Regulation of the Director General of Treasury No. 9/PB/2013 on guidelines for disbursement of Grant Fund of Australian Agency for International Development (AUSAID) No. 62031 (Water Hibah and Sanitation Hibah Phase 2 Program)

38 GUIDELINES FOR DISBURSEMENT OF GRANT FUND OF AUSTRALIAN AGENCY FOR INTERNATIONAL DEVELOPMENT (AUSAID} NUMBER 62031 (WATER HIBAH AND SANITATION HIBAH PHASE 2 PROGRAM} (The Regulation of Director General of Treasury Number PER-9/PB/2013, dated 18 March 2013) DIRECTORATE GENERAL OF TREASURY, In view of: 1. Law Number 17 Year 2003 concerning State Fi Considering: nance (State Gazette of the Republic of Indonesia a. in order to increase drinking water and sanitation Year 2003 Number 47, Supplementary State Ga connection access with priority to low income zette of the Republic of Indonesia Number 4286); society, Indonesian Government receives grant 2. Law Number 1 Year 2004 (BN No. 7031 page from Australian Government through Australian 13B-14B) concerning State Treasury (State Ga Agency For International Development (AusAID) zette of the Republic of Indonesia Year 2004 for Water Hibah And Sanitation Hibah Phase 2 Number 5, Supplementary State Gazette of the Program; Republic of Indonesia Number 4355); b. in the framework of management of grant from 3. Law Number 15 Year 2004 (BN No. 7120 page the Australian Government as meant at point a, it 1 B-6B) concerning State Financial Management is necessary to have implementing guidelines for and Accountability Audit (State Gazette of the the grant disbursement; Republic of Indonesia Year 2004 Number 66, c. based on the consideration as meant at point a Supplementary State Gazette of the Republic of and point b, it is necessary to stipulate the Reg- Indonesia Number 4400); ulation of the Director General of Treasury con- 4. the Law Number 33 Year 2004 concerning Finan cerning Implementing Guidelines for Grant Dis- cial Ratio between Central Government and Re bursement of Australian Agency for International gional Government (State Gazette of the Republic Development (AusAID) Number 62031 (Water of Indonesia Year 2004 Number 126, Supplemen Hibah and Sanitation Hibah Phase 2 Program); tary State Gazette of the Republic of Indonesia Number 4438); Business News 8503! 1-10-2014 5. the Government Regulation Number 42 Year 1995 Regulation Number 53 Year 2010 (State Gazette concerning Import Duty, Additional Import Duty, of the Republic of Indonesia Year 2010 Number Value Added Tax, and Sales Tax on Luxury Goods 74, Supplementary State Gazette of the Republic and Income Tax in the framework of Government of Indonesia Number 5135); Project Implementation Funded with Foreign Loan 10. the Regulation of Minister of Finance Number Fund as has been amended tor several times, the 184/PMK. 01/2010 concerning the Organization last one with the Government Regulation Number and Management of the Ministry of Finance; 25 Year 2001 (State Gazette of the Republic of 11. the Regulation of Minister of Finance Number Indonesia Year 2001 Number 48, Supplementary 151 /PMK. 05/2011 concerning Withdrawal Pro State Gazette of the Republic of Indonesia Num- cedures tor Foreign Loan and/or Grant; ber 4092); 12. the Regulation of Minister of Finance Number 6. the Government Regulation Number 10 Year 2011 188/PMK. 07/2012 concerning Grant From Cen concerning Procurement Procedures tor Foreign tral Government To Regional Government; Loan and Donation Acceptance (State Gazette of 13. the Regulation of Minister of Finance Number 190/ the Republic of Indonesia Year 2011 Number 23, PMK. 05/2012 concerning Paying Procedures In Supplementary State Gazette of the Republic of The Framework Of State Budget Implementation; Indonesia Number 5202); 14. the Regulation of the Director General of Treasury 7. the Government Regulation Number 2 Year 2012 Number 3PER-56/PB/2012 Concerning lmple concerning Regional Grant (State Gazette of the menting Guidelines tor Foreign Loan and/or Grant Republic of Indonesia Year 2012 Number 51; encumbrance Through Special Account Mecha 8. the Presidential Regulation Number: 54 Year 2010 nism; concerning Governmental Goods/Service Procure ment as has been amended tor several times, the DECIDED: last one with Presidential Regulation Number 70 Year 2012; To stipulate: 9. the Presidential Decree Number 42 Year 2002 THE REGULATION OF THE DIRECTOR GENERAL OF concerning Implementing Guidelines tor State TREASURY CONCERNING IMPLEMENTING GUIDE Budget (State Gazette of the Republic of lndone- LINES OF GRANT FUND OF AUSTRALIAN AGENCY sia Year 2002 Number 73, Supplementary State FOR INTERNATIONAL DEVELOPMENT (AUSAID) Gazette of the Republic of Indonesia Number NUMBER 62031 (WATER HIBAH AND SANITATION 421 21, as has been amended with Presidential HIBA\-1 PHASE 2 PROGRAM). Business News 8503/1-10-2014 39 CHAPTER I 6. Budget Implementation Form, hereinafter men GENERAL PROVISIONS tioned as DIPA, is a Budget Implementation Docu Article 1 ment