the 1945 Constitution Article 31 Verse 4 “The Government prioritizes the education budget to amount at least 20 percent of the APBN and APBD to meet the requirement of national education.000.0 billion. 2010. In APBN-P 2010.500. The increase of education budget allocation in the APBN-P 2010. which represented the accumulated arrears of BMP since 2007.3 percent. which would be used for restoration of infrastructure.800.5 percent higher than the education budget allocation in the APBN 2010 amounting to Rp209.0 billion. the risk of land price increment (land capping) Rp1. a number of basic macroeconomic assumptions in APBN-P 2010 were readjusted to be more realistic and to reflect real conditions.310.
educational quality control for higher education and vocational high schools. improvement of student’s internship program in business field. such as: (1) anticipation of previous years of experience related to the normal APBN-P cycle. Furthermore the additional education budget through the distribution of Rp1. acceleration of MDG programs. scholarships. therefore the programs/activities financed by the additional education budget could not be realized due to lack of time (three months).250. The policy to utilize the additional education budget in APBN-P 2010 was directed: (1) to support national prioritized programs RPJMN 2010-2014. Meanwhile. and outermost areas).381. and (2) programs that required special attention (remote areas.0 billion. for the Ministry of Health Rp550. (4) program/activity’s should be ready. The additional education budget by central government expenditures that amounted to Rp13. and for the Ministry of Youth and Sports Rp600. Article 20 Verse (1) that mandates 0. leading areas. which could be used for investment in education such as scholarships.0 billion.4 billion that was allocated for education Revenue Sharing Fund (DBH).4 billion. while scholarship through national education development fund was expected to be paid from the beginning of the year.861. The additional education budget through transfer to region was Rp1. the technical criteria to utilize the additional education budget in APBN-P 2010 were as follows: (1) payment of arrears that had been committed in (including arrears payments of the teacher profession allowance.0 billion was allocated for the establishment of endowment funds. higher education of the Ministry of Transportation). for the Ministry of Transportation Rp1. capacity improvement program for school principals and educators. (2) program/activity should be completed by the end of the fiscal year (eight months). and (3) to support the implementation of Presidential Decree Number 1 Year 2010 Regarding Acceleration of National Development Priorities. post disaster rehabilitation of facilities and infrastructure.9 billion. and additional education budget through financing expenditure amounting to Rp1. which will be managed by BLU in education sector. where DIPA APBN-P would only be completed around October. and as a form of intergenerational equity. (2) to intensify the objective achievement in the prioritized educational development in RKP 2010. and (2) provide education facility and infrastructure in case of emergency (natural disasters). a revolving fund for students. The utilization of additional education budget in APBN-P 2010 would be prioritized to carry out: (1) Programs that had direct benefit to people such as School Operational Assistance (BOS).5 percent of oil and gas DBH to be allocated to increase the elementary education budget.000.0 billion. Establishment of education endowment funds was expected to provide benefits. additional income for PNS teachers. acceleration of teaching hospital completion. was allocated for the Ministry of National Education amounting to Rp8.0 billion. for the Ministry of Religious Affairs Rp2. (3) to anticipate the decline of Financial Note and Indonesian Revised Budget 2010 III-13 . supplementary food for Kindergarten and Elementary students. education for abandoned children through an integrated Islamic boarding school.Revisions in Expenditure Chapter III budget through transfer to the region of Rp1.048. (2) the scholarship allocated through BA K/L could only be distributed in March.310.3 billion.381. and (3) program/activity should produce an output/outcome.4 billion. Establishment of a education endowment fund was aimed to: (1) guarantee the sustainability of educational programs for the next generation.000. The increase in budget allocation for education DBH in APBN-P 2010 was in accordance with Law Number 33 Year 2004 regarding Financial Balance between Central and Regional Government.
that in order to maintain the continuity of the implementation activities for accelerating poverty reduction. the central government GRAPH III. the central government budget by organizations could be divided into: (a) central government expenditure managed by K/L.093. there were several K/L that received additional budget from PNPM carried over.586. and (3) Ministry of Underdeveloped Area Development. In addition. Based on the above mandate.9 percent) from the 600.3 billion (7. In APBN-P 2010.4 Rp30.3 The Revision in Central Government Expenditure by Organizations In general. Meanwhile.8 ceiling in APBN 2010 that amounted to 400.149. the K/L budget in the APBN-P 2010 had increased by Rp59. in line with the increase in K/L budget allocation in APBN-P 2010. and revisions in the Source : Ministry of Finance parameters and the implementation of policy related to subsidies.812. and (4) to anticipate force major such as natural disasters.134.0 385.1 307.0 Rp385. APBN APBN-P of subsidy expenditure estimation due to 2009 2010 revisions in basic macroeconomic KL Expenditure Non KL Expenditure assumptions. the central government budget that was managed by K/L was set at Rp366. while education activities could not be disturbed. Compared to the K/L budget realization in the year 2009 that amounted to Rp306.5 billion.8 321.7 366. This amount increased by Rp25.999.1 376.3 percent higher than the budget ceiling.9 billion.0 415. there were several K/L to receive an additional budget allocations: (1) Ministry of the Domestic Affairs. 3. 2010 by the General Treasurer (non-K/L) in APBN-P 2010 was determined at Rp415.0 budget ceiling of non-K/L in APBN-P 2010 was mainly caused by the increase APBN Real. such as: (1) The Ministry of Domestic Affairs.0 314.8 billion.399.1 billion or increased by 800.305. the estimated budget allocation of non-K/L in 2010 had increased by Rp93. If compared with non-K/L expenditure realization in 2009 that amounted to Rp321.6 percent higher than the budget ceiling of K/L in APBN 2010 that amounted to Rp340.134.3 billion or 7. (2) Ministry of Public Works.1 percent higher.9 billion or 19.985. In accordance with the mandate of Act Number47 Year 2009 regarding the APBN 2010.5 billion. and (b) central government expenditure managed by the general treasurer (non-K/L). The increasing 340. III-14 Financial Note and Indonesian Revised Budget 2010 .2 billion or 29.2 billion.2 budget allocations which were managed CENTRAL GOVERNMENT EXPENDITURE.2. the additional expenditure that derived from foreign loans and carried over of Public Direct Assistance Glide (BLM) for National Program for Community Empowerment (PNPM). BLM PNPM in DIPA 2009 could be launched until the end of April 2010. The increase in K/L budget allocation was associated with the additional budget for prioritized needs in several K/L that had not been accommodated in the APBN 2010.1 200.Chapter III Revisions in Expenditure education budget allocation caused by the decrease of APBN due to external factors.
860.2 21.438.129.320.7 42.908.5 129.7 15.1 63.3 8.801.727.8 55.028. Law and Security The Coordinating Ministry for Economy Ministry of Culture and Tourism Ministry of State-Owned Enterprises Ministry of Research and Technology Ministry of Environmental Affairs Ministry of Cooperatives and Small and Medium Enterprises Ministry of Women Empowerment and Child Protection Ministry of State Apparatus Empowerment and Bureaucratic Reform National Crypto Agency APBN 170.2 2.563.534. TABLE III.6 269.4 1.0 261.6 19.8 111.6 114.616.368.5 1.7 2.9 2.3 REVISION IN EXPENDITURES OF LINE MINISTRIES/AGENCIES.380.4 1.5 15.679.7 4.0 5.5 2. (7) Ministry of Religious Affairs.3 789.0 1.1 7.8 499.0 1. (4) Ministry of Transportation.8 5.0 5.297.6 2.3 183.122.038.363.4 3.3 3.9 133.8 36.1 23.1 4.0 190.0 588.0 1.797.3 Financial Note and Indonesian Revised Budget 2010 III-15 .023.305.5 17.4 3.8 710.3 5.002.5 107.0 2.609.899.684.5 404.6 8.5 208.8 APBN-P 260.4 8. The complete additional K/L budget is detailed in Table III.891.310.0 55.8 625.2 2. and (10) Ministry of Youth and Sports.887.389.0 63.8 116.8 100. (3) Ministry of Agriculture.524.9 426.665.7 3.2 12. (8) Ministry of Forestry.0 15.4 85.7 1.1 3.0 18.3.1 405.250.4 13. 2010 (billion rupiah) No.5 422.282.1 15.7 42.727.1 Changes 89.102.4 1.8 30.833.5 205.0 675.796.627.0 125. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Line Ministries/Institutions People's Consultative Assembly House of Representatives Supreme Audit Agency Attorney General Secretariat of State Ministry of Domestic Affairs Ministry of Foreign Affairs Ministry of Defense Ministry of Law and Human Rights Ministry of Finance Ministry of Agriculture Ministry of Industry Ministry of Energy and Mineral Resources Ministry of Transportation Ministry of National Education Ministry of Health Ministry of Religious Affairs Ministry of Manpower and Transmigration Ministry of Social Affairs Ministry of Forestry Ministry of Maritime and Fisheries Ministry of Public Works The Coordinating Ministry for Politic.2 635.4 733.8 34.2 838.3 2.0 52.6 166.561. (9) Ministry of Public Works.1 238. (5) Ministry of National Education.561.2 650.6 30.190.348.0 1.4 50.796.0 2.5 123.7 3.238.187.Revisions in Expenditure Chapter III (2) Ministry of Law and Human Rights.8 849.376. (6) Ministry of Health.407.2 8.940.949.0 6.6 27.
9 458.0 60.0 32.6 60.7 642.149.5 9.3 Ministry of Domestic Affairs The expenditure budget of the Ministry of Domestic Affairs was aimed to support the implementation of a part of governing duties in domestic affairs and regional autonomy.3 2. the budget allocation assigned to the Ministry of Domestic affairs was Rp13.233.3 112.Chapter III Revisions in Expenditure 33 Central Statistic Agency 34 Ministry of National Development Planning / Bappenas 35 National Land Agency 36 The National Library of Indonesia 37 Ministry of Communications and Information Technology 38 Indonesian National Police 39 National Agency of Food and Drugs Control 40 Agency of National Defense 41 Coordinating Agency for Capital Investment 42 National Narcotics Agency 43 Ministry of Underdeveloped Area Development 44 Coordinating Agency for National Family Planning 45 Agency of Meteorology.5 114.0 1.6 196.8 135.0 1.2 1.0 76.7 600.2 169.7 667.0 24.6 343.2 30.049.6 2.234.5 1.4 469. which increased by Rp838.3 669.9 238.6 366. In APBN-P 2010.0 463.373.8 127.4 25.2 5.9 927.6 340.0 82.812.7 percent) if compared III-16 Financial Note and Indonesian Revised Budget 2010 .373.7 27.1 60. and education and specific training in order to support policy in domestic and regional autonomy.7 10.0 27.6 8. management and coordination of ministerial administrative duties and services.9 222.0 104.985.888.9 426.0 346.0 947.0 497.195.5 428.5 534.553.0 558.7 21.0 3.3 2 951.0 229.0 61. Climatology.4 437.3 189.134.1 19.153.1 10.0 23.4 165.944.5 billion (6.455. implementation of applied research and development.363.0 7.0 20.3 billion.6 565.0 657.7 208.0 121.7 566.6 2.0 100.5 365.2 1.0 63.0 10.0 30.1 1.795.6 589.0 443. and Geophysics 46 Constitutional Court 47 Agency of the Assessment and Application of Technology 48 National Aviation and Space Agency 49 Coordinating Agency for National Surveys and Mapping 50 National Standardization Agency 51 Administration Agency 52 National Archives 53 National Civil Service Agency 54 Agency of Financial and Development Control 55 Ministry of Trade 56 Ministry of Public Housing 57 Ministry of Youth and Sports 58 Corruption Eradication Commission 59 Regional Representatives Board 60 National SAR Agency 61 Other K/L Total Source : Ministry of Finance 5.2 904.0 627.8 634. and implementation of functional supervision.0 950.0 239.0 865.6 199.5 104.040.7 368.6 443.361.3 964.503.5 2.
and rural and sub-district PNPM. (2) the arrangement. which regulates that the Government has the obligation and is responsible to carry out national demographic administration. (3) the fulfillment of people’s right in demographic administration with professional service. permanent.Revisions in Expenditure Chapter III with the budget ceiling in APBN 2010 that amounted to Rp12. complete. the Government would have to finish providing NIK for each resident by the end of 2011. Based on Law Number 23 Year 2006. Meanwhile. righteous. and prosperous community. The additional budget allocations for Demographic Administration Management Program was very important because it was in line with the mandate of Law Number 23 Year 2006 regarding Demographic Administration. The implementation of demographic administration information system would be implemented gradually with a total budget requirement of Rp6. current and easily accessible to be made a reference for policy formulation and development in general.2 billion. (3) rural government institutional consolidation in development management. and (4) availability of national data and information about civil registration in various levels that were accurate.6 trillion for three years. budget Financial Note and Indonesian Revised Budget 2010 III-17 . compulsory. and sustainable demographic administration. For the year 2010. the budget allocation would be used to finance activities that included the followings: (1) the facilitation of development in border regions in economic. The expected outcome from the Demographic Administration Information System implementation was as follows: (1) implementation of and integrated and orderly demographic administration in national-scale. The increment of budget allocation for the Ministry of Domestic affairs in APBN-P 2010 was mainly associated with the additional budget for the followings: (1) demographic administration management program Rp384. evaluation and reporting. As a key access in demographic services. the budget allocation would be used to provide NIK to residents in 497 districts/cities and implementation of e-ID cards (e-KTP) in 6 districts/ cities. cultural. the NIK would be developed towards a single identification for each resident. The NIK is unique or exclusive. in border area development programs.524. In the rural community empowerment improvement programs. the budget allocation would be used to finance activities that included: (1) improvement of rural communities empowerment. and (3) border area development program Rp16. assessment and development of policy and strategy. united.5 billion. (2) management/coordination/monitoring. (2) rural community empowerment improvement program (carry over) Rp344. social sectors and borderline management.1 billion. (2) implementation of a universal. In APBN-P 2010.8 billion. of which important component was management of Citizen Registration Number (NIK). NIK is the identity of Indonesian citizen that is a key access to the data verification and validation of one’s identity in order to support public services in demographic administration sector. harmonious. peaceful. distinct and attached to a person who is registered as an Indonesian resident and is linked directly to the entire demographic documentation. Ministry of Law and Human Rights The budget for Ministry of Law and Human Rights (HAM) was aimed to support law enforcement efforts and human rights to support the achievement of a safe. The release of the Law Number 23 Year 2006 reflected the reform in demographic administration. starting from 2010 to 2012.
(4) organization of socialization / dissemination / seminars / workshops / publications.4 billion (15.727. (2) improvement/assessment of institutional capacity.3 billion. In APBN-P 2010. increase the additional value and competitiveness of agricultural products and increase farmers’ welfare. which was supported by the development of agriculture.3 billion.0 billion. The budget allocations of Ministry of Transportation in the APBN-P 2010 was higher than tge budget ceiling in the APBN 2010 because there were additional budget. quarantine and food safety improvement.8 billion.6 billion (10. and enhancement of seedling institutions. Budget allocation for the performance improvement program of judiciary and other law enforcement agencies. which increased by Rp1. and (5) management and development of information and data utilization. infrastructure and energy.7 billion. statistics and information.Chapter III Revisions in Expenditure allocation of the Ministry of Law and Human Rights was set to reach Rp5. which increased by Rp849. to improve transport infrastructure support towards the competitiveness of the real sector.609.038. (4) management / creation / development of systems.6 percent) from the budget ceiling in APBN 2010 that amounted to Rp8. Ministry of Agriculture Ministry of Agriculture’s budget was used for performing government’s affairs in agriculture.561. (3) the development and implementation of agricultural education. The outcome expected from these activities was to increase food production and productivity. data. In APBN-P 2010.2 billion (10. agricultural production equipment assistance. or increased by Rp710. namely: (1) organizing office operations and maintenance. The additional budget allocations for food stability improvement program.9 percent) from the budget allocation in APBN 2010 that amounted to Rp15.320. (2) implementation / development of human resources education. The budget for Ministry of Agriculture in APBN-P 2010 was higher than the budget ceiling in APBN 2010 as a result from additional budget. and to increase construction and development investment in transport infrastructure through cooperation between the government and the private sector. Further. (4) pest control (OPT). Ministry of Transportation Ministry of Transportation’s budget allocation was directed to improve the quality and capacity of transport infrastructure development in accordance with minimum service standard. and (2) farmer’s welfare improvement program Rp26. animal disease. Ministry of Transportation’s budget allocation was set at Rp17. assessment and development of policies and strategies.1 billion. (3) availability and improvement of agricultural infrastructure. would be used to finance activities that included: (1) organizing office operations and maintenance.833. (5) seed subsidy. in farmers’ welfare improvement programs. namely: (1) development of cow breeding.7 billion. (3) preparation.887. would be utilized to finance various activities. The increase of budget allocation for Ministry of Law and Human rights in the APBN 2010-P was associated with the additional budget for performance improvement program in the judiciary and other law enforcement agencies. in order to support the enhancement of domestic economy competitiveness. (2) pre and post harvest agricultural mechanism. the Agriculture Ministry’s budget allocation was set at Rp8.4 percent) when compared with the budget allocation in APBN 2010 that amounted to Rp4. namely: (1) air III-18 Financial Note and Indonesian Revised Budget 2010 .1 billion. such as: (1) food stability improvement program Rp823. the budget allocation would be used to finance various activities. with the target to realize a resilient agriculture through the efforts to consolidate food stability.
0 percent) if compared with the budget allocation for the Ministry of National Education in APBN 2010 that amounted to Rp55. that included: (1) PAUD amounting to Rp197.484. (5) higher education programs Rp3. The additional education budget for the Ministry of National Education would be allocated for the implementation of several programs. evaluation and reporting.238. (3) secondary education programs Rp1. Ministry of National Education Ministry of National Education’s budget was directed to supporting the effort of national education through even distribution and expansion of education access. relevance. (2) improving and developing the use of data and information. and education competitiveness. In early age children education programs. In APBN-P 2010. in the nine-year compulsory education program. (c) improving the management system of BOS. (2) development of seaport facilities and infrastructure.250. (7) educational service management program Rp70.4 billion.9 billion. (2) marine transportation development program Rp127. the additional budget would be used to finance various activities. (c) SMA and SMK quality control. (b) to provide supplementary food for kindergartens and elementary schools students. Meanwhile. the additional budget allocation would be used to finance the implementation of activities that included: (a) granting scholarships to poor students in SD and SMP.Revisions in Expenditure Chapter III transport development program Rp541.9 billion (15. Meanwhile. quality improvement.6 billion.438.9 billion. which was expected to accelerate further economic growth that would increase income and people’s welfare. namely: (1) construction / procurement / improvement of infrastructure and facilities. Budget allocation for air transport development program would be used for various activities including: (1) construction of new airports.2 billion. in higher education programs. budget allocations for the Ministry of National Education was set to reach Rp63.6 billion. and (3) also for higher education program Rp1.048. (3) the procurement of aviation safety facilities. The outcome expected from these activities was to improve the flow of transport. which increased by Rp8. (4) construction of runway and its facilities. (d) construction and rehabilitation of SMA and SMK buildings.0 billion. (2) the nine-year compulsory education as elementary education program Rp2. (6) quality improvement program for educators and educational worker at Rp594. Financial Note and Indonesian Revised Budget 2010 III-19 .5 billion. Further. (b) providing operational support for quality management of SMA and SMK.187. (3) marine pier construction. The increase of budget for Ministry of National Education in APBN-P 2010 was primarily related to the education budget adjustments as a result of the additional expenditure.5 billion. budget allocations would be used to finance various activities. among others: (a) the scholarships for poor university students. (4) non-formal education programs Rp137.3 billion. the additional budget would be used for the implementation of PAUD expansion. in the higher education program. In sea transport development program. (8) research and development program in education Rp216. and public image. (2) the development / improvement of airports.2 billion. (3) training / coordination / implementation of monitoring. and improvement of governance. accountability. the budget allocation would be used to finance various activities. which were: (1) organizing office operations and maintenance.5 billion.1 billion. The secondary education program’s additional budget allocation would be used to finance the activities in: (a) granting scholarships to poor SMA and SMK students.296.
the budget allocation would be used to finance various activities.3 percent) from the budget allocation in the APBN 2010 that amounted to Rp21. (e) to provide teacher profession allowances in elementary and secondary education. (b) acceleration of quality and competency improvement of teachers. including teachers in remote areas. (i) the development of entrepreneurship based education.796.8 billion. (2) human resources management program Rp753. such as: (a) the acceleration in implementation of quality control system in education units at all levels of education. (d) improvement of facilities and infrastructure of higher education. the additional budget would be used to finance various activities. as well as people’s behavior for clean and healthy living. The increase of budget allocations for Ministry of Health in APBN-P 2010 was associated with the additional budget for: (1) individual health efforts program for Rp943. which increased by Rp2. the budget allocation would be used to finance management of personnel and pensioner administration. (e) the fulfillment of allowance shortage for lecturer. (c) expansion of educational census from SD to SMA/SMK. (d) to provide teachers’ functional allowance.0 billion. (2) public and bureaucratic services. the budget allocation would be used to finance public or bureaucratic service activities. In APBN-P 2010. (c) quality control of higher education. which were: (1) the management of salary. (c) to provide special allowances for teachers in the leading and outermost regions. (3) availability and improvement of infrastructure and facility of the appointed health facilities. and (3) health resources program Rp630. (c) non-formal education for the border areas and disaster areas.0 billion. (b) evaluation of the national final exam (UN) improvements. (h) construction of student dormitories in universities. In the health resources program. the additional budget would be used to finance activities such as: (a) the harmonization of non-formal education with the business world. In quality improvement programs for educators and educational workers. in human resources management program.389. biological and socio-economic sector. (b) the enhancement of the national education network.2 billion (11. with the aim to achieve development goals in the physical environment.6 billion. (c) the enhancement in information system planning. Meanwhile. (f) improving the academic qualifications of lecturer. Ministry of Health Ministry of Health’s budget allocations was directed to support the government’s activities in the health sector.0 billion. In education services management program. and also human resource and personnel administration development. honorarium and allowance.407. home schooling). the Ministry of Health’s budget allocation was set at Rp23.Chapter III Revisions in Expenditure (b) accelerating construction of teaching hospitals. and health services condition in order to fulfill people’s right to a healthy living. (b) family education (parenting education. the additional budget would be used to finance various activities including: (a) the development and review / teaching materials and teaching models. (g) enhancement of research implementation. the additional budget would be used to finance activities that included: (a) training of school principals and supervisors. In individual health efforts program. III-20 Financial Note and Indonesian Revised Budget 2010 . In non-formal education programs. In the education research and development program.
which were: (1) the nine-year compulsory elementary education program Rp684.000 MTs talented students and students with achievement. budget allocation would be used to finance various activities. (5) the implementation of scholarships for 750. (e) scholarship based on talents and accomplishments for MA students.7 billion. (3) availability of internship for 500 students. The increase of budget allocations for Ministry of Religious Affairs in APBN-P 2010 was especially related to the additional budget allocations.000 RA and MI students. In higher education programs.000 talented MA students and students with achievement.000 poor students.238. (b) MA library development. including post-disaster. (d) construction of MTs science laboratory. (e) to provide supplementary food for Islamic Kindergarten (RA) students and Islamic elementary school (MI) students. (d) operational support for quality management of private MA. In secondary education programs. which increased by Rp2. (c) internship program in industrial world for university students. (4) scholarship for 70. (3) completion of 1000 libraries and 500 laboratories. the Ministry of Religious Affairs is also responsible to improve the harmony of internal believers and interreligious believers.8 billion.000 poor MA students. (6) the implementation of scholarships for 1. In addition. (b) minor rehabilitation of Islamic school buildings.000 SMA/MA students to continue to PTAN.7 billion. (c) the development of science and language laboratories in MA.Revisions in Expenditure Chapter III Ministry of Religious Affairs Ministry of Religious Affairs is the ministry that is responsible to carry out government’s affairs in the religious sector. with objective to improve the quality of religious service and understanding and religious living. (5) non-formal education programs Rp24. The expected output from these activities were: (1) the realization of operational assistance to 19 MI and 31 MTsN. (b) scholarship for SMA/MA students to continue to PTAN. (2) secondary education programs Rp805.000 MI poor students and 600. Financial Note and Indonesian Revised Budget 2010 III-21 .0 billion. (f) to provide scholarships for poor students.7 billion. (4) quality improvement program for educators and educational workers Rp115. the budget allocation would be used to finance various activities.6 percent) if compared with the budget ceiling in APBN 2010 that amounted to Rp27. which were: (a) operational support for new government Islamic school.399 private MA. The expected output from these activities included: (1) availability of support in providing facilities and infrastructure in 67 higher education institutions. including post-disaster.7 billion. the budget allocation would be used to finance various activities. (3) higher education programs Rp586.891. (2) to provide scholarship to 2. (2) rehabilitation of 865 MI and 1300 MTs. (d) to provide scholarship to poor students. The output expected from various activities were: (1) providing operational support for 13 MA.3 billion. (g) scholarship assistance in MTs for talented students and student with special accomplishments.000 MTs poor students. (5) scholarships for 2. (3) the realization of operational support for quality management in 4. (4) the implementation supplementary food for 500.0 billion (10. (2) completion of 500 libraries and 300 laboratories. In APBN-P 2010.7 billion. such as: (a) operational assistance to new government MA. and (6) educational services management program Rp412.129. among others were: (a) to provide facility and infrastructure for Islamic universities (PTA). In nine-year the compulsory education program. (c) development of MTs libraries. (4 ) scholarships for 400. (f) to provide scholarships to poor students. and to improve access and quality of religious education and religious affairs. the Ministry of Religious Affairs’ budget allocation was set to reach Rp30.
Ministry of Forestry’s budget allocation was set to reach Rp4. the additional budget allocations would be used to finance the activities of forest fire control and management of national parks.000 PNS teachers.Chapter III Revisions in Expenditure In the quality improvement program for educators and educational workers.023. in non-formal education programs. the additional budget allocations would be used to finance rehabilitation of critical watershed areas (DAS).200 high school teachers. III-22 Financial Note and Indonesian Revised Budget 2010 . Ministry of Forestry Budget allocation for Ministry of Forestry was directed to further improve the quality of forestry production and improve the quality of sustainable forest management for the most of people’s welfare and economy.0 billion. On the consolidation of domestic security programs.000 PNS teachers. In APBN-P 2010.000 students of Islamic boarding school. and the output expected from these activities was the capability to control forest fires on the islands of Kalimantan. (b) the enhancement of competency of the MI school principals and supervisors in elementary and secondary education. Meanwhile. the budget allocation would be used to finance activities that included the followings: (a) additional allowance for teachers continuing S2 program (in PTAN and PTN). the budget allocation would be used to finance activities and internship of MA students of Islamic boarding school students. the declining number of hotspots by 20 percent per year. (2) enhancing the competency of MI school principals.000 hectares of forest area. and the improved capability of disaster management in central and regional governments effectively and efficiently.4 billion.000 MA students and 1.4 billion. The expected outcome of these activities were the implementation of land rehabilitation. Based on the above various programs and activities.4 billion. and Sulawesi. (c) improving the quality of religions teachers. Budget allocations for Ministry of Forestry in APBN-P 2010 was higher than the budget ceiling in the APBN 2010 because there were additional budget that included: (1) rehabilitation and recovery program for natural resource reserve Rp510. In the program of protection and conservation of natural resources. The output expected from these activities was the availability of internship for 5. The expected output from these activities included: (l) providing S2 scholarship for 1.0 billion (20.2 percent) from budget allocation in APBN 2010 that amounted to Rp3. The expected output from the various activities included: (1) availability of additional income for the 133. which increased by Rp675. In rehabilitation and recovery program for natural resources. (b) improvement of BOS management system.6 billion. Meanwhile.348. through either formal or non formal education that covered the entire levels of religious education. the management program of educational services. the additional budget would be utilized for forest protection and security as well as the development / procurement / upgrading of facilities and infrastructure. (2) natural resources protection and conservation program Rp90. The output expected from these activities was a rehabilitation of 100. (2) the realization of teacher profession allowance for 257. and (2) increment of access and even distribution of educational services that was of quality and affordable. Sumatra. the budget allocation would be used to finance activities that included: (a) the additional income allowance of PNS teachers. the expected outcome were as follows: (1) the realization of empowerment and improvement of quality of the role of social institutions and religious institutions in supporting social change in the society. and (3) consolidation of domestic security programs Rp74.
