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Direktorat Jenderal AnggaranKementerian Keuangan Republik Indonesia


APBN2015

BUDGET IN BRIEF

REPUBLIK INDONESIAREPUBLIC OF INDONESIA

Compiled by Directorate of Budget Preparation, General Directorate of Budget

Person in charge:Askolani

Editor:Kunta W.D. Nugraha

Contributors:Kurnia ChairiDidik KusnainiAdinugroho DwiutomoHeru WibowoAgus KuswantoroWawan SunarjoOfficials and employees of the Directorate of Budget Preparation

Design and layout:Kandha Aditya Sandjoyo



APBN2015

BUDGET IN BRIEF

REPUBLIK INDONESIA

BUDGET IN BRIEF APBN 201 5

1

BUDGET IN BRIEF APBN 2015

Minister of Finance of the Republic of Indonesia

Praise to God the Almighty that with His help we were able to complete the Budget in Brief for the first time in Indonesia. This Indonesian Budget in Brief was developed based on 2015 APBN (state budget) that has been approved by the House of Representatives of the Republic of Indonesia in plenary session on September 29, 2014. 2015 APBN is different from the APBN in the previous years, because it is compiled as a baseline on the new government transition year for the period of 2015-2019.

The period of 2015-2019 is the Third RPJMN (National Medium Term Development Plan) focusing on strengthening overall development in various fields with an emphasis on achieving economic competitiveness on the basis of competitiveness of natural and human resources as well as the development of science and technology.

In 2015 APBN, the deficit of 2.21% toward GDP (Gross Domestic Product) is lower than the 2014 revised budget, which was 2.40% toward GDP. This indicates the desire of the Government and the House of Representatives to provide a broader fiscal space to accommodate the visions and missions of the new government. 2015 APBN is also the first to include the allocation of Village Fund as a form of implementation of Law No. 6 of 2014 on Village. Village Fund Allocation is expected to have an impact on improving the welfare of the community, especially in strengthening the efforts to encourage more equitable economic growth.

We also would like to thank all the contributors who have helped us in preparing this Indonesian Budget in Brief. We also thank all the officers/staffs of the DJA (General Directorate of Budget), who have also contributed directly or indirectly in preparing this Indonesian Budget in Brief.

Hopefully this Indonesian Budget in Brief can provide broader knowledge and understanding of 2015 APBN to the readers and the societies (academics, economists and students). This Indonesian Budget in Brief may have drawbacks, for that we need constructive criticism and suggestions from readers.Thus, we hope that this Indonesian Budget in Brief could benefit us all.

Thank you.

Jakarta, October 15, 2014

Muhamad Chatib Basri


2

NEW MATTERS

Rp

Rp

BASELINE BUDGET2015 APBN is arranged within the transition period from the old to thenew government. This baseline budget takes into account the basic needsof governance and service to the community, so as to keep providing thefiscal space to the new government to make adjustments.

EXPENDITURE DETAILSDetailed format of expenditure was adjusted by dictum of ConstitutionalCourt Decision No. 35/PUU-XI/2013 dated May 22, 2014 [according to theorganization, functions, and programs as well as the revision of Law No. 17of 2014 on the MPR (People’s Consultative Assembly), DPR (House ofRepresentatives), DPD (Regional Representative Council), and DPRD(Regional Representative Assembly)] which gives emphasis on governmentdiscussions with the House of Representatives on more strategic issues.

NEW FORMATThe writing format of Financial Memorandum is divided into three mainparts to be more systematic and easy to understand.

VILLAGE FUNDThe Village Fund is a mandate of Law No. 6 of 2014 on Villages.

PESAN-PESANBARU


3

2015 APBN CONTINUING THE DEVELOPMENT REFORMATION FOR ACCELERATING THE EQUITABLE

ECONOMIC DEVELOPMENT

The government together withthe House of Representativesof the Republic of Indonesiahas discussed and agreed on2015 APBN by taking intoaccount the consideration ofRegional RepresentativeCouncil of the Republic ofIndonesia

January-February 2014

March 19, 2014

June 3 to July 10, 2014

July 10, 2014

August 15, 2014

August-September 2014

September 29, 2014

October 14, 2014

November 2014

December 2014

2014

2015

Preparation of fiscal capacity

Preliminary Discussion

Indicative Ceiling of the Expenses Standard of the Ministerof Finance and the Minister of National DevelopmentPlanning/Head of Bappenas (National DevelopmentPlanning Agency)Pembangunan Nasional

President speech on Finance Memorandum and APBNSubmission

Discussions with the House of Representatives

Plenary session of the House of Representatives on theRatification of the APBN Law

Law No. 27 of 2014 on 2015 APBN

Presidential Regulation on APBN Details

DIPA (Budget Implementation Check List) submission

Decree of the Minister of Finance on Budget Ceiling of K/L(Ministry/Agency)

January-December 2015

Budget implementation

DIPA (Budget Warrant) submission


4

%

DIRECTION FOR FISCAL POLICYStrengthening the Fiscal Policy in the Context of Sustainable andEquitable Economic Growth Acceleration

Controlling the deficit to be within safe limits, throughoptimization of income while maintaining the investment climateand maintaining environmental conservation, as well as improvingthe quality of expenditure and improving the expenditurestructure.

THE THREE MAIN STEPS

Controlling the ratio of government debt to PDB (GDP) throughcontrolling financing sourced from debts within safe limits andcontrol, as well as directing the use of debt to productive activities

Controlling the fiscal risk to be within the limits of tolerance,among others, by controlling the ratio of debt to revenue in thecountry, controlling the debt service ratio, and maintaining thecomposition of the debt within measurable safe limits andguarantees.


5

Basic assumption of Macroeconomics is the basis for calculating 2015 APBN posture.

Basic Assumptions of Macroeconomics was compiled based on the objectives contained in RPJMN and RKP (Goverment Work Plan) 2015 as well as global and domestic economic developments in 2014 and 2015.

BASIC ASSUMPTIONSOF MACROECONOMICS

900oil lifting

(thousand barrels/day)

1,248gas lifting

(thousand barrels of oil equivalent/day)

105oil price

(USD/barrel)

11,900IDR USD

exchange rate(IDR/USD 1)

5.8economicgrowth (%)

4.4inflation (%)

6.0

818

1,224

105

11,600

5.5

2015APBN

2014REVISED

APBN

5.3

6.0SPN (State Treasury Bills)

interest rate for 3 months(%)

Primary balance illustrates the Government’s ability to pay principal and interest on debt using state revenues.The primary balance is the total revenues minus the state expenditures outside the debt interest payments. If the value of the primary balance is negative, then the Government must issue new debt to pay principal and interest on debt. Conversely, if the value of the primary balance is positive, then the government could use it to pay part or all of the principal and interest on debt

*

9.7%increase from 2014 revised APBN

STATEREVENUE

STATEREVENUE

Rp1,793.6trillion

STATEEXPENDITURE

STATEEXPENDITURE

Rp2,039.5trillion

BUDGETDEFICIT

BUDGETDEFICIT

PRIMARYBALANCE

PRIMARYBALANCE

Rp245.9trillion

- Rp93.9trillion

2.21%

8.7%increase from 2014 revised APBN

toward Gross DomesticProduct

2015 APBN

2014 REVISED APBN

Rp1,635.4trillion

Rp1.876,9trillion

Rp241,5trillion

- Rp93.9trillion

6

2015 STATE REVENUE

1,793.6 TState RevenueRp

Rp410.3 T

Rp3.3 T

Rp178.3 TRp1,201.7 T

67 %10 %

23 %

Customs and Excise Tax

PNBP(Non tax Revenues)

Grants

Tax

PNBP (Non Tax Revenues)

Customs and Excise

Grants

Consists of oil and gas revenue tax, non-oil revenue tax, PPN (VAT, Value Added Tax), PBB (Land and Building Tax), and other taxes.

Consisting of revenues from oil and gas natural esources, non-oil natural resources (minerals and coal mining, forestry, fisheries, and geothermal), share of SOE profits, other non-tax revenues (non-tax revenues collected by the K/L), and BLU (Public Service Agency) Revenue.

Consisting of excise revenues (tobacco, ethyl alcohol, and drinks containing ethyl alcohol), duties, and levies.

State revenues derived from the grantors which does not have to be repaid and are not binding, both from within the country and from abroad.

7


8

TRILLION RUPIAH

STATE REVENUES2004-2015

Tax

Grand

PNBP

Custom and Excise

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014REVISEDBUDGET

2015APBN

Rp403.4 T

Rp495.2 T

Rp638.0 T

Rp707.8 T

Rp981.6 T

Rp848.8 T

Rp995.3 T

Rp1,210.6 T

Rp1,338.1 T

Rp1,438.9 T

Rp1,635.4 T

Rp1,793.6 T

238.6 122.541.9

0.3

298.5 146.948.5

1.3

358.2 227.051.0

1.8

425.4 215,165.6

1.7

571.1 320.687.6

2.3

544.5 227.275.4

1.7

628.2 268.995.1

3.0

742.7 331.5131.1

5.3

835.8 351.8144.7

5.8

921.4 354.8156.0

6.8

1,072.4 386.9173.7

2.3

1,201.7 410.3178.3

3.3


9

THE 2015 TAXATION REVENUE

Rp525,0 TPPN (VAT)

Duty

Rp37.2 T

Levy

Rp14.3 T

Rp126.7 T

Excise

Rp1,201.7 TTax

86%

14%

71%

21%

8%

7%

46%

44%

1,380.0 TRp

Rp178.3 T Rp1,201.7 T

Rp178.3 T

TaxCustomsand Excise

Rp555.7 TNon-oil Revenue Tax

Gas Tax

Rp88.7 T

Others

Rp5.7 T

Property Tax

Rp26.7 T

2%1%

State Revenue

525.0 T


10

THE 2015 TAXATION REVENUE

THE 2015TAXATIONREVENUEPOLICY

TAXRATIO

COMPARISON OF THE TAX RATIO OF 10 COUNTRIES IN 2012

Optimization of tax revenue with the potential of an individual taxpayer in high and middle income groups, and also non-tradable sectors such as property, financial services, and trade, as well as some strategic economic

transactions.

Tax ratio in the broad definition compares the total value of tax revenue (central tax)), regional taxes and revenues from oil and gas natural resources with nominal PDB (GDP). While the tax ratio in the narrow definition compares total value of tax revenue (central tax) with nominal GDP. Tax ratio for the year of 2015 has the same target with the 2014 revised APBN (narrow definition).

Fiscal incentives and downstream policies implementation of particular commodities to increase competitiveness and value added.

Adjustment policies in the field of import duties, export levies, and income tax.

Tobacco excise tariff adjustment for controling goods subject to excise.

10

22,1% 14,5%18,0% 15,5%16,5%38,3% 11,2%23,7%29,1%

Malay Thailand PhilipinaSingapore IndonesiaUSAEngland JapanAustraliaGermany

20,5% 12,4%

India

TAX RATIO14.5

11.3 11.8 11.9 12.2 12.4 12.4

15.8 15.715.115.515.4

2010 2011 2012 2013 2014REVISED APBN

2015APBN

Rp723.3 T Rp 873.9 T Rp980.5 T Rp1,077,3 T Rp1,246.1 T Rp1,380.0 TTax Ratioin narrowdefinition (%)

Tax Ratioin broaddefinition (%)

38.3% 29.1% 23.7% 22.1% 20.5% 18.0% 16.5% 15.5% 14.5% 12.4% 11.2%


11

KEBIJAKANPENERIMAANNEGARA BUKANPAJAK 2015

Optimization of oil and gas revenues (realizing construction of new oil wells, withstanding natural decline of oil and gas lifting, and controlling cost recovery).

PNBP (Non-Tax State Revenues) rate adjustment and extensification.

Improved performance of SOEs.

Improved monitoring and reporting of PNBP (non-tax revenues).

Improved non-tax revenues administration and system.

Improved PNBP regulatory.

THE 2015 NON-TAXSTATE REVENUE

Non-taxState Revenue

11

410,3 TRp

55%7%

5,0%

11%

22%

Rp224.3 TThe natural resources of oil and gas

Rp89.8 TOther non-tax revenues

Rp30.0 TNon Oil Natural resources

Rp44.0 TSOE Profit

Rp22.2 TBLU (Public Service Agency) revenue

.


12

200421,2

9,8

92,0

23,6

12,8

111,0

38,021,5168,0

2,156,923,2133,0

3,763,329,1224,5

8,453,826,0139,0

10,659,430,1169,0

20,169,428,2214,0

21,773,530,8226,0

24,669,734,0226,4

20,985,040,0241,1

22,290,044,0254,3

2005

2006

2007

2008

2009

2010

2011

2012

2013

APBNP2014

APBN2015

DEVELOPMENT OF NON TAX STATE REVENUE 2004-2015

In Trillion Rupiah

Natural Resources of Oil & Gas and Non-Oil and Gas

SOE Profit Shares

Other Non Tax Revenues

Public Service Agency

Rp122.5 T

Rp146.9 T

Rp227.0 T

Rp215.1 T

Rp320.6 T

Rp227.2 T

Rp268.9 T

Rp331.5 T

Rp351.8 T

Rp354.8 T

Rp386.9 T

Rp410.3 T

12

92.0

111.0

168.0

133.0

224.5

139.5

169.0

214,0

226,0

226,4

241.1

254.3

92.0

21.2

12.8

21.5

23.2

29.1

26.0

30.1

28.2

30.8

34.0

40.0

44.0

23.6

38.0

56.9

63.3

2.1

3.7

53.8 8.4

59.4 10.6

69.4 20.1

73.5 21.7

69.7 24.6

85.0 20.9

90.0 22.2

2014REVISED

APBN

2015APBN


13

Payments of Debt Interest Central Government expenditure on the use of domestic and foreign debt. Calculated from the existing debt and new debt estimates, including costs related to debt management.

Other ExpendituresState expenditures for payment of government obligations that are not included in the category of ministries/institutions expenditures, local transfers, subsidies, interest payments, and the village fund.

Transfers to RegionsAllocated to reduce the imbalance funding sources between central and regions, reduce the funding gap between local government affairs, reduce the gap of public services between the regions, to fund the implementation of regional autonomy and privileges.

Village FundFunds from the APBN allocated for villages that is transferred through the district/town budget and used to finance the government administration, the implementation of development, coaching civic, and community empowerment.

Ministry/Agency ExpenditureBudget that is allocated through the Ministry/Agency to finance certain affairs in the government.

