Presidential Regulation 88/2019 Regulates 2020 Special Allocation Fund
Date 16 Januari 2020
President Joko “Jokowi” Widodo on 27 December, 2019 signed Presidential Regulation Number 88 of 2019 on Technical Provisions for Special Allocation Fund for Infrastructure (DAK Fisik) in the 2020 Fiscal Year. (Link https://jdih.setkab.go.id/PUUdoc/176012/Perpres_Nomor_88_Tahun_2019.pdf)
The Regulation aims to implement provisions of Article 12 paragraph (5) of Law Number 20 of 2019 on the 2020 State Budget.
According to the Regulation, the Special Allocation Fund for Infrastructure consists of 3 (three) types, including: a. Regular Special Allocation Fund for Infrastructure (DAK Fisik Reguler); b. Special Allocation Fund for Priority Infrastructure (DAK Fisik Penugasan); and c. Special Allocation Fund for Affirmative Action (DAK Fisik Afirmasi).
The Regulation also states that Special Allocation Fund for Infrastructure consists of several sectors stipulated in the 2020 State Budget Law, including: a. education; b. health and family planning; c. housing and settlements; d. small and medium industries; d. agriculture; e. marine and fisheries; f. tourism; g. roads; h. drinking water; i. sanitation; j. irrigation; k. market; l. environment and forestry; m. rural transportation; n. water transportation; and p. social affairs.
Chapter III Article 3 of the Presidential Regulation stipulates that management of Special Allocation Fund for Infrastructure in the regions includes: a. technical preparation; b. implementation; c. reporting; and d. monitoring and evaluation.
Regional governments should make technical preparations by compiling and submitting proposed projects in the sectors/subsectors funded from Special Allocation Fund for Infrastructure through an integrated planning and budgeting information system with reference to: a. proposal document; b. the results of the evaluation of proposals; c. the results of synchronization of proposals; d. the results of proposals from members of the House of Representatives (DPR) in regional development programs; and e. Special Allocation Fund for Infrastructure submitted through Ministry of Finance website or listed in the Presidential Regulation regarding the details of the State Budget.
The Presidential Regulation also states that the Regional governments shall implement Special Allocation Fund for Infrastructure in accordance with the targets, details, and locations of Special Allocation Fund for Infrastructure based on plan that has been approved by Government Ministries/Institution.
Regional Heads, according to the Regulation, shall compile report on the implementation of Special Allocation Fund for Infrastructure which consists of reports on: a. implementation of projects; and b. use of funds and the outputs.
The Fourth Part of Article 8 of the Presidential Regulation states that the monitoring of Special Allocation Fund for Infrastructure is carried out on the technical aspects of projects and finance. Evaluation of Special Allocation Fund for Infrastructure is carried out in line with the achieved target within 1 (one) year which have been set in each of sector/subsector of Special Allocation Fund for Infrastructure and the impact and benefits of implementing projects.
Monitoring and evaluation of Special Allocation Fund for Infrastructure in the regions by the Central Government, according to the Regulations, is carried out separately or jointly by Ministers/Heads of Institutions, Minister of Finance, Ministers of National Development Planning, and Minister of Home Affairs.
The monitoring and evaluation is carried out with the following provisions: a. Minister/Head of the institution shall conduct monitoring and evaluation of the management of projects and the achievement of outputs, as well as the impact and benefits of projects of the Special Allocation Fund for Infrastructure; b. Minister of Finance shall monitor and evaluate the realization of use of funds in each sector/sub-sector of the Special Allocation Fund for Infrastructure; c. Minister of National Development Plan shall monitor and evaluate the achievement of outputs, as well as the impact and benefits of implementing projects in each sector/sub-sector of Special Allocation Fund for Infrastructure which are included in national priority projects; and d. Minister of Home Affairs shall monitor and evaluate the management of Special Allocation Fund for Infrastructure projects in the context of implementing the Regional Budget.
Monitoring and evaluation of the Special Allocation Fund for Infrastructure is carried out with due regard to: a. timeliness of completion of projects; b. realization of use of funds; c. the achieved target of projects’ output; and d. the results, impacts and benefits of implementing projects.
“The Presidential Regulation shall come into force on the date of its promulgation,” Chapter V Article 13 of the Presidential Regulation reads. The Regulation was promulgated by Minister of Law and Human Rights Yasonna H. Laoly on 30 December, 2019. (Pusdatin/EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana