Kementerian Keuangan Republik Indonesia - OF THE REPUBLIC … · 2015. 3. 17. · Reconciliation on Financial Report with the Directorate of Accounting and Financial Reporting, DJPB

MINISTER OF FINANCE

OF THE REPUBLIC OF INDONESIAN COPY

REGULATION OF THE FINANCE MINISTER OF THE REPUBLIC OF INDONESIA

NO. 218/PMK.05/2013

CONCERNING

ACCOUNTING SYSTEM OF THE GOVERNMENT DEBT

BY THE GRACE OF THE ALMIGHTY GOD MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Considering : a. whereas in order to harmonize the accounting

system of the Government debt which is set in a regulation of the Minister of Finance No.85/PMK.05/2008 as amended by regulation of the Minister of Finance No.249/PMK.05/2012 with the provisions of article 12, paragraph (5) the regulation of the Minister of Finance No.171/PMK.05/2007 on Accounting and Financial Reporting System of the Central Government as amended by regulation of the Minister of Finance No.233/PMK.05/2011, deemed necessary to set back the provisions on Government Debt Accounting System;

b. Based on the considerations referred to in letter a, it is necessary to stipulate Regulation of the Minister of Finance on the Government Debt Accounting System;

In the regard with : 1. Law Number 17 Year 2003 on State Finance (State

Gazette of the Republic of Indonesia Year 2003 Number 47, Supplement to State Gazette of the Republic of Indonesia Number 4286);

2. Law Number 1 Year 2004 on State Treasury (State Gazette of the Republic of Indonesia Year 2004 Number 5, Supplement to State Gazette of the Republic of Indonesia Number 4355);

3. Regulation of Finance Minister Number 171/PMK.05/2007 on Accounting and Financial Reporting System of the Central Government as amended by Regulation of the Minister of Finance Number 233/PMK.05/2011;

MINISTER OF FINANCE

OF THE REPUBLIC OF INDONESIAN

BE IT HEREBY RESOLVED:

REGULATION OF THE FINANCE MINISTER ON THE ACCOUNTING SYSTEM OF THE GOVERNMENT DEBT.

CHAPTER I GENERAL PROVISIONS

Articles 1

Terminologies herein shall be defined as follow: 1) Government Debt Accounting System, hereinafter abbreviated SAUP is a set of

manual and computerized procedures that include data collection, recognition, recording, summarizing, and reporting the position and operation of government debt.

2) Reconciliation is the process of matching the financial transaction data processed by multiple systems / sub-systems that different based on the same source document.

3) Computer Data Archive hereinafter abbreviated ADK is a data file on diskette or other digital storage media which contains transaction data, general ledger data, and / or other data.

4) Standard Chart of Accounts hereinafter abbreviated BAS is a list of the estimated general ledger stipulated and arranged systematically to facilitate the planning and budget implementation, as well as accounting and financial reporting of the government.

5) Financing is every receipt to be paid back, and / or expenses that would be received back either in the relevant fiscal year or subsequent fiscal years, which in government budgeting is mainly intended to cover a deficit or make use of surplus budgets.

6) Interest Payable is the interest that has been going on and has not been paid to be recognized and recorded at the end of each reporting period as part of the associated obligation.

7) Expenditure is all expenditures from state / region general treasury account that reduce the equity of current funds in the relevant fiscal year period which not obtained payment will be returned by the government.

8) Amortization is the systematic allocation from the premium or discount over the period of the government debt.

9) Discount is the amount of the less difference between the present value of liability (present value) and the maturity value of overdue liabilities (maturity value); because the nominal interest rate is lower than the effective interest rate.

To enact :

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10) Liabilities are debts arising from past events that the settlement resulted in an outflow of economic resources of the Government.

11) Premium is the amount of the excess between the present values with the maturity value, because the nominal interest rate is higher than the effective interest rate.

12) Arrears are the amount of obligations owed because of the inability of the entity to pay the staple debt and / or the interest on schedule.

