to Indonesian
a. that in the framework toward global economic challenges, based on Government Regulation No. 46/2007 concerning the Batam Free Trade Zone and Free Port as amended by Government Regulation No. 5/2011, Batam with the specified borders has been declared as a Free Trade Zone and Free Port;
b. that based on article 8 paragraph (2) of Law No. 36/2000 concerning Stipulation of Government Regulation in lieu of Law No. 1/2000 concerning Free Trade Zone and Free Port into Law as amended by Law No. 44/2007, the Free Trade Zone and Free Port Management Board has the task and authority to manage, develop and construct Free Trade Zone and Free Port according to the functions of Free Trade Zone and Free Port;
c. that in the framework accountability of the management, development and construction of the Batam Free Trade Zone and Free Port by the Free Trade Zone and Fee Port Management Board, to make it match with Law No. 17/2003 concerning State Finance, Law No. 1/2004 concerning State Treasury, and Law No. 15/2004 concerning Audit and Responsibility of State Finance, it is necessary to control the management of finance at the Batam Free Trade Zone and Free Port;
d. that the management of finance as intended in paragraph c constitutes flexible financial management that gives freedom to apply sound business practices, as an exception to provisions on the management of state finance in general to encourage the development and construction of estates and to anticipate the challenges of global competition;
e. that based on the considerations as intended in paragraph a, paragraph b, paragraph c, and paragraph d, it is necessary to stipulate Government Regulation concerning the Management of Finance at the Batam Free Trade Zone and Free Port;
1. Article 5 paragraph (2) of the 1945 Indonesian Constitution;
2. Law No. 36/2000 concerning the Stipulation of Government Regulation in lieu of Law No. 1/2000 concerning Free Trade Zone and Free Port into Law (Statute Book No. 251/2000, Supplement to Statute Book No. 4053) as amended by Law No. 44/2007 concerning the Stipulation of Government Regulation in lieu of Law No. 1/2007 concerning Amendment to Law No. 36/2000 concerning the Passage of Government Regulation in lieu of Law No. 1/2000 concerning Free Trade Zone and Free Port into Law (Statute Book No. 130/2000, Supplement to Statute Book No. 4775);
3. Law No. 17/2003 concerning State Finance (Statute Book No. 47/2003, Supplement to Statute Book No. 4286);
4. Law No. 1/2004 concerning State Treasury (Statute Book No. 5/2004, Supplement to Statute Book No. 4355);
5. Law No. 15/2004 concerning Audit of Management and Responsibility of State Finance (Statute Book No. 66/2004, Supplement to Statute Book No. 4400);
6. Government Regulation No. 23/2005 concerning the Management of Public Service Finance (Statute Book No. 48/2005, Supplement to Statute Book No. 4502);
7. Government Regulation No. 46/2007 concerning the Batam Free Trade Zone and Free Port (Statute Book No. 107/2007, Supplement to Statute Book No. 4757) as amended by Government Regulation No. 5/2011 concerning Amendment to Government Regulation No. 46/2007 concerning the Batam Free Trade Zone and Free Port (Statute Book No. 16/2011, Supplement to Statute Book No. 5195);
GOVERNMENT REGULATION CONCERNING THE MANAGEMENT OF FINANCE AT THE BATAM FREE TRADE ZONE AND FREE PORT
In this Government Regulation:
1. Batam Free Trade Zone and Free Port, hereinafter called as Zone, is a zone as intended in Government Regulation No. 46/2007 concerning the Batam Free Trade Zone and Free Port as amended by Government Regulation No. 5/2011 concerning Amendment to Government Regulation No. 46/2007 concerning the Batam Free Trade Zone and Free Port.
2. Batam Free Trade Zone and Free Port Council, hereinafter called as Zone Council, is a Council set up by the President and its members shall be stipulated by the President with the task and authority to make public policies, develop, supervise, and coordinate the activities of the Batam Free Trade Zone and Free Port Management Board.
3. Batam Free Trade Zone and Free Port Management Board, hereinafter called as Management Board, is a central government agency/institution set up by the Zone Council with the task and authority to manage, develop, and construct the Batam Free Trade Zone and Free Port.
4. Pattern of the Management of Finance of Public Service Board, hereinafter called as PPK-BLU, is a pattern of the management of finance that gives flexibility to apply sound business practices to provide better services to the public as part of efforts to promote the public welfare and intellectualize the nation as governed by Law No. 1/2004 concerning State Treasury, as an exception to the management of state finance in general.
5. Work and Budget Plan of State Ministry/Agency, hereinafter called as RKA-KL, is a work plan and budget as intended in Law No. 17/2003 concerning State Finance.
6. Business and Budget Plan of Public Service Board, hereinafter called as RBA, is a business planning and budgeting document containing programs, activities, performance targets, and budget of the Public Service Board.
7. Sound business practice is carrying out the function of organization based on good management principles in order to provide quality and sustainable services.
(1) The assets of the Management Board shall be inseparable state assets.
(2) The budget of the Management Board shall be dynamic and flexible and apply sound business practices.
(3) The Management Board shall provide public services based on sound business practices without prioritizing profit-making.
(1) To support the task and authority of the Management Board, it shall be given flexibility in managing finance based on economic principles and sound business practices.
(2) The flexibility in the management of finance as intended in paragraph (1) shall cover at least treasury budgeting and management.
