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PRESIDENTIAL DECREE NO. 181/2000 DATED DECEMBER 23, 2000 CONCERNING

GENERAL ALLOCATION FUNDS FOR PROVINCES AND REGENCIES/CITIES FOR FISCAL YEAR OF 2001

THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering :

a. That in line with the provisions of Article 17 paragraph 7 of the Government Regulation No. 104/2000 on Equilibrium Funds, the Advisory Council of Regional Autonomy has carried out the calculations of the General Allocation Funds for Provinces and Regencies/Cities for the fiscal year of 2001;

b. That in connection with the outcome of the calculations of the General Allocation Funds as referred to in letter a, it is necessary to stipulate a Presidential Decree;

In view of :

1. Article 4 paragraph 1 of the 1945 Constitution as already amended by the Second Amendment to the 1945 Constitution;

2. Law No. 22/1999 on the Regional Administration (Statute Book No. 60/1999, Supplement to Statute Book No. 3839);

3. 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);

4. Law No. 35/2000 on the State Budget for 2001 (Statute Book No. 250/2000, Supplement to Statute Book No. 4052);

5. The Government Regulation No. 104/2000 on Equilibrium Funds (Statute Book No. 201/2000, Supplement to Statute Book No. 4021);

6. 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.

D E C I D E S :

To Stipulate :

PRESIDENTIAL DECREE ON GENERAL ALLOCATION FUNDS FOR PROVINCES AND REGENCIES/CITIES FOR FISCAL YEAR OF 2001.

CHAPTER I

STIPULATION OF GENERAL ALLOCATION FUNDS

Article 1

(2)

b. General Allocation Funds for Regencies/Cities.

2. The amount of the General Allocation Funds for the Fiscal Year of 2001 is set at 25% (twenty five percent) of the Domestic Revenues in the State Budget for the fiscal year of 2001 after having been reduced by State Revenues which are shared by Regions.

3. The amounts of the General Allocation Funds for Provinces and Regencies/Cities are set as follows : a. For Provinces : 10% (ten percent) of the General Allocation Funds as stipulated in paragraph 2;

b. For Regencies/Cities : 90% (ninety percent) of the General Allocation Funds as stipulated in paragraph 2.

CHAPTER II

CALCULATION OF GENERAL ALLOCATION FUNDS

Article 2

1. The calculation of the General Allocation Funds for each Province and Regency/City is carried out by using the formula as stipulated on the basis of the existing regulations.

2. The requirement of General Allocation Funds of a Region is calculated by considering the Balance Factor to avoid possible degradation of capacity of Regions in financing expenditure burdens which constitutes the responsibility of Regions.

3. The Balance Factor as referred to in paragraph 2 is stipulated by considering the budget burden of each Region which is anticipated on the basis of the amount of allocation of Regional Routine Funds and the Regional Development Funds for the ongoing fiscal year and the estimated budget of the employees who are transferred from Vertical Agencies to become Regional Employees.

Article 3

1. The outcome of the calculation of the General Allocation Funds by using the formula and the Balance Factor as referred to in Article 2 paragraph 3 is stipulated on the basis of the proposal of the Advisory Council of Regional Autonomy.

2. The details of the General Allocation Funds for Provinces and Regencies/Cities for the fiscal year of 2001 are attached to this Presidential Decree.

3. The details of the General Allocation Funds for each Region are submitted by the Minister of Home Affairs and Regional Autonomy in his capacity as the Chairman of the Advisory Council of Regional Autonomy.

CHAPTER III OTHER PROVISIONS

Article 4

1. The stipulation of the outcome of the calculation of the General Allocation Funds as referred to in Article 3 is valid for the Fiscal Year of 2001.

(3)

3. The distribution of the General Allocation Funds as referred to in Article 3 paragraph 2 to each Province and Regency/City is further stipulated by the Minister of Finance.

CHAPTER IV CLOSING PROVISIONS

Article 5

This Presidential Decree shall come into force as from January 1, 2001.

For General cognizance, this Presidential Decree shall be announced by publishing it in the Statute Book of the Re General of Indonesia.

Stipulated in Jakarta On December 23, 2000

THE PRESIDENT OF THE REPUBLIC OF INDONESIA sgd.

ABDURRAHMAN WAHID

Promulgated in Jakarta On December 23, 2000 THE STATE SECRETARY sgd.

DJOHAN EFFENDI

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