13) Source documents are documents relating to financial transactions that are used as a source or evidence to generate accounting data.

14) Reporting entity is a governmental unit which consists of one or more accounting entity under the terms of legislation which required to submit an accountability report in the form of financial statements.

15) Financial Statement is form of government accountability for the implementation of the budget revenue and expenditure in the form of budget realization report, balance sheet, cash flow statement, and notes to the financial statements.

16) Budget Realization Report hereinafter abbreviated as LRA is a report that presents information on the realization of revenues, expenditures, transfers, surplus / deficit and financing, the remainder of excess / shortage budget financing which respectively compared with the budget in one period.

17) Balance Sheet is a report that presents information that the government's financial position assets, debt and equity funds on a specific date.

18) Notes to the Financial Statements hereinafter abbreviated CaLK is an integral part of the financial statements that provide information about the description of posts in the financial statement in the framework of an adequate disclosure.

19) Securities, hereinafter abbreviated as SBN includes Government Securities and Government Sharia Securities.

20) Government Securities are hereinafter abbreviated SUN securities in the form of debt instruments denominated in rupiah and foreign currency that the staple interest payments are guaranteed by the Republic of Indonesia in accordance with the validity period.

21) Sharia Securities which hereinafter abbreviated SBSN or can be called state sukuk is SBN issued based on sharia principles, as evidence for the inclusion of the SBSN assets, both in rupiah and foreign currency.

22) Foreign exchange is the difference resulting from the translation of foreign currencies into rupiah at a different exchange rate.

23) Accounting Unit of the State General Treasurer which hereinafter referred to as UABUN is the accounting unit at the Ministry of Finance which perform a coordination and supervision over the activities of accounting and financial reporting on accounting unit of the state general treasurer aide level and merge

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the entire Financial Reports of the accounting unit of the state general treasurer aide.

CHAPTER II ACCOUNTING AND REPORTING SYSTEM OF DEBT

Articles 2

1) SAUP is a sub-system of the State Treasurer Accounting System (SA BUN). 2) SAUP referred to in paragraph (1) produce Financial Reports in form of LRA,

Balance Sheet, and CaLK. 3) SAUP referred to in paragraph (2) is carried out by the Directorate General of

Debt Management (DGAT), which is integrated with the systems analysis and debt managerial.

4) SAUP referred to in paragraph (3) shall be implemented in accordance with the modules as listed in Appendix I which is an integral part of this regulation.

5) In the implementation of SAUP referred to in paragraph (4), DGAT establish accounting unit which consists of:

a. Accounting Unit of the General Treasurer Aide (BUN UAP); and b. Authorized Budget Accounting unit of the State General Treasurer

(UAKPA BUN).

Articles 3

1) Directorate of Evaluation, Accounting, and Settlement DJPU act as UAKPA BUN.

2) UAKPA BUN referred to in paragraph (1): a. Process the Source Document of financial transactions over debt receipts

and expenditures, interest payments and other debt costs. b. Submitted Financial Reports and ADK every month to UAP BUN.

3) Documents Source referred to in paragraph (2) letter a, detailed further in accordance with Appendix I, which is an integral part of this regulation.

4) Financial Reports referred to in paragraph (2) letter b consists of: a. LRA; and b. Balance Sheet.

5) Every month, UAKPA BUN performs reconciliation on Financial Report with the State Treasury Management Directorate of the Directorate General of Treasury (DJPB), and the State Treasury Office (KPPN) for Loans and Grants.

6) Reconciliation referred to in paragraph (5), set forth in the Minutes of Reconciliation (BAR).

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Articles 4

1) DJPU act as UAP BUN and Reporting Entity. 2) UAP BUN referred to in paragraph (1) shall conduct:

a. merging Financial Report of UAKPA BUN; b. preparation of Financial Report on UAP BUN levels is based on the

results of the Financial Report merging referred to in paragraph a; c. submission of Financial Report on UAP BUN levels referred to in letter b

along with the ADK to UABUN each quarterly, semiannual and annual. 3) Each semiannual and annual, UAP BUN as described in paragraph (1) perform

Reconciliation on Financial Report with the Directorate of Accounting and Financial Reporting, DJPB.