SubsidiesProviding support in the form of budget allocations to the state enterprises, government agencies, or third parties based on the laws and regulations that apply to the supply of goods or services that are strategic or dominate the life of the people according to the ability of state finances.

Belanja Negara

2.039,5TRILIUN

Rp

31%

32%

20%

8%

9%

Transfer ke Daerah

Dana Desa

638,0 T

9,1 T

647,3 T

178,4 T

152,0 T

414,7 T

Belanja Lainnya

PembayaranBunga Utang

Subsidi

Belanja KementerianNegara/Lembaga

THE 2015 STATE EXPENDITURE

13

.

.

.

.

.

.

Ministry/Agencies Expenditures

Village Fund

Transfer to the Regions

Other expenditures

Payment of Debt Interest

Subsidies

2,039.5 TState ExpenditureRp


14

CENTRAL GOVERNMENT EXPENDITURE 2015

CENTRAL GOVERNMENT EXPENDITURE BY FUNCTION 2012-2015

Public Service Function, among others, consists of Coaching, Financing and Health Insurance (Jamkes PBI Budget) Development, Development and Management of Irrigation Network, Wetlands and Other Irrigation Network, Management and Conservation of Reservoirs, Embung, Situ and Other Water Container Buildings, Provision and Management of Raw Water and entire Non Ministry/Agency expenditures (subsidies, Debt Interest Payments, other Expenditures);

Defense Function, among others, consists of Military Procurement, Creation of Internal Alutsista (Defense SystemPrimary Tools) Industries and Defense Industry pinak Development, Maintenance of Army, Navy and Air Force Personnels;Order and Security Function, among others, consists of Regional Corrections Implementation, Development of Police Equipment, Improvement of Security Service and Public Safety in the Field of Traffic;

Economic Function, among others, consists of Area Expansion and Agricultural Land Management, Development, Rehabilitation and Maintenance of Airport Infrastructures, Development and management of Infrastructures and Facilities Supporting Railways, Development and Management of Infrastructures and Facilities of Road Traffic and Transport, Implementation of Preservation and Capacity Building of National Road;

Environment Function, among others, consists of Management, Development, Monitoring, and Implementation of Sanitation and Waste Development and Provincial Land Management;

Housing and Public Facilities Function, among others, consists of Facilitating the Indigenous Empowerment and Social Culture of the Society, Settings, Coaching, Supervision, and Implementation of the Water Supply System Development;

Health Function, among others, consists of Health Services Referral Guidance, Increased Availability of Public Drugs and Medical Supplies;

Tourism and Creative Economic Function, among others, consists of Community Empowerment in Tourism Destinations Area, Improved Foreign Tourism Promotion;

Religious Affair Function, among others, consists of Islamic Affairs Management and Development of Sharia, Management and Development of Religious Affairs for Christian, Catholic, Hindu, Buddhist;

Education Function, among others, consists of Assurance of Elementary, Junior High Education Services, and Improving Education Quality Assurance;

Social Security Function, among others, consists of Social Welfare Assurance (Conditional Cash Support/Family Hope Program).

Rp1,392.4 T

Rp96,8 T

Rp21,1 T

14

CENTRAL GOVERNMENT EXPENDITURE

EducationRp146.4 T

Economy Rp143.5 T

DefenceRp96.8 T

1.5%HealthRp21.1 T

1.5%Housing & Public FacilityRp20.5 T

0.8%EnvironmentRp10.7 T

0.6%Social SecurityRp8.3 T0.4%ReligionRp5.3 T0.1%Tourism & Creative EconomyRp1.9 T

Public serviceRp891.8 T

3.3 %Order & Security

Rp46.1 T

Note: Function of Tourism and Creative Economy experienced nomenclature change in 2014Source: Ministry of Finance

2012 2013 2014 2015REVISED BUDGET

BUDGET

1 PUBLIC SERVICES 648.0 705.7 856.1 891.8

2 DEFENSE 61.2 87.5 83.2 96.8

3 ORDER AND SECURITY 29.1 36.1 35.9 46.1

4 ECONOMY 105.6 108.1 114.0 143.5

5 ENVIRONMENT 8.8 10.6 10.3 10.7

6 HOUSING AND PUBLIC FACILITIES 26.4 33.8 27.1 20.5

7 HEALTH 15.2 17.6 12.1 21.1

8 TOURISM AND CREATIVE ECONOMIC 2.5 1.8 1.7 1.9

9 RELIGIOOUS AFFAIRS 3.4 3.9 3.7 5.3

10 EDUCATION 105.2 115.0 129.2 146.4

11 SOCIAL SECURITY 5.1 17.1 7.0 8.3

TOTAL 1,010.6 1,137.2 1,280.4 1,392.4

NO FUNCTION

TRILLION RUPIAH


15

BUDGET FOR STATEMINISTRIES/AGENCIES

APBNP 2014Rp602,3 T

Rp647,3 TAPBN 2015

Rp143,1 T

Rp135,4 TK/LLainnya

Rp83,3 T

Rp96,9 T

Rp51,6 T

Rp56,4 T

Rp47,5 T

Rp47,8 T

Rp36,0T

Rp44,8 T

Rp18,2 T

Rp18,7 T

Rp13,6 T

Rp15,9 T

Rp14,3 T

Rp10,0 T

Rp43,6 T

Rp51,6 T

Rp76,6 T

Rp88,3 T

Rp74,5 T

Rp81,3 T

15

Rp83.3 T

Ministry of Defense

Ministry of National Education

Ministry of Public Work

Ministry of Religious Affairs

Indonesian National Police

Ministry of Health

Ministry of Transportation

Ministry of Finance

Ministry of Agriculture

Ministry of Energy and Mineral Resources

Ministries/Agencies Others

Rp96.9 T

Rp76.6 TRp88.3 T

Rp74.5 T

Rp81.3 T

Rp51.6 T

Rp56.4 T

Rp43.6 T

Rp51.6 T

Rp47.5 T

Rp47.8 T

Rp36.0 TRp44.8 T

Rp18.2 T

Rp18.7 T

Rp13.6 T

Rp15.9 T

Rp14.3 T

Rp143.1 T

Revised Budget 2014Rp602.3 T

Budget for 2015Rp647.3 T

Rp135.4 T

Rp10.0 T


16

THE 2015 CENTRAL GOVERNMENT EXPENDITURE

Activities related to the development of infrastructure to support the management of strategic issues, which include strengthening national connectivity, encouraging growth, and diversifying of energy utilization.

INCREASED AVAILABILITY OF DRIVING INFRASTRUCTURES OF ECONOMIC GROWTH

Energy Infrastructure and Others:Supporting Energy Security

Construction of transmission lines of 519 KMS (on going) and 76.8 KMS (COD), a capacity of 2,680 MVA substation (on going) and 480 MVA (COD), as well as distribution substation capacity of 147.04 MVA.

Free electrical installations for fishermen and communities who can not afford as many as 93,323 RTS.

Oil and gas production/lifting, consisting of as much as 830-900 MBOPD petroleum and natural gas much as 1,235-1,260 MBOEPD.

The addition of gas network in two cities.

Increased electrification ratio to 83.18%.

Infrastructure:Supporting Inter-Regional Connectivity

Construction of a new road of 143 km in length, increase road capacity of 2,471.2 km, construction of new bridges of 11,716 m, and the construction of flyovers/underpasses of 1,213.3 m.