102.503. independence. achievement and competitiveness.5 billion. if compared with the ceiling in the APBN 2010 was mainly associated with the additional budget.1 percent) if compared with the budget ceiling allocation in APBN 2010 that amounted to Rp1.553. (2) rehabilitation / maintenance of roads and bridges Rp174.6 billion. 3.6 billion (3. water reservoirs.9 billion. beneficial and sustainable infrastructure to encourage higher economic growth. The additional budget was not only used for education and but also for the preparation of SEA Games in relation to the appointment of Indonesia as the host of SEA Games 2011. Meanwhile in the rehabilitation / maintenance program of roads and bridges. In line with the above. management. The outcome expected from these activities would be successful SEA Games 2011 and improvement of Indonesia rank in SEA Games 2011. the additional budget would be used to finance the development of dams. cross and non-cross. The increment of budget allocation for the Ministry of Youth and Sports in APBN-P 2010 if compared with the ceiling in APBN 2010 was mainly related to need of an additional budget for national and international sport management as well as for the development/ procurement/improvement of facilities and infrastructures. In the improvement / construction program for roads and bridges.3 Principles of Allocation Revision of Transfer to Region in 2010 The policy of financial balance between central government and regional governments was implemented in the budget allocation for transfer to region in the APBN. the budget allocations for the Ministry of Public Works was set to reach Rp36. skill. (3) development program for drinking water and liquid waste management performance Rp62.8 percent) from the budget allocation in the APBN 2010 that amounted to Rp34.4 billion. and conservation program for rivers. the budget allocation would be used to finance various activities. lakes and other water sources.4 billion. health. as an integrated part of national fiscal policy. the additional budget would be used to finance the rehabilitation / maintenance of national roads and bridges.Revisions in Expenditure Chapter III Ministry of Public Works The Ministry of Public Works’ budget was directed to support the efforts to realize the availability of reliable. The Sea Games would be attended by the entire countries in Southeast Asia. the budget allocations for the Ministry of Youth and Sports was set to reach Rp2.796. which increased by Rp950. lake reservoirs and other water reservoir constructions. Ministry of Youth and Sports The main task of the Ministry of Youth and Sport is to support the efforts in improving the quality of youth and sports in order to improve the quality of Indonesians who have the insights of nationality. (2) the Surabaya-Madura (Suramadu) bridge construction. (3) construction of Java Southern coast cross.0 billion (61. In the APBN-P 2010.9 billion. lakes and other water sources.1 billion. The increment of budget allocations for the Ministry of Public Works in the APBN-P 2010. In the APBN-P 2010. management. or an increase of Rp1. and (4) development. In development. intelligence. and conservation program for rivers. the allocation of transfer to region in Financial Note and Indonesian Revised Budget 2010 III-23 . which were: (1) improvement / construction program for roads and bridges amounting to Rp938. which were: (1) improvement / construction of roads and bridges.305. and would bring about 35 sports into the event.
3. due to the increase in the estimation of balanced fund realization and adjustment fund realization. and (6) improve the synchronization between the national development plans and regional development plans.189.9 billion or 6. which is allocated to regions based on a certain percentage to fund regional needs in order to implement III-24 Financial Note and Indonesian Revised Budget 2010 .339.3. The allocation of transfer to region in APBN-P 2010 consisted of 91. the allocation of balanced fund was estimated to Rp314. the budget allocation of transfer to region in the APBNP 2010 had increased by Rp36.9 billion or 9.027.9 billion or 2. Also when compared with the realization of balanced fund in 2009 that amounted to Rp287.7 billion or 11.2 billion. The estimation of balanced fund budget in APBN-P 2010 consisted of 28.9 percent higher than the budget ceiling in APBN 2010 that amounted to Rp322. If compared with the realization in 2009 that amounted to Rp308. The allocation of balanced fund is aimed to reduce the vertical and horizontal fiscal imbalance. If compared with the budget ceiling in APBN 2010 that amounted to Rp306.111. In nominal terms. (2) improve the quality of regional public services and reduce horizontal public service imbalance. (5) improve the efficiency of national resources usage.7 percent. To support the policy direction of transfer to region.8 percent of DAU and 6.251. in the form of DBH.1 Revision in Revenue Sharing Fund (DBH) The revenue sharing fund (DBH) is a fund that derived from the APBN revenues. 64.2 percent of the balanced funds. In the APBN-P 2010.1.0 percent to GDP.3 billion or 5.4 billion.8 percent. DAU.5 percent of DBH.7 percent. (4) enhance regional capacity in regional economy potential. and with reference to the results of discussions between DPR and the Government in Preliminary Discussion of APBN 2010 preparation.423. and special autonomy and adjustment fund 8.3. this amount had increased by Rp8.1 Revisions in Balanced Fund Balanced Fund is the largest component in transfer to region allocation. this amount had increased by Rp22.9 billion or 5. the transfer to region policy in 2010 would be intensified to: (1) reduce fiscal gap between central and regional government (vertical fiscal imbalance) and interregional (horizontal fiscal imbalance). which was broad.023.0 billion. and DAK.612.585.5 billion. and DAK. the estimated realization of the balanced fund in the APBN-P 2010 had increased by Rp27. therefore it has a very important role in supporting the implementation of fiscal decentralization and regional autonomy. DAU. while maintaining consistency and sustainability of fiscal decentralization in order to support the implementation of regional autonomy. 3. the balanced fund is one of the main pillars of fiscal decentralization in the context of transfer of funds from central Government to regional government. real.7 percent of DAK.Chapter III Revisions in Expenditure 2010 remained focused on supporting programs/activities of national priorities.5 percent to GDP.4 percent. Balanced fund is a transfer of fund that derived from the APBN to regions.363. In regard to various laws and regulations and based on the evaluation results during the implementation in 2006-2009. Therefore. (3) support the national fiscal sustainability in macro economic policy. and responsible. the budget allocation in the APBN-P 2010 was estimated to Rp334. The increment of balanced funds in APBN-P 2010 compared to the budget ceiling in APBN 2010 was caused by the increase in estimated realization of DBH. The transfer to region in APBNP 2010 had increased if compared with the ceiling in APBN 2010.
with a larger proportion for the productive regions and considering the even-distribution portion in the related province. The estimation of DBH realization in APBN-P 2010. the DBH budget allocation in the APBN-P 2010 had increased by Rp13. the direction of policy in DBH sector was aimed to support the efforts in improving the calculation mechanism of allocation and distribution to regions. Financial Note and Indonesian Revised Budget 2010 III-25 .9 billion.404. The mechanism DBH arrangement and distribution to each region eligible to receive the fund was administered in the Minister of Finance Regulations. If compared with the realization in 2009 that amounted to Rp76. and (2) regulations concerning the distribution of tax DBH and tobacco excise DBH. the regional share of DBH of PPh Article 21 and Article 25/29 WPOPDN is 20 percent. In addition. In 2010. This was done through improved coordination. therefore the demands of data accuracy and validation could be met. There were two factors that influenced the allocation of tax DBH and Tobacco Excise DBH in the APBN-P In 2010: (1) the estimated revenue based on potential sources of taxation and tobacco excise. consisted of tax DBH of 49.488. both horizontally and vertically. the allocations of DBH in 2010 also accommodated DBH less paid from the previous years.129. The DBH that derived from PPh Article 21 and Article 25/29 WPOPDN revenue that was distributed to the regions was divided with the following proportion: 60 percent for district/city and 40 percent for the province. DBH allocation policy in 2010 referred to the provisions stipulated in Law Number 33 of 2004 regarding Financial Balance between the Central and Regional Government.6 billion or 10. Law Number 11 Year 2006 regarding Aceh Government. or 1. Under the provisions of Article 13 of Law Number 33 Year 2004. BPHTB. PBB.5 billion or 17. The increase of DBH in APBN-P 2010 was primarily caused by an increase in oil and gas SDA DBH that was related to the elevated revenue target of oil and gas that would be distributed in 2010.Revisions in Expenditure Chapter III decentralization.4 billion.618.1 percent of the DBH ceiling in the APBN 2010 that amounted to Rp81.213. and Law Number 39 Year 2007 regarding Amendment on Law Number 11 Year 1995 regarding Excise. The sources of revenue that derived from the regions were divided between the central Government and regional governments based on “by origin” principle.7 percent and SDA DBH of 50. In the APBN-P 2010. which was based on the estimated revenue of PPh Article 21 and Article 25/29 WPOPDN and was set no later than 2 (two) months before the related budget year commenced. The allocation of DBH of PPh Article 21 and Article 25/29 WPOPDN for each region consisted of: (a) the temporary allocation. The DBH consisted of Tax DBH and Natural Resources (SDA) DBH. and Government Regulation Number 55 Year 2005 regarding Balanced Fund. the realization of DBH was expected to reach Rp89. which was based on the prognosis of revenue realization of PPh Article 21 and Article 25/29 WPOPDN and was set no later than the first month of the fourth quarter of the current fiscal year. Law Number 35 Year 2008 regarding Stipulation of Government Regulation Number 1 Year 2008 regarding the Amendment on Law Number 21 Year 2001 regarding Special Autonomy for Papua Province to become a law. as well as Article 8 of Government Regulation Number 55 Year 2005.3 percent.8 billion.7 percent. Revision in Tax DBH The Tax DBH included DBH of PPh Article 21 and Article 25/29 WPOPDN.4 percent to GDP. and Tobacco Excise. This amount indicated an increase of Rp8. and (b) definitive allocation.
the regional share of Land and Building Tax (PBB) is set to be 90 percent of PBB revenue (including 9 percent cost of collection). under the provisions of Article 12 Verse (4) and (5) of Law Number 33 Year 2004 and Article 7 of Government Regulation Number 55 Year 2005. The process of BPHTB DBH setting for each region is conducted in accordance with the Minister of Finance Regulation based on the estimated BPHTB revenue in the related budget year. the distribution of central Government’s share of PBB distributed as an incentive is carried out in November of the current budget year. Further. The distribution of PBB DBH is implemented based on the realization of PBB revenue in the current budget year. and (3) central Government’s share that is distributed to districts/cities as incentive. whereas the distribution of BPHTB DBH is carried out based on the realization of BPHTB revenue in the current budget year. namely: (1) the regional share. whereas the remaining 20 percent is Government’s share of which will be returned to regional governments. Meanwhile. August. the distribution of BPHTB DBH is carried out in two mechanisms.Chapter III Revisions in Expenditure The distribution of DBH of PPh Article 21 and Article 25/29 WPOPDN was carried out based on the prognosis of the realization of revenue from PPh Article 21 and Article 25/29 WPOPDN of the current budget year in a quarterly basis. The regional share distribution is carried out in a weekly basis. and (b) distribution of the fourth quarter was based on the difference between the definitive allocation and the amount of funds that had been disbursed during the first quarter to the third quarter. while the remaining 10 percent is central Government’s share. which are as follows: (1) the regional share including cost of collection. The distribution of regional share including the cost of collection is carried out by way of weekly transfer from the Government General Cash Account to the Regional General Cash Account via Bank Operational III (Bank appointed by the Government). in April. and (2) the government’s share distributed evenly to districts/cities. then the excess would be calculated in the next fiscal year’s distribution. The process of PBB DBH setting for each region is carried out in accordance with the Minister of Finance Regulation based on the estimated annual revenue in the related budget. (2). and November of the current budget year. whereas the central Government’s share that is evenly distributed to districts/cities is carried out in 3 (three) phases. Furthermore. under the provisions of Article 12 Verse (1). in April. In terms of responsibility for the distribution of regional share of PBB DBH including the collection fee and regional share of BPHTB DBH. the PBB DBH distribution is conducted in three mechanisms. and (3) of the Law Number 33 Year 2004 and Article 5 and Article 6 of Government Regulation Number 55 Year 2005. while the central Government’s share distribution is carried out in 3 (three) phases. with details as follows: (a) distribution in the first quarter to the third quarter each amounting to 20 percent of temporary allocations. a reconciliation of data of PBB and BPHTB revenue is carried out in provincial level between the Provincial Government with the Regional Office of Directorate General of Taxation and the Regional Office of the Directorate General III-26 Financial Note and Indonesian Revised Budget 2010 . which all of this 10 percent portion will be returned to regions. if the amount of distribution in the first quarter to the third quarter that was based on the temporary allocation were larger than the definitive allocation. In general. Meanwhile. Further. the regional share of BPHTB is set to be 80 percent from BPHTB revenue. August and November of the current budget year. (2) central Government’s share that is distributed evenly to districts/cities.
Revisions in Expenditure
of Treasury in the related province; for the release of Payment Request (SPM) authorized by the Budget User Order (KPA). According to the provisions of Article 66A of Law Number 39 Year 2007, 2 (two) percent of the revenue from tobacco excise is distributed to the tobacco excise producing provinces that will be used to finance: (1) improvement of raw materials quality; (2) industrial development; (3) development of social environment; (4) socialization of excise regulations; and/or (5) eradication of illegal excisable goods. Unlike the tax DBH that has a block grant characteristic, the Tobacco Excise DBH is more of a specific grant, because the use of funds has previously determined. The process of setting the Tobacco Excise DBH for each region is carried out through Minister of Finance Regulation in accordance with the Governor Decree of the tobacco excise of productive province, and is based on the estimated revenue of tobacco excise in the related budget year. Further, the distribution of Tobacco Excise distribution is carried out in a quarterly basis, with the following details: (a) the first quarter is amounted to 20 percent of temporary allocation; (b) the second quarter is amounted to 30 percent of temporary allocation; (c) the third quarter is amounted to 30 percent of the temporary allocation; and (d) the fourth quarter is calculated from the difference between the definitive allocation and the amount of funds that has been disbursed during the first quarter to the third quarter, which should be distributed after the regional government, as Tobacco Excise DBH receiver, reports the realization of Tobacco Excise DBH in semester I to Minister of Finance. Based on the Decision of the Constitutional Court of the Republic of Indonesia Number 54/ PUU-VI/2008 dated April 14, 2009 regarding the assessment of Law Number 39 Year 2007 regarding the amendment on Law Number 11 Year 1995 regarding Excise, it is decided that commencing in 2010 at the latest, the Tobacco Excise DBH allocation will also accommodate the tobacco-producing areas as Tobacco Excise DBH receivers. Two factors that influenced the budget allocation of tax DBH in 2010 were a budget allocation of revenue that derived from potential tax sources that could be collected and the regulations concerning the tax DBH distribution. In APBN-P 2010, the realization of tax DBH was estimated to Rp44,513.5 billion, or 0.7 percent to GDP. This amount, had decreased by Rp2,407.9 billion (5.1 percent) if compared to ceiling of tax DBH in APBN 2010 that amounted to Rp46,921.4 billion. If compared to the realization in 2009 that amounted to Rp40,334.2 billion, the estimation of realization of tax DBH in APBN-P 2010 had increased by Rp4,179.3 billion (10.4 percent). The above estimation of tax DBH realization in APBN-P 2010 had accommodated tax DBH less paid in the previous years, with the following details: PPh DBH less paid amounted to Rp3.4 billion, and PBB DBH amounted to Rp2.3 billion. From the above estimation in APBN-P 2010, the realization of PPh DBH was estimated to reach Rp13,177.3 billion or an increase of Rp3.4 billion from the ceiling of PPh DBH in APBN 2010 that amounted to Rp13,173.8 billion, and the realization of PBB DBH was estimated to Rp23,063.4 billion or Rp2,172.8 billion (8.6 percent) lower from the ceiling of PBB DBH in APBN 2010 that amounted to Rp25,236.2 billion. Meanwhile, the budget realization of BPHTB DBH in APBN-P 2010 was estimated to Rp7,155.5 billion or Rp237.4 billion (3.2 percent) lower from the ceiling of BPHTB DBH in APBN 2010 that amounted to Rp7,392.9 billion. On the other hand, the realization of tobacco excise DBH in APBN-P 2010 was estimated to Rp1,117.3 billion or Rp1.2 billion (0.1 percent) lower from the ceiling in APBN 2010.
Financial Note and Indonesian Revised Budget 2010 III-27
Revisions in Expenditure
The Revision in Natural Resources (SDA) DBH
The budget allocation for SDA DBH in 2010 was influenced by the budget allocation of SDA potential revenue sources that could be collected and the regulations concerning the distribution of SDA DBH set in legislative law. In 2010, the realization of SDA DBH was expected to reach Rp45,104.9 billion, or Rp10,621.6 billion (30.8 percent) higher if compared to the budget ceiling of SDA DBH in APBN 2010 that amounted to Rp34,483.4 billion. The increase of the estimation of SDA DBH realization in 2010 was primarily due to ICP increment, which was originally amounted to US$ 65/barrel in APBN 2010 to US$ 80/barrel. The estimated SDA DBH realization in APBN 2010, had accommodated SDA DBH less paid in the previous years. The detailed budget realization estimation is as follows: a. The budget allocation of DBH for natural oil and gas Rp35.196,4 billion, including: 1. The budget allocation for natural oil SDA DBH was Rp17,143.1 billion, which increased by Rp3,064.6 billion from the ceiling in APBN 2010; 2. The budget allocation for natural gas SDA DBH Rp11,925.2 billion, which increased by Rp1,988.0 billion from the budget ceiling in APBN 2010; 3. The oil and gas SDA DBH less paid Rp6,128.1 billion. b. The budget allocation of non-oil/gas DBH amounting to Rp8,703.5 billion, included: 1. The budget allocation for general mining SDA DBH Rp7,790.4 billion, which increased by Rpl,205.1 billion from the budget ceiling in APBN 2010; 2. The budget allocation for forestry SDA DBH Rp1,802.6 billion, which increased by Rp235,8 billion from the budget ceiling in the APBN 2010 that was an less paid of forestry SDA DBH in reforestation fund during the fiscal year 2004 – 2005; 3. The budget allocation for fishery SDA DBH Rp120.0 billion, or the same as the budget ceiling in APBN 2010; 4. The budget allocation for geothermal SDA DBH amounting to Rp195.5 billion, or the same as the budget ceiling in APBN 2010.
18.104.22.168 The Revision in General Allocation Fund (DAU)
In accordance with the mandate of Article 27 of Law Number 33 Year 2004, the total amount of DAU in 2010 is set at 26 percent of Net Domestic Revenue (PDN) defined in APBN. The Net PDN is the sum of tax and non-tax revenues deducted by the revenue distributed to regions, and other DAU reduction factors. In order to increase the even distribution of interregional fund allocation and to overcome horizontal financial imbalance, the central Government continues to carry out actions to improve the data accuracy as the basis for calculating DAU, which included fiscal needs and fiscal capacity variables, as well as the basic allocation data. Williamson Index (WI) and Coefficient of Variation (CV) are used as standard parameters to measure the level of horizontal financial balance, relatively towards the total population. In the APBN-P 2010, the DAU allocation was estimated at Rp203,606.5 billion (3.3 percent to GDP), which increased by Rp121.3 billion from the budget ceiling in APBN 2010. If
Financial Note and Indonesian Revised Budget 2010
Revisions in Expenditure
compared to DAU realization in 2009 that amounted to Rp186,414.1 billion, which had increased by Rp17,192.4 billion or 9.2 percent. The increase of DAU allocation in APBN-P 2010 if compared ot the realization in 2009 was associated with the increment of net PDN estimation in 2010 and the correction of DAU allocation for Indramayu District. The increase in DAU allocation in APBN-P 2010 if compared with the allocation in APBN 2010 was due to the correction of DAU for Indramayu District. The DAU allocation in APBN-P 2010 consisted of the allocation of pure DAU formula and additional DAU for teacher profession allowance, and correction of DAU allocation for Indramayu District. In line with the implementation of PP Number 41 Year 2009 regarding teacher and lecturer profession allowances, starting from 2010 the DAU in APBN structure includes not only pure DAU formula, but also additional DAU allocation for teacher profession allowance. The allowance is given to teacher and lecturer with educator certificate in recognition of their professionalism, within their authority. The profession allowance allocated as additional DAU is intended for PNSD teachers. In APBN-P 2010, additional DAU for teacher profession allowance was expected to reach Rp10,994.9 billion, which was the same amount as the budget ceiling in APBN 2010. Meanwhile, the correction of DAU for Indramayu District was an additional DAU allocation on the correction of fiscal capacity calculation of Indramayu District’s share of PBB and BPHTB DBH in fiscal year 2008. DAU allocation correction for fiscal year 2010 for other districts/cities would be calculated in the DAU distribution for fiscal year 2011. The DAU allocation correction for Indramayu District was Rp121.3 billion.
22.214.171.124 Revision in Specific Allocation Fund (DAK)
In general, DAK policies in 2010 were as follows: 1. Prioritized to assist regions with a relatively low financial capacity, in order to encourage the community to achieve SPM, through the availability of physical infrastructure and facility of basic public services. 2. To support the prioritized acceleration of poverty alleviation, as well as institutional management and implementation of social security systems, especially in order to expand the access basic services for the poor. 3. To support the prioritized improvement of human resources quality, especially in order to improve access and quality of health services; acceleration of birth mortality rate reduction, improvement of community nutrition and disease control, improvement of service insurance for the poor and people in disadvantaged, remote, and border areas, as well as in islands; consolidation family planning program revitalization, and an evenly distributed improvement of the quality of nine-year compulsory education. 4. To support prioritized consolidation of bureaucratic and judicial reform, as well as consolidation of democracy and national security, especially in order to enhance regional governance capacity and to improve public service quality. 5. To support the prioritized enhancement of competitive domestic economy, supported by agricultural, infrastructure and energy developments, especially in order to improve the stability of price and supply of primary foodstuff; to improve food stability; to revitalize agriculture, fisheries and forestry; to expand access to basic services for the
Financial Note and Indonesian Revised Budget 2010 III-29
in order to improve the distribution of passengers. improvement of community nutrition and disease control. due to a calculation correction in financial capability of PBB and BPHTB DBH component for Indramayu District in 2008. especially in order to improve water resources management. 2. especially in the acceleration of birth mortality reduction. including swamp reclamation network and village irrigation districts that became the authorization of the province. in Indramayu District’s DAK in 2010 that amounted to Rp5. development of library or learning resource center with its equipment for SD and SMP. were as follows: (1) increment of construction and improvement of Puskemas and its network. and construction of irrigation networks.4 billion or Rp5. DAK in APBN 2010. and build irrigation systems infrastructure. were as follows: the construction of New Classrooms (RKB) for SMP. to increase infrastructure services in accordance with SPM. The scope of activities. (4) availability of vaccine/drug storage supporting facilities in pharmaceutical institutions. rehabilitation. (5) improvement of hospital facilities in provinces and districts/cities. and to provide infrastructure support for the improvement of real sector competitiveness. The scope of activities in health sector. and (6) procurement of generic drugs in order to meet generic drugs requirement in health centers. The Health sector. III-30 Financial Note and Indonesian Revised Budget 2010 . 6. The scopes of the activities were periodic maintenance. to increase rehabilitation and conservation of natural resources. goods services. and to support the accelerated development of road structure and infrastructure. aimed to improve access and quality of basic and referral services. The Prioritized DAK usage in 2010 was directed for activities in the following sectors: 1. remote areas. directed to maintain service. improvement and construction of provincial roads and district roads that became regional affairs. The increase was caused by the correction. directed to support the implementation of an evenly distributed and of qualify Nine-Year Compulsory Education Program. Health services for the poor and people in disadvantaged areas. The Road sector.Chapter III Revisions in Expenditure poor. Ministry of Maritime Affairs and Fisheries. and to improve the quality of spatial planning and land management.0 billion higher from the budget ceiling in APBN 2010. (3) procurement of medical equipment for primary health services in Puskesmas and its network. and Ministry of Underdeveloped Areas Development. among others. also included the transfer of deconcentration funds and assistance fund that had become regional affairs. The scope of the activities was the improvement. To support the prioritized improvement of management of natural resources and environment. and tourism sectors to facilitate regional economic growth. optimize functions. industry. 4. The Irrigation sector. particularly the national food storage regions in order to support food stability programs.138. 3.0 billion. In the APBN-P 2010. The Education sector. and production results that were prioritized to support agriculture. DAK allocation was expected to reach Rp21. border areas and islands. which derived from the budget of the Ministry of Agriculture. directed to maintain and improve the province/district/city road infrastructure services. (2) construction of village health posts.
directed to improve facility and infrastructure for production. which was associated with the increment of fishery production and improvement of welfare of fishermen. The scope of activities included the availability and rehabilitation of infrastructure and facility of capture fishery production. garbage disposal. (2) development of new SPAM. fish distributors. including construction/rehabilitation of Financial Note and Indonesian Revised Budget 2010 III-31 . and other coastal communities. The scope of activities included improving existing systems and services (waste liquid. The Sanitation sector. availability of physical facility and infrastructure of land management that consisted of: construction/ rehabilitation of farm roads (JUT). and (3) network expansion and improvement of house connection for the poor. quality improvement. The scope of activities included the development/expansion/rehabilitation of Regional Head office building. The Maritime and Fisheries sector. production road. and drainage) to improve the quality of public health. 7. and to support the 3R activities (reduce. and supervision and the availability of facility and infrastructure for the empowerment coastal areas and small islands. development of service systems and new services (waste liquid. improving soil fertility. availability of physical facility and infrastructure for water management. land conservation. reuse. directed to increase the coverage and reliability of sanitation services (waste liquid. supported by counseling efforts. and other SKPD buildings. network expansion and improvement of waste liquid service connections for the poor and/or people in vile areas through the development of communal waste liquid system. The priority was given to regional expansion in 2008 and 2009. improvement of quality and distribution of fishery products. availability and rehabilitation of facility and infrastructure of economy empowerment in the coastal community and small islands that was related to fishery conservation and development.Revisions in Expenditure Chapter III 5. availability and rehabilitation of facility and infrastructure of aquaculture production. garbage disposal. availability and procurement of facility and infrastructure for fishery counseling. manufacturers. fish farmers. The Agricultural sector. availability of facility and infrastructure for supervision. manufacturing. and drainage). 8. facility/equipment for compost processing. and drainage). agencies. garbage disposal. 6. availability and rehabilitation of manufacturing facility and infrastructure. aimed to improve the performance of regional governments in carrying out regional public services in the expansion areas and the expansion affected areas until 2009 and other regional government with inadequate infrastructures. The scope of activities included the availability of physical infrastructure for counseling that was only used for the construction/rehabilitation of Agricultural Counsel Center (BPP) in sub-district level. recycle). The Water Supply sector. aimed to increase the coverage and reliability of drinking water services to improve the quality of public health. optimization of land. The Government Infrastructure sector. DPRD. 9. aimed to improve agricultural facility and infrastructure in people’s and village farming in order to increase domestic food production to support national food stability. marketing. institutions. (1) the improvement of the existing Drinking Water Supply System (SPAM). The scope of activities included. and reclamation of tidal swamp and lowland swamp areas.
construction of absorptive wells/bioporous. construction of communal IPAL. waterway dam. and procurement of BKB kit (training for family with toddler). mangrove area. The Family Planning sector. and procurement of soil quality monitoring equipment. development and maintenance of technical civil construction (Soil and Water Conservation building/KTA). village irrigation network (JIDES). as well as the availability of food storage in order to support the institutional community food distribution. mobilization. availability of mobile environmental laboratories. shallow well irrigation. and city forest. The scope of activities included the rehabilitation of forest reservation and critical land outside forest area. The scope of activities included the construction of laboratory. construction of waste processing units (3R). plantation and animal husbandry. which consisted of barrier dam. mobile family planning services. gully plug. control dam. and charcoal briquette maker. improvement of technical counsel facility on Forest and Land Rehabilitation (RHL). air pollution prevention. surface water irrigation. development of environmental information system to monitor water quality. dry land opening/expansion for food crops area. in order to maintain and increase its supporting capacity. mangrove area and to improve the management of city forest and community forest (Tahura). The Environment sector. deep well irrigation. The Forestry sector. which was one of the efforts in increasing national food stability. water reservoir and other KTA buildings. development of biogas technology.Chapter III Revisions in Expenditure people’s farming irrigation system (JITUT). Tahura. and management of city forest and Tahura including forest protection. absorptive wells. area expansion including opening new fields. and procurement of weed-chopper equipment. availability of facility and infrastructure of water quality monitoring. 10. botanical garden. procurement of public address and KIE Kit. directed to improve watershed (DAS) functions. aimed to improve access and quality of family planning. (2) physical facility and infrastructure of family planning services. The scope of activities included the procurement of motorcycles for PKB/PLKB andPPLKB. development alokon warehouse. information. and training of family planning field personnel. water reservoir. and information of soil damage status. horticulture. directed to encourage the implementation of SPM in Environment sector and to encourage the enhancement of regional institutional capacity. green park development. to provide information boards. tree-planting around water sources outside the forest area. liquid smoke maker. which became the responsibility of regional government (district/city). maintenance of result of the previous year’s rehabilitation. with a priority to improve the environment facility and infrastructure that was focused on water pollution prevention. 12. micro water management (TAM). air quality monitoring equipment procurement. and education (KIE) services of family planning program. 11. pumps. mangroves and coastal forests. and (4) facility and infrastructure of child’s growth and development. service facilities in Family Planning Clinic. by improving: (1) the affordability and quality of education. Family Planning socialization vehicle (MUPEN) unit. (3) physical facility and infrastructure of communication. The policy was achieved by implementing rehabilitation of forest reservation and protection of critical land. III-32 Financial Note and Indonesian Revised Budget 2010 . rehabilitation of critical land in the forest reservation area. especially in the upstream area.
as amended in the Government Regulation in Lieu of Law Number 1 Year 2008 regarding Amendment on Law Number 21 Year 2001 regarding Special Autonomy for Papua Province and (b) the Province of Nanggroe Aceh Darussalam (NAD) in order to carry out the mandate of Law Number 11 Year 2006 concerning Aceh Government. The Rural Facility and Infrastructure sector.6 billion. especially in rural. border. The Trade sector. The utilization of the Special Autonomy Fund was prioritized for funding education and health in accordance with Law Number 35 Year 2008 regarding Stipulation of Government Regulation in Lieu of Law Number 1 Year 2008. Special Autonomy Fund was distributed to the Province of Papua amounting to Rp2.526. disadvantaged. The detailed estimation of special autonomy fund in APBN-P 2010 were as follows: a. aimed to improve the accessibility and availability of facility and basic infrastructure. districts.0 billion (4. underdeveloped/ isolated regions. or the same amount as the budget ceiling in APBN 2010.694. in order to carry out the mandate of Law Number 21 Year 2001 regarding Special Autonomy for Papua Province. border areas. special autonomy fund was also allocated to certain regions.3.849. primary material transportation. outermost and small islands areas. and economic diversification. 3. and to encourage the increase of productivity.3. directed to improve the availability of adequate trading facility as an effort to smoothen the interregional flow of goods and to increase the availability and price stability of primary foodstuff. The Special Autonomy Fund Management for Papua and West Papua refered to the applicable legislative regulations. to facilitate the flow of people transportation.099. marine transportation and river/swamp transportation. which was the same amount as the budget ceiling in APBN 2010. this amount was Rp427. quality. Financial Note and Indonesian Revised Budget 2010 III-33 . and other agricultural products transportation from regional production centers in rural area to distribution areas.154. If compared t0 the realization of special autonomy fund in 2009 that amounted to Rp9. namely to: (a) Papua Province. especially in rural areas through infrastructure development activities that were focused on the coastal areas and small islands.1 Revision in Special Autonomy Fund In addition to balanced fund.8 billion.2.5 percent) lower. The Special Autonomy Fund allocated to provinces. The realization of a special autonomy fund budget in APBN-P in 2010 was estimated at Rp9. remote.Revisions in Expenditure Chapter III 13.9 billion and to West Papua Province Rp1. and cities in Papua and West Papua Province use proportional calculation basis. The scope of activities included construction and development of traditional markets and supporting markets.9 billion. 14. The amount was equivalent to 2 (two) percent of the budget ceiling of the national General Allocation Fund (DAU). as well as post-disaster areas and regional expansion areas. The scope of activities included the availability of pioneer land transportation.6 billion.2 Revision in The Special Autonomy and Adjustment Fund 3. For Papua and West Papua amounting to Rp3.
