Regulation of the Minister of Finance Number: 16 Year 2024

REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

NUMBER 16 OF 2024

REGARDING

CHANGES TO THE REGULATION OF THE MINISTER OF FINANCE NUMBER 19 OF 2023 REGARDING THE MANAGEMENT OF FUNDS FOR REVENUE AND/OR GENERAL ALLOCATION FUNDS DISTRIBUTED IN CASH THROUGH THE TREASURY DEPOSIT FACILITY

BY THE GRACE OF THE ALMIGHTY

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Weighing:

1. that in order to further improve the management mechanism of revenue sharing funds and/or general allocation funds channeled non-cash through the treasury deposit facility , it is necessary to make changes to the Regulation of the Minister of Finance Number 19 of 2023 regarding the Management of Revenue Sharing Funds and/or General Allocation Funds Channeled in cash Non-cash through the Treasury Deposit Facility ,

2. that based on the considerations as referred to in letter a, it is necessary to establish the Regulation of the Minister of Finance on Changes to Regulation of the Minister of Finance Number 19 of 2023 on the Management of Revenue Sharing Funds and/or General Allocation Funds Disbursed Non-Cash through the Treasury Deposit Facility ,

Remember :

1. Article 17 paragraph (3) of the Constitution of the Republic of Indonesia Year 1945;

2. Law Number 39 of 2008 concerning the Ministry of State (State Gazette of the Republic of Indonesia Year 2008 Number 166, Supplement to the State Gazette of the Republic of Indonesia Number 4916);

3. Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (State Gazette of the Republic of Indonesia Year 2022 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6757);

4. Government Regulation Number 39 of 2007 on State and District Money Management (State Gazette of the Republic of Indonesia Year 2007 Number 83, Supplement to the State Gazette of the Republic of Indonesia 4738);

5. Government Regulation Number 37 of 2023 regarding Transfer Management to Districts (State Gazette of the Republic of Indonesia Year 2023 Number 100, Supplement to State Gazette of the Republic of Indonesia Number 6883);

6. Presidential Regulation Number 57 of 2020 regarding the Ministry of Finance (State Gazette of the Republic of Indonesia Year 2020 Number 98);

7. Regulation of the Minister of Finance Number 139/PMK.07/2019 regarding the Management of Revenue Sharing Funds, General Allocation Funds, and Special Autonomy Funds (National Gazette of the Republic of Indonesia Year 2019 Number 1148) as last amended several times by Regulation of the Minister of Finance Number 134 of 2023 regarding Fourth Amendment to the Regulation of the Minister of Finance Number 139/PMK.07/2019 regarding the Management of Revenue Sharing Funds, General Allocation Funds, and Special Autonomy Funds (Berita Negara Republik Indonesia Year 2023 Number 976);

8. Regulation of the Minister of Finance Number 118/PMK.01/2021 regarding the Organization and Procedures of the Ministry of Finance (News of the Republic of Indonesia Year 2021 Number 1031) as last amended several times by Regulation of the Minister of Finance Number 135 of 2023 regarding the Second Amendment to the Regulation of the Minister of Finance Number 118/PMK.01/2021 about the Organization and Working Procedure of the Ministry of Finance (State Gazette of the Republic of Indonesia Year 2023 Number 977);

DECIDED:

Set:

REGULATION OF THE MINISTER OF FINANCE REGARDING CHANGES TOREGULATION OF THE MINISTER OF FINANCE NUMBER 19 OF 2023REGARDING THE MANAGEMENT OF FUNDS FOR REVENUE AND/OR GENERAL ALLOCATION FUNDS DISTRIBUTED IN NON-CASH THROUGH THETREASURY DEPOSITFACILITY .

Article I

Several provisions inthe Regulation of the Minister of Finance Number 19 of 2023regarding the Management of Revenue Sharing Funds and/or General Allocation Funds Disbursed in Non-Cash through theTreasury Deposit Facility(Berita Negara Republik Indonesia Year 2023 Number 218), are amended as follows:

1.