Construction of 265 km of new railway lines, including the double lines; and procurement of 48 units of locomotives, diesel trains (KRD), electric trains (KRL), tram, and railbuses.

Construction of weighbridge in 2 locations and development of bus rapid transit (BRT) as many as 50 units.

Construction of 5 new airports, development and rehabilitation of 51 airports, as well as 145 pioneering routes.

Construction of 59 pier infrastructure and development/improvement/rehabilitation of the pilot harbors in 26 locations.

Infrastructure Housing and Settlements

Construction of 120 twin block rusunawa (simple flats) for low-income communities (MBR), as well as facilitating and stimulating infrastructure, facilities, and utilities of self-help housing area of 20,000 units.

Ministry of Energy and Mineral Resources: 2014 revised APBN--Rp14.3 TBudget for 2015--Rp10.0 TMinistry of Transportation:

2014 revised APBN--Rp36.0 TBudget for 2015 --Rp44.9 T

Ministry of Public Work : 2014 revised APBN--Rp74.5 TBudget for 2015 --Rp81.3 T

Ministry of Public Housing : 2014 revised APBN--Rp4.0 TBudget for 2015 --Rp4.6 T

Note: The above targets are targets in the RKP (Government Work Plan) of 2015

16


17

Education Development is directed to improve the education of the population by improving the quality, accessibility, relevance, and competitiveness of education.

Affordable and Qualified Education

Improving educational level of the population by improving the quality, accessibility, relevance, and competitiveness of education through some programs, among others:

Continuing the School Operational Assistance (BOS) in order to complete the 9-year compulsory education for 30.1 million students of SD/SDLB/MI/Ula and 14.3 million junior high school students/SMPLB/MT/Wustha.

Continuing the implementation of Universal Secondary Education (PMU) for the population aged 16-18 years to continue their education to upper secondary level, through the provision of BOS for secondary education for approximately 10.6 million students of SMA/SMK/MA and the construction of new classrooms and rehabilitation of damaged classrooms .

Provide assistance to approximately 6.9 million poor students of SD/SDLB/MI, 2.9 million poor students of SMP/SMPLB/MTs, 1.3 million poor students of SMA/SMK/MA, and 194.8 thousand underprivileged students who receive Bidik Misi Assistance.

Strengthening the implementation of national education system, among others by improving curriculum, learning systems, and the literary world.

Poverty and Poverty Reduction

Poverty reduction programs, include:• Cluster I: Assistance and Social Protection• Cluster II: Community Empowerment• Cluster III: Development of Micro and Small Enterprises• Cluster IV: Pro-People Program Through Provision of Low-cost

Infrastructure/Facilities

The main target in 2015 is reducing the poverty rate to about 9-10%, by means of poverty alleviation programs and activities, among others:

Family Hope Program (PKH) in the form of conditional cash assistance to approximately 3 million very poor households (RTSM) provided health check and meet the attendance of education for family members.

Improving the quality of 400 KUMKM (Micro, Small, Medium Enterprises Cooperatives) through classification and revitalization of cooperatives.

Ministry of Religious Affairs: 2014 revised APBN--Rp51.6 TBudget for 2015--Rp56.4 T

Ministry for Cooperatives & Small & Medium Enterprises: 2014 revised APBN--Rp1.4 TBudget for 2015 --Rp1.5 T

Ministry of National Education:2014 revised APBN--Rp76.6 TBudget for 2015--Rp88.3 T

Ministry of Social Services:2014 revised APBN--Rp6.7 TBudget for 2015--Rp8.1 T

The Government continues to perform a comprehensive effort to continue, enhance, and integrate a variety of programs and policies to reduce poverty.

STRENGTHENING SOCIAL PROTECTION AND WELFARE OF THE PEOPLE

17



18

Low-cost Public Health

The percentage of infants aged 0-11 months who have received the complete primary immunization to be up to 91%

Health centers that transform into health care centers in the border and the outermost small islands that meet the standards of primary health care in remote areas and very remote areas as many as 70 health centers.

The number of undernourished children who are handled is as many as 300,000 children under five.

Accredited hospitals and clinics are 61 hospitals and 50 health centers respectively.

Districts/cities that achieved malaria elimination are as many as 225 districts/cities.

Percentage of toddler who received a second dose of measles immunization of 90%.

Percentage of rural/urban neighborhoods implementing community-based total sanitation (STBM) of 35%.

Increased percentage of eligible medicine production of 97.5%.

GHG emission reduction in agriculture, forestry, peat land, energy, and transport

Developing efforts for conservation and rehabilitation of biodiversity: forests, agriculture, marine and coastal, karst (in-situ and ex-situ) and traditional knowledge.

Food Security for Price Stabilization and Meeting the Needs of People’s Food

Increased rice production that reaches 73.4 million tons of paddy.

Development of 60,000 ha of sugarcane, 4,850 ha of coffee, 5,050 ha of tea, 20,950 ha of cocoa, 1,650 ha of pepper, 3,300 ha of cotton, and 19 550 ha of rubber.Increased fish production to 13.5 million tons, 6.2 million tons of captured fisheries and 7.3 million tons of aquaculture.

Network development and optimization of water through construction/rehabilitation of farm level irrigation networks, village irrigation networks, and micro water management to support food crops, horticulture, livestocks, and plantation area of 350,000 ha.

Assistance for rice cultivation area of 350,000 ha, assistance for corn cultivation of 35,000 ha, as well as agricultural tools and machinery as many as 7,596 units.

Expansion of 40,000 ha of rice fields, and the expansion of horticulture/plantation/farm area of 25,000 ha.

Empowerment of 429 food-independent villages and 144 independent-food regions.

Health program is implemented with the goal of increasing public health status

Food security program is directed at increasing the supply of food through increased domestic food production

Indonesian National Agency of Drug and Food Control:2014 revised APBN--Rp1.0 TBudget for 2015--Rp1.2 T

Ministry of Maritime and Fisheries Affairs: 2014 revised APBN--Rp5.7 TBudget for 2015--Rp6.7 T

Ministry of Health: 2014 revised APBN--Rp47.5 TBudget for 2015--Rp47.8 T

Ministry of Agriculture: 2014 revised APBN--Rp13.6 TBudget for 2015--Rp15.9 T

STRENGTHENING SOCIAL PROTECTION AND WELFARE OF THE PEOPLE

CLIMATE CHANGE

Ministry of Environment: APBNP 2014--Rp0.9 TBudget for 2015--Rp0.8 T

Ministry of Forestry: APBNP 2014--Rp4.5 TBudget for 2015--Rp5.6 T

Improved quality of the environmentPrograms in the field of climate change are directed at reducing greenhouse gas emissions (GHG) and improving community resilience to climate change

18



19

Stabilization of Homeland SecurityFulfillment of police to society ratio at 1: 582.

Percentage of improving the availability of the main tools and special tools for the police of 4.61%.

Decreased security threats toward the activities of the community who use marine transportation modes, coastal security, and national/international ports by 11%.

Increased clearance rate of criminal offenses in the regional police areas of 52%.

The achievement of 54,560 police partnership forum communities and community actively participating in 50 police stations to assist the police to maintain security and order together.