0 billion from the budget ceiling in APBN 2010 that amounted to Rp7. which were intended to finance infrastructure development in accordance with the provisions of Law Number 35 Year 2008. III-34 Financial Note and Indonesian Revised Budget 2010 . d. as well as funding in educational.0 billion. and health sectors. b. The utilization of Aceh Special Autonomy Fund is directed to fund the construction and maintenance of infrastructure. The Aceh special autonomy fund was planned.2 Revision in Adjustment Fund Realization of adjustment fund in APBN-P 2010 was estimated to Rp21.0 billion that was allocated for improving public services through the availability of facility and infrastructure in areas that were designated to accelerate regional development.850. DPDF-PPD amounting to Rp5. New funds in APBN-P 2010: a.0 billion. in accordance with Law Number 11 Year 2006 and is valid for the period of 20 (twenty) years since 2008.0 billion. implemented. people’s economic empowerment.2.0 billion and Rp600. which became regional affairs. The increase was caused by the additional of 3 (three) components in the adjustment fund.3. which were the enhancement fund of fiscal decentralization and regional development acceleration (DPDF-PPD).8 billion. The Additional Infrastructure Fund in special autonomy was set for Rp1.849. DAK less paid in 2008 amounted to Rp80. DPDF-PPD amounting to Rp7. c.800.387. the enhancement fund of regional facility and infrastructure (DPIPD).0 billion. poverty alleviation. II. or the same amount as the budget ceiling in APBN 2010. social.300. 3. The Provinces of Papua and West Papua received Additional Infrastructure Fund that amounted to Rp800. Infrastructure fund for facility and infrastructure (DISP) less paid in 2008 amounted to Rp32. and acceleration fund of education infrastructure development (DPPIP).0 billion.Chapter III Revisions in Expenditure b.8 billion.0 billion that was allocated to support the acceleration of regional development through the availability and development of infrastructure and other non-infrastructure supporting facilities.100. Regional incentive fund Rp1. b.500. the realization estimation is detailed as follows: I. Funds with the same amount as the budget ceiling in APBN 2010: a. or the same amount as the budget ceiling in APBN 2010. Additional fund for PNSD teacher allowances Rp5.400. The planning of the most part of special autonomy fund was planned jointly by the Provincial Government of NAD and the respective district governments in Aceh Provincial Government and was included in the attachment of APBA. c. and accounted for by the Provincial Government of NAD and was an integral part of the Aceh Revenue and Expenditure Budget (APBA). For NAD Province amounting to Rp3.0 billion. which increased by Rp13.2 billion.150.
138.849.790.483.666.1 0.1 0.0 0.1 7.7 0.100.117.00 billion that was allocated to support the acceleration of educational infrastructure development in district/city.0 5.1 0. 2010 (billion rupiah) 2010 BUDGET I.6 9.236.1 0.3 3. West Papua B.925.387.0 0.Land and Building Tax (DBH PBB) ii. Geothermal B.0 2.078.0 1.500.4 30.3 89.566.0 195.6 0.0 0.800.4 REVISED BUDGET 314.4 44.4 0.1 0.0 % of GDP 5.7 14. General Mining i.5 203. Income Tax Less Paid b.387. Less Paid DISP 2008 5.4 0.0 0.2 0.0 0.150.155.0 0.0 600. Additional Spec.104.4 15.921.1 0. Additional DAU fund for PNSD teacher 2.0 6.1 0.7 120.0 3.400.4 124.0 600.1 0. REVENUE SHARING FUND 1.612.0 7.063.6 0.8 1. Enhancement Fund for acceleration of educationial infrastructure development (DPPIP) T O T A L Source : Ministry of Finance Financial Note and Indonesian Revised Budget 2010 III-35 .7 859.5 C.236.249.2 0.4 0.1 0.1 0. Forest Exploitation Licence Fee iii.0 0.4.800.2 0.5 9.3 0.513. Less Paid Oil and Gas 2008 b.196. For Papua Province .849.0 0.015.4 3. ` TABLE III. Oil and Gas i.0 800.0 800. For Aceh Province 2.585.485.0 0.0 5.0 5.1 0.0 0.392.0 0.3 94.3 0.300.490.0 0.694.154.994.Revisions in Expenditure Chapter III c.314.8 652.0 0.8 652. Papua b.5 0.363.8 1.4 26.0 0.3 0.8 80.0 0.400.2 0.0 322.8 120.2 1.1 0.1 0.606.6 3. Gas iii.0 0.0 0.0 0.250.2 0.849. ADJUSTMENT FUND 1.2 7.7 235.0 1.0 1.Papua Province .154.994.3 7.0 195.0 5.177.1 0.1 11.8 12.4 23.9 121.4 15.5 192. The summary of transfer to region in the APBN and APBN-P 2010 is detailed in Table III.2 0.9 21.4 13. DPDF-PPD amounting to Rp1.2 25. Less Paid DAK 2008 4.1 0.6 7.0 0.4 7.9 1. GENERAL ALLOCATION FUND (DAU) 1.5 34.2 25.0 21.5 0.1 1.2 0. BALANCED FUND A.2 0.000.133.0 0.9 3. Regional Incentive Fund 3. Article 21 ii. Oil ii.5 13.9 35. Fishery e. Duties on Land and Building Transfer d.491.4 TRANSFER TO REGIONS. Less Paid of DBH PBB c.694. Fund for Papua Infrastructure a. Less Paid Forestry Natural Resource d.2 3.0 344.2 32. Forest Provision Fee ii.0 0.3 0.9 1.143.2 0.6 3.0 0.699.2 0.061.937.250.8 0.4 23.3 10.423.0 0.3 12.1 0.7 0.490.0 0. Enhancement Fund for fiscal decentralization and regional development acceleration 6. Landrent ii.1 0.0 3.0 0. Taxation a.3 21.0 7.099.173.1 6.9 1.023.0 0.West Papua Province b.2 192.6 7. Correction of Allocation on DAU of Kab. Excise 2.0 0.0 0.0 0.5 203.0 0.618.1 0.0 1. Forestry i.8 46.4 0.0 0.0 0.3 10. Enhancement Fund for Infrastructure and Regional Infrastructure (DPIPD) 7.4 81.9 % of GDP 5.399. Reforestation Fund iv.6 9.2 0.314.3 45.4 17.9 3.8 80.099. Royalty c.4 16.2 6. Building and Land Tax i Revenue Sharing Fund .9 898.2 32.128.6 898.0 5.0 1.0 0.1 0. Pure DAU 2.404. Auto. Additional DAU for teacher profession allowance 3. Natural Resources a.3 0.5 1. Income Tax i.0 0. Article 25/29 individual iii.8 2. Indramayu (Regency) SPECIFIC ALLOCATION FUND (DAK) 306.118. Special Autonomy Fund (percentage of DAU) a. SPECIAL AUTONOMY FUND 1.7 859.802.4 0.699.8 2.2 2. II SPECIAL AUTONOMY AND ADJUSTMENT FUND A.0 0.4 0.1 0.849.
grants. In addition.7 billion or 4.8 billion.0 per barrel.146. After the national election. and the rupiah would be appreciated from Rp10. and expenditure.742.5 percent to 5.4 billion and loan financing Rp95.000 per USD to Rp9.6 billion.666. This amount had increased by Rp42.547. APBN 2010 were prepared on the assumption of economic events that occurred until the third quarter of 2009 and the projected changes that would happen until the end of 2010. the Government had taken into consideration the potential of each financing source by calculating the risk level and burden of costs to be borne.5 billion. had in turn changed the amount Financial Note and Indonesian Revised Budget 2010 IV-1 . the expenditure budget was estimated to Rp1. government expenditure.3 percent.480.5 percent higher than the allocation in APBN 2010.5 percent to GDP. revenues and grants were set at Rp949. there was still a budget surplus (SAL) that has source from among others financing surplus (SILPA) that could be used to support financing development. This amount had increased by Rp78.462. or 7.5 percent higher than the allocation in APBN 2010. revenues and grants. Under these conditions. and (3) there were circumstances that required the use of budget surplus of the previous year for 2010 budget financing.6 percent to GDP. entering the year 2010.Principal Changes in Budget Deficit and Budget Financing Chapter IV CHAPTER IV PRINCIPAL CHANGES IN BUDGET DEFICIT AND BUDGET FINANCING 4.0 per barrel to USD80. The budget deficit in 2010 APBN would be covered from non-loan financing amounting to Rp2. while government expenditure was set at Rp1.9 billion or 1. Meanwhile. the SBI rate was not expected to change and was fixed at 6. In the Law Number 47 Year 2009 article 27 verse (1) provided that: 2010 budget adjustments would be made in the event of: (a) macro economic developments were inconsistent with the assumptions used in APBN 2010. To determine the financing type and amount. and budget financing. economic growth increased from 5.398. therefore accommodating more government’s basic policies. Therefore. The budget deficit will be met through non-debt and debt sources of financing. In the APBN-P 2010. Meanwhile. Changes in revenues. Meanwhile.0 percent to 5.126. therefore it was necessary to revise the macroeconomic assumptions that would impact the APBN posture. (2) there were changes in fiscal policy fundamentals. inflation was expected to rise from 5.200 per USD.009. by the end of fiscal year 2009. the Government proposed a Revised Indonesian Budget Draft (RAPBN-P) 2010 that included changes in the amount of macro-economic assumptions.5 billion.0 billion or 17. the budget deficit was set at Rp98. Meanwhile. Revenues and grants budget in the APBN-P 2010 was estimated to reach Rp992. oil prices were expected to increase from USD65.9 percent to GDP. the APBN 2010 was prepared during the government transition period.1 INTRODUCTION In the 2010 APBN set forth by Law Number 47 Year 2009.656. the global economic condition showed an improving trend. necessary adjustments were required to accommodate new policies of the new Government that was elected through the National Election in 2009.1 billion or 15.047.8 percent.5 percent.
0 0. which increased by Rp38.6 percent to GDP) in APBN 2010. or 36.5 -8.% to GDP (RHS) APBN-P 2010 Net SBN Non-Debt -net Source : Ministry of Finance 4.8 2.347. Meanwhile.9 billion (537.4 2.5 2. If the Government chooses a non-debt financing source to cover the deficit. the amount of government’s assets would reduce.l.009. non-debt financing sources from domestic non-banking derived from asset management and privatization.7 98.0 104. government ownership of State Owned Enterprises (BUMN) shares. The government assets might consist of cash funds in government accounts.5 percent higher than budget financing target in the APBN 2010 that amounted to Rp98.1 percent to GDP) in APBN-P 2010.8 billion. Sources of non-debt financing from domestic banking derived from Investment Fund Account (RDI).6 25. for the present time or in the future. if deficit budget were covered from debt financing.0 % of GDP trillion rupiah APBN 2010 Deficit (surplus) APBN Domestic and Foreign Loans . then consequently the government’s debt obligations would increase.0 1.1.1 billion.net APBN deficit.402. The increase of Budget Deficit Financing in the APBN-P 2010 was planned to be financed from non-debt financing sources amounting to Rp25.5 1. 4.737.1 NON-DEBT FINANCING In APBN-P 2010. Domestic Banking Non-debt financing from domestic banking in the APBN-P 2010 was calculated to reach Rp45. either in the form of interest payment or amortization. The choices of financing sources compelled the Government to choose a combination of available deficit financing sources and the costs and risks.7 billion (2.477.1 BUDGET DEFICIT FINANCING 160 140 120 100 80 60 40 20 0 -20 APBN 2010 AND APBN-P 2010 133.747.2 BUDGET DEFICIT FINANCING Budget Deficit Financing in the APBN-P 2010 was estimated to amount to Rp133.009. GRAPH IV.9 billion.2. non-debt financing derived from domestic banking and domestic nonbanking. Meanwhile. Forest Development Account (RPH).9 billion (1. The increasing amount of deficit had led to financing increment that should be covered from various available sources by maximizing achievements.747. to an estimated amount of Rp133.Chapter IV Principal Changes in Budget Deficit and Budget Financing of budget deficit from Rp98.8 billion. Each financing source selection would bring consequences on cost and risk.5 2. as well as other assets managed by the Asset Management Company PT Perusahaan Pengelola Aset (Persero) and the Directorate General of Asset Management. as well as Cumulated Budget Surplus (SAL).344.8 billion and debt financing for Rp108.4 1. This amount had increased by Rp35.5 0.1 107.9 percent) higher than the IV-2 Financial Note and Indonesian Revised Budget 2010 . Ministry of Finance.7 billion. Total non-loan financing in 2010 is shown in Table IV. in order to optimize target achievement. The increase of Budget Deficit Financing is shown in Graph IV.9 0.
9 (20.347.275. Privatization 2. which was a cumulated government’s savings in cash from the budget surplus in the APBN realization in the previous years.9 target in the APBN 2010 that amounted to Rp7.200. Domestic Non-Banking 1.5 (1.9 (15.0) (7. The use of SAL in APBN-P 2010 was calculated to reach Rp39.200.0) CHANGES 38.474.462.0) (1. Meanwhile.5) (2.2 billion.1 NON-DEBT FINANCING IN APBN 2010 AND APBN-P 2010 (in billion rupiah) I.000.5) (6.0) (4.504. Domestic Banking 1.347.129.5) (927.200.0 billion that consisted of privatization Rp1. National Education Development Fund 5.3) 2.200.666.0 (12.2) (3.504.7) (2. that consisted of: (a) financing revenue amounting to Rp2.000.2) 1.129.2 625. Investment Fund Account 2.0) (1.683.0 1.4) 1.940. especially the use of Cumulated Budget Surplus (SAL) in covering the budget deficit.400.407.0 billion.0 billion.500. Such amounts were the same with the allocation of RDI and RPH deposits in the APBN 2010.Principal Changes in Budget Deficit and Budget Financing Chapter IV TABLE IV.300.9 38.4 25.0 39.924.050. which had increased by Rp38.2 billion and from RPH amounting to Rp625. Contingency Fund 7.0) (975.0 (3.7) (2. Aside from SAL usage. consisting of government investment funds and Government Capital Participation (PMN) amounting to Financial Note and Indonesian Revised Budget 2010 IV-3 .3 22.2 625. Domestic Non-Banking In APBN-P 2010.9 billion from the allocation in APBN 2010 that amounted to Rp1. and (2) financing expenditures that amounted to Rp22.8) 1.0 billion and asset management result Rp1. Asset Management Results 3. non-debt financing from domestic non-banking was estimated to be Rp20. Investment Fund and PMN a Government Investment b Government Capital Participation c Revolving Fund 4.0 (4.038.000.610.0) APBN-P 45.902.074.000.0) (914.200. RPH deposits derived from reforestation funds that were deposited into RKUN and was subsequently distributed to RPH to finance forestry revolving fund. the non-debt financing from domestic banking in the APBN-P 2010 also derived from RDI deposit that amounted to Rp5.1 5.347. The main components of domestic banking financing was the government’s cash balance account.477.504. RDI deposit for budget financing derived from revenue from principal repayment of: (1) subsidiary loan agreement (SLA). Reserve Funding Total Source : Ministry of Finance APBN 7.0 billion.2 5.050.402.2 billion.500.038. (2) RDI loan.0) (7. Cash balance sources might derive from the General Treasury Account (RKUN) and/or other Government accounts managed/controlled by the Ministry of Finance as the General Treasurer (BUN).0) 914. SAL and Silpa 2009 II.0 (9. and (3) regional development account loan (RPD). Both the Government and the House of Representatives would have to discuss the use of domestic banking financing revenue.021.200.347. Forest Development Account 3.9 billion. The loan for PT PLN 6.2 billion.0 1.0) (1.347.074.000.7) (3.
which was mainly caused by the increase of the government’s investment funds and PMN. the government investment fund and government capital participation (PMN) were not taken into account as sources of budget financing revenue.4 billion (330.9 percent shares comprising of 15 percent new shares and 11. Government Investment Fund and Government Capital Participation In the budget financing.5 billion. equal to the allocation in the Budget 2010.2 percent) higher than the allocation in the APBN 2010 that amounted to Rp3. In APBN-P 2010. Asset Management Result Financing sources that derived from asset management result in the APBN-P 2010 was calculated to reach Rp1.021. The privatization was set maximum to 30 percent.407.2 billion. The increase was partly due to the increase in the allocation of government investment fund. Privatization of Bank BNI was based on Government Regulation Number 44 Year 2007 regarding The Sale of PT Bank Negara Indonesia Tbk Shares. Such amount had increased by Rp9.902. Details of the government investment fund and PMN in the APBN 2010 and APBN-P 2010 are shown in Graph IV. equivalent to 473.2 billion. The remaining unsold government’s shares amounting to 3.0 billion.924.1 percent of the greenshoe shares could not be executed. Contingency Fund Rp1.0 billion. however.924. Such amount derived from profit of asset management conducted by PT PPA (Persero) that amounted to Rp850. in 2008 and 2009 the selling of 3. sales of 3.2. Bank BNI stock price began moving up and surpassed the secondary offering price at the end of March 2010.0 billion. as well as the revolving fund.200. Such amounts had increased by Rp15.0 billion. and loan to PT PLN (Persero) amounting to Rp7. PMN. However.0 billion. The implementation of privatization (secondary offering) had already been done on August 13. they functioned as expense reduction factors in budget financing. IV-4 Financial Note and Indonesian Revised Budget 2010 .7 billion (231.270 shares of stock known as greenshoe shares was intended to stabilize stock prices in the secondary market after the implementation of privatization.2 percent) from the estimation in the APBN in 2010 that amounted to Rp4. which was projected to derive from the sale of Bank BNI shares.500. other long-term profits. Privatization Privatization deposit in the APBN-P 2010 was allocated to Rp1.0 billion. because of the capital market conditions that were less conducive and BNI stock prices that fell below the price of secondary offering.666.000.Chapter IV Principal Changes in Budget Deficit and Budget Financing Rp12. and the Directorate General of Asset Management (DJKN) in the Ministry of Finance that amounted to Rp350.200. Thus.1 percent. 2007 by releasing 26. the Government had allocated government investment fund and PMN to amount to Rp12.8 billion. which consisted of 15 percent divestment of government’s shares revenue that would be deposited in the general treasury and 15 percent of new shares revenue that would be paid to the company’s cash balance. the financing expenditure in the form of PMN was expected to add to the net Government’s assets in the present and future.9 percent government’s shares.0 billion.050.1 percent of government’s shares in Bank BNI were expected to be carried out in 2010. Meanwhile.895. Government investment fund was an investment made by the government to obtain economic and social profit. the national education development fund Rp1.
000.0 1.0 1.6 5.7 billion (201. In APBN-P 2010.0 0.000.0 200.200.5 3.0 to Rp927.0 400.0 billion.18.000. particularly superior export products as well as products with development potential. the Government Capital Participation (PMN) for The Indonesian Export Financing Institution (Lembaga Pembiayaan Ekspor Indonesia/LPEI) was planned for Rp2. Such PMN was aimed to improve LPEI export financing capacity to develop national exports.800.5 billion.0 1.000.038.7 billion or an increase by Rp4.0 1.1 .0 0.0 billion. or equal to the allocation in APBN 2010.0 ‐ LPEI trillion rupiah 2.0 the APBN 2010 that amounted 1.600.9 2. PMN allocation in the APBN and APBN-P 2010 is shown in Graph IV.000. The additional Government APBN 2010 APBN-P 2010 investment fund derived from Government Investment Government Capital Participation Revolving Fund the reallocation of subsidy in Source : Ministry of Finance simple healthy housing ownership credit (KPRSh) that was planned to implement the policy for housing financing liquidity facility.0 billion.610.0 1. This was related to the changes in scheme from KPRSh subsidy to housing financing liquidity facility policy that provided a long-term affordable funding accompanied by KPRSh creditor banking fund.3 2.000.038.0 600.000.Principal Changes in Budget Deficit and Budget Financing Chapter IV Government Investment In APBN-P 2010.3 GOVERNMENT CAPITAL PARTICIPATION IN APBN 2010 AND APBN-P 2010 2.400.0 1.0 billion and to PT Penjaminan Infrastruktur Indonesia Financial Note and Indonesian Revised Budget 2010 IV-5 .2 GOVERNMENT INVESTMENT FUND AND PMN IN APBN 2010 AND APBN-P 2010 Government Capital Participation (PMN) The government had allocated a PMN to BUMN associated with the Government policy amounting to Rp6.800.0 2.683. GRAPH IV.1 220.0 that amounted to Rp3.9 percent) if compared with the allocation in the APBN 2010 that amounted to Rp2. which had increased by 3.0 APBN 2010 APBN-P 2010 billion rupiah 1.0 - PT SMI - - 0.0 billion (289. GRAPH IV.0 percent) from the allocation in 1.0 800.0 government investment fund 6.0 1.0 Rp2.3.0 3.5 PT PII PT Askrindo dan Perum Jamkrindo Source : Ministry of Finance SBSN SBSN PT Askrindo PT BPUI Indonesia II Indonesia III (Share Grant (Share Grant from BI) Issuer Issuer from BI) Company Company In APBN-P 2010.000.3 4. the Government had allocated an additional PMN to PT Sarana Multi Infrastrutur (PT SMI) of Rp1.000. the Government allocated the 6.
500. small and medium enterprises (UMKM). With 10 times gearing ratio.500.000. Meanwhile. to carry out SBSN issuance activities.0 billion in 2010. and thereby would increase the level of KUR distribution to debtors of micro.0 percent.3 million business-persons. the UMKM contribution to GDP was 55. namely: (l) to decrease interest rate of micro KUR (below Rp5 million) from 24. therefore would significantly increase the number of KUR recipients that currently only listed for as many as 2.0 percent. the Issuer Companies were required to have capital.0 billion to PT Asuransi Kredit Indonesia (Askrindo) and Perum Jaminan Kredit Indonesia (Jamkrindo) as the guarantor companies was allocated to revitalize people’s business credit programs (KUR). to give a positive perception to investors. the additional PMN for PT PII would be used to enhance the guarantee credibility. It was in accordance to the provisions of article 77 of Law Number 23 Year 1999 regarding Bank Indonesia as amended by Law Number 6 Year 2009 jo. as well as to reduce direct exposure of APBN towards any claim.6 percent with a total of 51.0 billion in 2009 to Rp37. Meanwhile. as well as increasing the capital of PT SMI as a state-owned enterprise (BUMN) that engaged in infrastructure financing business for infrastructure development to overcome the financing gap faced by the government in infrastructure development. The amount of capital for government’s SBSN issuer company establishment was Rp100 million for each issuer company. The additional PMN to PT SMI was intended to optimize funding sources of PT SMI through fund raising activities.0 billion and to PT BPUI amounting to Rp18.800.0 percent to 14.0 percent to 22. the establishment capital should derive from the APBN and should be a separated asset. and (3) to extend KUR installment period from three years to six years. the additional PMN would improve the ability of PT Askrindo and Perum Jamkrindo to endorse KUR from Rp19.0 billion. In 2009. Meanwhile. from Bank Indonesia to Government. With revitalization program through KUR distribution expansion.2 billion was allocated in order to support SBSN in foreign currencies in international primary markets in 2010 and 2011. and to maintain the momentum of the market condition during SBSN issuance. SBSN Issuer Company is a legal entity established under the provisions of Law Number 19 Year 2008 about Islamic based government securities. it was expected that UMKM access to capital would improve. KUR program revitalization was important.5 billion came from the grant for transfer of shares of both companies. Meanwhile. In order to increase endorsement capacity to meet the Government’s expectation. therefore the process would commence at the end of year 2010. Law Number 2 IV-6 Financial Note and Indonesian Revised Budget 2010 . considering the UMKM contribution in the national economy.3 million people. there were several policies carried out to improve public access to KUR. the additional guarantee fund in the form of PMN for Rp1. the main obstacle in the development of UMKM was the access to capital and marketing.2014. the PMN for the Issuer Companies of Islamic Based Government Securities (PT Perusahaan Penerbit SBSN Indonesia II and III) for Rp0.Chapter IV Principal Changes in Budget Deficit and Budget Financing (PT PII) of Rp1. The additional PMN above was budgeted to increase the capacity of the guarantor companies. To meet the requirements of legal entity establishment. (2) to decrease interest rate of KUR worth Rp5 million to Rp500 million from 16. The improvement in endorsement capability was expected to support government’s program for KUR expansion for the period of 2010 . In accordance with the rules and regulations. PMN to PT Askrindo amounting to Rp220.
