Rabu, Januari 17, 2024

Govt. Issues Provisions on Procedures for Payments of Agreements in Foreign Exchange with Funds Sourced from Pure Rupiah

In an effort to improve the effectiveness and efficiency of foreign exchange agreement payments, the Minister of Finance ("Minister") has issued Regulation No. 1 of 2024 on Procedures for Payments of Agreements in Foreign Exchange ("Forex") with Funds Sourced from Pure Rupiah ("Regulation"), which replaces the previous framework of Regulation of the Minister No. 263/PMK.05/2015.
The submission of bills to the state in the form of Forex with funds sourced from pure rupiah should now be carried out based on commitments ("Bill Payments"), which are the basis for the incurrence of charge rights to the state through expenses that are listed on the budget implementation list (Daftar Isian Pelaksanaan Anggaran - "DIPA"). Said payments encompass the following: 1) Determination of decision (i.e. decision letter, order letter, assignment letter, certificate letter, official travel letter) which should only be for one fiscal year; 2) Contracts (i.e. contracts that are drawn up domestically and overseas) and that can take the form of either single-year or multi-year contracts.
Meanwhile, budget allocations in pure rupiah for bill payments are allocated through the DIPA in equivalent values of Forex, which are the highest limits of state spending and cannot be exceeded. It should be noted that if a budget allocation through the DIPA proves insufficient to pay the relevant bills, then the relevant authorized budget user (Kuasa Pengguna Anggaran - "KPA") should revise the DIPA in accordance with Ministerial Regulations on budget planning, budget implementation, and financial accounting and reporting.
Overall, bill payments to the state are carried out through two mechanisms, specifically: 1) Non-letters of credit ("L/C") (i.e. completed through direct payments or money supply/additional money supply [“Uang Persediaan/Tambahan Uang Persedian - "UP/TUP"]); 2) L/C (i.e. completed if goods/service providers require payments to be made through L/C under the relevant contracts).

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In an effort to improve the effectiveness and efficiency of foreign exchange agreement payments, the Minister of Finance ("Minister") has issued Regulation No. 1 of 2024 on Procedures for Payments of Agreements in Foreign Exchange ("Forex") with Funds Sourced from Pure Rupiah ("Regulation"), which replaces the previous framework of Regulation of the Minister No. 263/PMK.05/2015.
The submission of bills to the state in the form of Forex with funds sourced from pure rupiah should now be carried out based on commitments ("Bill Payments"), which are the basis for the incurrence of charge rights to the state through expenses that are listed on the budget implementation list (Daftar Isian Pelaksanaan Anggaran - "DIPA"). Said payments encompass the following: 1) Determination of decision (i.e. decision letter, order letter, assignment letter, certificate letter, official travel letter) which should only be for one fiscal year; 2) Contracts (i.e. contracts that are drawn up domestically and overseas) and that can take the form of either single-year or multi-year contracts.
Meanwhile, budget allocations in pure rupiah for bill payments are allocated through the DIPA in equivalent values of Forex, which are the highest limits of state spending and cannot be exceeded. It should be noted that if a budget allocation through the DIPA proves insufficient to pay the relevant bills, then the relevant authorized budget user (Kuasa Pengguna Anggaran - "KPA") should revise the DIPA in accordance with Ministerial Regulations on budget planning, budget implementation, and financial accounting and reporting.
Overall, bill payments to the state are carried out through two mechanisms, specifically: 1) Non-letters of credit ("L/C") (i.e. completed through direct payments or money supply/additional money supply [“Uang Persediaan/Tambahan Uang Persedian - "UP/TUP"]); 2) L/C (i.e. completed if goods/service providers require payments to be made through L/C under the relevant contracts).

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