4) Reconciliation referred to in paragraph (3) set forth in the BAR. 5) Each semi-annual and annual, UAP BUN prepares and submits the

Reconciliation results of Financial Report referred to in paragraph (4) to UABUN in forms of LRA, Balance Sheet, and CaLK.

CHAPTER III STATEMENT OF RESPONSIBILITY

Articles 5

1) DJPU make Statement of Responsibility (Statement of Responsibility) on Reconciliation results of Financial Report referred to in Article 4 paragraph (5) each quarterly and yearly.

2) Statement of Responsibility as referred to in paragraph (1) shall contain the following statement:

a. the management of the State Revenue and Expenditure Budget (APBN) has been conducted based on an adequate internal control system; and

b. financial accounting has been conducted in accordance with Government Accounting Standards.

3) Statement of Responsibility as referred to in paragraph (1), can be equipped with an explanatory paragraph on an event that has not been included in the Reconciliation results of Financial Report.

4) The form and content of the Statement of Responsibility as referred to in paragraph (1), prepared in accordance with the format of Appendix II, which is an integral part of this regulation.

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CHAPTER IV DEBT ACCOUNTING

Part I Classification and Recognition of Liabilities

Articles 6

1) Liabilities are classified as follows: a. Short-term Liabilities, if the Liabilities payment are conducted within 12

(twelve) months after the reporting date; b. Long-term liabilities, if the liabilities payment are conducted within more

than 12 (twelve) months after the reporting date. 2) DJPU as the Reporting Entities remain classified the long-term liabilities,

although the referred Liabilities matured and will be completed within 12 (twelve) months after the reporting date, in the case of:

a. the period of previous liabilities payment made within a period of more than 12 (twelve) months;

b. Reporting Entity intends to refinance (refinance) liabilities that were previously classified as long-term liabilities; and

c. purpose for the refinance as referred to in paragraph b, supported by the existence of a financing agreement (refinancing) or rescheduling of the payment which is completed before the Financial Report are approved.

Articles 7

1) Government debt can be comes from: a. domestic; and b. overseas.

2) Debt from domestic sources as referred to in paragraph (1) letter a, could come from the issuance of SBN, loans from State-Owned Enterprises / provincial enterprises and loans from local government.

3) Debt from Overseas sources as referred to in paragraph (1) letter b, comes from foreign lenders.

Articles 8

1) Debt is recognized when cash and / or cash equivalents received and / or at the time the debt arose.

2) Debt referred to in paragraph (1) may occur when: a. settlement date for SBN;

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b. withdrawal date listed in the withdrawal document (notice of disbursement) for foreign loans.

Articles 9

1) Currency used in the presentation of Financial Report Reporting Entity is rupiah currency.

2) In terms of the preparation of the Financial Report contained transactions that use foreign currency, the foreign currency is converted into rupiah currency using the currency exchange rate of Bank Indonesia (BI) at the reporting date.

Articles 10

1) Exchange Rate Differences arose because there is a difference in the exchange rate of rupiah currency and foreign currencies which affected the value of net worth.

2) Exchange Rare Differences referred to in paragraph (4), can occur when: a. the transactions after initial recognition which involve the use of foreign

currency; and b. Reporting of the monetary item from foreign currency into the rupiah

currency.