Upgrades Defense Capabilities in Enforcing Sovereignty and Integrity of the Republik of Indonesia

Modernization and improvement of defense system primary tools (Alutsista) of 40% integratively, Army (21%), Navy (21%), and the Air Force (17%).

Expanding the utilization of the national defense industry, and giving priority to the procurement of defense system primary tools produced domestically by 8%.

Improving defense capabilities and consolidating security are focused, among others, on improving the ability to monitor and detect threats of terrorism, as well as increasing efficiency of national defense industry in completing defense system primary tools for the Army and special material tools for the Police.

INCREASING DEFENSE CAPABILITIES AND CONSOLIDATING SECURITY

Indonesian National Police: 2014 revised APBN--Rp43.6 TBudget for 2015--Rp51.6 T

Ministry of Defense : 2014 revised APBN--Rp83.3 TBudget for 2015--Rp96.9 T

19



20

THE 2015 SUBSIDIES

Policy Direction of 2015 Subsidies are:- Stability of the prices of basic needs- Purchasing power is maintained, especially for the underpriviledged- Availability of staples supplies - Improved UMKM (Micro, Small and Medium Enterprises)’s

competitiveness on production and access to capital.

Energy subsidiesThe budget allocation channeled through companies/institutions that provide and distribute fuel, biofuel, LPG 3KG, LGV, and power so that the selling price is affordable by the community.

Non-energy subsidiesThe budget allocation channeled through companies/institutions that produce and/or sell goods and/or services specified by the Government in addition to energy products.

Rp70,0TSubsidi Non Energi

83%

17%

414,7 TRp

Rp344,7 TSubsidi Energi

83%

17%

Subsidies

Non-Energy Subsidies

Energy Subsidies

20

Rp344.7 T

Rp70.0 T

.


21

DEVELOPMENT OF SUBSIDIES FROM 2004-2015

ANGGARAN SUBSIDIENERGI 2004-2015

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

APBNP2014

APBN2015

71,3 20,2

Rp91,5 T

Rp120,7 T

Rp107,4 T

Rp150,2 T

Rp275,3 T

Rp138,1 T

Rp192,7 T

Rp295,4 T

Rp346,4 T

Rp355,0 T

Rp403,0 T

Rp414,7 T

104,4 16,3

94,6 12,8

116,9 33,3

223,0 52,3

94,6 43,5

140,0 52,8

255,6 39,7

306,5 39,9

310,0 45,1

350,3 52,7

344,7 70,0

IN TRILLION RUPIAH

Energy Subsidies Non-energy Subsidies Percentage toward State Expenditure

21%

24%

16%

20%

28%

15%

18%

23%

23%

22%

21%

20%

Rp91.5 T

Rp120.8 T

Rp107.4 T

Rp150.2 T

Rp275.3 T

Rp138.1 T

Rp192.7 T

Rp295.4 T

Rp346.4 T

Rp355.0 T

Rp403.0 T

Rp414.7 T

21

71,3

104.4

94.6

116.9

223.0

94.6

140.0

255.6

306.5

310.0

350.3

344.7 70.0

52.7

45.1

39.9

39.7

52.8

43.5

52.3

33.3

12.8

16.3

20.2

REVISED BUDGET

2014

BUDGET

2015


22

Rp68,7 TSubsidi Listrik

344,7 TRp

Rp276,0 TSubsidi BBM

80%

20%

ENERGY SUBSIDIES FOR 2015

Energy Subsidies

Premium Fuel Volume:29.5 million KL

Kerosene Volume:0.8 million KL

Diesel Fuel Volume: 15.7 million KL

LPG 3Kg Volume5.8 metric ton

Fuel Subsidy:Rp276.0 T

Power Subsidy: Rp68.7 T

Improving the efficiency of the fuel subsidy.

Reducing the consumption of subsidized fuel gradually.

Continuing conversion of oil fuel to gas fuel.

Continuing control of subsidized fuel (Decree of the Minister of Energy and Mineral Resources No. 1/2013).

Supporting the development of new and renewable energy.

Improving the efficiency of the electricity subsidy and target accuracy.

Increasing electrification ratio.Reducing network losses.

Lowering the composition of fuel consumption in power generation.

Increasing the capacity of geothermal power plants.

Subsidi Listrik terutama untuk golongan pelanggan 450-900 VA

mainly used for houesholds, micro businesses, fisheries and transportations

22

Rp276.0 TFuel Subsidy

Power Subsidy

mostly for 450-900 VA custumer categories

Rp68.7 T

.


23

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

APBNP2014

APBN2015

69,0 2,3

Rp71,3 T

Rp104,4 T

Rp94,6 T

Rp116,9 T

Rp233,0 T

Rp344,7 T

Rp350,3 T

Rp310,0 T

Rp306,5 T

Rp255,6 T

Rp94,6 T

Rp140,0 T

95,6 8,9

64,2 30,4

83,8 33,1

139,1 83,9

45,0 49,5

82,4 57,6

165,2 90,4

211,9 94,6

210,0 100,0

246,5 103,8

276,0 68,7

BBM, LPG Tabung 3kg, dan LGV

Listrik

DEVELOPMENT OF ENERGY SUBSIDIES FROM 2004-2015

54.6

2004

2010 2011 2012 2013 2014APBNP

2015APBN

2005 2006 2007 2008 2009

37.059.7 IN MILLION KILO LITER

38.2

37.5

41.8

38.7

45.0

38.1

46.2 46.0 46.0

VOLUME OF SUBSIDIZED FUZEL CONSUMPTION FROM 2004-2015

IN TRILLION RUPIAH

Rp71.3 T

Oil fuel, LPG 3 Kg, and LGV

Power/Electricity

Rp104.4 T

Rp94.6 T

Rp116.9 T

Rp223.0 T

Rp94.6 T

Rp140.0 T

Rp255.6 T

Rp306.5 T

Rp310.0 T

Rp350.3 T

Rp344.7 T

LPG 3Kg Volume5.8 metric ton

23

69.0 2.3

8.9

30.4

33.1

83.9

49.5

57.6

90.4

94.6

100.0

103.8

68.7

95.6

64.2

83.8

139.1

45.0

82.4

165.2

211.9

210.0

246.5

276.0

REVISED BUDGET

2014

BUDGET

2015


24

NON-ENERGY SUBSIDIES FOR 2015

Subsidy for Food: Rp18.9 T

Subsidy for Loan Interest Program: Rp2.5 T

Subsidy for DTP (Tax):Rp8.7 T

Subsidy for Fertilizers:Rp35.7 TSubsidy for Seeds:Rp0.9 T

Subsidy for PSO: Rp3.3 T

Provision of rice at a redeem/selling price of Rp1,600/kg to 15.5 million RTS @ 15 Kg/RTS for 12 months.

Supporting the development of UMKM, enhancing food security, and energy diversification program.

Supporting the price stability of basic needs and the development of strategic industries.

Helping farmers to meet the needs of fertilizer and seeds at affordable prices, as well as supporting efforts to improve food security.

Provided to passengers of rail transport, passengers of economic class transport ships, and the provision of public information.

