DECREE OF THE MINISTER OF FINANCE NO. 556/KMK.03/2000 DATED DECEMBER 26, 2000
CONCERNING
PROCEDURES FOR DISTRIBUTION OF GENERAL ALLOCATION FUNDS AND SPECIAL ALLOCATION FUNDS
THE MINISTER OF FINANCE,
Considering :
That in order to implement the provisions in Article 18 paragraph 3 and Article 22 paragraph 2 of the Government Regulation No. 104/2000 on Balance Funds, it is necessary to stipulate a Decree of the Minister of Finance on the Procedures for Distribution of General Allocation Funds and Special Allocation Funds;
In view of :
1. Law No. 22/1999 on the Regional Administration (Statute Book No. 60/1999, Supplement to Statute Book No. 3839);
2. Law No. 25/1999 on the Financial Equilibrium between the Central Government and the Regional Administration (Statute Book No. 70/1999, Supplement to Statute Book No. 3848);
3. The Government Regulation No. 25/2000 on the Authority of the Government and the Authority of Provinces as Autonomous Regions (Statute Book No. 54/2000, Supplement to Statute Book No. 3952); 4. The Government Regulation No. 104/2000 on Balance Funds (Statute Book No. 201/2000, Supplement to
Statute Book No. 4021);
5. The Presidential Decree No. 49/2000 on the Advisory Council of Regional Autonomy, as already several times amended, the latest by the Presidential Decree No. 151/2000.
6. The Presidential Decree No. 234/2000;
D E C I D E S :
To Stipulate :
DECREE OF THE MINISTER OF FINANCE ON PROCEDURES FOR DISTRIBUTION OF GENERAL ALLOCATION FUNDS AND SPECIAL ALLOCATIONS FUNDS.
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Decree of the Minister of Finance referred to as :
1. General Allocation Funds, hereinafter referred to as DAU shall be the funds originating from APBN (State Budget) which are allocated with the aim of even distribution of financial capacity of regions to finance their expenditures in the framework of implementing decentralization.
3. Special Allocation Funds, hereinafter referred to as DAK, shall be the funds which can be allocated from APBN to certain Regions to help finance special requirements, by taking into account the availability of funds in the APBN.
4. List of Special Allocation Funds Allocations, hereinafter referred to as DADAK, shall be the document of budget which is equalized to DIP/DIK, which accommodates the supply of DAK allocation for each province/regency/city.
5. Advisory Council of Regional Autonomy, hereinafter referred to as DPOD shall be the council which consists of the Minister of Home Affairs and Regional Autonomy, the Minister of Finance, the State Secretary, other ministers in accordance with the actual requirement, representatives of the Regional Administration Association and representatives of Regions elected by the DPRD (Regional Legislative Assembly) as referred to in Law No. 22/1999 on the Regional Administration and Law No. 25/1999 on the Financial Equilibrium between the Central Government and the Regional Administration.
CHAPTER II
GENERAL ALLOCATION FUNDS
Article 2
1. The total of DAU is calculated on the basis of the percentage stipulated in the APBN in the relevant fiscal year, at least 25% (twenty-five percent) of the domestic revenue projection after being reduced by the profit sharing allocation
2. The allocation of DAU as referred to in paragraph 1 is stipulated as follows : for provinces = 10% (ten percent)
for regencies/cities = 90% (ninety percent).
3. The division of DAU for each province and regency/city is stipulated by a Presidential Decree based on the DPOD proposal in accordance with the provision as referred to in Article 17 paragraph 7 of the Government Regulation No. 104/2000.
Article 3
1. In each early fiscal year the Director General of Budgets issues DA-DAU in accordance with the Presidential Decree as referred to in Article 2 paragraph 3.
2. DA-DAU is valid as the Authorization Decision Letter (SKO).
Article 4
1. The Director General of Budgets submits DA-DAU as referred to in Article 3 to each governor and regent/mayor as well as the Office of Treasury and State Treasury (KPKN) concerned.
2. Based on the DA-DAU, the governor/regent/mayor submits a Payment Request Latter (SPP) to local KPKN six work days before the first day of the following month totaling 1/12 of (a twelfth) the ceiling as mentioned in DA-DAU by attaching the evidence of receipt.
4. Further provisions on the Procedures for Disbursement of DAU are governed by the Director General of Budgets.
CHAPTER III
SPECIAL ALLOCATION FUNDS
Article 5
1. DAK consists of :
a. The funds to finance the requirements which cannot be generally anticipated by using the formula of general allocation.
b. The funds to finance programs which constitute commitments or national priorities.
c. The funds for reforestation, which are taken from shares of regions set at 40% (forty percent) of reforestation funds revenue of the relevant fiscal year.
2. The total of DAK is stipulated in APBN.
Article 6
At recommendations from regions and by taking into account the considerations of the Minister of Home Affairs and Regional Autonomy, the related technical Ministers and the agencies dealing with national development planning, the Minister of Finance, namely the Director General of Budgets allocates DAK to regions.
Article 7
1. On the basis of the DAK stipulated in APBN, the Director General of Budgets issues and submits DA-DAK with the attachment of the list/detail of the project approved, to the governor/regent/mayor, the DJA Regional Office and KPKN concerned.
2. DA-DAK is valid as SKO.
Article 8
1. On the basis of DA-DAK and its attachment as referred to in Article 7 paragraph 1, the governor/regent/mayor works out the List of Regional Projects (DIPDA) and sends one copy to the DJA Regional Office.
2. In the case that conformity exists between DIPDA and DA-DAK and the attachment, the DJA Regional Office informs KPKN the DIPDA which can be financed from DA-DAK.
3. In the case that there is no conformity between DIPDA and DA-DAK and the attachment, the DJA Regional Office returns the said DIPDA for revision.
Article 9
1. The Governor/Regent/Mayor submits SPP for each project listed in DA-DAK to KPKN by attaching the evidence of payment.
3. Further provisions in the disbursement of DAK are further stipulated by the Director General of Budgets.
CHAPTER IV REPORTING
Article 10
1. KPKN submits reports on the realization of distribution of General Allocation Funds and Special Allocation Funds once in three months to the DJA Regional Office.
2. The DJA Regional Office prepares the recapitulations of the reports on realization of General Allocation Funds and Special Allocation Funds from the said KPKN and submits them to the Director General of Budgets.
3. The procedures for reporting are further stipulated by the Director General of Budgets.
CHAPTER V
TRANSITIONAL PROVISION
Article 11
1. For smooth implementation of payments of salaries or employees for January 2001, each provincial/regency/city administration can be provided with DAU a advance payment.
2. The procedures for distribution of DAU in advance are further stipulated by the Director General of Budgets.
CHAPTER VI CLOSING PROVISION
Article 12
At the time this Decree of the Minster of Finance takes effect, other provisions which are against it are declared void.
Article 13
This Decree of the Minister of Finance shall come into force as from January 1, 2001
For public cognizance, this Decree of the Minister of Finance shall be announced by publishing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta on December 26, 2000
THE MINISTER OF FINANCE sgd.