Articles 11

1) Government debts are recorded at nominal value at the time of withdrawal. 2) Government debt denominated in foreign currencies are translated and

expressed in rupiah currency. 3) Government debt in foreign currencies as referred to in paragraph (2), recorded

in accordance with the following: a. withdrawals in foreign currencies which directly used to pay the same

currency, are recorded with rupiah currency in BI middle rate at the date of the transaction;

b. withdrawals in foreign currencies which directly used to pay for the transaction in rupiah, are recorded with the transactions exchange rate of the BI on the date of the transaction;

c. withdrawal in foreign currency which is in accordance with the commitment in the foreign currency received in an account owned by the State Treasurer (BUN), are recorded with the relevant BI middle rate;

d. withdrawal in foreign currency that are not in accordance with the commitment in the currency received in an account owned by BUN, recorded with the transactions exchange rate.

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4) Debt Interest on government debt is recorded at cost of interest that have occurred and interest that have not been paid.

5) Debt Interest as described in paragraph (4), can be comes from either government debt sourced from domestic and overseas.

6) Debt Interest on government unpaid debts, are recognized at the end of each reporting period as part of the related liabilities.

7) Values that included in the Financial Report for the current portion of long-term debt, is an amount that will fall due within 12 (twelve) months after the reporting date.

8) Exchange Rate Differences that occur due to differences in the exchange rate between the transaction date and the date of reporting, leading to the addition or subtraction of equity funds for the current period.

9) Arrears on government loans are presented in the form of creditors aging schedule (aging schedule) on CaLK as part of the disclosure obligation.

Part II Debt Settlement and Elimination

Articles 12

1) Debt settlement in a foreign currency using the exchange rate at the time of payment transactions.

2) Debt settlement referred to in paragraph (1) may be done at once or installments.

3) Government debt securities that settled prior to maturity because of: a. the existence of the feature to be drawn by the publisher (call features)

from the securities; or b. meet the requirements for completion by the holder requests, and then

the differences that arise between the reacquisition price and the net recorded value should be disclosed to the CaLK as part of the related liabilities post.

4) In event of acquisition cost as referred to in paragraph (3) are: a. equal to the recorded value (currying amount), then the Liability

settlement before the maturity is considered as normal debt settlement, that is by adjusting the amount of related liabilities and equity funds.

b. not the same as the carrying amount, then in addition to adjusting the amount of related liabilities and equity funds, the amount of difference also necessary to be disclosed to CaLK.

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Articles 13

1) Debt cancellation can be done by: a. voluntary; b. conditional; c. rescheduling (rescheduling).

2) Voluntarily cancellation referred to in paragraph (1) letter a, is a voluntary cancellation of the bill by the creditor to the debtor either partly or wholly on the amount of the debtor debt in the form of a formal agreement between both parties.

3) Conditional cancellation referred to in paragraph (1) letter b, is the cancellation with certain bill conditions by the creditor to the debtor either partly or wholly on the amount of the debtor debt in the form of a formal agreement between both parties.

4) Rescheduling cancellation as referred to in paragraph (1) letter c, is the cancellation of the bill by a creditor to a debtor with give rise to new debt in the form of a formal agreement between the two.

Articles 14

Towards the government's debt payments were recorded as follows: a. in terms of the funds is available in a foreign currency which is the same as

those used in the transaction, then the transaction in foreign currencies above are recorded with the outlines it into rupiah at BI middle rate on the transaction date;

b. in terms of the funds not available in the foreign currency that were used in the transaction and that foreign currency were purchased with rupiah, then the transaction in a foreign currency above are recorded in rupiah based on the exchange rate of the transaction, that is equal to rupiah that are used to obtain the foreign currency above;

c. in terms of the funds not available in the foreign currency that are used for the transaction and that foreign currency purchased with another foreign currencies, then:

1) foreign currencies transactions to other foreign currencies are translated at the exchange rate of the transaction;

2) the other foreign currencies transactions are recorded based on BI middle rates on the date of transaction.

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Part III Costs that Associated with the Debt

Articles 15

1) The costs that associated with debt are an interest expense and other costs incurred in relation with the borrowing of funds.