6 0. Financial Note and Indonesian Revised Budget 2010 IV-7 . which aimed to ensure the sustainability of educational programs for the next generations as a form of intergenerational equity.5 APBN 2010 Revolving Fund for Fore stry trillion rupiah 2. was planned for Rp350.6 0. Meanwhile. which increased by Rp2.0 billion.300.4 APBN-P 2010 Revolving Fund for LPDB KUKM Revolving fund for Land Acquisition Similarly. 2009. The allocation of these funds came from reallocation of financing reserves that had been budgeted in the 2010 APBN that amounted to Rp914.9 percent) from the allocation in the APBN 2010 that amounted to Rp975.0 billion. Land Revolving Fund (LRF) was intended as a bailout fund to expedite the process of land acquisition for highway construction.3 0. and education buffer funds in anticipation of rehabilitation of educational facilities damaged by natural disasters.5 1. which was planned for the establishment of endowment funds. the allocation of revolving fund for land acquisition of toll roads through the General Services Agency for Toll Road Management Bureau (BLU BPJT) in APBN-P 2010 was planned for Rp2. which stipulates that Bank Indonesia shall have disposed of all its shares in the corporation or other entity no later than the date of January 15. Small and Medium Cooperative Enterprise (LPDB KUKM) in APBN-P 2010.7 billion. and (2) the development of industrial timber plantation (HTI) amount to Rp250.4. The budget allocation plan would be used to finance the program for small and medium enterprise empowerment through the development of microfinance industry by providing debt support or financing KUKM revolving fund . The allocation of forestry revolving fund in APBN-P 2010 was planned to remain unchanged as the allocations in the APBN 2010 that amounted to Rp625.0 billion. the allocation of revolving fund Source : Ministry of Finance for the Revolving Fund Management Agency for Micro. or equal to the allocation in APBN 2010. National Education Development Fund In APBN-P 2010.0 billion. Revolving Fund Revolving fund in the APBN-P 2010 was set for Rp3.0 billion (235. the Government allocated a budget for national education development fund amounting to Rp1.0 0.0 billion.0 billion. GRAPH IV. The forestry revolving fund would be used for: (1) the development of people plantation (HTR) amount to Rp375.Principal Changes in Budget Deficit and Budget Financing Chapter IV Year 2008 regarding Second Amendment on Law Number 23 Year 1999. and a new additional budget amounting to Rp1.275. which was managed using a revolving fund mechanism and conducted by BLU in education.4 REVOLVING FUND IN APBN 2010 AND APBN-P 2010 2. the revolving fund for highway land acquisition had not been allocated.0 1.0 billion.3 billion. which was intended to provide land for 22 toll roads in accordance with the Government program and was targeted to finish in 2013 at the latest.300.0 billion. The allocation of revolving fund in the APBN 2010 and the APBN-P is shown in Graph IV.000.4 0.5 2. In APBN 2010.385. as part of the education budget.
therefore it was necessary to provide financing access for PDAM to obtain investment credit from national banks.000. With such additional margin. the Government allocated funds for Contingency Fund amounting Rp1. the restoration and improvement of electrical systems. had encouraged PT PLN (Persero) to strive for recovery and to improve electrical system reliability to prevent interference in the national electricity network.8 an external financing capacity of Inv estm ent Financing Requirem ents Internal Funding Sources (Operations and other) 9. PT PLN (Persero) only had -45. the amount of internally generated fund and other fund owned by PT PLN (Persero) only amounted to Rp9.Chapter IV Principal Changes in Budget Deficit and Budget Financing Contingency Fund In APBN-P 2010. In addition.0 trillion.4 trillion. the Government assigned PT PLN (Persero) to execute the acceleration project of construction of coal power plants through the Presidential Decree Number 71 Year 2006 regarding Assignment to PT PLN (Persero) to Conduct Accelerated Development of Coal Power Plant.8 trillion.000 MW power plant in order to cope with nationwide power shortage. Loan to PT PLN (Persero) In order to increase the electrification ratio and to accelerate the construction of power plants with low production cost. Meanwhile.5 Source: Ministry of Finance Financial Note and Indonesian Revised Budget 2010 . To finance the equity portion of 10.6 Internal Efficiency 1 Remaining Financing Requirement -7 . From the investment financing that amounted to Rp45.0 percent.0 billion. PT PLN (Persero) was expected to increase the internal fund by Rp4. and for the Regional Water Company (PDAM) of Rp50.4 Internal funds from 3% additional margin 4.0 billion for National Electricity Company/PT PLN (Persero). The allocation of the Contingency Fund remained unchanged compared with the allocation in APBN 2010. the interruption in transmission and distribution system caused by the burning of several voltage regulators. the Contingency Fund for the PDAM was allocated in order to accelerate the supply of drinking water as one of the basic needs which availability should be guaranteed in an evenly distributed amount and of good quality. With the marginal FINANCING GAP OF PT PLN (PERSERO) measure of 5. to reach the total of 8.4 trillion. Government guarantee for PT PLN (Persero) was expected to speed up the completion of the development acceleration project of 10. therefore there was a financing gap about T ABLE IV.4 about Rp14.5 APBN-P 2010 The loan for PT PLN (Persero) 7 . To increase the external financing capacity of PT PLN (Persero).0 percent.3 Financing Requirem ent after m argin increm en -32. in APBN-P 2010 the Government provided an additional electricity subsidy margin that amounted to 3. the amount of funding required by PT PLN (Persero) in 2010 had exceeded the corporate funding capacity. Contingency Fund for PT PLN (Persero) and PDAM was intended to provide assurance on the probability of default due to failure in fulfilling payment obligations of principal and overdue interest earned from the creditors in the previous years.0 percent in the APBN (trillion rupiah) in 2010.3 IV-8 Financing Gap -36. in order to achieve the Millennium Development Goals (MDG’s).2 Rp36.1 Corporate Actions Corporate Loan / Bonds 23.000 MW project funding. and investment to cover natural burden.
referring to the provisions of article 26. In APBN-P 2010. net foreign financing amounted to negative Rp9. In addition.1 trillion.4 billion.0 trillion.3. Accordingly. therefore the Government would not be able to issue SBN or in other words the SBN issuance expense became too expensive. as well as other policies to be implemented.8 billion.5 billion. and considering changes in macroeconomic assumptions.000. Continuing diversification of loan instruments in order to obtain flexibility in choosing the instruments that were more cost-efficient and had lower risks.429. Overall.2. Optimizing the potential of debt financing from domestic market through Rupiah SBN issuance. Financing Reserves In APBN 2010.1 billion. verse (4) of Law Number 47 Year 2009 regarding APBN 2010. the remaining financing gap that did not have financing source had amounted to Rp7. the financing reserves was allocated to amount to Rp914.6 billion that derived from the net Government Securities (SBN) amounted to Rp104.797. the government also had other sources of debt financing through utilization of the remaining standby loan in the form of back-stop facility that could be drawn under creditor’s approval after the financial market crisis was over. and (3) domestic loans remained at Rp1. the Government had the flexibility of cash debt financing in making changes to the composition of cash debt financing that derived from program loan and net SBN revenue. the Government allocated fund of Rp7. 2.4 percent) to reach Rp108.881.2 DEBT FINANCING (NET) In APBN 2010 the debt financing was set at Rp95. (2) net foreign financing to reach negative Rp155. the most recent financial market condition. because it had been reallocated to the revolving fund for land acquisition.5 trillion to provide a loan to PT PLN (Persero) in APBN-P 2010. debt financing in the APBN-P 2010 were as follows: (a) net SBN issuance increased to Rp107. To meet the target loan financing in 2010.5 trillion.500. Such flexibility allowed the Government to select the more advantageous source of loan financing in terms of costs and/or risk level.Principal Changes in Budget Deficit and Budget Financing Chapter IV trillion.344. 4. the financing reserve was not allocated. The increase in debt financing was planned to derive from drawings and net SBN revenue. Details of revisions in debt financing are shown in Table IV.547.3 billion (13. the latest drawing plan. Financial Note and Indonesian Revised Budget 2010 IV-9 . In line with the financing increment plan resulting from the increase of deficit.6 trillion and the internal efficiency of amounting to Rp1. therefore reducing the financing gap to Rp32. To meet the remaining financing gap. which would be covered from additional loan capacity of PT PLN (Persero) to reach Rp23. the debt financing in APBN-P 2010 was planned to increase by Rp12. Therefore.5 billion.0 billion.000. in accordance with the progress of financial market conditions.3 billion that would be used to support infrastructure investment. and domestic debt amounted Rp1.0 billion. the general policy of loan management that would be carried out were as follows: 1.
Principal Changes in Budget Deficit and Budget Financing
TABLE IV. 3 DEBT FINANCING IN APBN 2010 AND APBN-P 2010 (billion rupiah) I. SBN net II. Foreign Financing (net) 1. Foreign Loan Drawings (gross) a. Program Loan b. Project Loan - Central Government Project Loan - Subsidiary Loan Revenue 2. Subsidiary Loan Agreement (SLA) 3. Payment of amortization III. Domestic Loans
Source: Ministry of Finance
104,429.1 (9,881.5) 57,605.8 24,443.0 33,162.8 24,519.0 8,643.8 (8,643.8) (58,843.5) 1,000.0 95,547.6
107,500.4 (155.5) 70,777.1 29,421.8 41,355.3 24,558.7 16,796.6 (16,796.6) (54,136.0) 1,000.0 108,344.9
3,071.3 9,726.0 13,171.3 4,978.8 8,192.5 39.7 8,152.8 (8,152.8) 4,707.5 12,797.3
3. Foreign loan/credit was obtained only to meet the priority requirements, to provide terms and conditions favorable to the Government, and without creditor’s political agenda; 4. To maintain the foreign loan gradual reduction policy; 5. To improve coordination with the monetary authorities and capital market authorities, especially in order to encourage financial deepening efforts; and 6. To improve coordination and communication with various parties in order to improve the sovereign credit rating.
Government Securities (net)
The budgeted financing target through the net SBN in the APBN 2010 was amounted to Rp104,429.1 billion, which was calculated based on the estimated absorption of SBN market and the overall financing needs by considering the outstanding SBN in the mid-year 2009, SBN projections and estimates of the issuance of loan transaction switch /buyback until the end of 2009, and the assumption of the rupiah exchange rate of Rp10,000 per US dollar. In APBN-P 2010, net SBN was targeted to increase to Rp107,500.4 billion. Based on the target net issuance amounted Rp107,500.4 billion, and the amount of SBN that would mature in 2010 amounting to Rp67,540.4 billion, the gross SBN issuance in 2010 was estimated to reach around Rp175,040.8 billion and would increase if calculating the buyback plan in managing debt portfolio. Gross SBN issuance was the highest gross issuance in comparison with the previous years. Therefore, additional debt financing through net SBN issuance became the last alternative. Loan financing through SBN issuance was still focused on the domestic market demand, although limited issuance in the international markets would still be needed. Issuance in international markets would be pursued at a measured amount, both derived from the issuance of Conventional Based Government Securities (SUN) and the Islamic Based Government Securities (SBSN).
Financial Note and Indonesian Revised Budget 2010
Principal Changes in Budget Deficit and Budget Financing
The operational strategy that would be taken by the Government in meeting the target of net SBN issuance until the end of 2010, were as follows: (1) focusing the issuance on the domestic market on a regular basis to avoid the occurrence of crowding-out effect, and take a controlled risk limits, (2) preparing SBSN (Sukuk) with underlying project to enrich alternative financing instruments; (3) Performing buybacks and debt switching to manage the risk and stabilize the market; (4) Implementing measurable front-loading strategy, and (5) implementing a crisis management protocol in order to maintain stability in the market. Front-loading strategy was a strategy of issuing SBN in a relatively larger amount at the beginning of the fiscal year, which was conducted flexibly following the dynamics of the financial markets. This strategy was aimed to exploit the huge liquidity in the beginning of the year and to anticipate uncertain financial market conditions in the second half of the current budget year. The above strategy was chosen to encourage the establishment of conducive domestic SBN market situation by providing assurance for market participants that the government would be able to achieve the SBN issuance targets. For this purpose, throughout the year 2010 SBN instruments to be issued include: (1) domestic SUN consisting of government securities (both regular and retail), and Government Treasury Bills (SPN), (2) domestic SBSN, both regular as well as retail, short-term and long-term, and (3) forex SBN including forex SUN and forex SBSN. As a reference for domestic bond issuance in 2010, on January 4, 2010 Government has issued 5 (five) types of SUN benchmark series which were the series FR0027 with a 5-year tenure, FR0031 series with a 10-year tenure, FR0040 series with a 15-year tenure, FR0052 series with a 20-year tenure, and the FR0050 series with a 28-year tenure. The number of SUN benchmark series that were lower than in 2009 was meant to simplify SBN portfolio and to support liquidity increment in accordance with the variation of the investment horizon. SBN issuance until May 7, 2010 consisted of forex SUN securities issuance in international markets for USD2.0 billion and rupiah SBN in the domestic market amounted to Rp62,563.9 billion. Forex SUN issuance in international markets was conducted by the Global Medium Term Note (GMTN) as a continuation of the previous year GMTN program. The forex SUN that had been issued was of 10-year tenure and would mature in March 2020 with a rate of 6.0 percent and a coupon yield 5.875 percent. Yield of forex SUN were much lower than the yield on forex SUN in 2009, where the amount of yield spread over US Treasury only reached 227.9 bps, much lower than the yield spread over US Treasury of forex SUN issuance in 2009 that reached more than 840 bps. This indicated an improvement of global financial market conditions aside from the availability of liquidity at the beginning of the year. The investors who bought government securities with foreign currency denomination in 2010 came from Asia (24 percent), Europe (27 percent), and America (49 percent), that consisted of asset managers of 69 percent, bank amounted to 14 percent, insurance at 11 percent, and retail investors amounted to 6 percent. Meanwhile, the realization of dollar SBN issuance in the domestic market until May 7, 2010 amounted to Rp67,640.0 billion, consisting of NESS issuance of Rp18,450.0 billion, the issuance of regular ON re-opening fixed rate Rp34,130 billion, issuance of SBSN at Rp7,040.0 billion, and retail SBSN amounting to Rp8,033.9 billion.
External Loan Financing (net)
Financing from foreign loan (net) in the APBN 2010 was set at negative Rp9,881.5 billion, which meant the amount of foreign loans drawn was smaller than the amortization. With
Financial Note and Indonesian Revised Budget 2010 IV-11
Principal Changes in Budget Deficit and Budget Financing
the assumption of the rupiah to U.S. dollar that amounted to Rp10,000.0 per USD, the net foreign loan financing consisted of: 1. Drawing for Rp57,605.8 billion, which consisted of the program loan drawings amounting to Rp24,443.0 billion, the Central Government project loan drawings amounting to Rp24,519.0 billion and project loans drawings for subsidiary loan agreement of Rp8,643.8 billion; 2. Subsidiary Loan Agreement Rp8,643.8 billion; and 3. Amortization of Rp58,843.5 billion. Financing through foreign loan were calculated based on net outstanding position of foreign loan by mid-year 2009, which had considered the additional drawings until the end of 2009, with exchange rate assumption of Rp10,000.0 per USD, the program loan drawings derived from the World Bank, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), Agence Francaise de Développement (AFD), France, and project loan drawings plans based on the on-going loan and the new loan that would be signed and was expected to be partially drawn in 2010. In APBN-P 2010, the net foreign loan financing had been revised to a negative Rp155.5 billion due to the increase of program loan and project loan drawing target, and the decrease of amortization, due to revision in exchange rate assumption from Rp10,000 per USD to Rp9,200 per USD. Meanwhile, the on-lending project loan drawings had increased, but it brought no effect to the targeted net financing through foreign loans, due to an increase in net subsidiary loan that reached the same amount. Program loan drawings in the APBN-P 2010 was revised to Rp29,421.8 billion, increased by Rp4,978.8 billion or about 20.4 percent higher than APBN 2010 target. These changes were caused by the increase in loan programs that were agreed by the creditors. Additional program loan drawings would derive from the World Bank, ADB, JICA, and AFD. Potential additional program loan from the World Bank, JICA and the AFD was primarily associated with climate change program, while the potential additional loan program from the ADB was especially related to the Countercyclical Support Facility (CSF). Selection of additional loan program resources would consider the risk portfolio targets that would be achieved, mainly the exchange rate risk and costs to be borne by the Government in the future. On the other hand, program loan drawings that had been set could be revised in case there was a revision in SBN issuance as an impact of flexibility in cash loan financing. In APBN-P 2010, the central government’s project loan drawings had increased by Rp39.7 billion, from Rp24,519.0 billion in APBN 2010 to Rp24,558.7 billion. Meanwhile, the onlending project loan drawings had increased by Rp8,152.8 billion, or 94.3 percent of Rp8,643.8 billion in APBN 2010 to Rp16,796.6 billion in APBN-P 2010. The increase of subsidiary loan was due to the increase in loans that were already in the pipeline and were expected to be drawn in 2010 amounting to Rp4,042.0 billion and roll-over of subsidiary loans in 2009 amounting to Rp4,266.4 billion. Details of revision on foreign loan drawings in the APBN 2010 and APBN-P 2010 can be seen in Table IV.4. Meanwhile, the amortization in APBN 2010 was reduced by Rp4,707.5 billion, from Rp58,843.5 billion in the 2010 budget to Rp54,136.0 billion in APBN-P 2010. The decrease was primarily due to revisions in exchange rate assumptions. Estimated amortization had
IV-12 Financial Note and Indonesian Revised Budget 2010
3 13. PT PLN C. Pemkab Sidenreng Rappang 8.568.Principal Changes in Budget Deficit and Budget Financing Chapter IV TABLE IV.3 216.1 920. Pemkot Palopo 6.0 3.4 3. PT Pelindo 5. Pemkab Barru (Sulsel) 9.571.3 13. APBN-P Budget a. Pemda DKI b.0 Total 8.6 48.0 15. LPEI d.796.610.1 2. Pemkot Palangkaraya Source: Ministry of Finance also considered the latest projections on debt payment obligations and projected revisions in the exchange rate of the world’s major currencies.0 778.3 388.266. On Going 1.3 521.7 12.0 388.0 141.5.2 4.4 76.7 130.114.1 36. PT BEI 4.4 2. and (4) coordinating and improving efforts to increase the absorption of the loan. (3) choosing loans with annuity amortization and of a longer tenure.4 25. Pipeline 1. Pemkab Kuala Kapuas B.4 25. Pemkot Pare-Pare 8.8 16. mainly related to the calculation of outstanding loans denominated in non-USD currencies such as Yen. Pemkot Palangkaraya 7.2 7.8 76.0 39.966. PT PLN 2. Euro. PT PGN 3. Pemkab Bogor 10.4 SUBSIDIARY LOAN IN APBN-P 2010 (billion rupiah) Description Budget Revised Budget A.5 8. APBN proposal a.643.2 529. PT PLN b.1 36.724. Revisions in the foreign loan drawings in the APBN 2010 and APBN-P 2010 are shown in Graph IV. The operational strategy of procurement and management of foreign loans that would be carried out in 2010 included: (1) selecting creditor that provided loans with favorable terms and conditions. and other foreign exchange.959.0 15.2 26. Pemkab Muara Enim 11. PT PLN 2.8 7. Pemkot Pare-Pare 5.6 60.3 47.6 48.0 529.6 60. PT KAI 4. (2) prioritizing foreign loan with fixed interest rates or spread/margin in a currency with less/low volatility. PT Merpati Nusantara Airlines (Persero) c.2 26.8 7. Financial Note and Indonesian Revised Budget 2010 IV-13 .6 8.2 4. Indonesia Infrastructure Financing Facility Project (IIFF/PT SM 2. Pemkab Aceh Timur 7. Pemkab Palopo 6. SLA Sliding 2009 1.2 28.6 41. Poundsterling. PT PGN 3.8 43.0 604.3 47.6 41.138.
the amount of Source : Ministry of Finance domestic loans did not include the requirement and availability of funds. nor its association with the management of debt portfolio. This amount 20 represented the first step in using 10 domestic financing in the form of a budgeted loan that be completely 0 absorbed within one year.4 loan in APBN 2010 were allocated for 24. the domestic loan drawings was fixed at Rp1. especially the Japanese market. it required efficiency in several processes as follows: 1. which could be done by the state ministries/institutions or by type of activity. the standby loan or Public Expenditure Financing Facility / Contingency Loan was a budget support. which could be drawn in case the Government had problems in issuing SBN (back stop facility). 4. IV-14 Financial Note and Indonesian Revised Budget 2010 . which supported the Indonesian Government’s financing programs to overcome the crisis. accountability and good governance.0 billion and the Indonesian Police (Polri) of Rp200. could not be met in accordance with the agreed quarterly plan.000.6 16.2. Because it Program Loans was a first step. 2. The selection process of creditors by upholding the principles of transparency. (trillion rupiah) GRAPH IV. 3.000. the yield desired by investors could be very expensive.5 24. Considering this and taking into account the fulfillment of APBN deficit target through net SBN issuance that had been set high enough to cause doubt that the target could not be met optimally.0 billion. Procurement of club deal and syndicated domestic loan that required a more comprehensive and integrated approach.5 FOREIGN LOAN IN APBN 2010 AND APBN-P 2010 24.8 8. Considering that the domestic loans had started to be used as a source of financing in the 2010 budget with single year liquidation horizon and projects. which mainly focused on banking creditors of entitled BUMNs and the Regional Development Banks.4 30 Rp1.0 billion. In 2009. The forms of support for standby loan were as follows: (1) loan that could only be drawn in case of loan financing through the issuance of securities. and (2) in the form of guarantee for securities issuance in international markets.3 STANDBY LOAN (PUBLIC EXPENDITURE FINANCING FACILITY / CONTINGENCY LOAN) Financial market conditions in 2010 showed a better indication. or even if there was a demand. The Government would discuss with Development Partners about the amount of drawings by the end of each quarter.6 Projects Loans of Central Government APBN 2010 Subsidiary Loan Agreement (SLA) APBN-P 2010 In APBN-P 2010.Chapter IV Principal Changes in Budget Deficit and Budget Financing Domestic Loan Sources of financing from domestic 29.0 billion and would be used to finance the activities of the Ministry of Defense/Indonesian Army (TNI) that amounted to Rp800. although it had not fully recovered from the global financial crisis. Bundling loan sources on several activities with a relatively small number of contracts. Difficulties in issuing SBN could occur when there was no sufficient demand for SBN. the availability of standby loans was still needed.
s uppo rt Co ntingent budget . by considering the interest rate limitation set forth in the standby loan scheme. the standby loan would be drawn in the sum of the above shortage. 5 ST ANDBY LOANS T HAT HAVE BEEN SIGNED Nu m ber Development Partners 1 2 3 4 W or ld Ba n k JBIC A sia n Dev elopm en t Ba n k A u st r a lia Com m i t m en t V alue USD 2 billion JPY 1 9 5 billion USD 1 billion USD 1 billion Date of A greement 0 4 -Ma r -0 9 0 7 -A pr -0 9 0 2 -Ok t -0 9 0 5 -Nop-0 9 Loa n T a r get Co ntingent budget . the SBN issuance was set in quarterly target that was expected to be achieved through the issuance of several SBN instruments. stand by loan which has been drawn only amont JPY35 billion for guarantee from JBIC of Samurai Bonds (Shibosai). In line with that availability of residual stand by loan and can be utilize in 2010 is USD 4. namely: 1. This new standby loan could be drawn in the event of a shortage (shortfall) in SBN issuance volume. With the assurance from JBIC.Principal Changes in Budget Deficit and Budget Financing Chapter IV In the progress. Standby loan in this form was a support in the form of guarantee against the issuance of SBN by the Indonesian Government. During the year 2009. Utilization and exploitation of the standby loan in 2010 were arranged through the mandate of Article 26 verse (5) of Law Number 47 Year 2009 about APBN 2010 that regulated the trigger of standby loan drawings. Financial Note and Indonesian Revised Budget 2010 IV-15 .0 billion. In the event of a shortage (shortfall) of the realization of 3-month issuance in comparison with the target. Such condition was the deceleration of financial market that caused significant increase of costs.s uppo rt Direct m ark et . Direct market support.0 billion and JPY160. both in rupiah and in foreign currency denominations. Until April 2010 there was no standby loan drawing. Such support was specifically granted by the Japanese Government. 2.s uppo rt Co ntingent budget . The magnitude of this indicator would be determined by agreement between the Government and the Development Partners. particularly SBN yield. Standby loan in this form would be withdrawn from creditor in cash. the Government had a discussion with the development partners on the threshold of the basis of contingent budget support of standby loan drawings in 2010. The form of standby loans was generally divided into 2 groups. the standby loan agreement between the Government and development partners that had been signed in order to support the APBN financing in 2009 and 2010 is shown in Table IV. Currently.5 below. T ABLE IV. by considering the interest rate specified limits. the Indonesian Government credit rating would go up near the level of JBIC credit rating (close to investment grade) therefore it was expected to be accepted by the highly conservative and risk averting Japanese investors. Contingent budget support Standby loan in this form required the fulfillment of the volume limits and interest rates.s uppo rt Sou r ce : Min ist r y of Fin a n ce Until the end of year 2009. in the form of guarantee by the JBIC on the issuance of yen-denominated SBN in the Japanese market (Samurai Bonds). due to financial market conditions that was still conducive.
The differences produced a discrepancy between the target deficit and its realization.08 * Positiv e v alu e indicates the realization was higher than budget assum ption. Therefore.1 -92. On the expenditure side. and oil lifting.30 -237. the Government planned to utilize the standby loan from JBIC through the guarantee of Samurai bonds issuance in Japan’s financial markets. interest rates.1 SENSITIVITY OF MACROECONOMIC ASSUMPTIONS In preparing the APBN-P. particularly income tax and Value Added Tax (VAT).04 2007 0. 3-month Bank Indonesia Certificates (SBI).70 -0.80 591.00 -0. and financing in the APBN-P.00 90. The revenue side affected the economic growth in tax revenues. assuming the variables of other macroeconomic assumptions were unchanged (ceteris paribus). For foreign exchange.6 DISCREPANCY BETWEEN MACROECONOMY ASSUMPTION AND REALIZATION* Description Economic growth (%) Inflation (%) 3-month SBI interest rate (%) Exchange rate (IDR / USD) ICP (USD / barrel) Oil production (million barrels per day) 2006 -0. If the actual deficit exceeded the deficit target set in the APBN-P then the Government had to find fiscal risk financing sources.80 0.6 -0. Indonesia Crude Oil Price / ICP.1 SENSITIVITY ANALYSIS 4. could be described in terms of partial sensitivity analysis of the baseline figures in the national budget deficit.3.40 -0. then the measures of income.00 0.1.00 9.05 2008 -0. in the first half of 2010. 4. both on the revenue and expenditure.3 FISCAL RISK 4. Source : Ministr y of Finance Fiscal risks caused by variations of macroeconomic assumptions. If the realizations of these variables were inconsistent with the assumptions.20 -1.Chapter IV Principal Changes in Budget Deficit and Budget Financing however. These indicators were the basic assumption referred in calculating the quantities of revenue.70 0. expenditure and financing in the APBN would also change.20 4. the economic growth affected the value of IV-16 Financial Note and Indonesian Revised Budget 2010 .90 1. Partial sensitivity analysis was used to determine the impact of one variable change in macroeconomic assumptions. inflation.6 shows the difference between initial estimation of macro assumptions used in the preparation of APBN-P and its realization in 2006-2009.60 0. the rupiah exchange rate. Economic growth affected the amount of APBN-P. positiv e ** Discrepancy between m acro econom y assum ption and its realization.3.32 -1.20 -0. the macroeconomic indicators used as the basis in calculation were: economic growth. expenditure.00 2009** 0. uncertain variations of the macroeconomic indicators were risk factors that could affect the APBN-P. The following Table IV.10 1. TABLE IV.00 0.
Decrement in domestic oil lifting would also affect the APBN-P on revenue and expenditure sides. as well as income tax and VAT. the additional deficit in APBN in 2010 was estimated to be in the range of Rp4. On the revenue side. the components that would be affected were as follows (1) foreign loans in the form of both program loans and project loans. both in revenue and expenditure. would increase fuel subsidy spending and revenue sharing to region.3 trillion to Rp0. Indonesian Crude Oil Price (ICP) affected the APBN-P on revenue and expenditure sides. On the revenue side. (2) amortization.1 trillion to Rp4. On the expenditure side. an increase in ICP. resulting in the sensitivity of ICP increase on small electric subsidy (from the expenditure side). (2) foreign interest payments. Changes in levels of 3-month SBI interest rate were estimated to have an impact on the expenditure side only. In 2010. average 3-month SBI interest rate was estimated to reach 0.5 trillion.S. and financing.0 trillion. then the additional deficit in APBN-P 2010 was expected to reach in the range of Rp0. would result in revenue increment from oil/gas production sharing contract (KPS) in the form of non-tax revenues. if the attainment of economic growth was 1 percent lower than the assumption. In this case.3 trillion to Rp0. Financial Note and Indonesian Revised Budget 2010 IV-17 .3 to Rp1. if the average ICP was USD1 per barrel higher than the assumed rate. dollar had an impact on all facets of APBN-P.5 million kiloliters would potentially increase the budget deficit in APBN-P 2010 in the range of Rp1. In 2010. and (3) the privatization and sale of assets of the banking restructuring program undertaken in the foreign currency. An increase of domestic fuel consumption by 0.5 trillion. if the average rupiah exchange rate was depreciated by Rp100 per annum from the assumed rate. an increased level of 3-month SBI interest rate would result in increment of interest payments on domestic debt. the increased ICP. The increase in world oil prices would also increase the oil/gas tax revenues and other oil/gas revenues. (3) subsidies for fuel and electricity.25 percent higher than the assumed rate. Decrease in deficit due to high oil lifting (in revenue side). and (4) transfer to region in the form of oil/gas revenue sharing. Meanwhile. the depreciation of the rupiah would affect oil and gas revenues in the United States dollar-denominated oil and gas. Meanwhile.0 trillion to Rp3.44 trillion up to the Rp0. In 2010. On the expenditure side. then the additional deficit in APBN in 2010 was expected to be in the range of Rp3.Principal Changes in Budget Deficit and Budget Financing Chapter IV the balanced fund in transfer to region budget allocation as a consequence of changes in tax revenue. among others. and the proportion of fuel used in fuel power plant were quite low. In fiscal year 2010.000 barrels per day from that assumed amount. the decline in domestic oil lifting would reduce oil and gas income tax and non-oil and gas income tax. The interest rate assumptions used as the basis of APBN-P 2010 calculation was the 3-month SBI interest rate. the decline in expenditure side of the realization of domestic oil lifting would reduce revenue sharing to regions. therefore the additional deficit in the APBN in 2010 was expected to be in the range of Rp0. on the financing side. the components affected by depreciation of rupiah were as follows: (1) expenditure in foreign currencies. Depreciation of the rupiah to the U.5 trillion.56 trillion. In 2010. Other variable that influenced the amount of deficit was the volume of domestic fuel consumption. the deficit in APBN in 2010 was expected to decrease in the range of Rp0. On the revenue side. if the realization of domestic oil lifting was decreased by 10.3 trillion.
dividend payments and privatization.34 1.5 77 965 36. Changes in oil prices.3 to o.7 billion.5 2010 Assumption 5. as well as compensation in the form of government expense through public service obligation (PSO) subsidy.5 * Number Description Potential Deficit (trillion Rp) 4. namely (1) the net contribution of BUMNs to the APBN.1. economic growth.5 -0. and 250 interest rates might have an 200 impact on the financial 150 performance of BUMNs. The indirect contributions of BUMN were in the form of multiplier effects to the development of national economy. the magnitude of fiscal risks in the form of additional deficit that would arise from variations in the assumptions of macroeconomic variables used to compile the APBN in 2010 is detailed in Table IV.00 to 3.25 +1 . either directly or indirectly.8 5.7. Source : Ministry of Finance 4. the Government conduct sensitivity tests or stress test macros BUMN fiscal risk by using several indicators of fiscal risks.46 1 2 3 4 5 6 7 Economic growth (%) Inflation rate (%) Rupiah Exchange Rate (IDR / USD) 3-month SBI interest rate (%) ICP (USD / barrel) Lifting of oil (thousand barrels / day) Domestic fuel consumption (million kl) * Deficit in APBN-P 2010 was Rp133.7 MACROECONOMIC ASSUMPTION SENSITIVITY TO APBN-P DEFICIT 2010 Assumption Variable Unit -1 + 0. TABLE IV. which in turn would affect the 100 contribution of BUMNs to the 50 APBN. exchange BUMN CONTRIBUTION TO APBN rate.1 to 4. and (3) gross financing needs of BUMNs.44 to 0. IV-18 trillion rupiah GRAPH IV. To determine the impact of changes in macroeconomic Source : Ministry of Finance variables on BUMN fiscal risks.3 to 0. (2) net debt of BUMNs.6 Financial Note and Indonesian Revised Budget 2010 .3.747.1 + 100 + 0.33 to 1.200 6. The decrease of this 0 contribution was part of the fiscal APBN-P 2004 2005 2006 2007 2008 2009 risks originating from the Tax Dividend Privatization PSO BUMN.Chapter IV Principal Changes in Budget Deficit and Budget Financing Based on the sensitivity analysis above.10 + 0.0 3. The contribution of BUMN in the form of direct revenues derived from tax revenue.5 Indirect 0.56 0.2 SENSITIVITY OF MACROECONOMIC VARIABLES ON BUMN FISCAL RISKS BUMN had contributed to the APBN.3 9. Direct contribution BUMN from 2004 to 2009 showed a significant effect on the APBN as shown in Graph IV.6.