The provisions of number 1 and number 12 of Article 1 are changed, between number 11 and number 12, 1 (one) number is inserted, namely number 11a, number 15 is deleted, and after number 16, 1 (one) number is added, namely number 17, so that Article 1 reads as follows:

Article 1

In this Ministerial Regulation what is meant by:

1.	An Autonomous District, hereinafter referred to as a District, is a legal community unit that has territorial boundaries that is authorized to regulate and manage government affairs and the interests of the local community according to its own initiative based on the community's aspirations in the system of the Unitary State of the Republic of Indonesia.
2.	The National Income and Expenditure Budget, further abbreviated as APBN, is the national government's annual financial plan approved by the House of Representatives.
3.	The District Income and Expenditure Budget, further abbreviated as APBD, is the District's annual financial plan set by District regulations.
4.	The Central Government, hereinafter referred to as the Government, is the President of the Republic of Indonesia who holds the power of the government of the Republic of Indonesia assisted by the Vice President and ministers as referred to in the Constitution of the Republic of Indonesia Year 1945.
5.	A minister is a minister who organizes government affairs in the field of national finance.
6.	The head of the district is the governor of the provincial district or the regent of the regency district or the mayor of the city district.
7.	The District Government is the District Head as the administrative element of the district government who leads the implementation of government affairs that are under the authority of the District.
8.	District expenditure is all District obligations that are recognized as reducing the value of net worth in the relevant budget year period.
9.	Treasury Deposit Facility , further abbreviated as TDF, is a facility provided by the national treasurer for Regional Governments to deposit money in the national treasury as a form of channeling non-cash transfers to the region in the form of deposits at Bank Indonesia.
10.	The Revenue Sharing Fund, further abbreviated as DBH, is part of the transfer to the districts allocated based on a percentage of certain income in the APBN and certain performance, which is distributed to the producing Districts with the aim of reducing the fiscal inequality between the Government and the Districts, as well as to other non-producing Districts in order to overcome negative externalities and/or increase equity within a region.
11.	The General Allocation Fund, further abbreviated as DAU, is part of the transfer to the allocated districts with the aim of reducing the disparity in financial ability and public services between districts.
11a.	TDF funds are DBH and/or DAU funds that have been channeled through TDF facilities.
12.	The General Treasurer of the State, further abbreviated as BUN, is an official who is given the task of carrying out the functions of the state's general treasurer.
13.	The National Treasurer's General Budget User Authority, further abbreviated as KPA BUN, is an official in the work unit of each of the BUN budget user assistants, both in the central office and regional offices or work units in national ministries/institutions that obtain assignments from the Minister of Finance to exercise authority and responsibility responsible for managing the budget that comes from the BUN budget department.
14.	The District's General Cash Account, further abbreviated as RKUD, is an account where the District's money is stored that is determined by the governor, regent, or mayor to cover all District receipts and pay all District expenditures at designated banks.
15.	Deleted.
16.	A disaster is an event or series of events that threaten and disrupt the life and livelihood of the community caused by natural factors and/or non-natural factors as well as human factors resulting in the loss of human life, environmental damage, loss of property, and psychological impact.
17.	Statement of Absolute Responsibility, further abbreviated as SPTJM, is a statement from the fund user stating that the fund user is formally and materially responsible for the use of TDF Funds.

2.

The provisions of paragraph (3) of Article 2 are changed and after paragraph (3) 1 (one) paragraph is added, namely paragraph (4), so that Article 2 reads as follows:

Article 2

(1)	Non-cash distribution of DBH and/or DAU through TDF facilities is done in the framework of the national financial management policy.
(2)	DBH and/or DAU distributed non-cash through the TDF facility are DBH and/or DAU whose use is not determined.
(3)	DBH as referred to in paragraph (1) includes underpayment and additional DBH.
(4)	Additional DBH as referred to in paragraph (3) is an additional DBH allocation whose use is not specified in the legislation.

3.

The provisions of Article 4 are amended to read as follows:

Article 4

The determination of the District and the amount of DBH and/or DAU that will be channeled non-cash through the TDF facility is determined by the Minister.

4.

Between verse (2) and verse (3) of Article 5, 1 (one) verse is inserted, namely verse (2a), so that Article 5 reads as follows:

Article 5

(1)	In the framework of non-cash distribution of DBH and/or DAU through the TDF facility as referred to in Article 2, the Director of the General Transfer Fund as KPA BUN General Transfer Fund Management submits a request for the establishment of a TDF facility to the Director General of the Treasury as the Central BUN Authority cq Director of National Cash Management.
(2)	The procedures for the establishment and management of TDF facilities as referred to in paragraph (1) are determined by a Ministerial Decree signed by the Director General of the Treasury on behalf of the Minister.
(2a)	In case the TDF facility as referred to in paragraph (1) is available, the non-cash distribution of DBH and/or DAU is done through the said TDF facility.
(3)	Based on the Minister's Decision as referred to in paragraph (2), the Head of the Treasury Services Office appointed as the KPA BUN Distribution of General Transfer Funds processes the non-cash distribution of DBH and/or DAU through the TDF facility in accordance with the provisions of the law.