Rp %

Rp35,7 TSubsidi Pupuk

Rp8,7 TSubsidi Pajak

Rp3,3 TSubsidi PSO

Rp2,5 TSubsidi BungaKredit Program:

Rp0,9 TSubsidi Benih

Rp18,9 TSubsidi Pangan

80%

20%51%

27%

12%

5%4% 1%

Rp70,0 TNon-energySubsidy

24

Rp2.5 TSubsidy for Loan Interest Program

Rp0.9 TSubsidy for Seeds

Rp35.7 TSubsidy for FertilizersRp18.9 T

Subsidy for Food

Rp8.7 TSubsidy for Tax

Rp3.3 TSubsidy for PSO

.


25

DEVELOPMENT OF NON–ENERGY SUBSIDIES FROM 2004-2015

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

APBNP2014

APBN2015

TRILIUN RUPIAH

Subsidi Pangan Subsidi Pupuk Subsidi DTP Subsidi PSO Subsidi Benih

Subsidi Bunga Kredit Program Lainnya*

Rp70,0 T

Rp52,7 T

Rp45,1 T

Rp39,9 T

Rp39,7 T

Rp52,8 T

Rp43,5 T

Rp52,3 T

Rp33,3 T

Rp12,8 T

Rp16,3 T

Rp20,2 T4,8

6,4

1,2

2,5

0,7

0,9

12,0

0,3

1,3

6,2

5,3 3,2 0,96,2 0,3

1,5

6,6 6,3 1,017,1

0,3

12,1 15,2 1,721,0

0,10,1

0,10,3

0,5

0,3

1,0

1,6

0,9

13,0 18,3 1,38,2 1,1

2,2

15,2 18,4 1,414,8 0,8

0,1

16,5 16,3 1,83,4 1,5

0,1

19,1 14,0 1,93,8 1,1

0,4

20,3 17,6 1,54,1 1,1

1,6

18,2 21,0 2,26,5 3,2

0,9

18,9 35,7 3,38,7 2,5

4,8

6,4

1,2

2,5

0,7

0,9

12,0

0,3

1,3

6,2

5,3 3,2 0,96,2 0,3

1,5

6,6 6,3 1,017,1

0,3

12,1 15,2 1,721,0

0,10,1

0,10,3

0,5

0,3

1,0

1,6

0,9

13,0 18,3 1,38,2 1,1

2,2

15,2 18,4 1,414,8 0,8

0,1

16,5 16,3 1,83,4 1,5

0,1

19,1 14,0 1,93,8 1,1

0,4

20,3 17,6 1,54,1 1,1

1,6

18,2 21,0 2,26,5 3,2

0,9

18,9 35,7 3,38,7 2,5

other subsidies

25

1.3

6.2

6.2

17.1

21.0

8.2

14.8

3.4

3.8

4.1

6.5

8.7 3.3

2.2

1.5

1.9

1.8

1.4

1.3

1.7

1.0

0.9

0.9

0.7

6.4

6.6

12.1

13.0

15.2

16.5

19.1

20.3

18.2

18.9

2.5

3.2

1.2

6.3

15.2

18.3

18.4

16.3

14.0

17.6

21.0

35.7

0.1

Rp20.2 T

Rp16.3 T

Rp12.8 T

Rp33.3 T

Rp52.3 T

Rp43.5 T

Rp52.8 T

Rp39.7 T

Rp39.9 T

Rp45.1 T

Rp52.7 T

Rp70.0 T

0.1

0.5

1.6

2.2

0.1

0.1

0.4

1.6

0.9

2.5

3.2

1.1

1.1

1.5

0.8

1.1

0.9

0.3

0.3

0.3

1.5

12.0

0.3

0.3

REVISED BUDGET

2014

BUDGET

2015

Subsidy for Fertilizers Subsidy for Tax Subsidy for PSO Subsidy for Seeds Subsidy for Food

Subsidy for Loan Interest Program

IN TRILLION RUPIAH


26

PAYMENT OF DEBT INTEREST FOR 2015

Debt financing has a consequence of interest payment that is allocated in 2015 APBN as much as Rp152,0 trillion, consists of interest payments on domestic debt of Rp138,0 trillion and Foreign debt Rp14.0 trillion.

Fulfilling the Government’s obligation to maintain the financing credibility and sustainability;

Maintaining efficiency, among others, through the selection of the composition of debt instruments and considering the implementation of value protection.

PAYMENT OF DEBT POLICY FOR 2015

Payment of Debt Interest

Rp152.0 T

26

Domestic

Domestic

Rp14.0 T

Rp138.0 T

Foreign

.

.

TRANSFER TO REGIONAL GOVERNMENTS AND VILLAGE FUND 2015


Rp352,9 T

DanaAlokasi Umum

69%

24%

7%

80%16%

1%

647,0 TRp

Rp104,4 T

Transfer ke Daerahdan Dana Desa

Rp9,1 T

Rp516,4 T

Rp0,5 T

Rp16,6 T

Dana Perimbangan

Dana Perimbangan

Dana DesaDana Transferlainnya

DanaKeistimewaan DIY

3%DanaOtonomi Khusus

DanaAlokasi Khusus

Rp35,8 T

DanaBagi HasilRp124,7 T

Rp516,4 T

Rp127.7 T

Rp35.8 T

Rp352.9 T

27

Rp104.4 T

Rp516.4 T

Rp9.1 T

Rp0.5 T

Rp16.6 T

Transfer to Regions and Village Funds

Rp647.0 T

Balancing Fund

Rp516.4 T

Balancing fund

Special Autonomy Fund

Special Priviledge Fund for DIY

Other Transfer Fund

Village Fund

Revenue Sharing Fund

Special Allocation Fund

Public Allocation Fund


28

DEVELOPMENT OF TRANSFER TO REGIONAL GOVERNMENTS AND VILLAGE FUND FROM 2004-2015

28

122.9 1.6

5.2

143.2 1.8

5.5

222.1 3.5

0.6

244.0 4.0

5.3

278.7 7.5

6.2

287.3 9.5

11.8

316.7 9.1

18.9

347.2 10.4

53.7

411.3 12.0

57.4

430.4 13.4

0.1

69.3

491.9 16.1

0.5

87.9

516.4 16.6

0.5 9.1

104,4

Balancing Fund


Other Transfer Funds Village Funds

Special Priviledge Fund for DIY

Rp129.7 T

Rp150.5 T

Rp226.2 T

Rp253.3 T

Rp292.4 T

Rp308.6 T

Rp344.7 T

Rp411.3 T

Rp480.6 T

Rp511.3 T

Rp596.5 T

Rp647.0 T

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

REVISEDBUDGET 2014

BUDGET 2015

IN TRILLION RUPIAH

REVISED BUDGET

2014

BUDGET

2015


29

Improving local fiscal capacity in order to conduct governance which becomes Regional authority.

Reducing inequality of government funding sources between central and regional and reducing government funding gap between regions.

Increasing the quantity and quality of local public services and reducing the public services gap between regions.Prioritizing the provision of basic services in disadvantaged, the outermost, isolated, leading, and post-disaster areas.

Encouraging economic growth through the development of basic infrastructure.

Encouraging improvement of financial management quality to be more efficient, effective, transparent, and accountable.

Improving the quality of transfers to regions allocation with regard to accountability and transparency.

Improving the quality of monitoring and evaluation of transfer funds to regions.

Establishing Village Fund allocation in accordance with the mandate of Law No. 6 of 2014 on villages through the reallocation of central government’s village-based expenditure with a transfer mechanism to district/city based on the number of villages and regarding the population, povertylevel, area width, and geographic difficulty level.