Financial Note and Indonesian Revised Budget 2010 IV-19 . The increase in PSO subsidy was mainly caused by increasing oil and electricity subsidies provided by PT Pertamina and PT PLN. with the following criteria: (1) BUMN with the largest income-products. (2) BUMN with biggest loss. the depreciation of the rupiah against the U. In addition.0 trillion in gross financing to maintain growth. and (4) BUMN that represented the sector in the Indonesian economy. In Table IV. (2) early information on fiscal risks. The impact was the dramatic reduction of BUMN’s net contribution to APBN. This condition might cause the possibility of default and failure in loan payment. as shown in 2010. PLN’s foreign currency loan in 2008 reached about 70 percent of total loan). The increase in interest rate resulted in the increment of costs borne by BUMN that would reduce BUMN’s net contribution.Principal Changes in Budget Deficit and Budget Financing Chapter IV Sensitivity testing would provide a snapshot of (1) magnitude of risk that affect the APBN.6 trillion.9 trillion in 2010 and continued to grow in the following year. The changes in the above 22 BUMN were expected to reflect changes in other BUMN that amounted to a total of 139 BUMN.2 trillion in 2010. although not as big as the impact of the depreciation of the rupiah against the US dollar and the increasing global oil price. and would also increase the amount of subsidies from the Government in order to have a negative increment of BUMN’s net contribution to the APBN. and financial balance of the aggregate BUMN. The impact of this stress test had caused the net BUMN contribution to the APBN in 2010 to grow more negatively to reach Rp72 billions. the depreciation of the rupiah against the U. operating performance.S. and (3) projection of sectoral risk so that early action and anticipation of symptoms could be taken. which was an increment in comparison with the previous year that only covered 7 State-Owned Enterprises. Stress test for several key of macroeconomic variables on BUMN fiscal risk aggregate was carried out partially.8. The increase in world oil prices by US$25 per barrel would significantly propel production costs. This enormous vulnerability was caused by the calculation formula of PSO subsidy using foreign currencies and the composition of operating expenses and foreign currency loan were very large (for example. as indicated in the decline of BUMN’s contribution that amounted to Rp52. resulting in a heavier fiscal pressure. the macro-economic variables that had the greatest effect and significant impact on BUMN fiscal risks could be determined. especially for BUMN in the energy sector. The increase of interest rate in 2010 would add to BUMN’s negative net contribution that amounted to Rp2. This was reflected in the increase in net BUMN loan that reached up to Rp31. transportation. This test was carried out partially and aggregately based on the financial performance of 22 BUMN during the period of four years (2005 to 2008) and the financial projections for the next four years (2009 to 2012). This meant that the ability of state-owned assets in bearing total liability had decreased. by measuring the impact caused by changes of one macro economy variable to BUMN fiscal risk indicators. (3) BUMN that received the biggest amount of subsidy /PSO. BUMN needed an increase of Rp12. In relation to this. Simulation of macro stress test this year was performed to 22 BUMNs.S. dollar by 20 percent have a significant impact on the amount of PSO subsidy. The decline of economic growth by 1 percent and an increase in interest rate by 3 percent also had an impact on fiscal. In this way. dollar would also increase BUMN’s gross financing needs. assuming other macro-economic variables did not change (ceteris paribus). there were state owned enterprises that faced difficulties in finding financing sources without Government support. and fertilizer. and would also impacted the amount in the following year should the similar increment remained.
81 3) (456) (363) 85.61 8) (6.422) 1 56 4.1 56) 31 .304 2012 (7 8.5 67 52. from Rp1 1 . In APBN-P 2010 the Government had allocated an additional capital for infrastructure guarantee fund. As mandated in Presidential Instruction Number 5 Year 2008 about The Focus of Economic Policy in 2008-2009.695) Sou rce : Ministry of Finance 4.642) 28.5 percent to 9.968) 51 2 95.1 40 2. OI L PRICE.21 8 Stress test of the increasing of oil price by USD25 per barrel from USD80 per barrel to USD1 05 per barrel Num ber 1 2 3 4 Variable Shock Net contribution to A PBN BUMN net debt v alue Gross financing requirement Subsidy I m pact 2009 (95. Jakarta monorail project.2 CENTRAL GOVERNMENT CONTINGENT LIABILITIES: INFRASTRUCTURE DEVELOPMENT PROJECT Fiscal risks that were associated with the infrastructure development projects derived from the support/guarantee by the Government to several projects.042 5 8. EXCHANGE RATE.925 1 2.81 4 55 .634 113 (1 4.695) (3. as well as the establishment of guarantee funds for infrastructure.205 2010 (7 2. and government support for the model of IPP steam power plant in Central Java.87 2) (9) 2.5 58 3.266 Stress test of interest rate increased by 3 percent from 6.636 823 0 (1 0.1 55) 97 7 1 86 2. construction of trans-Java highway.5 83) 2.656 2011 (46. namely the acceleration of development projects of 10.661 ) 2011 8.459 5.327 3 (1 2.37 2) 1 .3.1 38 3.8 percent Num ber 1 2 3 4 Variable Shock Net contribution to A PBN BUMN net debt v alue Gross financing requirement Subsidy I m pact 2009 1 3.200/USD Num ber 1 2 3 4 Variable Shock Net contribution to A PBN BUMN net debt v alue Gross financing requirement Subsidy I m pact 2009 (43.Chapter IV Principal Changes in Budget Deficit and Budget Financing TABLE IV.5 1 7 49.466) (46) 94. the establishment and operation of agency of infrastructure guarantee IV-20 Financial Note and Indonesian Revised Budget 2010 .1 08 2011 (7 8.207 1 3.042 2010 (2. AND INTEREST RATE TO BUMN FISCAL RISK (billion rupiah) Stress test of the rupiah depreciation to US dollar by 20 percent.083 1 1 4.87 7 ) (5.057 2010 (52.1 04) 59.531 ) 2012 1 1 .8 percent to 4.045) 47 .1 01 ) 2010 9.366 1 2.464 2012 (48.000 MW power plant.654 Stress test of economic growth decreased by 1 percent from 5.623 2012 (5.040/USD to Rp9. toll road construction project in Jakarta Outer Ring Road II (JORR II).8 STRESS TEST OF ECONOMI C GROWTH CHANGES.445 81 8 6 (9.5 percent Num ber 1 2 3 4 Variable Shock Net contribution to A PBN BUMN net debt v alue Gross financing requirement Subsidy I m pact 2009 (6.446 2011 (4.922) (5.404 1 . accelerating the provision of drinking water.645) (1 1 .
The main purpose of the establishment of guarantee funds was to provide facilities for financing infrastructure projects in achieving (financial close) and obtaining the best cost of capital by increasing the feasibility of obtaining credit (creditworthiness) of the infrastructure project. the government’s ability to provide funding through the APBN only reached 35. This was based on the estimation of infrastructure financing needs of Rp1. Based on the above amount. whereas the shortage was expected to be covered by private parties. Guarantee fund was expected to improve the quality assurance management of risks that became Government’s responsibility on infrastructure projects as stipulated in Presidential Regulation Number 67 Year 2005 as amended in Presidential Regulation Number 13 Year 2010 regarding Amendment of Presidential Decree Number 67 Year 2005 regarding Cooperation of the Government with Business Entity in Providing Infrastructure. PT PII was expected to operate immediately so it could provide assurance on infrastructure projects prepared by the Government and Public Private Partnership (PPP).0.Principal Changes in Budget Deficit and Budget Financing Chapter IV (guarantee fund) that was required to encourage private sector involvement in infrastructure development.75 percent. the Government allocated funds amounting to Rp1. Such Agency was established in the end of 2009 under the name of PT Penjaminan Infrastruktur Indonesia (PT PII) in the form of 100 percent state owned enterprise. using PPP schemes. Financial Note and Indonesian Revised Budget 2010 IV-21 . Additional capital was needed to increase collateral capacity and as an effort to increase the confidence level of investors and creditors towards this institution in its capacity as a guarantor.0 trillion for additional capital. In the APBN-P 2010. The involvement of government funding in the establishment of such institutions was realized in the form of government capital participation (PMN) as initial capital for the establishment that amounted to Rp1.429 trillion in 2010-2014.0 trillion in the APBN 2009.
improve the welfare of the people and by balancing economic progress and national unity. Government expenditure. as well as the needs and sources of budget financing. fairness. there have been many developments and fundamental changes in circumstances that has significant impact on various economic indicators that affect the fiscal policy fundamentals and implementation of APBN in year 2010 and in line with basis of macroeconomic assumption changes which are accompanied by changes in fiscal policy that required a change in the budget year 2010 budget. that in order to secure the implementation of APBN fiscal year 2010. that since the enactment of Law Number 47 Year 2009 regarding the APBN fiscal year 2010. to be more realistic and able to support the achievement of economic b. in order to achieve a safe and peaceful Indonesia. sustainability. needed to make adjustments for various targets of revenue. efficiency. budget deficits. Considers : a. fair and democratic. development goals … .LAW OF REPUBLIC OF INDONESIA NUMBER 2 YEAR 2010 REGARDING AMENDMENTS OF LAW NUMBER 47 YEAR 2009 ON THE INDONESIAN BUDGET (APBN) BUDGET YEAR 2010 BY THE BLESSING OF GOD ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA. environment. c. that APBN for the year 2010 is prepared in accordance with the needs and capabilities of state governance in collecting Revenue in order to create a national economy based on economic democracy with the principle of solidarity. and independence.
creating and expanding job opportunities. verse (3) and verse (4) of the Constitution of the Republic of Indonesia Year 1945. House of Representatives (DPR). 4. Gazette of the Republic of Indonesia Number 5043). in addition to maintaining national stability in accordance with national development programs. Article 20 verse (2). article 23 verse (1). both in order to support national economic activity in spurring growth. By the … . d. article 31 verse (4). in 2009 the Number 123. and article 33 verse (1). In view of : 1.-2- development goals by 2010 and medium term. Law Number 47 Year 2009 regarding APBN fiscal year 2009 (State Gazette number 156 of Indonesia in 2009. 3. and improve the quality of service to the community and reduce poverty. Regional Representative Board (DPD) (State Gazette of the Republic of Indonesia. that based on the considerations referred to in verses a. an additional sheet of Republic of Indonesia Number 5075). that discussion of Draft Law on amendments to the Law Number 47 Year 2009 regarding the APBN year 2010 is conducted by House of Representatives (DPR) together with the Government with regard to the opinion of the Regional Representatives Board (DPD) as stated in Decree Number 22/DPD/III/2009-2010 on 19 April 2010. and verse (2). Regional House of Representatives (DPRD). e. b. and verse (4). it is necessary to establish the Law on amendments to the Law on APBN in 2010 budget year. Law Number 17 Year 2003 regarding the State Finance (State Gazette of Republic Indonesia in 2003 Number 47. verse (2). Article 5 verse (1). and d . c. Law Number 27 Year 2009 regarding People’s Consultative Assembly (MPR). 2. Supplement to State Gazette of Republic of Indonesia Number 4286).
and the number 31 and number 36 had been removed so that Article 1 reads as follows: Article 1 In this Act. referred to as: 1. Tax … . Article I Several provisions in the Act Number 47 Year 2009 regarding APBN fiscal year 2010 (State Gazette of the Republic of Indonesia in 2009 Number 156.-3- By the Joint Approval of THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA AND THE PRESIDENT OF THE REPUBLIC OF INDONESIA HAS DECIDED To establish :LAWS OF AMANDEMENT TO THE LAW NUMBER 47 YEAR 2009 ON THE INDONESIAN BUDGET (APBN) FISCAL YEAR 2010. between numbers 27 and number 28 is inserted 3 (three) numbers. numbers 27b. and the number 42 modified. between numbers 41 and number 42 is inserted 1 (one) number that is 41A. number 39. Supplement to State Gazette of the Republic of Indonesia Number 5075) modified as follows: 1. number 35. and grants received from domestic and foreign. number 30. between numbers 34 and number 35 is inserted 1 (one) number ie. ie numbers 27a. ie numbers 28a. number 41. number 18. and numbers 27c. non tax revenues. between numbers 28 and number 29 inserted 1 (one) of numbers. between numbers 35 and number 36 is inserted 2 (two) numbers namely 35a and 35b. Provisions in Article 1 number 12. 34a. Revenues and grants are all state revenue derived from tax revenues. 2.
value added tax (PPN) and sales tax on luxury goods(PPnBM). in accordance with programs of the Government Work Plan (RKP) that will be executed. the function. 8. other revenue taxes. 10. environmental functions. 5. and not continuous. economic functions. public order and security functions. land and building tax (PBB). Taxes on international trade are all revenue derived from import duties and export duties. excise and other taxes. Tax revenues are all revenue consisting of domestic taxes and taxes on international trade. Government Expenditures are all expenditures used to finance central government spending and transfers to the regions.… . 9. is allocated for funding certain activities. 7. 3. Non tax Revenue (PNBP) are all revenues received by the Central Government in the form of revenues from natural resources. Central Government Expenditures by organization is the Central Government expenditure allocated to Line ministries/agencies (K/L). is Central Government spending which is used to run a public service function. Cost recovery is the return on the costs that have been issued within the framework of petroleum operations by the Contractor Cooperation Contract (KKKS) using oil produced and/or natural gas in accordance with the provisions of legislation. Domestic taxes are all revenue derived from income tax. are not mandatory and are not binding. the function of defense. and revenue of public service agencies (BLU).-4- 2. 6. duties on land and building transfer (BPHTB). Dividens from BUMN. 4. Central Government Expenditures by function. Grants are that all revenue derived from contributions by the private sector in the country and local governments as well as donations by private parties overseas and foreign governments that do not need to be paid back.
Debt interest payments is Central Government expenditure which is used to pay liability for the use of the principal outstanding debts both domestically and abroad. health functions. and other expenditures. who had served in both domestic and abroad. as a reward for work already carried out. members of the Indonesian National Army and Police of the Republic of Indonesia. retirees. social assistance. Subsidy is budget allocation that is granted to companies/institutions that produce. and the procurement of goods which are intended to be given or sold to the public. including for the costs associated with debt management. which is calculated based on the terms and conditions of existing debt and new debt. 16. 13. equipment and machinery. 12. Central Government Expenditures by economic classification is Central Government expenditure which is used to finance personnel expenditure. debt interest payments. tourism and cultural functions. religious functions. Personnel expenditure is expenditure which the Central Government uses to finance compensation in the form of money or goods given to Central Government employees. and social protection function. Material expenditure is Central Government expenditure which is used to finance the purchase of goods and services to produce consumable goods and services. sell. grants spending. 14. subsidies. whether marketed or not marketed. 15. Capital expenditure is Central Government expenditure made in conjunction with capital formation in the form of land. as well as in other physical forms. network. building. and state officials. as well as travel expenditures. 11.-5- the function of housing and public facilities. export or import of goods … . except for work related to capital formation. material expenditure. education function.
Grant expenditure is central government expenditure that is voluntary to the transfer of rights in the form of money. 20. the government of another country. goods. 18. Balanced fund is sourced from the APBN revenues allocated to regions to fund local needs in the context of decentralization which consists of revenue sharing fund. Social assistance is all state expenditures in the form of transfer of money or goods given to the public in order to protect the public from the possibility of occurrence of various social risks. 22. Energy Subsidy is budget allocation that is given to companies or institutions that produce and/or sell fuel (BBM). particularly local government loans and/or foreign grants to on-granting areas. and the general reserve fund. and specific allocation fund. international institution/organization. Others expenditures are all Central Government expenditure or expenditures that can not be classified into the types of expenditures as stipulated in point 12 (twelve) up to number 19 (nineteen). are not mandatory and not binding. 23. which meet the lives of many people in such a way that the sale price is affordable by public. 19. Liquefied Petroleum Gas (LPG) and electricity so that the selling price is affordable by the people. and the manuscript was done by agreement between the grantor and the grantee. as referred to Law Number 33 Year 2004 regarding Financial Balance between Central and Local Government. special autonomy fund and adjustment fund. Revenue … . and are not continuous.-6- of goods and services. or services from the Government to State Owned Enterprises (BUMN). biofuels (BBN). 21. general allocation fund. 17. Transfer to region is Government expenditure within the framework of the implementation of decentralization in the form of balanced fund. which do not need to be paid back.
Revenue sharing fund. hereinafter referred to DAK. General Allocation Fund. hereinafter referred to DAU. which is sourced from APBN revenues. 24. Adjustment Fund is a fund allocated to assist regions in order to implement Central Government policy and help supporting the acceleration of development in the area. 27a. 27.-7- 23. and is allocated to regions with the objective of equal inter-regional distribution of financial ability to fund local needs in the context of decentralization. 26. Infrastructure... hereinafter abbreviated as DBH. 27b. as stipulated in the Law Number 33 Year 2004 on Financial Balance between the Central Government and Local Governments. which is allocated to regions based on certain percentage to fund local needs in the context of decentralization. is sourced from the APBN revenues. is a fund sourced from APBN revenues. and is allocated to specific areas in order to help in funding special activities that are local affairs and in accordance with national priorities. Special Autonomy Fund is a fund allocated to finance the implementation of special autonomy of a region. . Specific Allocation Fund. as stipulated in the Law Number 35 Year 2008 regarding the establishment of Exemption Number 1 Year 2008 regarding amendment of the Law Number 21 Year 2001 regarding Special Autonomy for Papua province into Law and the Law Number 11 Year 2006 regarding the Aceh Government. as stipulated in the Law Number 33 Year 2004 regarding the Financial Balance between the Central Government and Local Governments. 25. Strengthening fiscal decentralization and regional development acceleration (DPDF-PPD) fund is a fund allocated to regions to help supporting the acceleration of regional development through the provision and development of infrastructure and non-infrastructure as well as other supporting facilities to regional government. as stipulated in the Law Number 33 Year 2004 on Financial Balance between the Central Government and Local Government.
consisting of conventional based government securities and Islamic based government securities. Government securities. Cumulated budget surplus. The rest of the financing budget. loans to PT PLN (Persero). national education development funds. 31. Removed. domestic loans. minus all expenditure financing expenses consisting of government investment funds. Infrastructure and regional infrastructure enhancement fund (DPIPD) is a fund sourced from the APBN and allocated to regions in order to improve public services through the provision of infrastructure facilities and infrastructure in areas that are designated to accelerate regional development. Acceleration of education infrastructure development fund (DPPIP) is a fund sourced from the APBN and allocated to regions in order to support the acceleration of education infrastructure development in district/city level. is bonds in the form of letter of acknoledgement of debt denominated in rupiah and foreign currency in which interest and principal payments are secured primarily… . and reserve funding.-8- 27b. the government capital participation . Conventional based government securities. occuring obligations derived from government guarantee. 28. 29. hereinafter referred to SILPA. 30. is the excess of the actual realization of deficit budget that occurred. 32. hereinafter abbreviated as SBN. revolving funds. net issuance of state bonds. hereinafter abbreviated as SUN. is the accumulation of surplus financing budget over the previous years. hereinafter abbreviated as SAL. 27c. Domestic financing is all financing revenues sourced from domestic banking and non-banking consisting of the management of assets. 33. 28a. Deficit revenue budget financing is any kind of financing used to cover the deficit budget in APBN and also in financing expenditure.
35b. hereinafter referred as BPYBDS is government assistance in the form of state property from the APBN. Domestic … . National education development funds are education budget allocated for the establishment of endowment fund which aims to ensure the sustainability of educational programs for the next generation as a form of responsibility between generations (intergenerational equity) and are managed using the revolving fund mechanism and conducted by the Public Service Agency (BLU) in education. as evidence for inclusion of SBSN assets. or obligations bonds. as stipulated in the Law Number 19 Year 2008 regarding Islamic based government securities. and education reserve fund in anticipation of the purposes of rehabilitation educational facilities damaged by natural disasters. Removed. in accordance with the validity period. 37. 34. is bonds issued based on sharia principles. 34a. Government investment fund is government support in the form of financial compensation and/or other compensation granted by the government to the business agency and public service agencies. which has been operated and/or used by the State owned Enterprises (BUMN) based on the handover of official report and so far recorded in the financial statements of line ministries/agencies (K/L) or in the State Owned Enterprises. 35a. as referred to in the Law Number 24 Year 2002 on government bonds. 36. Government assistance in which the status has not defined. Islamic based government securities. Revolving funds are funds on loan to be managed and rolled out to the community by the Budget User or Budget power holder aims to increase the people’s economic and other purposes. 35.-9- secured primarily by state of Republic of Indonesia. both in rupiah and foreign currency. hereinafter abbreviated as SBSN.
Net foreign financing is all the funding comes from the withdrawal of foreign loans consisting of program loans and project loans reduced by subsidiary loan and amortization. 38. Fiscal … . the allocation of education budget through transfers to the regions and the budget allocation for education through financing of expenditure. Program loan is a loan program received in the form of cash financing in which the withdrawal requires fulfillment of certain conditions agreed upon both parties as the policy matrix or the execution of certain activities. to finance the education that is the responsibility of government 43. 40. 39. in accordance with the validity period. Education budget is budget allocation on education functions which are budgeted through the state ministries and agencies. including salaries of educators. Percentage of education budget is the allocation ratio of education budget to Government expenditure 44. Guarantee liabilities are obligations which is government burden due to provision of government guarantees to State Owned Enterprises (BUMN) and/or Province Owned Enterprises (BUMD) in the case of state-owned enterprises (BUMN) and/or Province owned enterprises (BUMD) is unable to pay its obligations to creditors according to loan agreements. 41a.10 - 37. Domestic loans are all Government loans which are sourced from domestic lenders to be paid back under certain conditions.. Project loan is foreign loan used to finance certain activities of line ministries/agencies and/or local governments and State Owned Enterprises (BUMN) through a subsidiary loan. but not including education service budget. Channeling loan is foreign loan or domestic loan received from Central Government and loan forwarded to local government or State Owned Enterprises (BUMN) which has to be paid back with certain terms and conditions 42. 41.
Fiscal year 2010 is 1 (one) year period starting from January 1 until the date of December 31. (2) Tax revenues as referred to verse (1) letter a are estimated to reach Rp743.000. 3. b.000. verse (3). The provisions of Article 3 verse (2) and verse (3) amended. and c. so that Article 2 reads as follows: Article 2 (1) Budget of revenue and grant of fiscal year 2010 are obtained from the following sources: a. grants.00 (nine hundred ninety two trillion.11 - 44.906.789.000. non-tax revenue. three hundred ninety eight billion seven hundred eighty nine million nine hundred ninety eight thousand rupiah).176.398.998.00 (seven hundred forty three trillion three hundred twenty five billion nine hundred six million rupiah).00 (two hundred forty seven trillion one hundred seventy six billion three hundred sixty seven million nine hundred ninety eight thousands rupiah). tax revenue.000.367.000. The provisions of Article 2 verse (2). (4) Grants as referred to verse (1) letter c are estimated to reach Rp1. and verse (5) are modified.516.. (3) Non-tax revenue referred to verse (1) letter b are estimated to reach Rp247. 2010 2.000.325.00 (one trillion eight hundred ninety six billion five hundred sixteen million rupiah). thus Article 3 reads as follows: Article 3… . verse (3) and verse (4) are estimated to reach Rp992. verse (4) fixed and an explanation verse (4) are amended.896. (5) Total budget of revenues and grants of fiscal year 2010 as referred to verse (2).998. verse (4).
00 (four hundred ninety five billion three hundred thirty million one hundred ninety five thousand nine hundred fifty nine rupiah).000.00 (three hundred sixty two trillion two hundred nineteen billion twenty million rupiah).000. 4) Transfer of land rights transactions and/or building Sidoarjo mud victims of Rp205. and b.000.000. Income tax at Rp362.195.962.000. b.00 (two hundred sixty two … .00 (one trillion rupiah). Value added tax and sales tax on luxury goods amounted to Rp262. which in its implementation.12 - Article 3 (1) Tax revenues as referred to in Article 2 verse (2).000.330.992.219.000. 3) Grants and international financing from multilateral finance institutions amounted to Rp1.000. consisting of: a.959.00 (seven hundred twenty trillion seven hundred sixty four billion five hundred thirty three million rupiah).020. 2) Interest and revenue sharing on Goverment Security issued in international market amounted to Rp2.000.000.. domestic taxes.000.533. and 6) Receivable tax from ex-Bank Restructuring Agency (BPPN) and Televisi Republik Indonesia (TVRI) amounted to Rp495. including income tax borne by the Government (PPh DTP) for: 1) Geothermal commodity amounted to Rp624.000.000.00 (two hundred five billion rupiah).000.00 (two trillion rupiah).000.000.250. each of income tax borne by the Government is regulated by Regulation of Finance Ministry.000. 5) Biofuel (BBN) amounted to Rp100.00 (one hundred billion rupiah).000.000.000.00 (six hundred twenty four billion two hundred fifty million rupiah).764.000. consist of: a.000. International trade taxes. (2) Domestic taxes revenues as referred to verse (1) letter a are estimated at Rp720.
545.000. Excises … .00 (twenty five trillion three hundred nineteen billion one hundred forty eight million rupiah). c.000.000. Land and building tax amounted to Rp25.000.KAI) amounted to Rp1. and 3 (three) kilograms of subsidized LPG amounted to Rp5.292.101. e. and 6) Receivable tax from ex-Bank Restructuring Agency (BPPN) and Televisi Republik Indonesia (TVRI).00 (nine hundred billion rupiah). Duties on land and building transfer amounted to Rp7..897.00 (five trillion eight hundred ninety seven billion five hundred forty five million rupiah).00 (one trillion two hundred ninety two billion twenty eight million four hundred sixty six thousand one hundred one rupiah).000.13 - sixty two trillion nine hundred sixty two billion nine hundred ninety two million rupiah).000. which in its implementation.319. each of value added tax borne by the Government is regulated by Regulation of Finance Ministry.525.000.000. 2) Import taxes (PDRI) in order to explore the upstream oil and gas and geothermal amounted to Rp2.000. and PT Kereta Api Indonesia (Indonesian Train Company PT.148.000.138.000.466.00 (seven trillion one hundred fifty five billion five hundred twenty five million rupiah).500.028. d.000. 4) Climate change adaptation and mitigation amounted to Rp900.000. 5) Murabahah islamic shariah banking transaction amounted to Rp328.718.454. including value added tax borne by Government (PPN DTP) on: 1) Fuel.000.091.155.800.00 (one trillion ninety one billion eight hundred million rupiah).00 (three hundred twenty eight billion four hundred fifty four million one hundred thirty eight thousand seven hundred eighteen rupiah). bio-fuel.00 (two trillion five hundred billion rupiah). 3) Cooking oil and wheat/flour import amounted to Rp1.