used as Budget User reference in implement In this Regulation of Director General there ing governance activities as the implementation are definitions as follows: of APBN. 1 . Water Hi bah And Sanitation Hi bah Phase 2 Pro- 7. The Service Office of State Treasury, hereinafter gram is a government project funded with grant abbreviated as KPPN, is a vertical agency of Di from the Australian Government in order to in- rectorate General of Treasury that has obtained crease drinking water and sanitation connection authority and the State General Treasurer (BUN) access with priority to low income society that in order to implement partly of functions of BUN granted-forward to the Regional Government in Authority. accordance to the laws and regulations. 8. Executing Agency, hereinafter abbreviated as EA, is 2. Foreign Loan and/or Grant (Pinjaman dan/atau the state ministry/institution as the responsible hold Hibah Luar Negeri), hereinafter abbreviated as er upon the whole implementation of the activities. PHLN, is a foreign loan and/or grant as meant in 9. Closing Date is the deadline date for PHLN fund Government Regulation Number 10 Year 2011 disbursement through the issuance of Letter of concerning Procurement Procedures for Foreign Instruction for Fund Disbursement by KPPN. Loan and Grant Acceptance. 10. Special Account (rekening khusus), hereinafter 3. Grant from the Government to Regional Govern- mentioned as Reksus, is a Government Account ment, hereinafter mentioned as Grant is a grant opened by the Minister of Finance at Bank of In with assignment of right upon something from donesia or appointed Bank to receive and to dis the Government to the Regional Government with ' tribute PHLN fund with revolving balance after 1 allotment has been specifically stipulated and im- answering to the PHLN Provider. plemented through agreement. 11. Withdrawal Application (Aplikasi Penarikan Dana), 4. Foreign Loan and/or Grant Provider, hereinafter hereinafter abbreviated as APO is the withdrawal will be mentioned as PHLN Provider, is creditor of PHLN fund Initial Deposit, replenishment of that gives loan and/or party that provides grant to Reksus, fund withdrawal for reimbursement upon government, which comes from foreign country. the expenses paid in advanced by government, 5. PHLN Agreement is a written agreement concern- direct payment to associate or addressee, and , ing loan and/or grant between Government and fund withdrawal in order to transfer directly to PHLN Provider. the State General ~und A.ccount. 40 Business News 8503/ 1· 10-2014 GOVERNMENT REGULATIONS 12. APD-Reksus is fund withdrawal application issued by the budget user/budget user authority for the by the Directorate General of Treasury c.q. the Di- issuance of SP2D over DPA-SKPD expenses. rectorate of State Treasury Management to PHLN 18. The Direct Payment Instruction Letter, hereinafter Provider to withdraw the Initial Deposit or fund mentioned as SPM-LS, is the document issued by reimbursement that has been paid from Reksus. PPSPM to disburse funds from DIPA in the frame 13. Request Letter for the Issuance of Special Ac- work of invoice payment to the right beneficiary/ count Payment Fund Withdrawal Application, Expenditure Treasurer.. hereinafter abbreviated as SPP APD-Reksus, is a 19. SPM-Reksus is SPM with funds source from DIPA document signed by PA/KPA as ground for the or other document that equalized to the ones Directorate General of Treasury c.q. the Director- from PHLN using Reksus method of withdrawal. ate of State Treasury Management in submitting 20. The Fund Disbursement Instruction Letter, herein the application for payment to PHLN Provider. after abbreviated as SP2D, is an instruction letter 14. Ineligible is the issuance of the Instruction Letter issued by KPPN as the State General Treasurer for Reksus Fund Disbursement based on the Let- Authority for expenditure implementation upon ter of Instruction to Pay Reksus submitted by PA/ State Budget's burden based on SPM. KPA that is not in accordance to the regulation in 21. SP2D-Reksus is expenditure SP2D upon State PHLN Agreement, the issuance of the Instruction Budget's burden based on SPM-Reksus. Letter for Reksus Fund Disbursement is not ac­ knowledged and/or is not getting reimbursement from the PHLN Provider. 15. Financial Statement of Special Account, herein­ after abbreviated as FISSA, is a financial report concerning Reksus use for the period of one fiscal year compiled by Executing Agency (EA). 16. Letter of Direct Payment Request, hereinafter ab­ breviated as SPP, is the document issued by the Commitment Maker Official in the framework of invoice payment to the right beneficiary/Expendi­ ture Treasurer. 