2) The costs referred to in paragraph (1) includes: a. interest on borrowed funds, either short-term loans or long-term loans; b. Amortization on discounts or premiums which are associated with the

loans; c. Amortization expense which associated with the acquisition of loan such

as consultant fees, legal experts, the cost of commitment (commitment fee), management fees (management fees), insurance premiums (insurance premium), and so on;

d. exchange rate differences on foreign currency loans throughout the difference are treated as an adjustment on the interest costs.

Part IV Presentation and Disclosure

Articles 16

1) Government debt should be presented in the balance sheet in accordance with the carrying amount.

2) The carrying amount is nominal value of the liabilities that was reduced or increased by Discount or Premium Amortization which yet to be made.

3) Discount and premium, performed an Amortization using the straight-line method over the period the debt.

4) To improve usability of analysis, CaLK must present the following information: a. the balance amount of short-term and long-term liabilities which are

classified by the lender; b. Liability balance amount in the form of government debt based on the

type securities and maturity of government debt; c. loan interest payable in the current period and the interest rate which

applies; d. consequences performed before doing the settlement of previous

obligations come to maturity; e. debt restructuring agreement includes:

i. debt reduction; ii. modification of debt covenants;

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iii. reduction of the interest rate; iv. maturity resignation of the loan; v. reduction in maturity value of the loan; and vi. reduction in the amount of interest owed until the reporting

period. f. Total loans Arrears which are presented in the form of debt period list by

the creditors. g. Borrowing costs includes:

i. treatment on borrowing costs; ii. the amount of borrowing costs that capitalized during the relevant

period; and iii. capitalization rate that are used.

Articles 17

1) DJPU as Reporting Entity revealed the Liability that specified in each post which includes the amount of debt that will be completed within 12 (twelve) months and more than 12 (twelve) months after the reporting date.

2) Government debt should be disclosed in detail in the form of a list of debt schedule to present better information.

Part V

CLOSING PROVISIONS

Articles 18

At the time of this Ministerial Regulation comes into force, the Regulation of the Minister of Finance No. 86/PMK.05/2008 about Government Debt Accounting System, revoked and declared invalid.

Articles 19

this Ministerial Regulation comes into force on the date of enactment.

For public cognizance, this Ministerial Regulation shall be promulgated in the State Gazette of the Republic of Indonesia.

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Stipulated in Jakarta

On December 31, 2013

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Signed.

MUHAMAD CHATIB BASRI

Enacted in Jakarta On December 31, 2013

MINISTER OF JUSTICE AND HUMAN RIGHTS REPUBLIC OF INDONESIA,

Signed.

AMIR SYAMSUDIN

NEWS OF THE REPUBLIC OF INDONESIA YEAR 2013 NUMBER 1622

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OF THE REPULIC OF INDONESIA

CHAPTER 1 INTRODUCTION

1.1 Introduction

For realizing the good governance, Government carries out the efforts to improve the transparency and accountability of financial management. One of the real efforts to achieve the transparency and accountability is the submission of the government’s financial accountability report which satisfies the principle of timely and prepared by following Governmental Accounting Standard (SAP), which has been generally accepted. La Number 17 Year 2003 on State Finances (UU 17/2003) requires the form and the content of responsibility report of implementation the State Budget Revenue and Expenditure (APBN), which is prepared and presented in accordance with SAP and stipulated by Government Regulation('PP').

In accordance with Law Number17 Year 2003, Director General of Debt Management (DJPU) c.q Directorate of Evaluation, accounting, and settlement (Directorate EAS), shall be obliged to implement the debt management accountability based on SAP that has been stipulated with the Government Regulation Number 71 Year 2010 on Government Accounting Standard (PP 71/2010). Accounting definitions based on PP 71/2010 means the process of identifying, recording, measuring, clarifying, abstracting financial transactions and events, as well as the statements above the interpreting results. A report has a certain quality must be supported by the financial accounting system that is reliable, so as to provide information that is important and relevant to the stakeholder in making decision.