(3) The treasury management as intended in paragraph (2) shall cover the management of finance, the management of debts and the management of assets.
(4) Provisions on the management of assets as intended in paragraph (3) are to be provided for in Regulation of the Minister of Finance.
The pattern of the management of finance at the Management Board shall constitute the pattern of the management of finance according to provisions on PPK-BLU as governed in the government regulation on PPK-BLU, except otherwise stipulated in this Government Regulation.
The Management Board shall be formed by and responsible to the Zone Council.
(1) The management of finance at the Management Board shall cover at least:
(2) The performance agreement as intended in paragraph (1) e shall cover at least readiness to improve service, performance, finance and benefit for the public.
The Head of the Management Board shall be responsible for providing public services as its main task and function.
(1) The Head of the Management Board shall serve as the user of budget/use of goods owned by the Management Board.
(2) The Head of the Management Board as the user of budget/goods can appoint a proxy of the user of budget/user of goods.
(1) The Management Board shall seek revenue sources on its own to finance its expenditure.
(2) The revenue sources of the Management Board shall come from:
(3) The revenue as intended in paragraph (2) shall be reported to the Minister of Finance as non-tax state revenues.
(4) The revenue as intended in paragraph (2) can be used directly to finance the expenditure of the Management Board.
(5) In addition to the revenue sources as intended in paragraph (1), the Management Board can obtain revenue from:
(6) Further provision on the procedure of cooperation as intended in paragraph (2) b shall be provided for in the Regulation of the Minister of Finance.
(1) The Management Board shall make a five-year strategic plan by observing the National Medium-Term Development Plan.
(2) The Management Board shall make RBA by observing the strategic plan as intended in paragraph (1).
(3) RBA as intended in paragraph (2) shall be made according to the needs in the management of Free Trade Zone and Free Port as well as the ability to raise revenue on a yearly basis.
(4) The Management Board shall convey RBA to the Zone Council for approval.
(5) RBA already approved as intended in paragraph (4) shall be put in RKA-KL.
(6) RKA-KL shall be submitted to the Minister of Finance as inputs to make draft of State Revenue and Expenditure Budget.
(1) After the State Revenue and Expenditure Budget has been approved, the Minister of Finance shall convey the ceiling of budget allocations to the Management Board.
(2) The Management Board shall make RKA-KL using the ceiling of budget allocations as intended in paragraph (1).
(3) RKA-KL already adjusted as intended in paragraph (2) shall serve as a basis to make a budget realization list.
The Management Board shall apply a financial management information system according to the need and sound business practices.
(1) The Management Board shall record each financial transaction and manage its supporting document in an orderly manner.
(2) The accounting and financial statement of the Management Board shall be conducted according to the financial accounting standard issued by the Indonesian accountants association.
(3) In the absence of accounting standard as intended in paragraph (2), the Management Board can apply specific industrial accounting standard after securing approval from the Minister of Finance.
(4) The Management Board shall develop and apply the existing accounting system according to the type of its services approved by the Minister of Finance.
(1) The financial statement of the Management Board as intended in Article 13 paragraph (2) shall cover at least:
(2) The financial statements of business units managed by the Management Board shall be consolidated into a financial statement as intended in paragraph (1).
(3) The face of financial statements of business units as intended in paragraph (2) shall serve as attachment to the financial statement of the Management Board.
(4) The financial statement of the Management Board as intended in paragraph (1) shall be conveyed periodically to the Zone Council.
(5) In addition to making financial statement based on the financial accounting standard as intended in Article 13 paragraph (2), the Management Board shall also make financial statement based on the government accounting standard.
(6) The financial statement as intended in paragraph (1) and paragraph (5) shall be conveyed to the Minister of Finance no later than 1 (one) month after the end of reporting period through the Zone Council.
(7) The financial statement of the Management Board as intended in paragraph (1) shall be an integral part of financial accountability report of the Management Board as the user of budget/user of goods.
(8) The financial accountability report of the Management Board shall be audited by an external auditor according to the law and regulation.
(1) The technical development of the Management Board shall be conducted by the Zone Council.
(2) The financial development of the Management Board shall be conducted by the Minister of Finance.
(3) In conducting the development as intended in paragraph (1) and paragraph (2), a supervisory council shall be formed.
(4) The supervisory council at the Management Board shall be formed by a decision of the Zone Council after securing approval from the Minister of Finance.
The planning, budgeting and accountability of funds originating from the Regional Revenue and Expenditure Budget shall be done according to the Law and regulation.
When this Government Regulation begins to take effect:
(1) The Batam Management Board shall turn into a government agency/ institute applying PPK BLU.
(2) The Regulation of the Minister of Finance serving as the implementation of the Government Regulation on the Management of Finance at the Public Service Board shall be put into force as the implementation regulation of this Government Regulation.
(3) Further provisions needed to implement this Government Regulation are to be provided for in the Regulation of the Minister of Finance in addition to those as intended in paragraph (2).
The Batam Management Board shall adjust to this Government Regulation no later than 1 (one) year after it was put into force.
This Government Regulation shall come into force as from the date of promulgation.
For public cognizance, this Government Regulation shall be promulgated by placing it in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta
on February 4, 2011
PRESIDENT OF THE REPUBLIC OF INDONESIA
signed,
DR. H. SUSILO BAMBANG YUDHOYONO
Elucidation of Government Regulation
No. 6/2011
concerning the management of finance at the Batam free trade zone and free port management board