17. The Payment Instruction Letter, next will be abridged as SPM, is the document used(issued ( 1 ) Article 21 Grant specifications are as follows: a. Grant Agreement Number : 62031 b. Signing Date : 03 June 2012 c. Registration Number : 72599501 d. Account Number : 602.005311980 e. Effective Date : 03 June 2012 f. Closing Date : 30 June 2015 g. Amount of Grant : AUD94,000,200 h. Financing Percentage : 100% Grant i. Executing Agency : Directorate Gen eral of Human Settlements, the Ministry of ···-·- Business News 850311-10-2014 GOVERNMENT REGULATIONS (2) The Amendment upon specifications and catego­ ry of grant intended is regulated and stipulated through the Letter of the Director of State Trea­ sury Management on the behalf of the Director General of Treasury based on agreement amend­ ment of PHLN and/or the approval of PHLN Pro­ vider. CHAPTER II DISBURSEMENT AND ENCUMBRANCE Article 3 ( 1 ) Procedures for disbursement and encumbrance of grant fund use Reksus mechanism and imple- 1 mented in accordance to the provision that regu­ late implementing guidelines for PHLN fund en­ cumbrance through Reksus. I (2) Disbursement and encumbrance as meant at paragraph ( 1) are implemented in accordance to the specifications as meant in Article 2 paragraph ( 1 ) . CHAPTER Ill SPECIAL ACCOUNT FUND REPLENISHMENT Article 4 ( 1) EA submits SPP APD-Reksus for period replenish­ ment of Reksus in accordance to the provision and attached with supporting document required in PHLN Agreement to the Directorate General of Treasury c.q. the Directorate of State Treasury Management in accordance to the applicable pro cedures and is under full responsibility of the re­ lated EA. (2) Directorate General of Treasury c.q. The Director­ ate of State Treasury Management examines and studies the SPP APO Reksus received from EA. (3) Directorate General of Treasury c.q. The Director­ ate of State Treasury Management issues APD­ Reksus and makes cover letter after SPP APD­ Reksus is stated complete and correct. (4) Directorate General of Treasury c.q. Directorate of State Treasury Management submits APD­ Reksus and cover letter as meant at paragraph (3) to PHLN Provider with copy to the Directorate General of Loan Management c.q. Directorate of Evaluation, Accounting, and Settlement and Bank of Indonesia. (5) In case EA does not perform its obligation to de­ liver SPP APD-Reksus periodically, thus causes Empty Reksus, the Directorate of State Treasury Management on the behalf of Director General of Treasury can issue a Letter of Suspension on Reksus Fund Disbursement as the based of KPPN and/or Special KPPN to suspend the issuance of SP2D Reksus. (6) The reimbursement upon the suspension as meant at paragraph (5) can be implemented by KPPN af­ ter receiving the Revocation Letter for Suspension on Reksus Fund Disbursement and the Director of State Treasury Management on the behalf of the Directorate General of Treasury. Business News 8503! 1-10-2014 GOVERNMENT REGULATIONS Article 5 ( 1) In case required, EA must compile FISSA for Rek­ sus use audit by auditor. (2) FISSA as meant at paragraph (1 ), is submitted to PHLN Provider and the Director General of Trea­ sury c.q. the Directorate of State Treasury Man­ agement. CHAPTER IV DOCUMENT REPORTING AND DELIVERY Article 6 (1) KPPN maintains the record of SPM Reksus with SP2D issued as expenditure by charging it on the related account. (2) Procedures for document reporting and delivery are implemented in accordance to the provision that regulate about implementing guidelines for PHLN fund encumbrance through Reksus. CHAPTER V OTHER PROVISIONS Article 7 ( 1) Indebted PPN, PPnBM, and PPH for PH LN portion are implemented in accordance to the laws and regulations. (2) Validation of tax invoice and SSP is implemented in accordance to the laws and regulations. (3) The issuance of SPP-LS, SPM-LS, and SP2D-LS upon invoice is based on the agreement/contract in foreign currency and/or payment to foreign country by following these provisions below: a. For agreement/contract in foreign currency, con­ version into rupiah cannot be done, and b. SPM submission 1or payment implementation in foreign currency as meant at point a is submitted to Special KPPN, Jakarta VI. Article 8 ( 1) Expenditure upon SP2D-Reksus that is not in accordance with the provisions as regulated in PHLN Agreement document of expenditure after the statement of closing date of PHLN is catego­ rized as ineligible expenditure. (2) Upon expenditure that categorized as ineligible as meant at paragraph ( 1), the Director General of Treasury submits notification letter to the Head of the State Ministry/Institution with copy to the Director General of Budgeting. (3) The expenditure categorized as ineligible as meant at paragraph (1) becomes the responsibility of the related Ministry/Institution and must be calculat­ ed in DIPA revision for the running fiscal year or charged on in DIPA of the coming year. CHAPTER VI FINAL PROVISIONS Article 9 This Regulation of Director General starts to take effect since the stipulation date. Stipulated in Jakarta on 18 March 2013 THE DIRECTORATE GENERAL OF TREASURY, Signed AGUS SUPRIJANTO \A) Business News 850311-10-2014