In order to accommodate matters mentioned above ant the more complex problems of debt as well as in order to ensure the implementing preparation of debt accounting accountability does not face lot of obstacles, it is necessary to prepare Government Debt Accounting System module (SAUP), as a reference and guidance for officers given the mandate in preparing the report. The main reference in the preparation SAUP module is PP 71 year 2010.

1.2 The Scope

Scope of the SAUP module covers debt management which includes Foreign Loan (PLN), and State Securities (SBN) that are implemented by DJPU c.q Director EAS.

1.3 Definition 1. Accrual Basis means accounting basis which recognize that effect of

transactions and other events, when the transaction and the events occurred, regardless of when cash or equivalent is received or paid.

2. Cash Basis means accounting basis which recognize the effect of transactions and other events when cash or equivalent received or paid.

3. Liability Cost means interest and other cost that must be borne by the government in relation to incurrence of a liability.

4. Miscellaneous Expenses mean the costs that must be paid relating to the procurement of loan such as commitment fee, management fee, insurance premium, and so on.

APPENDIX I REGULATION OF THE MINISTER OF FINANCE NUMBER 218/PMK.05/2013 ON GOVERNMENT DEBT ACCOUNTING SYSTEM

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5. Commitment fee means fees to be paid on the undrawn amount of the loan.

6. Debtor is the party who receives the debt from creditors. 7. Insurance Premium means the cost of export credit insurance on the

loan. 8. Creditor is the party who gives the debt to debtor. 9. Exchange Rate means the ratio for exchange two currencies. 10. Management fee means fees to be paid on the value of the loan. 11. Straight-Line method means the amortization premium method or

discount which allocates the same amount of state debt securities during the period.

12. Nominal Value of Government Bonds means the value of liabilities when the first time of transaction takes place, the value stated on the sheet of Government Bonds.

13. Carrying Amount of Liabilities means book value of Liabilities which is calculated from nominal value net of discount or plus or Premium that has not been done Amortization.

14. Notice of Disbursement (NoD) or other document are equated as Withdrawal Authorization (WA) and Debit Advice (D/A) is the realization of a withdrawing loan document and/or grant received from Overseas Lenders, hereinafter to as PPLN.

15. Notice of Payment (NoP) or other document are equated ad billing statement, invoice and payment request is a principal repayment billing documents, interest and other charges received from PPLN.

16. Treasury Bonds is SUN whose period is more than 12 (twelve) months with the coupon and/or discounted interest payment.

17. Financing means any receipts that shall be repaid and/or expenditure that will be re-received in the relevant financial year as well as the next fiscal year in the government budgeting, especially intended to cover deficit or to take advantage of the budget surplus.

18. Premium means the excess amount of the present value of Liability with maturity value of Liability, because the nominal interest rate is higher than the effective interest rate.

19. Debt Restructuring means agreement between the creditor and the debtor to modify the terms of the debt agreement with or without a reduction in the amount of debt, in the form of: (a) Refinancing means replacing old debt with new debt, including

arrears; or (b) Rescheduling or modification of the term of debt, means changing

the terms and conditions of the existing contract. Debt rescheduling can be formed:

1. the change of payment schedule 2. the change of grade period; or 3. rescheduling of principal and interest plans are due and/or

overdue.

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20. Government Securities is a form of debt instruments by government which can be traded and has a maturity value or the redemption value when issued, for instance SUN.

21. Government Treasury Bills, hereinafter to as SPN, means Government securities whose period is more than 12 (twelve) months with the discounted interest payment.

22. Rebate is the provision of interest reduction from lender. 1.4 Purpose SAUP module is intended as an operational instructions for the debt accounting executive officers to understand and to implement the debt accounting process be on time, transparent, and accurate, so the results can be accounted for according to applicable regulation. 1.5 Objective SAUP module is intended to be used as a guide for the accounting treatment of debt that includes determination of recognition, measurement, presentation, and reporting the debt. 1.6 Systematic The SAUP module gives the ease to stakeholder in understanding. This module is arranged with the systematic as follow: CHAPTER I INTRODUCTION

It includes introduction, the scope, glossary, purpose, goals, and systematic.

