Gov’t Issues Technical Regulation on State Budget Spending During COVID-19 Pandemic

State budget posture adjustment. (Source: Ministry of Finance)

Ministry of Finance has announced it has issued Minister of Finance Regulation Number 43/PMK.05/2020 on Budget Implementation Mechanism at the Expense of State Budget on COVID-19 Handling.

This technical regulation which was stipulated on 24 April 2020 explains the budget implementation mechanism, allocation for pandemic handling fund contained in the Ministries/Agencies’ Budget Implementation List (DIPA), grouping funds for COVID-19 handling in a special COVID-19 account, and the validity period of this regulation.

The regulation enables the Treasury Officials to disburse the budget in a state of urgency or cannot be postponed even though funds are not available or not sufficiently available in the DIPA (Article 3 paragraph 2).

However, this urgent disbursement shall be limited to medicines, medical devices, medical infrastructure, human resources both medical and non-medical personnel, and other activities related to the handling of the Covid-19 Pandemic.

This Regulation also includes payment mechanisms, the distribution of social assistance expenditure to ministries/institutions as well as financial accounting and reporting.

According to this Regulation, payment at the expense of State Budget for COVID-19 handling, as long as it is not specifically regulated based on this Ministerial Regulation, shall be carried out in accordance with the provisions of Minister of Finance Regulation on payment procedure in the framework of implementing the State Budget.

“Payment at the expense of the State Budget for the social safety net, as long as it is not specifically regulated based on this Ministerial Regulation, shall be carried out in accordance with Minister of Finance Regulation on the expenditure of social assistance in state ministries/institutions,” Article 17 paragraph (2) reads.

Based on article 19 of this Regulation, Budget User Proxy (KPA) shall be responsible for the types of activities, outputs and pricing of payments at the expense of the State Budget in the form of goods/services procurement in handling the Covid-19 pandemic.

This Ministerial Regulation applies on the date of its promulgation, reads Article 21 of this Regulation, which was promulgated by Minister of Law and Human Rights Yasonna H. Laoly on 27 April 2020. (Ministry of Finance/EN)

Translated by: Fairuzzamani Inayatillah
Reviewed by: Yuyu Mulyani