4. (4) Details of tax revenues of the fiscal year 2010 as referred to verse (2) and verse (3) are as stated in this verse explanation.373.922.000. between verse (2) and verse (3) inserted 1 (one) verse. consisting of: a. verse (8) Removed.14 - e. namely verse (2a).00 (twenty two trillion five hundred sixty one billion three hundred seventy three million rupiah).454.000. b. including import duties borne by the Government for certain sectors amounted to Rp2. other non-tax revenue. Dividens from BUMN. f.. verse (10). verse (7). and d. thus Article 4 reads as follows: Article 4 (1) Non tax revenue as referred to Article 2 verse (3) consist of: a.000. (3) International trade taxes revenue as referred to verse (1) letter b are estimated at Rp22.000.561. Export duties amounted to Rp5.000.000. verse (4).000. Provisions of Article 4 verse (2).00 (fifty nine trillion two hundred sixty five billion nine hundred twenty two million rupiah).106. verse (9). Other taxes amounted to Rp3. which in its implementation is regulated by Regulation of Finance Minstry.000.560.841.000.813.000.265. Import duties amounted to Rp17.000.00 (two trillion rupiah). natural resources revenue. c. Excises amounted to Rp59.000. b. verse (13) fixed and an explanation verse (13) are amended. verse (11) and verse (12) amended.000.000.00 (three trillion eight hundred forty one billion nine hundred twenty six million rupiah).926.00 (five trillion four hundred fifty four billion five hundred sixty million rupiah).00 (seventeen trillion-one hundred six billion eight hundred thirteen million rupiah). BLU … .
00 (one hundred sixty four trillion seven hundred twenty six billion seven hundred thirty two million rupiah).15 - d. (3) Reserved funds for the abandoned petroleum site restoration activities by the Contractor of Cooperation Contract (KKKS) must be placed on national banks.000. (6) Further provisions on the settlement of non performing receivables accounts in BUMN in the banking business as referred to in verse (5) regulated by Regulation of Finance Minister.000.00 (five trillion rupiah).00 (twenty nine trillion five hundred billion rupiah). (4) Dividens from BUMN as referred to verse (1) letter b are estimated at Rp29.000.726.000.000. settlement of non performing receivables accounts in BUMN in the banking business conducted in accordance with Law Number 40 Year 2007 regarding Limited Company (PT) and the Law Number 19 Year 2003 regarding the State Owned Enterprises and their implementing regulations. BLU revenues. which are all used for payments to PT Pertamina (Persero) for the use of oil and lubricants (BMP) by Indonesian National Army (TNI).000.00 (four trillion rupiah) as result of granting operating margin amounted of 5% (five percents) to PT PLN Persero.000. (5) In order to optimize revenues from dividens of BUMN in the banking business. (7) Dividens from on BUMN as referred to verse (4) including Dividens on National Electricity Limited (PT PLN Persero) in fiscal year 2009 amounted to Rp4.732.. including revenue derived from oil and gas settlement by PT Pertamina (Persero) amounting to Rp5. (8) Removed … .000.500. (2a) Natural resources revenue referred to verse (2).000.000.000.000.000. (2) Natural resources revenue as referred to verse (1) letter a are estimated at Rp164.
462. (11) PNBP target from Directorate General of Post and Telecommunication. (10) PNBP target from Directorate General of Civil Aviation. and verse (4) are amended. verse (9) and verse (12) are as stated in this verse explanation.00 (four hundred fifty billion twenty six million one hundred twelve thousand rupiah). (13) Details of non tax revenues for fiscal year 2010 as referred to in verse (2) and verse (4).758. Provisions of article 5 verse (2).00 (nine trillion four hundred eighty six billion eight hundred seventy seven million forty nine thousand rupiah).877.112.000.000.607.931.. Ministry of Communication and Informatics in fiscal year 2010 estimated at Rp10. verse (3).00 (ten trillion two hundred fifty five billion six hundred seven million nine hundred thirty one thousand rupiah). Ministry of Transportation in the year 2010 is estimated Rp450. 5. (9) Other non-tax revenues as referred to verse (1) letter c are estimated at Rp43.049.000. some of which are obtained from admission of usage rights fees (BHP) the frequency being considered because of changes in regulatory/BHP frequency policy from the frequency calculation–canal based frequency (TRX) into a bandwith based-frequency BHP for the implementation of mobile cellular telecommunications. thus Article 5 reads as follows: Article 5 … .026.00 (fourty three trillion four hundred sixty two billion seven hundred fifty eight million nine hundred forty nine thousand rupiah).000.255.16 - (8) Removed. based on a spin off policy of revenue from Air Traffic Services (ATS) of PT Angkasa Pura I and PT Angkasa Pura II to be a Public Corporation (Perum).486. (12) BLU revenues as referred to verse (1) letter d are estimated at Rp9.949.
546. Central Government Expenditure by function. Transfer to Region.00 (seven hundred eighty one trillion five hundred thirty three billion five hundred forty six million eight hundred thirty two thousand rupiah). 6.00 (three hundred forty four trillion six hundred twelve billion nine hundred twenty nine million four hundred eighty thousand rupiah).146.612. verse (3). Central Government Expenditure.17 - Article 5 (1) Government expenditure fiscal year 2010 consists of: a.126.000. and c. (3) Central … .546.533.00 (one quadrillion one hundred twenty six trillion one hundred forty six billion four hundred seventy six million three hundred twelve thousand rupiah).000.312. thus Article 6 reads as follows: Article 6 (1) Central Government Expenditure Budget as referred to in Article 5 verse (1) letter a is grouped based on: a. (4) Amount of Expenditure Budget fiscal year 2010 as referred to verse (2) and verse (3) estimated at Rp1.832. (2) Central government expenditure budget as referred to verse (1) letter a is estimated at Rp781. and verse (4) and verse (6) are amended. Central Government Expenditure by organization.000.832.000. Provisions of Article 6 verse (2).929. and verse (5) is Removed. Central Government Expenditure by economic classification. and b. (2) Central Government Expenditure by organization as referred to in verse (1) letter a estimated at Rp781.533. (3) Transfer to Region as referred to verse (1) letter b estimated at Rp344.480..476. b.00 (seven hundred eighty one trillion five hundred thirty three billion five hundred forty six million eight hundred thirty two thousand rupiah).
Bio-Fuel (BBN) and 3 (three) kilograms LPG cylinder fiscal year 2010 estimated at Rp88.000. (2) (3) 8. Fuel subsidy budget control in fiscal year 2010 is being done by having efficiency in the cost of distribution and business margins (alpha). thus Article 7 reads as follows: Article 7 (1) Fuel Subsidies (BBM).00 (seven hundred eighty one trillion five hundred thirty three billion five hundred forty six million eight hundred thirty two thousand rupiah).. 7.533. and by conducting policy in subsidized fuel consumption savings. (5) Removed. (4) Central Government Expenditure by economic classification as referred to in verse (1) letter c estimated at Rp781. Provisions of article 8 verse (1).832.546.00 (seven hundred eighty one trillion five hundred thirty three billion five hundred forty six million eight hundred thirty two thousand rupiah). (6) Amandement of Central Government Expenditure budget fiscal year 2010.533.000. verse (3).000.890. and verse (4).000. In case of the estimated average of Indonesian crude oil price in 1 (one) year has increased more than 10% (ten percent) of the price assumed in APBN-P 2010. will be further detailed in Budget Unit per Work Unit (Satuan Anggaran Per Satuan Kerja/SAPSK).546. as referred to in verse (2).776.18 - (3) Central Government Expenditure by function as referred to in verse (1) letter b estimated at Rp781. are amended.00 (eighty eight trillion eight hundred ninety billion seven hundred seventy six million rupiah). verse (3). verse (2). are amended.832. Provisions of Article 7 verse (1). thus Article 8 reads as follows: Article 8 … . the Government granted the authority to make adjustments in subsidized fuel prices.
remain valid.106. Underpayment … . Giving margin to PT PLN (Persero) in order to fulfill the financing requirements of PT PLN's investments is set at 8% (eight percents) in year 2010. Direct asisstance for fertilizers amounted to Rp2. and d. Adjustment of basic electricity tariff (TDL) is set by Government after obtaining approval from House of Representatives of The Republic of Indonesia. c. Provisions of article 9 verse (1) is amended. Business (B). Application of basic electricity tariff (TDL) based on the economical price automatically for energy consumption above 30% (thirty percent) the national average consumption in 2009 for household customers (R).462. thus Article 9 reads as follows: Article 9 (1) Fertilizer subsidy in fiscal year 2010 estimated at Rp18. and public (P).000. which so far has been implemented. (2) b.000.000.19 - Article 8 (1) Electricity subsidy in fiscal year 2010 estimated at Rp55.00 (fifty five trillion one hundred six billion three hundred million rupiah). Implementation of tariff policy that aims to encourage electricity savings and special services. 9.662.000.800. with power from 6600 VA and above.00 (eighteen trillion four hundred eleven billion four hundred sixty two million rupiah)..00 (fourteen trillion seven hundred fifty billion six hundred sixty two million rupiah).000.000.000.300. Electricity subsidy budget control in fiscal year 2010 is conducted through: a.750. b.000.411.00 (two trillion one hundred sixty billion eight hundred million rupiah). c. price subsidy amounted to Rp14. consisting of: a.160.
Local Governments are given the authority overseeing the distribution of subsidized fertilizer through the mechanism of the definitive plan of group needs (RDKK). Underpayment of the year 2008 amounted to Rp1.500.389.00 (one trillion five hundred billion rupiah). Article 9D. and article 9E.925.000. 9B article. Article 9D … .407. namely Article 9A. Article 9C Tax subsidy borne by government (DTP) in fiscal year 2010 estimated at Rp18. Between article 9 and article 10 inserted 5 (five) articles.123.856.530.00 (thirteen trillion nine hundred twenty five billion one hundred twenty three million rupiah).00 (eighteen trillion four hundred thirty four billion four hundred seven million eight hundred thousand seven hundred and seventy eight rupiah). Article 9C. especially fertilizer in the future.778.000. thus it reads as follows: Article 9A Food subsidy in fiscal year 2010 estimated at Rp13. (2) Government prioritize sufficient supply of required gas for domestic fertilizer manufacturers in order to maintain food security.000. the Government guarantees the price of gas to meet the needs of the domestic fertilizer manufacturer with domestic prices.800. In order to reduce the burden of agricultural subsidies.434.000.20 - c. while optimizing revenue from gas sales.00 (two trillion eight hundred fifty six billion three hundred eighty nine million five hundred thirty thousand rupiah). (3) (4) 10.000.000.. Article 9B Interest subsidy on credit program in fiscal year 2010 estimated at Rp2.
00 (nine hundred sixteen million one hundred thousand rupiah).100. b. Between Article 14 and Article 15 inserted 1 (one) Article. and Government obligation on the tax subsidies borne by the government.000. the maximum expenditure budget to be cut and reduced for ministries in budget year 2010 are as follows: a. thus it reads as follows: Article 14A (1) As a followup of cutting or reducing the expenditure budget ceiling and allocation of transfer to region of budget year 2010 for the line ministries/agencies that did not fully implement the stimulus activities in fiscal year 2009. namely Article 14A. National… .00 (eleven billion one hundred fifty million eight hundred sixty two thousand rupiah). based on the ability of state finances.862. Article 9E Subsidy expenditure referred to in Article 7. 11.21 - Article 9D Seeds subsidy in fiscal year 2010 estimated at Rp2. Article 8.523.000..00 (two trillion two hundred sixty three billion five hundred twenty three million rupiah).000.150. Ministry of Man Power and Transmigration amounted to Rp916. Ministry of Transportation amounted to Rp11. (2) Revised DIPA on cutting spending ceiling referred to in verse (1) conducted under conditions: a. and Article 9C can be adjusted with the needs of the realization in the current budget year to anticipate realization deviations of macroeconomic assumptions.263. including underpayment of tax subsidies borne by the government in the previous years.000.
allowances. and PNBP. b. operational implementation and office maintenance. b.. changes … . (4) 12. 2) inter-organizational unit under one K/L budget. changes in the budget that comes from the surplus realization of the above non-tax revenue target.22 - a. and activities originating in PHLN. 3) inter-activities are under one program with condition that the shifting is the result of optimization and does not reduce the volume of output that have been planned. Provisions of Article 16 verse (1) and verse (3) are amended. Budget allocation of Transfer to Region of which receive Fiscal Stimulus 2009 through technical and funding assistance in order to support the implementation of regional government affairs/task is not subject to reduction/alleviation.08 (Other Expenditure) to line ministry/agencies (K/L). and/or 4) inter-expenditures under one activity. arrears payments. thus Article 16 reads as follows: Article 16 (1) Further details of the changes from the government expenditure budget are in the form: central a. (3) DIPA revised procedures referred to in verse (2) conducted in accordance with the laws and regulations and the revision of the DIPA is made no later than June 30. National priority targets that were able to carry out responsibilities and guarantee sustainability of governance. 2010. non-bank financing. Does not reduce the budget allocation for salaries. c. expenditure budget shifting: 1) from budget department 999. honorarium.
namley verse 16A. the reported by government to the House of Representatives in the Amandement of APBN and/or the Central Government Financial Reports (LKPP). verse 16C so it reads as follows: Article 16A (1) Optimization results referred to in Article 16 verse (1) point a. Changes referred to in verse (1). (3) (4) (5) 13. including foreign grants/grants in the country after the APBN Law has been established.3) can only be used in fiscal year 2011 for activities and programs of the same or a new activity (new initiative).. are all imposed by Government. Changes in details of central government expenditure as referred to in verse (1) can be carried out interprovince/district/city for the operational activities conducted by organizational unit in central level and by vertical institutions in regional level. emergency or … . verse 16B.23 - c. and verse (4). (2) Use of expenditure budget derived from state non-tax revenues above the limit of the APBN for higher education which are not State Owned Legal Entity (BHMN) and BLU set by the government. and d. except for things that are a priority. Changes in the details of central government expenditure as referred to in verse (1) can be carried along in the same province/district/city for the activities carried out within the framework of assistance and joint affairs (UB) or in one province to the activities carried out within the decentralization framework. changes in foreign loans and grants (PHLN) and domestic loans and grants (PHDN) as a result of the carry over and accelerate the withdrawal of PHLN and PHDN. changes in foreign loans as a result of reduction in the allocation of foreign loans (drop loan). verse (2). urgent. verse (3). Between Article 16 and Article 17 inserted 3 (three) verses.
Balanced fund. 2010. so that Article 17 reads as follows: Article17 (1) Budgetary transfer to region referred to Article 5 verse (1) letter b consists of : a.613. (2) Changes in the details of the procedure of the central government expenditure budget. Article 16C (1) Spending allocations details K/L is completed by all commissions in House of Representatives until the deadline date of May 15. Provisions of article 17 verse (1). which stipulated by the government.680. (3) Special autonomy and adjustment fund as referred to verse (1) letter b is estimated at Rp30. (2) (3) 14. including use of optimization.00 (three hundred fourteen trillion three hundred sixty three billion three hundred fifteen million eight hundred thousand rupiah). b. Special autonomy and adjustment fund.800. In terms of the details referred to in verse (1) can not be resolved by the related Commission then Budget Board has the right to finish it within a week after the time limit.363. and verse (3) are amended. 2010. (2) Balanced fund as referred to verse (1) letter a is estimated at Rp314.249.24 - emergency or that can not be postponed. shall be further regulated by the government.000. verse (2).315. All the details of transfers to other regions and to local education fund stipulated by the Budget Board no later than the date of May 15.000.. Article 16B Activities financed by domestic loans can be implemented in multiyears.00 (thirty trillion… .
203. b. and between verse (5) and verse (6) inserted 6 (six) verses.000. verse (4). verse (5d). verse (5e). General allocation fund.250. (2) Revenue sharing fund as referred to verse (1) letter a is estimated at Rp89. namely verse (4a).994.00 (ten trillion nine hundred ninety four billion eight hundred ninety two million five hundred thousand rupiah).484.500. and DAU allocation correction for Indramayu District amounted to Rp 121.500. Specific allocation fund.446. land and building tax. between verse (4) and verse (5) inserted 1 (one) verse. and verse (5f) so Article 18 reads as follows: Article 18 (1) Balanced fund as referred to Article 17 verse (1) letter a consists of: a. verse (5).618. Revenue sharing fund.100.000. forestry and natural resources less paid (4) General allocation fund as referred to verse (1) letter b is estimated at Rp. verse (3).25 - (thirty trillion two hundred forty nine billion six hundred thirteen million six hundred eighty thousand rupiah). namely verse (5a).00 (two hundred three trillion six hundred six billion four hundred eighty four million five hundred thousand rupiah). and c. and verse (7) are amended.00 (one hundred twenty one billion two hundred fifty million rupiah) (4a) DAU allocation correction in the fiscal year of 2010 for another districts/cities will be accounted in DAU fiscal year 2011.000. verse (5c).000. including additional DAU for teacher’s profession allowances amounted to Rp10.. Provisions of article 18 verse (2).892. verse (5b). 15.000.00 (eighty nine trillion six hundred eighteen billion four hundred fourty six million one hundred thousand rupiah) (3) Revenue sharing fund as referred to verse (2) includes funds for the oil and gas resources less paid and funds for the income tax.606. (5) Specific… .
including DAK allocation correction for Indramayu District amounted to Rp5.26 - (5) Specific allocation fund as referred to verse (1) letter c is estimated at Rp21. the government distributes DBH allocation based on actual revenues in accordance with statutory regulations based on.000.200. efficiency.00 (twenty one trillion one hundred thirty eight billion three hundred eighty five million two hundred thousand rupiah).00 (five billion two million seven hundred thousand rupiah) (5a) DAK allocation correction fiscal year 2010 for another districts/ cities will be accounted in DAK fiscal year 2011..000. (5c) In the case of the approximate maximum DBH allocation set in the budget year 2010 is not sufficient for distribution demand or over exceeding realization of a maximum limit in the fiscal year 2010.385. (5f) Procedures for the management of reserve fund in government accounts as referred to verse (5c) is regulated by the Finance Minister Regulation. To ensure effectiveness. (5b) Technical guidance of DAK implementation of education previously must be consulted/approved by the House of Representatives Commissioner in charge of education as stipulated in article 15 verse (5) law Number 17 Year 2003 regarding the financial state. (5e) Reserve fund as referred to verse (5c) is allocated based on limit difference in a budget year with DBH distribution of the first quarter until the fourth quarter fiscal year 2010. (6) Calcuation … .138.700. and accountability. Minister of Finance put the rest of the receipts referred to earlier as a reserve fund in government accounts. the implementation of DAK education have to use the procurement method refers to the mechanism in accordance with legislation and not in the form of block grants to beneficiaries or school. (5d) In the case of remaining actual revenues that have not been distributed due to not-yet-identified-producing regions.002.
3. verse (7). and 7. (2) Special autonomy fund as referred to verse (1) letter a is estimated at Rp9. namely verse (3a). between verse (4) and verse (5) inserted 2 (two) verses. namely verse (6).099. regional incentive fund. (7) Details of balanced fund for fiscal year 2010 as referred to verse (2). 5. and added 5 (five) verses.000. namely verse (4a) and verse (4b). additional allowances funds of civil servants teachers in the regions area (PNSD).27 - (6) Calculation and distribution of more balanced fund would be accordance with the provisions in the Act number 33 in 2004 on the financial balance between central and local government. Provision of Article 20 verse (1) is amended. infrastructure strengthening and regional infrastructure funds (DPIPD). 6. special autonomy fund. and verse(5) are as stated in this verse explanation. DAK less paid in 2008.680. verse (8). verse (3). 16. education infrastructure development acceleration funds (DPPIP). fiscal decentralization strengthening fund and regional development acceleration fund (DPDF-PPD). which consists of: 1. 4. 2. fund of infrastructure facilities (DISP) less paid in 2008. verse (4). (3) Adjustment … . adjustment fund. between verse (3) and verse (4) inserted 1 (one) verse. thus Article 20 reads as follows: Article 20 (1) Special autonomy and adjustment fund as referred to Article 17 verse (1) letter b consists of: a.613. and b.. verse (9).00 (nine trillion ninety nine billion six hundred thirteen million six hundred eighty thousand rupiah). and verse (10).
000.5 is estimated at Rp7.200.000.000.000.000.000.500.000. Infrastructure strengthening and regional infrastructure fund (DPIPD)as referred to verse (1) letter b.00 (thirty two billion rupiah).00 (twenty one trillion one hundred fifty billion rupiah).800.000.000. Education infrastructure development acceleration fund (DPPIP) as referred to verse (1) letter b.00 (seven trillion one hundred billion rupiah). Fiscal decentralization strengthening funds and regional development acceleration funds referred to verse (1) letter b. (9) General… (6) (7) (8) .000.000.00 (five trillion eight hundred billion rupiah).6 is estimated at Rp5.000.000.000.00 (five trillion five hundred billion rupiah). (3a) Additional allowance fund of civil servant teachers in the regions (PNSD) as referred to in verse (1) letter b point 1 is estimated at Rp5.387.28 - (3) Adjustment fund as referred to verse (1) letter b is estimated at Rp21.000.100.00 (one trillion two hundred fifty billion rupiah).800. (4) Regional incentive fund as referred to verse (1) letter b point 2 is estimated at Rp1.000.7 is estimated at Rp1.000. (4b) DISP less paid in 2008 as referred to verse (1) letter b point 4 is estimated at Rp32.00 (one trillion three hundred eighty seven billion eight hundred million rupiah).000.000.00 (eighty billion two hundred million rupiah).000. (5) Regional incentive fund as referred to verse (4) are used within the framework of the implementation of educational functions allocated to specific regions by taking into account certain criterias.150.000..250. (4a) DAK less paid in 2008 as referrred to verse (1) letter b point 3 is estimated at Rp80.000.
which is the ratio of budget allocation for education as referred to in verse (1) of the total Government expenditure budget amounted to Rp1..295.476.00 (two hundred twenty five trillion two hundred twenty nine billion two hundred ninety five million two hundred sixty two thousand four hundred rupiah).262. local governments may implement programs and activities under condition that regional chief to make amandements on Regional Chief regulation regarding the translation of Regional Revenue and Expenditure Budget (APBD) by first informing the Chief of Regional House of Representatives.000. so while waiting for amandements in local regulations on Regional Revenue and Expenditure Budget (APBD).126. Provisions of Article 21 verse (1) and verse (2) are amended. and cities which its allocations determined after the local regulations on specified Regional Revenue and Expenditure Budget (APBD) is stipulated.400.146. (10) Transfer to region to provinces.312. and DPPIP fiscal year 2010 is stipulated by Finance Minister Regulation. 17. DPIPD. thus Article 21 reads as follows: Article 21 (1) Education budget is amounted to Rp225.29 - (9) General guidelines for determining the allocation and use of DPDF-PPD.229. districts. thus the regional government is to make that writing in the budget realization report (LRA). (2) Percentage of budget for education amounted to 20% (twenty point zero percent).00 (One quadrillion one hundred twenty … . In the case of the programs and activities that will be funded from the funds transfer to the regions allocated after the local regulations on Regional Revenue and Expenditure Budget (APBD) amandement is stipulated. and added 1 (one) verse namely verse (3).
146.000.312.000. as referred to in Article 2 verse (5).476.232.818. while verse (3) remains the same and explanation of verse (3) is amended.747.000.998. Provisions of Article 22 verse (1) and verse (2) are amended. thus Article 22 reads as follows: Article 22 (1) Total amount of Revenue and Grants in fiscal year 2010 is amounted to Rp992. is lower than total amount of Government Expenditure Budget amounted to Rp1.00 (one trillion rupiah) which the use is regulated in accordance with prevailing regulations. thus it causes budget deficit fiscal year 2010 amounted to Rp133.686.314.126.000.00 (one hundred thirty three trillion seven hundred forty seven billion six hundred eighty six million three hundred fourteen thousand rupiah) which will be funded from budget deficit financing.30 - hundred twenty six trillion one hundred forty six billion four hundred seventy six million-three hundred twelve thousand rupiah). 18.789..398.000.00 (nine hundred ninety two trillion three hundred ninety eight billion seven hundred eighty nine million nine hundred ninety eight thousand rupiah). Domestic financing amounted to Rp133.00 (one hundred thirty three trillion nine hundred three billion two hundred thirty two million… . (2) Budget Deficit Financing fiscal year 2010 as referred to in Verse (1) is sourced from: a. (3) Within the education budget allocations referred to in verse (1) including a national education development fund amounting to Rp1.000.000.000.00 (one quadrillion one hundred twenty six trillion one hundred forty six billion four hundred seventy six million three hundred twelve thousand rupiah).903. as referred to in Article 5 verse (4).
Net foreign financing amounted negative Rp155.. Article 22C. as referred to verse (1) through the issuance of Presidential Regulation. Article 22D. namely Article 22A..31 - two million eight hundred eighteen thousands rupiah).00 (one hundred fifty five billion five hundred forty six million five hundred four thousand rupiah). and b. 19. set to be State Capital on these State Owned Enterprises (2) DIPA Approval of line ministry/agencies fiscal year 2010 for procurement of BMN to be used and/or operated by the BUMN. Between Article 22 and Article 23 inserted 5 (five) Articles. (3) Details of budget deficit financing fiscal year 2010 as referred to in verse (2) is as stated in this verse explanation. (2) Government gives the assignment to the General Services Agency -Government Investment Center (BLU PIP) to carry out the lending. Article 22E. .000.546. (3) The lending as referred to verse (1) is to follow the provisions on government regulation Number 1 Year 2008 on Government Investment. thus it reads as follows: Article 22A (1) Government gives soft loan to National Electricity Limited (PT PLN) (Persero).504. Article 22B. Article 22B (1) State Property (BMN) derived from DIK/DIP/DIPA line ministry/agencies used and/or operated by the State Owned Enterprises (BUMN) and were listed on the balance sheet of State Owned Enterprises as a Not Defined Status Governmental Aid (BPYBDS) or similar accounts..
as well as a consent to the transfer of BMN as the government capital participation in BUMN that use/operate the BMN (3) Further provisions concerning the implementation of the government capital participation in State Owned enterprises (BUMN) as referred to in verse (1) stipulated by the Government. Article 22C Further changes details of the budget deficit financing like changes in maximum limit of subsidiary loan agreement due to issuance and acceleration of withdrawal of subsidiary loan agreement. the rest of the budget that is not absorbed until the end of fiscal year 2010 to be launched in fiscal year 2011 (2) Issuance proposal referred to in verse (1) submitted to the Minister of Finance in the form of draft DIPA-Issuance (DIPA-L) at the latest on January 31.32 - the BUMN. 20.000. 2011 (3) Further implementation regulation of DIPA-L as referred to in verse (1) and verse (2). Provision… .946. Article 22E (1) Cumulated budget surplus (SAL) is used to cover the budget deficit fiscal year 2010 amounted to Rp39. stipulated by the Government and reported in the central government financial report (LKPP).00 (thirty nine trillion three hundred forty seven billion nine hundred forty six million eight hundred eighteen thousand rupiah) (2) State Audit Agency conducts a special audit of the use of SAL as referred to in verse (1) and SAL/SILPA from year to year. stipulated by the government.347. Article 22D (1) In the case of the sustainability of the implementation of the activities that where the funds are sourced from subsidiary loan agreement and have been allocated in the budget execution index list (DIPA) fiscal year 2010..818.
thus Article 25 reads as follows: Article 25 (1) Minister of Finance is authorized to settle receivables accounts of Government agencies that administered/managed by a committee affairs of state receivables/Directorate General of State Assets. small and medium enterprises (M/SMEs). 21.. the Government may issue Government Securities (SBN) to finance the implementation of APBN for next fiscal year (prefinancing). and receivables in the form of credit for ownership of simple house/very simple house (KPR RS/RSS).33 - 20. (2) After the fulfillment of needs through debt financing for the current budget year. Provisions of Article 26 verse (1) and verse (2) are amended. especially receivables of micro. including but not limited to the restructuring and haircut of principal receivables up to 100% (hundred percent). thus Article 26 reads as follows: Article 26 (1) In terms of actual Revenue are not sufficient to meet the needs of state spending at a given time. shortcomings can be met from Surplus Balance Budget funds (SAL). Issuance of Government Securities (SBN) or adjustment of state spending. (2) Further provisions on procedures for settlement referred to in verse (1) regulated by the Regulation of Finance Minister. (3) Government may buy the SBN for market stabilization purposes with due regard to the amount of net SBN issuance needs … . Provision of Article 25 verse (1) is amended.