CHAPTER II DEBT ACCOUNTING It includes the definition of debt, debt clarification, the accounting treatment of debt, settlement of maturity liability, arrears, debt restructuring, source documents foreign loan, and source documents of SBN.

CHAPTER III STANDARD CHART OF ACCOUND AND DEBT JOURNALAND FINANCING

It includes standard chart of account, standard debt journal and financing, and stimulation journal and debt reports.

CHAPTER IV DEBT ACCOUNTING SYSTEMS AND PROCEDURS It includes accounting systems and procedures of foreign loans, and

accounting systems and procedures of SBN. CHAPTER V REPORTING DEBT AND FINANCING It includes LRA, Balance sheet, CaLK. CHAPTER IV JOURNAL SIMULATION It includes journal simulation and debt report. CHAPTER VII CLOSING

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CHAPTER II DEBT ACCOUNTING

2.1 Debts

Debts mean an obligation arising from past events of which the settlement resulted in outflow of government economic resources, which includes PLN and SBN. 2.2 Debts Clarification Debts clarification in the SAUP module refers to the clarification as set forth in PP 71/2010 that the debt is classified in Short-Term Debt and Long-Term Debt. 2.2.1. Short-Term Debt

Short-Term Debt means the debt that shall be repaid or due within on accounting period. In other words, it can be classified as a Short-Term Debt, if it is expected to be paid within 12 (twelve) months after the reporting date. Short-term debt can be from PLN and SBN.

Short-term debt consist of: a. The debt will be due within 12 (twelve) months after the reporting date. b. Current Portion Long Term Debt

Current portion long term debt means amount of portion long-term debt will be due within 12 (twelve) months and must be repaid after the reporting date.

c. Accrued Liability Accrued liability means the interest debt and other debt expense that have occurred and will be paid after reporting date, that consist of: 1. Accrued Interest 2. Accrued Fees is like rating, listing and commitment fee.

2.2.2 Long-Term Debt Long-term debt means the debt that shall be repaid or due is more

than one accounting period. A debt is due within the next 12 (twelve) months that remains classified as Long-Term Debt if be fulfilled the following requirements: a. Initial period is for a period of over 12 (twelve) months; b. Entity intends to refinance of liability as set forth in letter a, as long-term

basis; c. As set forth in letter b, means be supported by refinancing or

rescheduling on the payment that completed before the financial statements are approved.

Long-Term Debt can be from PLN and SBN. Long-Term Debt is comprising of: 1. Domestic Long-Term Debt comes from the sale of SBN; 2. Foreign Long-Term Debt comes from PLN.

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OF THE REPULIC OF INDONESIA 2.3 Accounting Treatment of Debt

2.3.1 Accounting basis

Accounting basis that is used for preparing Governmental Financial Statements means cash towards accrual. Cash basis is used for the recognition revenue, expenditure and financing in the LRA and accrual basis is used for the recognition of assets, liabilities, and equity on the balance sheet.

Accrual basis for LRA means the revenue and receipts of financing are recognized, when cash is received in RKUN or by a Reporting Entity while expenditure and financing expenses are recognized, when they are issued from RKUN or a Reporting Entity.

Accrual Basis for balance means assets, liability and equity funds are recognized and recorded, when the transaction occurred or the influence of environmental conditions on government finance regardless, when cash or equivalent is received or paid.

2.3.2 Recognition of debt

Debt is recognized when cash and/or equivalent is accepted by government and/or when debt incurred.

