Govt to Increase Investment in International Financial Institutions
In a bid to maintain the amount of investment of the Indonesian Government in a number of International Financial Institutions, the Government deemed it necessary to increase investments sourced from the State Budget for the 2019 Fiscal Year.
Based on this consideration, Minister of Finance Sri Mulyani Indrawati, on 26 April 2019, signed Regulation of Finance Minister (PMK) Number 50/PMK.010/2019 on an Increase in Indonesian Government Investment in International Financial Institutions for the 2019 Fiscal Year.
Under the Regulation, Minister of Finance shall increase Indonesian Investment in these following International Financial Institutions: a. International Development Association (IDA); b. Islamic Development Bank (IDB); c. International Fund for Agricultural Development (IFAD); d. Islamic Corporation for Development of the Private Sector; and e. Asian Infrastructure Investment Bank (AIIB).
The increase of investment as intended is sourced from the 2019 State Budget, Article 3 paragraph (2) of the PMK reads.
Based on this Ministerial Regulation, the additional investment amounts to: a. Rp217 billion for International Development Association, in which Rp48.3 billion or US$3.2 million is from non-cash payment, while the Rp169 billion is from cash payment: b. Rp87.216 billion or US$5.814 million of cash payment for Islamic Development Bank; c. Rp45 billion or US$3 million for International Fund for Agricultural Development; d. Rp44.525 billion or US$2.968 million of cash payment for Islamic Corporation for Development of the Private Sector; and e. Rp2.016 trillion or US$134.420 million of cash payment for Asian Infrastructure Invesment Bank.
The addition of investment as intended will be made by the Head of Multilateral Funding and Climate Change Policy Center of the Fiscal Policy Agency (BKF), as the Proxy of Budget User of the State Treasury (BUN) in managing the Government investment, Article 9 of this Regulation reads.
The Regulation also states that the increase in Indonesian Government Investment in International Financial Institutions may exceed the stipulated amount insofar as it is due to foreign exchange rate differences as regulated in Law on the Current State Budget.
The Ministerial Regulation shall apply as of the date of its promulgation, Article 12 of Regulation of Finance Minister (PMK) Number 50/PMK.010/2019 which was stipulated by Director General of Legislation of Ministry of Law and Human Rights Widodo Eka Tjahjana on 29 April 2019 reads. (JDIH Kemenkeu/ES)
Translated by : Rany Anjany Subachrum
Edited by : Muhardi/ Mia Medyana Bonaedy