5.

The provisions of paragraph (3) of Article 7 are changed, so that Article 7 reads as follows:

Article 7

(1)

Non-cash distribution of DBH and/or DAU through the TDF facility has a holding period .

(2)

The holding period as referred to in paragraph (1) is set for 3 (three) months from the date of placement of DBH and/or DAU as referred to in Article 5 at the TDF facility.

(3)

After the holding period as referred to in paragraph (2) ends, DBH and/or DAU that are channeled non-cash through the TDF facility:

a.	can be withdrawn by the Regional Government to be used in accordance with the direction of use that has been determined in the provisions of laws and regulations; and/or
b.	remains stored at the TDF facility until it is distributed to the RKUD.

6.

Between Article 7 and Article 8, 1 (one) article is inserted, namely Article 7A, so that Article 7A reads as follows:

Article 7A

(1)

TDF funds as referred to in Article 5 can be directed to be used to fund:

a.	improvement of public services;
b.	infrastructure;
c.	funding support for the District Head election;
d.	investment; and/or
e.	other uses specified by the Minister.

(2)

The Minister can set technical guidelines for the direction of the use of the TDF Fund as referred to in paragraph (1) in the Ministerial Decree signed by the Director General of the Financial Balance on behalf of the Minister.

7.

The provisions of Article 8 are amended to read as follows:

Article 8

(1)

Withdrawal of TDF Funds can be carried out based on a submission by the District Head to the Minister cq Director General of Financial Balance during the holding period or after the holding period .

(2)

Withdrawal of TDF Funds by the District Head during the holding period as referred to in paragraph (1) can be done if there are:

a.	the District's urgent cash needs due to Disasters;
b.	the District's urgent need for cash to settle expenditure obligations that have not been paid until the end of the previous budget year; and/or
c.	other conditions set by the Minister in Ministerial Decree.

(3)

Withdrawal of TDF Funds by the District Head after the holding period as referred to in paragraph (1) can be done in the case of:

a.	TDF funds will be used to fund needs as referred to in Article 7A paragraph (1);
b.	there is an urgent need for District cash due to Disasters; and/or
c.	there are other conditions set by the Minister in the Minister's Decree.

(4)

Withdrawal of TDF Funds by the District Head after the holding period as referred to in paragraph (3) letter a is done as follows:

a.	at once; or
b.	gradually.

(5)

Withdrawal of TDF Funds by the District Head in one go as referred to in paragraph (4) letter a for TDF Funds with a certain value set by the Minister in a Ministerial Decree signed by the Director General of Financial Balance on behalf of the Minister.

(6)

The request for the withdrawal of TDF Funds by the Head of the District all at once as referred to in paragraph (5), is submitted by attaching the withdrawal requirements document as follows:

a.	plan for the use of TDF Funds directed at its use;
b.	report on the realization of the use of the TDF Fund that was directed to be used the previous year, for Districts that used the TDF Fund of the previous year that was directed to be used; and
c.	SPTJM.

(7)

Withdrawal of TDF Funds by the District Head in stages as referred to in paragraph (4) letter b, is carried out with the following provisions:

a.	level I, amounting to 50% (fifty percent) is done as soon as possible after the holding period ends; and
b.	level II, amounting to 50% (fifty percent) is done as soon as 30 (thirty) calendar days after the withdrawal of level I.

(8)

The application for the withdrawal of TDF Funds by the District Head as referred to in paragraph (7) is submitted by attaching the withdrawal requirements document as follows:

a.

stage I in the form of:

1.	plan for the use of TDF Funds directed at its use;
2.	report on the realization of the use of the TDF Fund that was directed to be used the previous year, for Districts that used the TDF Fund of the previous year that was directed to be used; and
3.	SPTJM; and

b.

stage II in the form of:

1.	report on the realization of the use of the TDF Fund level I at least 75% (seventy five percent) has been realized; and
2.	SPTJM.

(9)

The request for withdrawal of TDF Funds by the District Head as referred to in paragraph (2) letter a and paragraph (3) letter b is submitted by attaching a withdrawal requirement document in the form of:

a.	letters/decisions related to the designation of a Disaster by the Head of the District and/or the competent ministry/institution declaring the occurrence of a Disaster in accordance with the provisions of laws and regulations; and
b.	plan for the use of TDF Funds for disaster management.