TRANSFER TO REGIONAL GOVERNMENTS AND VILLAGE FUND POLICY FOR 2015

REVENUE SHARING FUND

Rp127.7 TAllocated to regions based on the APBN revenues to fund the needs of the region in the implementation of decentralization. DBH (Revenue Sharing Fund) includes underpayment settlement of Rp 11.9 T.

BALANCING FUND

29


30

Pub

lic A

lloca

tion

Fun

d

Rp3

52.9

Tal

loca

ted

as a

n eq

uity

ins

trum

ent of

fin

anci

al c

apab

ility

am

ong

regi

ons

and

redu

cing

fis

cal d

ispa

riti

es a

mon

g re

gion

s.

30

Wes

t Pap

ua

Papu

a

Rp7

.4T

Rp2

1.0T

Mal

uku

Rp6

.8T

Nor

th M

aluk

u

Rp5

.6T

Cent

ral S

ulaw

esi

Gor

onta

lo

Wes

t Sul

awes

i

Sout

h Ea

st S

ulaw

esi

Sout

h Su

law

esi

Rp1

5.8T

Rp3

.8T

Rp8

.5T

,6T

Rp3

.6T

Rp8

.2T

Nor

th S

ulaw

esi

Rp7

Wes

t Kal

iman

tan

Nor

th K

alim

anta

n

East

Kal

iman

tan

Sout

h Ka

liman

tan

Cent

ral K

alim

anta

n

Rp1

0.8T

Rp9

.4T

Rp6

.9T

Rp3

.1T

Rp2

.3T

Nan

ggro

e Ac

eh D

arus

sala

m

Nor

th S

umat

era

Riau

Riau

Isla

nd

Jam

bi

Bang

ka B

elitu

ng

Lam

pungSo

uth

Sum

ater

a

Wes

t Sum

ater

a Beng

kulu

Rp1

3.2

T

Rp2

0.7

T

Rp1

2.1T

Rp5

,T

Rp1

1.2

T R

p10.

4T

Rp3

,9T

Rp2

.8T

Rp2

,8T

Rp6

.4T Ba

nten

Wes

t Jav

a

Cent

ral J

ava

DIY

ogya

kart

a

East

Java

Rp3

2.7

T

Rp3

1.9

T R

p35.

9T

Rp5

,0T

Rp7

.6T

Bali

Rp6

.1T

Wes

t Nus

a Te

ngga

ra

Rp7

.7 T

East

Nus

a Te

ngga

ra R

p12.

0T

Rp5.

8 T

Rp6.

8 T

Rp7.

6 T


31

Special Allocation Fund

Rp35.8 TAllocated for regional affairs and in accordance with national priorities in order to accelerate regional development and the achievement of national objectives which consists of 14 fields. DAK (Special Allocation Fund) is allocated for the entire region that meet the general criteria, specific criteria, and technical criteria (Rp33.0 T).

Additional DAK to continue affirmative policy for disadvantaged areas, to fund activities in the field of transport infrastructure, irrigation infrastructure, water infrastructure and sanitation infrastructure (Rp2.8 T).

Special Allocation Fund for AgricultureRp2.7 T

Special Allocation Fund for EducationRp10.0 T

Special Allocation Fund for Health Rp3.4 T

Special Allocation Fund for Regional Government Infrastructure Rp0.6T

Special Allocation Fund forIrrigation Infrastructure Rp2.4 T

Special Allocation Fund for EnvironmentRp0.6 T

Special Allocation Fund for Drinking Water and Sanitation InfrastructureRp2.5 T

Special Allocation Fund for ForestryRp0.7 T

Special Allocation Fund for TransportationRp8.7 T

Special Allocation Fund for Family Planning Rp0.6 T

Special Allocation Fund for Rural EnergyRp0.7 T

Special Allocation Fund for Trade Facilities Rp0.8 T

Special Allocation Fund for Maritime and Fisheries Rp2.0 T

Special Allocation Fund for Housing and Settlements Rp0.3 T

Other Transfer Funds

Rp104,4 TAllocated to:Regional PNS (Civil Servant) Teacher Professional Allowances of Rp70.3 T for certified teachers; and Rp1.1 T for additional income for Regional non-certified civil servant teachers.

School Operational Assistance (BOS) Rp31.3 T to stimulate the provision of education budgets in the region.

Regional Government Projects and Decentralization (P2D2) Fund Rp0.1 T is allocated as an incentive to the pilot area of Local Government and Decentralization Project.

Regional Incentive Fund Rp 1.7 T is given to the area of achievement. DID (Regional Incentive Fund) is given that the region seeks to manage their finance better indicated by the acquisition of WTP/WDP opinion from Supreme Audit Agency on the financial statements of local governments and set budgets in a timely manner.

OTHER TRANSFERFUNDS

31


32

Allocated to finance the development and empowerment of rural communities. Village Fund distribution is done through the mechanism of transfer with respect to the total population, poverty level, area width, and geographic difficulty level.

In addition to the village fund, each village also received an allocation of funds from the district/city budget such as: a. Share of local taxes and local

retribution (PDRD) of district/city of at least 10%;

b. village fund allocation (ADD) at least 10% of the balancing funds received by district/city after deducting the special allocation fund;

c. financial assistance from the provincial budget and district/city budget.

VILLAGE FUND

Rp9.1 TRp

Rp

Rp

Special Priviledge Fund for DIY (Daerah Istimewa Yogyakarta)

Rp547.5 billionfor organizing the affairs of the privilege of Yogyakarta Special Region.

SPECIAL PRIVILEDGE FUND FOR DIY (DAERAH ISTIMEWA YOGYAKARTA)


Rp16.6 TAllocated for Papua Province Rp4.9 T, Rp2.1 T for West Papua province, Aceh Province Rp7.0 T, as well as additional funds for Infrastructure Autonomy for Papua Rp2.0 T and West Papua Rp 0.5 T.

Additional Special Autonomy funds be used to accelerate infrastructure development and maintenance of infrastructure in Papua and West Papua Provinces.

SPECIAL AUTONOMY FUND

32

BUDGETFINANCING

Rp245,9trillion

DEBTRp254,9trillion

NONDEBT

Rp9,0trillion

BANKINGRp4,5

trillion

NONBANKING

Rp13,4trillion

SBNISSUANCE (net)

Rp277,0trillion

DOMESTICDEBT (net)

Rp1,6trillion

FOREIGNDEBT (net)

Rp23,8trillion

DOMESTIC

NON-DOMESTIC

2015 BUDGET FINANCING


SBN (Government Securities) include government securities (GS) and Islamic Based Government Securities (SBSN)

Net domestic debt is all withdrawals from domestic loan lender reduced by repayments of domestic principal debt

Net foreign debt is all the withdrawal of foreign loans in form of program loans and project loans and reduced by the subsidiary loan and principal repayments of foreign debt.

Non-debt financing from banks is derived from the subsidiary loan repayment installment payments.

Non-debt financing of non-bank consists of proceeds from asset management and investment return receipts, reduced by financing expenses for the state capital investment, revolving funds and guarantee obligations.

A negative number on the net foreign debt, non-debt, and non-banking shows that the value of expenditure components in it is greater than the component of acceptance.

