Govt. Regulates the Procedure for the Completion of Unfinished 2022 Works in 2023

  • The Minister of Finance ("Minister") has issued Regulation No. 189/PMK.05/2022 to regulate the organization of budget for the completion of works during COVID-19 pandemic which have not been completed at the year 2022 and will be continued at the year 2023. The Regulation has been in force since 15 December 2022.
  •  It is provided that the scope of such work are the works based on the contracts with the following nature: 1) fully funded in rupiah and/or non-tax state revenue (penerimaan negara bukan pajak/PNBP); 2) the payment is done through the mechanism of contractual direct payment attached with the Guarantee for Payment at the Final Fiscal Year; and 3) have been signed by no later than 30 November 2022.
  • The uncompleted works from 2022 may be continued in 2023 so long as the following requirements are fulfilled: 1) based upon the research of the Commitment Making Officials (pejabat pembuat komitmen – "PPK"), the goods/services providers will be capable of completing the entire work within 90 calendar days since the end of the completion period; and 2) goods/services provider is capable to complete the remaining work by no longer than 90 calendar days since the end of the completion period, which shall be proven with a statement letter signed with a stamp duty.
  • In case that the goods/services provider failed to complete their work until the end of the completion period as stated in the statement letter, the Budget User Proxies (Kuasa Pengguna Anggaran – "KPA") will instruct the goods/services providers to: 1) return the payment to the state treasury, with the amount calculated by the remaining uncompleted works; and 2) pay a late completion fine with the value as provided under the Contract.
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  • The Minister of Finance ("Minister") has issued Regulation No. 189/PMK.05/2022 to regulate the organization of budget for the completion of works during COVID-19 pandemic which have not been completed at the year 2022 and will be continued at the year 2023. The Regulation has been in force since 15 December 2022.
  •  It is provided that the scope of such work are the works based on the contracts with the following nature: 1) fully funded in rupiah and/or non-tax state revenue (penerimaan negara bukan pajak/PNBP); 2) the payment is done through the mechanism of contractual direct payment attached with the Guarantee for Payment at the Final Fiscal Year; and 3) have been signed by no later than 30 November 2022.
  • The uncompleted works from 2022 may be continued in 2023 so long as the following requirements are fulfilled: 1) based upon the research of the Commitment Making Officials (pejabat pembuat komitmen – "PPK"), the goods/services providers will be capable of completing the entire work within 90 calendar days since the end of the completion period; and 2) goods/services provider is capable to complete the remaining work by no longer than 90 calendar days since the end of the completion period, which shall be proven with a statement letter signed with a stamp duty.
  • In case that the goods/services provider failed to complete their work until the end of the completion period as stated in the statement letter, the Budget User Proxies (Kuasa Pengguna Anggaran – "KPA") will instruct the goods/services providers to: 1) return the payment to the state treasury, with the amount calculated by the remaining uncompleted works; and 2) pay a late completion fine with the value as provided under the Contract.
......

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