H. particulary in yield Government Securities significantly. Legalized in Jakarta On May 25. (5) In the case that the financial market conditions deteriorate. 2010 THE PRESIDENT OF THE REPUBLIC OF INDONESIA DR. order the enactment of this law by publishing it in the State Gazette of the Republic of Indonesia. So that everyone knows it. Article II This law shall come into force on the date of promulgation. the government may do good standby loan withdrawal of bilateral and multilateral creditors. causing increased cost of debt. (6) Implementation of the provisions referred to in verse (1) to verse (5) specified in the APBN Amendment of 2010 and/or the Central Government Financial Report (LKPP) in 2010. SUSILO BAMBANG YUDHOYONO Enacted in… .34 - issuance needs to meet the financing needs which has been stipulated. (4) In the event that there is an alternative source of debt financing that is more profitable. the government may make changes to the composition of debt financing instruments without causing a change in total cash debt financing..
2010 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA..35 - Enacted in Jakarta On May 25. PATRIALIS AKBAR STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 69 OF 2010 .
S. the average interest rate of SBI (three) months is expected to reach 6. estimated inflation rate of 5. In addition. the rupiah exchange rate is expected to be in the range of Rp10. and the macroeconomic framework and key points of policy fiscal year 2010. GENERAL APBN fiscal year 2010 as stipulated in law Number 47 Year 2009 is carried out based on the provisions contained in the Law Number 17 Year 2003 regarding state finances. particularly since mid-2009 and the first month of 2010. as well as various policy measures are expected to be completed in year 2010.5% (six point five percent).0% (five point zero percent). the Government deems it necessary to update the basic macroeconomic assumptions used as the basis for preparing the 2010 APBN budget.ELUCIDATION OF LAW OF REPUBLIC OF INDONESIA NUMBER 2 YEAR 2010 ON AMENDMENTS OF LAW NUMBER 47 YEAR 2009 ON THE INDONESIAN BUDGET (APBN) YEAR 2010 I.5% (five point five percent). Measurement that serves as the basis for calculating the APBN 2010 budget are as follows: economic growth is estimated at approximately 5. social.000 (ten thousand rupiah) per one US dollar. based on government work plan (RKP) in 2010. dollars) per barrel. there have been changes and developments in internal and external factors. By looking at and considering the progress of macro-economic indicators during 2009. the average of Indonesian Crude Oil Price (ICP) in the International market in the 2010 is expected to be in the range of US$ 65. and political conditions which evolved in recent months.0 (sixty-five point zero U. the APBN fiscal year 2010 also consider the economic. Amidst the global economic situation that has not fully recovered from the financial and economic … . and the lifting of crude oil estimated at 965 (nine hundred sixty five) thousand barrels per day. Since the enactment of Law Number 47 Year 2009 regarding APBN fiscal year 2010.
5% (four point five percent).9 percent. The local tax revenue and natural resource revenues (SDA) are not counted as tax revenue as those are used in several other countries in calculating the tax ratio. so that economic growth in 2010 is estimated at 5. Increase in the inflation rate was mainly affected by rising international prices for some commodities and demand along with increased domestic economic activity. This development is expected to continue in the year 2010 so that the assumption of an average price of Indonesian crude oil during 2010 is estimated to reach U. which tends to increase.9 billion.$80. Then.0 (eighty point zero US Dollar) per barrel. In accordance … .3% (five point three percent).200. the figures of Indonesian possible tax ratio will be much higher than 11. The strengthening rupiah also influenced by the increase of foreign exchange reserves in line with the support of the cooperation among central banks through Bilateral Currency Swap Arrangement (BCSA). import duties.325. the Indonesian economy year 2009 grew 4. In this case. improved economic performance and the presence of positive sentiment in global and domestic market in recent months.-2- and economic crisis. VAT (PPN) and sales tax on luxury goods (PPnBM). This also occurs in ICP.00 per one U.S. the tax revenue covers only the central tax revenue consists of revenue from income tax (PPh). land and building tax (PBB). The rate of inflation in the year 2010 is expected to reach 5. when compared with the average price during 2009. stronger than the assumption in the APBN fiscal year 2010 budget. with a tax ratio of 11.9 percent tax ratio is the percentage ratio of tax revenue to nominal GDP of Indonesia. international oil prices in early 2010 has increased along with increasing world demand for crude oil. excises. This reinforcement is encouraged by reincreasing capital inflows.8% (five point eight percent) higher than the assumptions in the APBN fiscal year 2010. other taxes.5% (six point five percent) or the same assumptions in the APBN fiscal year 2010. Figures 11. Meanwhile. Changes in the magnitudes of basic macroeconomic assumptions. higher than the inflation rate set out in Budget 2010.S dollar. will be followed by changes in fiscal policy in an effort to nourish the APBN by controlling the budget deficit at a safe level. duties on land and building transfer (BPHTB). Tax revenue in the year 2010 is projected to amount to Rp743. The Indonesian economy in 2010 is estimated to be better than in 2009. To continue to promote the performance of the real sector. which is in turn also affect the magnitudes of APBN. and export duties. If it incorporates local tax revenues and natural resources revenues in the calculation of tax ratio. the rupiah in the year 2010 is estimated at Rp9. interest rate of SBI-3 months in the year 2010 is maintained at the level of 6.9 percent.
506.000. ARTICLE BY ARTICLE Article I Number 1 Article 1 Self explanatory. Number 2 Article 2 Verse (1) Self explanatory.000.766. Verse (2) Originally planned tax revenues Rp742. Number 3… . Verse (5) Originally planned total Budget fiscal year 2010 Rp949.000.114. II.304.738. Verse (3) Originally planned non-tax revenues Rp205.00 (seven hundred forty two trillion seven hundred thirty eight billion forty five million rupiah).000. amendments of The Indonesian Budget fiscal year 2010 needs to be regulated by law.-3- In accordance with the provisions of Article 27 of Law Number 17 Year 2003 regarding Public Finance juncto Article 27 of law Number 47 Year 2009 on The Indonesian Budget Fiscal Year 2010.114.00 (one trillion five hundred six billion seven hundred sixty six million rupiah).411.00 (two hundred five trillion four hundred eleven billion three hundred four million one hundred fourteen thousand rupiah).115. Verse (4) Originally planned grants Rp1.656.045.000.000.00 (nine hundred forty nine trillion six hundred fifty six billion one hundred fifteen million one hundred fourteen thousand rupiah).
000. Verse (2) Originally planned domestic tax revenue Rp715. 2. 3. Bank… .718.00 (three hundred twenty eight billion four hundred fifty four million one hundred thirty eight thousand seven hundred eighteen rupiah) is given to: 1. Tax receivables of ex-Televisi Republik Indonesia (TVRI) amounting to Rp112.454.746.00 (one hundred fifty billion eighty three million five hundred sixty three thousand eight hundred ninety six rupiah). 2.539.563.330.071.138.00 (seventy six billion four hundred fourteen million seventy one thousand five hundred rupiah).-4- Number 3 Article 3 Verse (1) Self explanatory.000.543. Tax receivables of ex-National Bank Restructuring Agency (IBRA) amounting to Rp382.534. Muamalat Bank amounted to Rp76.915.00 (four hundred ninety five billion three hundred thirty million one hundred ninety five thousand nine hundred fifty nine rupiah) consist of: 1.414.00 (seven hundred fifteen trillion five hundred thirty four billion five hundred forty three million rupiah).083.959.195.790. Bank Negara Indonesia amounted to Rp150. DTP PPh ex the National Bank Restructuring Agency (IBRA) and Televisi Republik Indonesia (TVRI) Rp495.896.449. DTP PPN for murabahah transaction on sharia banking amounting to Rp328.00 (three hundred eighty two billion seven hundred ninety million seven hundred forty six thousand nine hundred fifteen rupiah).044.00 (one hundred twelve billion five hundred thirty nine million four hundred forty nine thousand forty four rupiah).500.
Bank Bukopin amounted to Rp76.292.885.500.822.584.249. Tax receivables of ex-National Bank Restructuring Agency (BPPN) amounted to Rp1.613. Bank Syariah Mandiri amounted to Rp25.00 (eighty two billion five hundred ninety five million six hundred two thousand eight hundred eighty five rupiah).466.-5- 3. and Bank Syariah Mandiri amounted to Rp 25.071.101.822.028.431. DTP PPN for tax receivables of ex-National Bank Restructuring Agency (BPPN).00 (one trillion eighty six billion twenty six million six hundred thirteen thousand six hundred thirty two rupiah). Televisi Republik Indonesia (TVRI) and PT Kereta Api Indonesia (KAI) amounted to Rp1.00 (one trillion two hundred ninety two billion twenty eight million four hundred sixty six thousand one hundred one rupiah) is given to: 1.00 (seventy six billion four hundred fourteen million seventy one thousand five hundred rupiah). Tax receivables of ex-Televisi Republik Indonesia (TVRI) amounted to Rp82.602. and 4.00 (twenty five billion five hundred forty two million four hundred thirty one thousand eight hundred twenty two rupiah).542.and 3.595.431.414.406.086. 2. Tax receivables of ex-PT Kereta Api Indonesia (KAI) amounted to Rp123.00 (one hundred twenty three billion four hundred six million two hundred fourty nine thousand five hundred eighty four rupiah) Verse (3)… .00 (twenty five billion five hundred forty two million four hundred thirty one thousand eight hundred twenty two rupiah).026.542.632.
000.000.098.000.00 29.000.000.00 17.000.533.572.000.421.000.000.557.000.00 303.00 59.000.00 306.00 55.000.00 29.723.000.00 (seven hundred forty two trillion seven hundred thirty eight billion forty five million rupiah).864.860.020.219.00 32.00 (twenty seven trillion two hundred three billion five hundred two million rupiah).000.000.000.640.000.922.00 59.000.383.00 26.000. Details of tax revenue fiscal year 2010 are as follow: (in Rupiah) Original 411 Domestic tax revenue 4111 Income tax (PPh) 41111 Oil and gas income tax 411111 Oil income tax 411112 Gas income tax 41112 Non Oil and gas income tax 411121 Income tax Article 21 411122 Income tax Article 22 411123 Income tax Article 22 on import 411124 Income tax Article 23 411125 Personal income tax Article 25/29 411126 Corporate income tax Article 25/29 411127 Income tax Article 26 411128 Final income tax 41113 Intenational fiscal income tax 411131 International fiscal income tax 4112 4113 4114 4115 Value added tax and sales tax on luxury goods Land and building tax Duties on land and building transfer Revenue Excises 41151 Excises 7.738.690.169.000.155.537.450.000.00 5.280.000.000.382.000.000.000.570.433.000.812.962.000.000.982.000.756.934.00 61.00 126.780. Verse (4) Originally planned tax revenue Rp742.000.00 350.000.00 61.000.000.000.000.357.148.213.000.494.00 22.922.961.000.885.957.360.000.00 7.000.000.957.000.913.000.865.162.000.600.00 4.000.893.000.00 262.00 19.138.00 411511 Excises … .655.00 22.380.723.517.000.00 47.000.00 763.573.110.000.000.000.410.000.265.000.000.300.000.000.000.000.00 132.00 715.000.000.000.000.000.319.000.000.00 23.570.000.00 4.289.295.000.000.899.295.715.000.00 39.000.390.00 18.265.191.203.000.543.000.000.525.00 269.00 After 362.000.000.834.824.000.00 720.836.000.502.00 39.000.289.023.534.045.000.992.764.000.000.00 25.000.000.000.000.00 57.00 21.000.640.506.000.00 57.169.00 763.00 28.00 5.573.392.-6- Verse (3) Originally planned international trade tax revenue Rp27.00 42.000.400.049.
00 842.00 27. Verse (2a) Self explanatory.00 419.000.-7- 411511 411512 Excises from tobbaco production Excises from ethyl alcohol 520.000.569.000.023.000.237.00 3.000.000.000.000.000.000.000. and in order to accelerate the settlement of receivables in the troubled state-owned enterprises (BUMN) in banking.894.030.00 55.00 22.813.00 411513 Excises from ethyl alcohol beverage contained 4116 4121 4122 Other Taxes Import duties Export duties 412 International Trade Taxes Number 4 Article 4 Verse (1) Self explanatory.000.000.373.00 55.000.000.926. Year 1960 regarding committee of State Receivables Affairs.922.00 (twenty four trillion rupiah).000.000.206.196.000.561.000.633.00 3.00 19.000. Verse (5) In the wait of pending legislation amendment Number 49 Prp.841.926. Verse (4) Originally planned dividens from BUMN Rp24.00 7.420.000.637.000.000. Verse (3) Self explanatory.00 (one hundred thirty two trillion thirty billion two hundred six million eight hundred ninety four thousand rupiah).000.000.502.203.000.106.980. Verse (2) Originally planned natural resources revenue Rp132.000.560.763.865.00 5.000.000.000.000.851.000.000.00 2.454. claims processing can be done through the … .553.00 17.865.
Verse (12) … .00 (thirty nine trillion eight hundred ninety four billion two hundred twenty million one hundred seventy one thousand rupiah). Verse (7) Provision of margin to PT PLN (Limited) for fiscal year 2009 set at 5% (five percent). Verse (10) Originally planned PNBP target of Directorate General of Aviation.032.-8- through the management mechanisms under the provisions of legislation in the field of limited liability.111.894.220. Verse (11) Originally planned PNBP target of Directorate General Post and Telecommunication Ministry of Communication and Informatics Rp9.050.607.000. Related to the granting of authority to the RUPS.931.697.171.00 (nine trillion thirty two billion six hundred seven million nine hundred thirty one thousand fifty rupiah).00 (four hundred fifty billion twenty six million one hundred eleven thousand six hundred ninety seven rupiah). Ministry of Transportation Rp450. Verse (9) Originally planned other non-tax revenues Rp39.026. the settlement of unsettled receivables in the State Owned Enterprises (BUMN) in the banking business is based on the provisions of legislation in the field of state-owned enterprises. Verse (6) Self explanatory. Verse (8) Removed.
000.000.00 112.123.000.090.000.000.000.00 8.000.000.000.877.000.000.00 1.000.00 100.000.631.582.000.00 31.000.00 39.000.000.000.732.090.000.620.510.114.000.000.240.738.509.00 (nine trillion four hundred eighty six billion eight hundred seventy seven million forty nine rupiah).411.000.515.00 9.240.00 89.000.631.000.000.226.204.000.025.037.000.000.000.000.000.00 1.00 100.00 100.000.000.000.000.00 19.000.283.00 741.416.416.00 741.00 (two hundred five trillion four hundred eleven billion three hundred four million one hundred fourteen thousand rupiah.000.00 112.650.000.000.304.726.000.874.00 4215 Fishery… .000.00 89.000.000.650.611.000.00 9.874.000.780.00 1.000.231.00 19.00 117.000.00 19.000.510.000.000.000.000.000.000.000.-9- Verse (12) Originally planned BLU Revenues Rp9.00 164.00 Original After 132.000.025.000.894. Details of Non Tax Revenue fiscal year 2010 are as follow: (in Rupiah) Type of Revenues 421 Natural resources revenue 4211 Oil revenue 42111 Oil revenue 4212 Gas revenue 42121 Gas revenue 4213 General mining revenue 421311 Land rent revenue 421312 Royalty revenue 4214 Forestry revenue 42141 Reforestery fund revenue 42142 Forest provision revenue 42143 IIUPH revenue 421431 Industrial plants IIUPH revenue 421434 Natural forest IIUPH revenue 42144 Forest area use revenue 421441 Revenue from forest area use for development interest beyond forestry activity 100.741.486.049.114.303.000.000.026.000.317.000.000.515. Verse (13) Originally planned non-tax revenue Rp205.00 1.00 8.206.000.00 2.000.000.00 155.030.00 39.894.000.123.741.00 19.583.000.000.204.00 31.226.780.303.00 2.
000.000.195.477.755.483.330.000.420.848.000.000.000.171.904.00 423114 Sales revenue from confiscated 423124 Other sales revenue from surplus/ 42313 Sales revenue from oil and gas upstream 6..000.00 7.514.000.200.00 1.000.701.949.288.000.00 150.861.220.000.760.000.558.758.00 12.385.00 3.000.918.000.195.00 6.00 22.00 3.620.000.620.998.628.500.000.848.070.428.000.000.000.813.000.000.954.428.330.00 19.500.000.949.894.00 244.000.971.00 39. survey.000.00 244.679.000.000.200.00 1.000.00 19.00 4.789.000.000.00 1.000.00 5. offices and land 423122 Sales revenue from vehicle 423123 Sales revenue from leasing damaged/removed assets 323.000. buildings.000.000.000.000.00 47.000.200.00 6.531.000.301.000.00 1.000.00 22.00 244.00 150.000.000. film.00 323.462.725.000.000.000.477.840.publication.000.789.mapping and other printed production 423117 Sales revenue from auction documents 423119 Other sales revenue 42312 Asset sales revenue 423121 Sales revenue from Houses.000.000.00 44.00 423132 Revenue… .00 423 Other non-tax Government revenues 4231 Sales and rental revenue 42311 Sales revenue from Production /confiscated proceeds 423111 Sales revenue from agricultural Forestry and plantation product 4.000.00 4216 Geothermal mining revenue 421611 Geothermal mining revenue 422 Dividens from BUMN 4221 Dividens from BUMN 24.00 29.558.00 43.00 13.462.00 44.755.420.000.000.000.000.000.679.930.531.00 422.000.420.000.10 - 4215 Fishery revenue 421511 Fishery revenue 150.572.000.628.763.200.00 422.701. and other pharmacies product revenue 423116 Sales revenue from information.000.813.00 423112 Sales revenue from animal farming and fishery product 423113 Sales revenue from mining product item and bequethad 423115 Sales of medicines/drugs.00 40.000.00 150.725.289.763.00 12.000.000.301.00 5.420.288.000.289.497.00 40.000.000.128.000.000.000.00 29.000.00 13.000.000.00 244.000.954.00 24.375.000.121.420.628.00 47.
000.385.00 4.930.726.501.00 1.11 - 423132 Revenue from Domestic Market Obligation (DMO) on oil and gas 42314 Rental Revenue 423141 rental revenue from public houses/official houses 423142 rental revenue from building.00 80.042.438.461.000.919.000.00 780.000.117.234.110.00 2.052.422.840.814.000.000.00 90.603.000.266.549.457.000.000.00 423217 Service revenue from Religius affairs Officers 423218 Service revenue from Airport.122.549.918.281.00 44.234.000.00 423213 Revenue from notification reference letter.857.00 13.000.00 76.000.457.603.00 10.00 44.846.000.000.691. quarantined.information.063.098.457.385.technology.424.413.211.000.000.817.130.000.00 92.vehicle registration (STNK).719.431.00 33.400.424.000.431.661.117.904. and navigation 42322 Service II Revenue 423221 Service revenue from financial Institution (current account service) 76. passport.00 4.526.240.000.00 423222 telecommunication… .457.500.000. BPN income.000.000.00 8.00 75.000.000. jobs.000.00 6.00 90.064.000.00 9.00 724.098.000.246.052.500. and DJBC income (work service from excises) 2. offices.000.094.000.000.857.110.365. visa.919.00 80.000.00 724.00 14..000.438.281. driving license (SIM).285.00 7. and warehouse 423143 Rental revenue from tangible assets 423149 Rental revenue from intangible assets 4232 Service Revenue 42321 Service I Revenue 423111 Revenue from Hospital and other 423212 Revenue from tourism parks/ museums and natural tourism business levies (DUDA) 14.211.365.884.836. training.246.000.000.814.00 92.000.00 20.063.000.726.422.130.352.094.00 33.and BPKB 423214 Revenue from rights and licenses 423215 Revenue from censorship.636.00 10.000.00 75.00 775.00 1.064.070.042.240. supervision/inspection 423216 Revenue from manpower service.000.00 14.661.303.00 19. port.
026.000.103.007.500.000.000.00 67.000.000.610.00 1.000.000.000.000.011.000.252.00 103.000.00 44.00 4.250.008.000.960.500.000.00 425.000.245.000.750.103.00 60.000.988.00 423264 Revenue… .007.963.375.000.000.00 580.275.00 3.000.00 289.00 3.000.245.830.00 8.524.047.000.000.250.00 3.400.623.875.103.000.610.000.000.000.000.400.00 770.00 8.750.524.706.00 754.000.193.524.375.000.000.000.110.000.875.000.00 770.103.00 6.988.750.000.00 770.960.000.000.000.00 3.623.000.00 367.000..000.00 103.000.00 4.000.00 1.275.00 425.750.00 770.00 576.00 1.000.000.00 1.00 289.500.000.000.705.026.000.00 67.500.047.00 3.00 3.00 44.000.00 399.000.000.706.000.524.008.000.000.00 3.00 399.000.000.000.00 754.000.000.12 - 423222 Telecommunication service revenue 423225 Revenue from tax invoice costs through warrants 423226 Revenue from citizenship fees 423227 Revenue from Auction incentives 423228 Arevenue from debt and auction management 423229 Revenue from Doctor and Dentist registration 42323 International Service Revenue 423231 Revenue from travel licenses distribution of the Republic of Indonesia 423232 Revenue from Consular document Management service 423239 Other routine foreign revenue 42324 Banking Service Revenue 423241 Banking service revenue 42325 Revenue from Treasury Single Account Goverment money and/or placement 423251 Revenue SP2D Issuance in the framework of TSA 423252 Revenue from Government Money Placement in Public Banks 423253 Revenue from Treasury National polling Implementation 423254 Revenue from State money investment at Bank of Indonesia 42326 Police service revenue 423261 driver's license (SIM) revenue 423262 Revenue vehicle registration card (STNK) 423263 Revenue vehicle trial card (STCK) 367.705.011.233.00 6.000.000.000.
00 1.635.462.864.020.000.000.541.000.682.150.000.000.000.230.00 150.00 3.342.000.842.000.292.000.000.000.000.00 25.000.00 450.741.000.00 19.00 7.00 150.00 214.342.000.000.342. promotion and education end 423513 Revenue of examination fee to conduct practice 423519 Other educational revenue 4236 Revenue from gratification and corruption confiscated money 49.000.00 3.150.842.680.000.00 247.000.00 567.012.000.000.000.00 1.00 4.000.000.864..13 - 423264 Revenue of motor vehicle owner book (BPKB) 423265 Revenue of vehicle identification number (TNKB) 214.000.174.174.700.500.741.462.00 1.000.544.000.090.00 27.00 19.541.674.000.462.000.000.00 27.462.000.00 4.000.00 22.000.674.00 49.002.00 4.000.645.741.000.000.000.000.00 1.00 567.000.00 25.230.000.842.000.00 1.342.000.680.150.00 1.000.740.000.875.700.000.00 22.000.230.00 3. 000.000.000.682.00 32.000.00 79.00 450.541.635.00 32.052.500.000.842.000.00 79.875.000.000.00 423266 Driver's clinical test (klipeng) revenue 423267 revenue of grant permit of firearm 42329 Other service Revenue 423291 Other service revenue 4233 Interest revenue 42331 Interest revenue 423313 Interest revenue from receivables and subsidiary loan 423319 Other interest revenue 4234 Revenue from attorney and court system 42341 Revenue from attorney and court system 423411 Revenue from signature legalization 423412 Revenue from private letter ratification 423413 Revenue from wage and incentive and court officials 423414 Revenue from fine/traffic tickets and so on 423415 Revenue from case incentives 423419 other Revenue of attorney and court 4235 Educational Revenue 42351 Educational Revenue 423511 education fee revenue 423512 Revenue of admission examination fee.00 22.002.000.00 150.740.00 7.052.000.544.292.842.645.541.842.000.000.712.00 27.00 247.000.000.000.357.645.00 42361 Revenue… .000.357.020.000.00 746.230.150.00 4.000.000.012.674. 000.000.000.000.00 1.00 3.000.712.000.645.741.000.000.000.000.000.000.00 27.00 22.00 150.174.00 746.00 3.090.000.
00 473.524.431.000.900.00 16.000.300.185.000.915.6126.96.36.1993.00 638.000.00 8.511.00 345.800.200.000.00 87.00 1.000.224.00 2.000.800.00 2.020.431.00 25.638.00 1.00 42391 Revenue… .414.114.00 38.416.000.000.374.000.00 34.114.431.795.000.524.000.000.000.000.000.886.00 7.000.000.000.00 473.215.00 16.00 49.886.00 7.830.000.056.796.000.000.333.00 16.333.000.300.385.385.00 345.150.000.00 4239 Other Revenues 14.333.00 2.000.00 526.224.000.00 2.000.000.000.00 38.000.000.414.000.638.000.00 25.00 638.000.150.000.00 40.000.000.796.680.000.137.000.795.00 87.295.374.00 34.000.137.680.830.00 16.00 526.000.000.000.00 49.638.000.020.915.00 2.00 1.14 - 42361 Revenue from gratification and corruption confiscated money 423611 Revenue of corruption confiscated generates money by the courts 423612 Revenue of gratification that has been stipulated by the KPK to Goverment’s property 423614 Revenue from corruption criminal act repayment regulated by the courts 4237 Dues and Fines Revenue 42371 Revenue of business Entity’s contribution 423711 Revenue of business entity’s from the activity fuel (BBM) provision and distribution activity 423712 Revenue of business entity’s contribution from gas transportation 423713 Business Entity’s contribution in the field of capital market 42372 Revenue from the forest protection Fund 423721 Revenue from the forest protection fund 42373 Revenue from the forest protection and natural conservation 423731 Revenue from catching/ taking/transporting wild animal/taking/transporting natural plants dead or alive 423732 Natural tourism exploitation permit fee (PIPPA) 423735 Natural tourism attraction entrance fee 423736 Natural tourism exploitation business fee (IHUPA) 42375 Fine Revenue 423752 Revenue from fine of government completion delay 2.000.00 8.431.056.000.000.511..200.000.000.00 40.181.000.000.416.000.
00 9.00 3.917.000.00 2.942.000.932.000.433.000.716.590.521.592.000.000.000.000.00 42412 Revenue… .416.133.000.000.000.000.486.877.00 8.00 6.000.00 3.932.180.849.00 424111 Revenue of hospital service 3.000.00 45.000.404.590.000.215.000.404.00 2.785.130.00 2.00 2.433.000.000.000.000.003.00 1.486.000.00 1.529.00 45.215.837.786.786.00 8.790.202.167.000.416.871.00 2.000.950.049.845.00 1.000.00 1.00 8.000.000.000.734.000. training and technology 424114 Revenue of printing service 424116 Revenue of telecommunication business service 424119 other revenue of goods and service provision 184.150.00 6.00 3.734.00 3.244.404.00 2.000.849.497.845.529.00 1.000.00 2.00 424117 Revenue of marketing service 45.00 2.414.500.265.000.000.00 1.00 1.000.173.837.996.871.00 184.00 2.404.000.00 3.500.414.00 3.00 45.000.000.785.00 2.497.790.355.15 - 42391 Revenue of expenditure change of fiscal year (TAYL) 423911 Central personnel expenditure change of previous fiscal year 423912 Refund of pension expenditure from previous fiscal year 423913 Other pure Rupiah expenditure change of previous fiscal year 423914 Other international loan expenditure change of previous fiscal year 423915 Other grant expenditure change of previous fiscal year 423919 Other expenditure change of previous fiscal year 42392 Revenue from debt amortization 423921 Revenue from non treasure debt amortization 423922 Revenue from full payment of compensation for state losses suffered by the state (including TP/TGR) 42399 Other Revenues 423991 Revenue from salary down payment 423999 Other budget revenue 424 Public Service Agency Revenue (BLU) 4241 Revenue from general service 42411 Revenue of Goods and service provision to the public 424112 Revenue of education service 424113 Revenue of service of personel. information. employment.998.716..00 2.167.049.000.000.630.996.202.00 2.000.000.312.00 1.00 9.00 8.000.00 8.000.003.000.664.00 2.00 2.630.103.00 3.00 2.000.312.000.877.860.000.000.000.150.103.613.000.133.140.612.917.942.000.521.592.040.000.613.026.664.612.860.998.