33

Rp245.9

Rp254.9 Rp9.0

Rp277.0 Rp4.5

Rp13.4Rp1.6

Rp23.8


34

2004-2015BUDGET FINANCING

TRILLION RUPIAH

Non-debt

Budget Financing

Debt

Decreased budget financing in 2005 and 2010 were due to adjustment to declining realization of the APBN deficit from the target set.

LKPP2004

LKPP2005

LKPP2006

LKPP2007

LKPP2008

LKPP2009

LKPP2010

LKPP2011

LKPP2012

LKPP2013

APBNP2014

APBN2015

Rp20,8 T

Rp8,9 T

Rp29,4 T

Rp42,5 T

Rp84,1 T

Rp112,6 T

Rp91,6 T

Rp130,9 T

Rp175,2 T

Rp237,4 T

Rp241,5 T

Rp245,9 T

(9,0)

254,9

(12,2)

253,7

18,1

219,3

38,1

137,0

28,3

102,7

4,6

86,9

28,7

83,9

16,6

67,5

11,9

30,6

20,0

9,4

(1,2)

10,1

42,0

(21,2)

(12,2)

34

42.0

Rp20.8 T

Rp8.9 T

Rp29.4 T

Rp42.5 T

Rp84.1 T

Rp112.6 T

Rp91.6 T

Rp130.6 T

Rp175.2 T

Rp237.4 T

Rp241.5 T

Rp245.9 T

(21.2)

10.1

9.4

30.6

67.5

83.9

102.7

137.0

219.3

253.7

254.9

6.

(1.2)

20.0

11.9

16.6

28.7

4.6

28.3

38.1

18.1

(12.2)

(9.0)

REVISED BUDGET

2014

BUDGET

2015


35

Controlling the ratio of debt to GDP.

Giving priority to debt financing from domestic sources.

Directing the use of debt to productive activities, among others, through a project-based Islamic Based Government Securities issuance.

Utilizing foreign loans selectively, especially for infrastructure and energy, and maintaining the negative net flow policy.

Optimizing community participation (financial inclusion) and deepening the domestic government securities market.

Performing active debt management within the framework of asset liabilities management (ALM).

Using SAL (Excess Budget Balance) as a budget financing source and fiscal buffers to anticipate the impact of the global economic crisis that is still uncertain.

Allocating PMN (State Capital Investment) to SOEs to accelerate infrastructure development and capacity building efforts of SOEs.

Allocating PMN to international financial organizations/institutions (IFIs) and other business entities which is intended to meet the obligations of Indonesia as a member and retain a percentage of capital ownership.

Allocating a revolving fund for the provision of financing facilities in order to meet the availability of low-cost housing for low-income communities (MBR) and to provide a stimulus for KUMKM in form of capital strengthening.

Continuing national education development fund program.

Optimizing the subsidiary loan repayment installment receipts.

Allocating and managing obligation funding for the government guarantee to accelerate development of power plants which use coal energy, accelerating the provision of drinking water, and infrastructure projects by means of public private partnership (PPP) scheme.

2015 DEBTFINANCING POLICY

2015 NON-DEBT FINANCING POLICY

2015 BUDGETFINANCING

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36

2015 BUDGET FINANCINGEXPENDITURE

PT PAL Indonesia Rp1,5 T digunakan untuk membanguninfrastruktur kapal selam TNI AL guna mendukung pengembanganindustri pertahanan.

PT Sarana Multigriya Finansial (SMF) Rp1,0 T digunakan untukmemperkuat struktur permodalan dan mendukung pembiayaanperumahan untuk masyarakat berpenghasilan rendah.

PT Sarana Multi Infrastruktur (SMI) Rp2,0 T digunakan untukmeningkatkan kapasitas usaha di bidang pembiayaan infrastruktur.

Lembaga Pembiayaan Ekspor Indonesia (LPEI) Rp1,0 T digunakanuntuk memperkuat struktur permodalan dan meningkatkan aksespendanaan di pasar keuangan.

LPDB KUMKM Rp1,0 T digunakan untuk memberikan stimulusbagi Koperasi, Usaha Mikro, Kecil, dan Menengah (KUMKM),berupa penguatan modal..

Pusat Pembiayaan Perumahan Rp5,1 T digunakan untuk membiayaiprogram Fasilitas Likuiditas Pembiayaan Perumahan (FLPP). Sukubunga biaya ramah bagi MBR bisa menjadi rendah tetap selama masapeminjaman

PT PLN Rp3,3 T digunakan untuk menyediakan infrastrukturdibidang energi kelistrikan.

PT Pertamina Rp0,7 T digunakan untuk meningkatkan pembangkitenergi yang berasal dari sumber daya geothermal terbarukan danmengurangi dampak terhadap lingkungan.

Pemprov DKI Jakarta Rp0,3 T digunakan untuk meningkatkanpengendalian banjir.

PT PLN Rp1,1 T dialokasikan untuk pemberian jaminan Pemerintahdalam mendukung percepatan pembangunan pembangkit tenagalistrik 10.000 MW dan proyek kerjasama pemerintah dengan badanusaha melalui badan usaha penjaminan infrastruktur.

PDAM Rp2,2 M digunakan untuk program percepatan penyediaan airminum

Penye r t aanModalNegara

DANABERGULIR

KEWAJIBANPENJAMINAN

PENERUSANPINJAMAN

antara lain:

antara lain:

STATE CAPITAL INVESTMENTS

Pusat Pembiayaan Perumahan Rp5,1 T digunakan untuk membiayai program Fasilitas Likuiditas Pembiayaan Perumahan (FLPP) yang memberikan pinjaman kepada MBR dengan suku bunga yang rendah dan tetap (fixed) selama masa pinjaman.

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2015 BUDGET FINANCING EXPENDITURE

PT PAL Indonesia Rp1.5 T is used to build the infrastructure of theNavy's submarines in order to support the development of thedefense industry.

PT Sarana Multigriya Finansial (SMF) Rp1.0 T is used tostrengthen the capital structure and support housing finance forlow-income people.

PT Sarana Multi Infrastruktur (SMI) Rp2.0 T is used to increasethe capacity of businesses in the field of infrastructure financing.

Lembaga Pembiayaan Ekspor Indonesia (LPEI) Rp1.0 T is usedto strengthen the capital structure and improve access to financein the financial markets.

LPDB KUMKM Rp1.0 T is used to provide a stimulus forCooperatives, Micro, Small, and Medium Enterprises (KUMKM),in the form of capital strengthening.

Pusat Pembiayaan Perumahan Rp5.1 T is used to finance theHousing Finance Liquidity Facility (FLPP) which provides loans tolow-income communities with low and fixed interest rates for theloan duration.

PT PLN Rp3.2 T is used to provide the infrastructure in the fieldof electrical energy.

PT Pertamina Rp0.7 T is used to increase energy generation fromrenewable geothermal resources and reduce environmentalimpacts.

Pemprov DKI Jakarta Rp0.3 T is used to improve flood control.

PT PLN Rp1.1 T is allocated to the provision of government guaranteesto support the accelerated development of 10,000 MW power plant andgovernment cooperation projects with enterprises through businessentity of infrastructure guarantee.

PT PDAM Rp2.2 M is used for drinking water supply accelerationprogram

STATECAPITALINVESTMENTS

REVOLVINGFUND

GUARANTEELIABILITY

SUBSIDIARYLOAN

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General Directorate of BudgetMinistry of Finance of the Republic of Indonesia

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