(10)

The request for withdrawal of TDF Funds by the District Head as referred to in paragraph (2) letter b is submitted by attaching a withdrawal requirement document in the form of:

a.	recapitulation of expenditure obligations that have not been paid up to the end of the previous budget year; and
b.	SPTJM.

(11)

The document as referred to in paragraph (6), paragraph (8), paragraph (9), and paragraph (10) is signed by the District Head.

(12)

In the event that the District Head is permanently disabled, the withdrawal requirements document as referred to in paragraph (11) is signed by an official designated as acting, acting, or daily executor of the District Head.

(13)

The District Head is responsible for the correctness of data and information submitted for the withdrawal of TDF Funds as referred to in paragraph (6), paragraph (8), paragraph (9), and paragraph (10).

(14)

The Directorate General of Financial Balance conducts a review on the completeness and accuracy of the withdrawal requirements document as referred to in paragraph (6), paragraph (8), paragraph (9), and paragraph (10) to give approval or rejection of the TDF Fund withdrawal application.

(15)

Based on the results of the review as referred to in paragraph (14) the withdrawal requirements document is not yet complete, the Director General of Financial Balance through the General Transfer Fund Director informs the District Head to complete the requirements document within a period of 10 (ten) working days.

(16)

If within the time period as referred to in paragraph (15) the District Head does not complete the required documents, the Director General of Financial Balance delivers a letter rejecting the TDF Fund withdrawal approval.

(17)

In the event that the TDF Fund withdrawal application as referred to in paragraph (14) is approved, the Director of General Transfer Fund as KPA BUN General Transfer Fund Management gives a recommendation for the withdrawal of TDF Fund to the Director of Information Systems and Transfer Implementation as KPA BUN TDF to make the transfer to RKUD.

(18)

In the case of a TDF Fund withdrawal application that is approved as referred to in paragraph (17) is a fund withdrawal due to the District's urgent cash needs due to a Disaster, the channeling of funds from the TDF facility to RKUD is done within a period of 1 (one) working day after the publication of the TDF Fund withdrawal recommendation in accordance with the provisions of the law.

(19)

The transfer of remuneration for the withdrawal of TDF Funds is carried out in the next remuneration distribution period as referred to in Article 6 paragraph (6).

(20)

Technical instructions for withdrawal procedures and withdrawal conditions for TDF Funds during the holding period and after the holding period are set by Ministerial Decree signed by the Director General of Financial Balance on behalf of the Minister.

(21)

In the event that there are remaining TDF funds up to December 15 of the current budget year, all remaining TDF funds can be channeled to RKUD, placed in national securities, and/or other instruments determined by the Minister.

22.

The distribution and/or placement of all remaining TDF Funds as referred to in paragraph (21) is determined by Ministerial Decree.

8.

The provisions of Article 9 are amended to read as follows:

Article 9

(1)

Budgeting for the use of TDF Funds as referred to in Article 7A and Article 8 is done through the following mechanism:

a.	changes in the regulations of the District Head regarding the elaboration of the APBD and notified to the leadership of the District House of Representatives, to be further accommodated in the District regulations regarding changes to the APBD or accommodated in the budget realization report for the District Government that does not make changes to the APBD;
b.	budgeting on the budget changes; and/or
c.	consumption after APBD changes are accommodated in the budget realization report.

(2)

Planning, budgeting, implementation, administration, reporting and accountability for the TDF Fund in the APBD is done in accordance with the provisions of legislation and/or technical provisions set by the minister in charge of internal government affairs.

9.

Between Article 9 and Article 10, 1 (one) article is inserted, namely Article 9A so that it reads as follows:

Article 9A

(1)	The Director General of Financial Balance through the General Transfer Fund Director monitors and evaluates the use of the TDF Fund which is directed to be used based on the use realization report document received from the Regional Government.
(2)	The results of the monitoring and evaluation as referred to in paragraph (1) can be used as a consideration of the TDF Fund management policy for the following budget year.

Article II

This Ministerial Regulation comes into effect on the date it is promulgated.

In order for everyone to know it, orders the enactment of this Ministerial Regulation with its placement in the National Gazette of the Republic of Indonesia.

Set in Jakartaon March 20, 2024MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,ttd.SRI MULYANI INDRAWATI

Enacted in Jakarta

on March 21, 2024

DIRECTOR GENERAL OF

LEGISLATIVE REGULATIONS

MINISTRY OF LAW AND HUMAN RIGHTS OF

THE REPUBLIC OF INDONESIA,

ttd.

ASEP N. MULYANA

NATIONAL NEWS OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 167