942.120.000.750.282.000.927.000.000.000.000.00 75.026.000.000.00 4.927.00 304.353.000.00 158.100.868.085.00 47.000.000.000.00 2.282.000.00 78.324.026.000.00 1.000.000.927.00 4.00 351.705.00 75.300.00 2.126.454.305.000.324.868.000.000.000.300.782.000.00 424123 Revenue from the management 424312 Institution… .00 2.000.000.768.437.412.00 158.000.353.000..600.454.927.600.305.000.00 1.00 27.000.000.000.335.00 360.00 351.000.120.296.000.00 520.000.000.126.000.000.085.600.00 520.000.942.00 360.00 2.496.750.085.501.782.501.000.600.000.000.00 101.025.000.025.00 520.00 304.000.16 - 42412 Revenue from management of certain territory/area of Government ownes public facility 424129 Revenue from Management of other area 42413 Special fund management for the public 424133 Revenue from Venture capital program 424134 Revenue from Sectoral revolving fund program 424135 Revenue from Shariah revolving fund program 424136 Revenue from Investment 424139 Other revenue from management of other special fund 4242 Revenue from grant of Public Service Agency 42421 Revenue from binding grant 424211 Revenue from binding individual domestic grant 424212 Revenue from binding institution/business entity domestic grant 424213 Revenue from binding regional government domestic grant 424216 Revenue from binding foreign country grant 42422 Revenue from non binding grant 424221 Revenue from non binding individual domestic grant 424229 Revenue from other non binding grant 4243 Revenue from cooperation Proceed of Service Agency (BLU) 42431 Revenue from cooperation Proceed of Service Agency (BLU) 424311 Revenue from Individual cooperation proceeds 4.000.00 158.00 47.00 19.00 158.000.00 1.437.100.00 1.705.000.000.000.335.282.00 3.00 101.000.412.000.000.085.000.000.751.00 78.751.030.282.00 102.768.482.000.000.00 27.000.00 19.030.00 3.296.496.00 4.00 102.482.00 520.
00 (one hundred six billion one hundred fifty million rupiah).327.177.00 129.177. Water… .150.000.00 (eighty billion eighty million rupiah).00 129.000.000. Drinking water grant program amounted to Rp106.000. 4.177.000.832.000.00 2.000.133.00 (seven hundred eighty one trillion five hundred thirty three billion five hundred forty six million eight hundred thirty two thousand rupiah). and subsidiary loan agreement and/or foreign grants which are granted to the regions. 3.00 513.080.000. 2. covering: 1.00 Number 5 Article 5 Verse (1) Self explanatory.000.546.000.000. Centralised Waste water grant program amounted to Rp10.133.000. Verse (2) Central Government Expenditure budget estimated at Rp781.000.00 (one billion rupiah) in payment obligations/debt expenditure account. 5.327.000.000.500.00 129.000.000.133.133.133.00 129.00 2.000.500. Mass Rapid Transit (MRT) project amounted to Rp34.177.000.000.177.000.000.000.000.177.17 - 424312 Institution/business entities cooperation revenue 424313 Revenue from regional government proceed with cooperation 4249 Other revenue from Public Service Agency (BLU) 42491 Other revenue from Public Service Agency (BLU) 424911 Revenue from BLU banking service 129..00 (thirty four billion three hundred eighty six million rupiah). including Banking comission on Japan’s grants amounted to Rp 1.533.00 129.386.00 (ten billion rupiah). Local basic education capacity program (L-BEC) amounted to Rp80.00 513.000.133.000.000.
Number 6 Article 6 Verse (1) Self explanatory. Verse (3) Originally planned transfer to region Rp322.243.000.010.000.000.243.990.00 (seven hundred twenty five trillion two hundred forty three billion ten million nine hundred and ten thousand rupiah). Verse (2) Central government expenditure by organization is originally planned at Rp725. Verse (4) Originally planned total amount of Government Expenditure Budget fiscal year 2010 at Rp1..00 (seven hundred twenty five… .00 (three hundred twenty two trillion four hundred twenty three billion thirty two million eighty thousand rupiah).910.910.243.010.423.000.000.602.00 (One quadrillion forty seven trillion six hundred sixty six billion forty two million nine hundred ninety thousand rupiah).000.032.910.18 - 5.00 (twelve billion six hundred two million rupiah).047. Originally planned central government expenditure budget Rp725.00 (seven hundred twenty five trillion two hundred forty three billion ten million nine hundred and ten thousand rupiah).000.666.080.042. Verse (3) Central government expenditure by function is originally planned at Rp725. Water and sanitation program-sub program D (WASAP-D) amounted to Rp12.010.
Biofuel and 3 (three) kilogram LPG cylinder subsidies fiscal year 2010 amounted to Rp68. Number 7 Article 7 Verse (1) Originally stipulated fuel.726. fuel (b) continue the diversion program of kerosene to 3 (three) kilogram LPG cylinders.910.00 (sixty eight trillion seven hundred twenty six billion seven hundred million rupiah). Verse (4) Central government expenditure by economic classification is originally planned at Rp725. Verse (2) Saving policies of subsidized petrol are through: (a) phased implementation of subsidized distribution system with a closed pattern.010. and (c) increase subsidized fuel distribution controls. Verse (3) Self explanatory.000.00 (seven hundred twenty five trillion two hundred forty three billion ten million nine hundred and ten thousand rupiah). Verse (5) Removed Verse (6) Self explanatory.700.000.19 - twenty five trillion two hundred forty three billion ten million nine hundred and ten thousand rupiah).243.. Number 8… .
800.00 (thirty seven trillion eight hundred billion rupiah).000.00 (fourteen trillion seven hundred fifty seven billion two hundred fifty nine million rupiah).000. Verse (2)… . Letter d The government referred to in this verse is Minister whose responsibility area are in energy affairs. Number 9 Article 9 Verse (1) Originally stipulated Fertilizer subsidies in fiscal year 2010 amounted to Rp14. among others. while in House of Representative Republic of Indonesia are comission who handles energy. the provision of margin to National Electricy Company (PT PLN) (Limited) is estimated at 8% (eight percent) in the year 2011 and amounted to 3% (three percent) in 2012. While the special services is a particular service level agreement between National Electricity Company/PT PLN (Limited) with the consumers.259.757. plus max power.000. Verse (2) Letter a In order to fulfill the financing requirements for investments in National Electricity Company /PT PLN (Limited). Letter c Tariffs aimed at encouraging saving electric power. Letter b Self explanatory.000..20 - Number 8 Article 8 Verse (1) Originally stipulated electricity subsidies in fiscal year 2010 amounted to Rp37.000.
Article 9E Subsidy payments based on the realization of the current year is reported on the Central Government Financial Reports. Verse (4) Self explanatory.000.322.000.523.000.035. Verse (3) Self explanatory.563.000.00 (eleven trillion three hundred eighty seven billion three hundred twenty two million thirty five thousand seven hundred rupiah).800..387.337.00 (sixteen trillion eight hundred seventy two billion eight hundred million rupiah).21 - Verse (2) Self explanatory. Article 9C Originally planned Tax borne by government (DTP) subsidy in fiscal year 2010 amounted to Rp16.700.030. Number 10 Article 9A Originally planned agriculture subsidies in fiscal year 2010 amounted to Rp11. Article 9D Originally planned Seeds subsidy in fiscal year 2010 amounted to Rp1.000. Article 9B Originally planned mortgage interest subsidy program in fiscal year 2010 amounted to Rp5.00 (five trillion three hundred thirty seven billion seven hundred twenty three million thirty thousand rupiah).723.872. Number 11… .00 (one trillion five hundred sixty three billion five hundred twenty three million rupiah).
Verse (4) Self explanatory.. Letter b The term of “Expenditure Budget Amendment sourced from Non Tax Revenue (PNBP) refers to excess of actual revenues from the planned targets in the APBN. can be used by government ministries and agencies in accordance with the provisions of a valid license usage. Letter c… . Verse (3) Self explanatory. That increased revenue. The surplus or remaining funds can then be used to increase the target or designated to other activities within the same program. Number 12 Article 16 Verse (1) Letter a The term of “the result of optimization” refers to the result of excess or the fund surplus acquired after the execution and / or signing a contract of an activity which target has been achieved. then.22 - Number 11 Article 14A Verse (1) Self explanatory. Verse (2) Self explanatory.
. And the term of “reported implementation in State Financial Reports” refers to reporting all changes of details/shifting in Central Government expenditure budget that had been running in 2010… . Verse (4) Self explanatory. That credit loans limit change of PHLN/PHDN consists of (a) foreign/domestic grants and grants that subsidiary grants that is received after APBN 2010 is stipulated and (b) subsidiary grants. the credit loans limit does not cover new projects credit loans that are not yet allocated in APBN 2010 and foreign loans/domestic loans sourced from commercial loan and export credit facilities. which are not continuity of multi years project. Verse (2) Self explanatory.23 - Letter c The term “change of credit loan limit and foreign grants (PHLN/domestic loans and grants (PHDN)” refers to Increased limit of PHLN/PHDN as a result of foreign project loans and grants launch/domestic loans and grants that are multi years and/or acceleration of the loans withdrawal which were already approved in order to optimize the utilization of foreign loans/domestic loans. Verse (3) Self explanatory. Nonetheless. Verse (5) The term “reported implementation in Amandment of APBN” refers to reporting all changes of details/shifting of Central Government Expenditure Budget that is reported before APBN Amendment 2010 to house of Representative.
Verse (3)… . Verse (2) Self explanatory. Verse (3) Self explanatory..00 (three hundred six trillion twenty three billion four hundred eighteen million four hundred thousand rupiah). Article 16B Self explanatory.24 - in 2010 after APBN Amendment 2010 to House of Representative.023.400. Verse (2) Self explanatory. Number 13 Article 16A Verse (1) Self explanatory.000. Verse (2) Originally planned balanced fund amounted to Rp306. Number 14 Article 17 Verse (1) Self explanatory.418. Article 16C Verse (1) Self explanatory.
which is revenue sharing fund (DBH).801.. Verse (3) Self explanatory. Verse (4) In the framework of DAU calculation in fiscal year 2010. Number 15 Article 18 Verse (1) Self explanatory. and seed subsidies. minus state revenue that has been distributed to the regions. Verse (4a) Self explanatory. food subsidies.00 (eighty one trillion four hundred four billion eight hundred one million four hundred thousand rupiah).400.404. also is directed budget (earmarked) in the form of non-tax revenues spending of line ministries/agencies tax subsidies and. Verse (5b)… . Verse (5a) Self explanatory. fertilizer subsidies. as well as a portion of several other subsidies which consists of fuel subsidies. Verse (5) Self explanatory. Verse (2) Originally planned revenue sharing fund amounted to Rp81.000. electricity subsidies.25 - Verse (3) Self explanatory. Net Domestic Revenue (PDN) refers to calculation from domestic revenue which is the sum of tax revenue and state non tax revenues.
000.00 - Less paid … .315.000.DBH of petroleum .00 12.00 25.Less Paid DBH PPh (2) Land and Building Tax (PBB) DBH .900.000.314.000.800.000.000.000.618.283.925. Verse (6) Self explanatory.000.000.496.000. Verse (5c) Self explanatory.00 1.00 25.180.00 7.190.527.362.483. Verse (5f) Self explanatory.00 1.000.445.314.063.00 23.00 13.400.26 - Verse (5b) Self explanatory.143.00 34. Verse (5e) Self explanatory.000.DBH PBB .00 2.118.000.000.901.800.000.000.000.000.446.000.000.404.000..00 7.937.015.00 12.100.248.000.355.00 13.00 188.8.131.522.104.000. consists of: (in rupiah) Original 1.100. Revenue Sharing Fund (DBH) a.00 35.000.000.513.00 46.00 859.078.200.369.000.173.600.000.439.392.363.110.00 23.061.400.00 45.Income Tax Article 25/29 of Individual person .000.500.155.000. Verse (5d) Self explanatory.531.000.117.00 (three hundred fourteen trillion three hundred sixty three billion three hundred fifteen million eight hundred thousand rupiah).172.00 26.325.236.00 After 89.236.801.000.899.171.527.000.00 11.00 17.171.00 3.000.470.949.00 9.000.00 859.440.043.DBH of Natural Gas 81.525.172. Tax DBH (1) Income Tax (PPh) DBH .671. Verse (7) Balanced fund amounted to Rp314.00 14.650.844.000.Less Paid DBH PBB (3) Dutible on Land and Building Transfer DBH (4) Tobacco Excises DBH b. DBH of Natural Resources (SDA) (1) DBH of Oil and Gas SDA .157.000.000.Income Tax Article 21 .984.318.000.921.600.885.672.
Forest Concession Right Contribution 15.296.000.000.000.000.000.229.900.000.00 (5) DBH of Geothermal Mining 195.00 (3) DBH of Forestry 1.00 21.000.00 21.000.757.133.00 121.00 192.994.00 203.892. Specific Allocation Fund (DAK) a.00 7.00 192.00 195.000.200.485.000.00 (five trillion eight hundred billion rupiah).420.792.342. Verse (3a) Originally planned additional allowance fund for regional civil servant teachers (PNSD) amounted to Rp5.420.800.566.Fixed dues 94.490.382.062.420.00 898.660.382.000.536.000.413.994.00 (2) DBH of General Mining 6.500.606.000.00 .00 10..000.000.000.700.500. Verse (4)… .00 21.Reforestation Fund 652.802.00 (seven trillion three hundred billion rupiah).099.790.000.000.00 Number 16 Article 20 Verse (1) Self explanatory.000.27 - .000.792.000.000.385.00 .00 15.000.666.491. Allocation Correction for Indramayu District 6.157.872.000.007.00 .000.002. General Allocation Fund (DAU) a.000.382.490.000.342.00 124.133.000.00 203.000.000.000.000.000.000.892.630.00 5.000.680.291.660.000.000.000.Less Paid Forestry (4) DBH of Fishery 120.Forest Resource Provision 898.234.000.500.500. Verse (2) Originally planned special autonomy fund amounted to Rp9.600.800.200.128.00 120.00 235.300.800.00 .000. Verse (3) Originally planned adjustmend fund amounted to Rp7.613.00 21.000. Pure General Allocation Fund (DAU) b. DAK b.000. Additional DAU for Teacher’s Profession Allowances c.000.800.Royalty 6.00 (nine trillion ninety nine billion six hundred thirteen million six hundred eighty thousand rupiah).000.585.000.000.500.000.500.000.066.000.000.700.00 1.00 652.536.00 2.00 .133.484.000.000.250. Allocation Correction for Indramayu District 3.00 7.800.800.Less Paid of DBH migas Year 2008 2.00 10.500.000.000.000.138.491.00 .000.
000. Verse (10) Self explanatory.00 (one trillion three hundred eighty seven billion eight hundred million rupiah).000.800.000. which: have performed the community service function to receive fair without exception (WTP) or fair with exception of (WDP) from Supreme Audit Agency (BPK) to the local authorities financial reports.000.00 (eighty billion two hundred million rupiah). Local Regulation of Regional Government Budget (Perda APBD) was delivered in timely manner.28 - Verse (4) Originally planned regional incentive fund amounted to Rp1. Verse (6) Self explanatory. Verse (5) Certain criteria is as follow : Regional achievers.. Verse (7) Self explanatory. Verse (8) Self explanatory. Verse (9) Self explanatory. Article 21… .000.000.200.000. Verse (4b) Originally planned DISP less paid 2008 amounted to Rp32.387.00 (thirty two billion rupiah). Verse (4a) Originally planned DAK less paid 2008 amounted to Rp80.
00 2.100.000.000.800.882.000.000.000.923.229.000.000.000.00 23.000.490.884.000.704.000.480.00 54.000.309.119.253.500.800.519.884.565.475.387.00 1.994. Educational Budget through Transfer to Region 126.000.400.000.000.800.000.000.000.800.009.00 748.000.498.00 9.00 1. consists of : (in rupiah) Original 1.500.800.749.070.367.882.994.732.00 (4) Additional allowance for PNSD Teachers 5.000.119. Verse (2) Self explanatory.000.400.663.000.00 1.387.862.00 (two hundred twenty five trillion two hundred twenty nine billion two hundred ninety five million two hundred sixty two thousand four hundred rupiah).00 62.490.114.00 5.115.000..00 (2) DAK portion 9.334.000.802.387.00 (7) Special Autonomy Fund portion 2.00 26.000.100.000. Number 17 Article 22 Verse (1) Original total amount of Revenue and Grants Budget fiscal year 2010 amounted Rp949.00 (3) DAU portion 95.400.400.000.000.000.000.324.00 (nine hundred forty nine trillion six hundred fifty six billion one… .027.170.000.00 1.00 7.048.00 (6) Regional Incentive Fund 1.00 127.29 - Article 21 Verse (1) Education budget amounted to Rp225.00 (5) Additional DAU for Teaching Proffesion Allowance 10.000.000.656.262.00 10.00 After 96.224.892.400.253.000.00 (1) DBH portion 617.309.000.000.000.800.400.334.000.524.295.00 1.00 95.070.400.000.923.000.577.000.000.00 4. Educational Budget through Central Government Expenditure (1) Ministry of National Education (2) Ministry of Religious Affairs (3) Ministry of State Owned Enterprises 83.524. Verse (3) Self explanatory.250.00 2.00 (8) Regional Incentive Fund (9) Education Infrastructure Development Acceleration Fund (DPPIP) Educational Budget through Expenditure Financing National Education Development Fund - 3.000.892.000.955.000.800.267.
000.876. b. Verse (2) a.990.00 (nine trillion eight hundred eighty one billion five hundred seven million five hundred seventy seven thousand rupiah).042.577.927.00 (one hundred thirty three trillion seven hundred forty seven billion six hundred eighty six million three hundred fourteen thousand rupiah).000.00 amounted (one hundred to thirty three trillion… .435.009. consists of : 1. Originial net foreign financing amounted to Rp9.000.009. while original total amount of Government Expenditure budget fiscal year 2010 amounted to Rp1.666. Verse (3) Budget deficit financing amounted to Rp133.686.453.903.00 (ninety eight trillion nine billion nine hundred twenty seven million eight hundred seventy six thousand rupiah).000.00 (one hundred seven trillion eight hundred ninety one billion four hundred thirty five million four hundred fifty three thousand rupiah).000. so there is budget deficit in fiscal year 2010 amounted to Rp98.00 (ninety eight trillion nine billion nine hundred twenty seven million eight hundred seventy six thousand rupiah) to Rp133.000.00 (one hundred thirty three trillion seven hundred forty seven billion six hundred eighty six million three hundred fourteen thousand rupiah). Budget deficit fiscal year 2010 changes from original at Rp98.747.881.000..891.00 (one quadrillion forty seven trillion six hundred sixty six billion forty two million nine hundred ninety thousand rupiah). Original domestic financing amounted to Rp107.876.507.314.314.818.30 - billion one hundred fifteen million one hundred fourteen thousand rupiah). Domestic finance Rp133.686.232.000.047.927.747.
000.00 88.000.00 b.Land procurement revolving fund (BPJT) National Education development fund Loans to National Electricity Company (Limited)/ PT PLN Guarantee Obligation -1.500.549.000.000.00 -1.000.000.000.150.Forestry revolving fund -625.000.000.000.00 -3.347.00 -1.000.000. Domestic Non Banking (1) (2) (3) (4) (5) 100. Guarantee Obligation for PDAM -50.200.000.000.000.000. consisting of : (in rupiah) a.00 39.000.000.429.000.00 -3.00 5.085.000.00 -2.000.000.PT Sarana Multi Infrastruktur .000.000.000.385.000.00 Reserve Fund -914.00 Government Security (net) 104.000.000.477.000.000.000. SBN is not issuded only in the rupiah currency in… .000.000.762.00 -6.000.000.00 b.000.000.000.200.000.000.00 .300.PT BPUI (bond grants from Bank Indonesia) c.00 -1.500.000.000.453.050.300.000.000.000.000.000.00 107.000.000.000.000.000.000.000.00 -2. Revolving funds -975.PT Askrindo dan Perum Jamkrindo (People Business Credit) .00 1.00 Government Investment Fund and Capital -3.000.LPDB KUKM revolving fund -350.500.000.000.500.818.129.000.000.000.800.Indonesia SBSN 3 Issuance Company .00 (2) Forestry Development Account 625.000.000.00 a.000. PLN (Persero) -1.000.096.000.00 -1.00 625.504. Guarantee Obligation for PT.00 Government Securities (SBN) is the excess of amount of issuance with principal payments due and redemption.00 .000.00 -7.00.610.150.000. Domestic Banking 7.000.000.00 (1) Investment Fund Account 5.136.000.000.000.000.PT Askrindo (bond grants from Bank Indonesia) .000.000. Government Investment -927.31 - three trillion nine hundred three billion two hundred thirty two million eight hundred eighteen thousand rupiah).00 -12.Indonesia’s Export Financing Agency -2.PT Penjaminan Infrastruktur Indonesia .000.000.000.000.000.000.000.818.00 -100.000.946.00 -1.000.00 .000.000..000.000.000.00 (3) Cumulative Budget Surplus 1.000.000.00 .00 1.00 -350.050.000.000.000.453.902.285.000.000.00 -50.000.000.000.000.000.00 1.000.000.000.000.00 .700.000.000.000.150.000.038.00 a.000.000.00 -1.000.249.Indonesia SBSN 2 Issuance Company .000.000.504.00 - After (6) (7) (8) (9) Privatization Asset Management Result 1.000.000.00 Original 45.426.00 -220.00 -18.000.000. Government Capital -2.000.000.500.275.000.200.000.924.000.000.000.00 -625.000.000.000.00 b.000.00 Domestic Loans 1.000.000.000.00 -100.
SBN issuance will be backed up by the rest of the standby credit facility which may not be feasible/withdrawn in the year 2009 in anticipation of the issuance of SBN. In order to support the development of infrastructure and other areas.00 (nine hundred twenty seven billion five hundred million rupiah). PMN additional… .000.. to achieve the target net SBN payment. payment of principal. Additional revenue through debt financing conducted under conditions which show high level of urgency and without non-debt sources of financing available. whether conventional or SBSN (sukuk/bonds). but also includes the issuance of SBN in foreign currencies in international markets. Domestic loans (PDN) is a debt that originated from State Owned Enterprises (BUMN).500. Composition of the number and type of SBN instrument to be issued. the government provides the allocation of investment funds amounting to Rp927. whereas to support aid programs fasilitras liquidity for housing finance to lower and middle income (MBM). derived from the reallocation of credit interest subsidy programs for credit for simple healthy housing ownership (KPRSh). the Government provides investment fund allocation amounting to Rp2.00 (two trillion Six Hundred Eighty three billion forty nine million rupiah).000. local governments and local companies. Domestic loans are used to finance sevderal activities.683. including low income people (MBR). will be further stipulated by the Government by taking account the situation that developed in the market. and redemption of SBN.000.000.32 - currency in the domestic market. which can not be done optimally due to market conditions.049.
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PMN additional funds for Indonesia infrastructure Guarantee (PT Penjaminan Infrastruktur Indonesia/PT PII) amounted to Rp1,000,000,000,000.00 (one trillion rupiah), will be used to enhance the credibility of the guarantee, to give a positive perception for investors, and to reduce direct exposure to the claim of APBN. Additional discussion of PMN additional funds to PT PII will be settled before the date of June 15, 2010 between the government and House of Representatives Republic of Indonesia Commission XI. PMN additional funds for PT Multi Sarana Infrastruktur (PT SMI) amounted to Rp1,000,000,000,000.00 (one trillion rupiah) was intended to optimize funding sources of PT SMI through fund raising activities, as well as raising capital for PT SMI as a state-owned enterprises (BUMN) specializing in the field of infrastructure financing for overcome the financing gap faced by the government's infrastructure development. Additional funds discussion of PMN to PT SMI fund will be settled before the date of June 15, 2010 between the government and the House of Representatives Republic of Indonesia Commission XI. Allocation of revolving fund for land acquisition of toll roads through the Public Service Agency Toll Road Regulatory Agency (BLU BPJT) amounted to Rp2,300,000,000,000.00 (two trillion three hundred billion rupiah), intended as a bailout fund to expedite the process of land acquisition for construction of highways/toll roads, which is planned for the procurement of land for 22 toll roads in accordance with governmental programs and scheduled for completion in 2013 at the latest. Discussion of additional revolving fund will be settled before the date of 15 June 2010 between the government, and House of Representative Republic of Indonesia commissions V and Commission XI.
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National education development fund amounted to Rp1,000,000,000,000.00 (one trillion rupiah) is part of the education budget allocated for the establishment of endowment fund which aims to ensure the sustainability of educational programs for the next generation as a form of intergenerational equity, where the management is using the revolving fund mechanism and conducted by Public Service Agency (BLU) in education, and education reserve fund in anticipation of the purposes of rehabilitation of educational facilities damaged by natural disasters. Loan to National Electricity Company (Limited)/PT PLN (Persero) amounted to Rp7,500,000,000,000.00 (seven trillion five hundred billion rupiah) are given to cover the financing of PT PLN (Persero) due to procurement and replacement of transformers, and strengthening the transmission and distribution installations, as well as other investments. Discussion of the additional loan to PT PLN (Persero) will be completed before the date of July 30, 2010 between the government and the Budget Board in House of Representative Republic of Indonesia. In order to support the accelerated development of 10,000 MW (ten thousand mega watt) power plant of coal-fueled by National Electricity Company (Limited)/PT PLN (Persero), the Government gave assurance of the obligation to repay the loan of National Electricity Company (Limited)/ PT PLN (Persero) to creditor banks. The government guarantee is given on the risk/possibility of PT PLN (Persero) was not able to meet their financial obligations to creditors (payment default). Security deposits will be treated as a government loan given to PT PLN (Persero) if realized.
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Management and disbursement of the loan guarantee of PT PLN (Persero) as mentioned above will be further regulated by government according to the provisions of applicable legislation. In order to accelerate the procurement of drinking water which is one of the basic necessities to the population by PDAM (Regional Water Company), the Government guarantees 70% (seventy percent) of the loan repayment obligations to creditor banks. Government guarantees fund is given on the risk/possibility of PDAM are unable to meet payment obligations to the creditor (payment default). Security deposits will be treated as government loan. Management and disbursement of the loan guarantee fund mentioned above shall be further stipulated by government according to the provisions of applicable legislation. 2. Net foreign financing amounted to negative Rp155,546,504,000.00 (one hundred fifty five billion five hundred forty six million five hundred four thousand rupiah) consisting of:
(in rupiah) Original
a. Gross Foreign Loan Withdrawal (1) Project loan (2) Project loan - Central Government Project loan - Subsidiary loan revenue b. Subsidiary loan c. Amortization 57,605,758,608,000.00 24,443,000,000,000.00 33,162,758,608,000.00 24,518,985,423,000.00 8,643,773,185,000.00 -8,643,773,185,000.00 -58,843,493,000,000.00
70,777,081,102,000.00 29,421,800,000,000.00 41,355,281,102,000.00 24,558,667,056,000.00 16,796,614,046,000.00 -16,796,614,046,000.00 -54,136,013,560,000.00
Foreign financing includes the financing of foreign debt but not including the issuance of state bonds in international markets. Central government's project loans amounted to Rp24,558,667,056,000.00 (twenty four trillion-five hundred fifty eight billion-six hundred sixty seven million-fifty six thousand rupiah) including the
000.00 (two billion-nine hundred seventy one million-nine hundred fifty six thousand rupiah).660. Article 22C The term Change of credit limit of subsidiary loan agreement refers to an increase in overseas loan limit of channeling foreign loan due to multiyears foreign loans carry over and/or acceleration of the withdrawal subsidiary loans which have been already approved in order to optimize the use of subsidiary loan agreement. Verse (2) Self explanatory..36 - additional project loans for improvement of tv transmitting station from Spain to the Ministry of Communications and Informatics amounted to Rp36. Further discussion… .956. Changes in credit limit of subsidiary loan agreement shall not include subsidiary loan agreement that has not been allocated in APBN-P 2010. Number 18 Article 22A Verse (1) The term Soft Loan with conditions refers to a loan with repayment period of 10-15 years with a maximum fiveyear grace period.709.971.00 (thirty six billion-seven hundred nine million-six hundred sixty thousand rupiah) and project loans of Integrated Citarum Water Resources Management Investment Program-Project I (ICWRMIP) from ADB for Ministry of Environment amounted to Rp2. Article 22B Self explanatory.000. and interest rates low in order to consider the fulfillment of covenants of the debts of PT PLN (Persero). Verse (3) Self explanatory. if paid in amortization.
Article 22D Verse (1) Self explanatory. Verse (2)… . Article 22E Verse (1) Self explanatory. Verse (2) Self explanatory. Verse (3) Self explanatory. Verse (2) Including on procedures and criteria of the former settlement of receivables from Indonesia Bank Restructuring Agency (BPPN).37 - Further discussion on Subsidiary Loan Agreement will be settled latest by July 30 2010 between Government and Budget Board in House of Representative. Number 19 Article 25 Verse (1) Self explanatory. Number 20 Article 26 Verse (1) Self explanatory. Verse (2) Self explanatory..
Article II Self explanatory. and Program Loans.38 - Verse (2) SBN issuance that will be used for pre-financing of APBN in next fiscal year will be calculated as part of the fulfillment of the next SBN issuance target in next fiscal year. Foreign Loans. Verse (3) Self explanatory. SUPPLEMENT TO THE STATE GAZETTE NUMBER . Verse (5) Increment of yield of Government Securities resulting in additional cost of SBN issuance significantly reflected in: a. Cash includes Government Securities (net). absence of yield offering won in a government benchmark within 2 (two) times in a row of auctions.. and / or there is tendency of increment in its yield at least 300 (three hundred) basis points (bps) within 1 (one) month. Domestic Loans. Verse (6) Self explanatory. b. Verse (4) Composition of debt financing instrument includes Government Bonds.
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