Debt can be incurred when: a. Exchange transaction b. Non-exchange transaction, it is appropriate with laws and policies that

have not been paid up to the reporting date. c. Government-related events d. Government-acknowledged events

2.3.3. Measurement of money Debts shall be recorded at their nominal value. Debts in foreign currencies is described and expressed in the currency of rupiah based on the exchange rate (B.I. middle rate) at the balance sheet date. The nominal value of the debt reflects the value of government debt when transaction at the first time occurred like the value stated in the sheet of debt securities. Economic flow thereafter, such as payment transaction, changes in valuation because change in foreign exchange rate, and other change besides changes in market value are calculated by adjusting the carrying amount of the debt. Carrying Amount means book value of debt that is calculated from the nominal value net of discount or plus or Premium amortization have not been done yet. Accrued Interest Accrued Interest on government debt shall be recorded at interest cost that has occurred and has not been paid. Debt interest on government debt

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which has not been paid must be recognized at each end of the reporting period as part of the related debt. Current Portion of Long-Debt Values are included in the Financial Statements for current portion of long-term debt is the amount that maturity date within 12 (twelve) months after reporting date. Amortization or Discount or Premium Amortization is the systematic allocation of the Premium or Discount on period of government debt. If at the beginning of loan transaction there is a Discount or Premium, liability valuation will take into account the amortization of it. Adjustment to the Discount or Premium is done at each balance sheet date or transaction relating to the Discount or Premium. The calculation on it of amortization is done by using the straight-line method based on the actual day. If there is a Discount or Premium (the result of Reopening) on the same debt type, the discount or premium value is used to determine amortization that is between the excess of Discount and Premium (Net). Changes in Foreign Currency Government debt in foreign currencies are recorded using middle rate of Bank Indonesia, hereinafter to as BI, when the transaction occurred. At the balance sheet date, financial post on a foreign currency is reported in the rupiah currency by using middle rate BI at the balance sheet date. The consequences of reporting and recording debts in foreign currencies will effects the balance sheet post to debt and equity funds that related to reporting entity. 2.3.4 Presentation and Disclosure of Debt The debt presented in the balance sheet at carrying amount. The things that need to be disclosed in the description in the description of the balance sheet posts are the details on each debt type (if the details are more than one page, it made of attachment), maturity date, interest rate, amortization of Discount/Premium, and the excess of foreign exchange rate that occur between the exchange transaction and the balance sheet date rate.

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2.3.5. Debt relief

Debt relief means voluntary cancellation of the bill by the creditor on the debtor, only a portion or the entire amount of the debtor's debt, in form of a formal agreement between them.

Detailed information on debt cancellation should be presented on Calk as part of the financial post disclosure.

2.4 Settlement of liability before the maturity date

Government debt is settled prior to maturity, because the debtor wishes to

accelerate the repayment of debt principal or the existence of the call feature in accordance with the requirements for accelerated Liabilities settlement, then the change in value of Liabilities must be disclosed at CaLK as part of the debt post.

2.5 Arrears Arrears is the number of payable liabilities because the inability of the

entity, to pay the debt principal and/or the interest on time. Amount of arrears on government debt must be presented in the form of

aging schedule, creditors on calk as part of the disclosure liabilities.

2.6 Debt restructuring Debt restructuring through modification of debt instruments, the debtor

must note its prospectively impact since the restructuring is held and not allow carrying amount when the restructuring occurred, except if the carrying amount more than cash payment in the future that is set with new agreement.

Interest amount must be calculated by using the effective interest rate constant multiplied with carrying debt amount at the beginning of each period between the times of restructuring until maturity date. The new effective interest rate is equal to the discount rate to equate the present value of future cash payments, as specified by new terms to (not include contingent debt) the carrying value. Based on the new effective interest rate will be able to generate a new payment schedule, starting from the time of restructuring to maturity date.

If the payment amount, as established by the new terms of debt includes the interest and principal debt payment, is lower than the carrying amount, debtor must reduce the carrying debt amount equal to the future cash payment, as determined by new term.

An entity must not change the carrying debt amount as a result of debt restructuring which related to future cash payments that cannot be determined, as long as maximum future cash payments, does not exceed carrying debt amount.

Interest or principal debt according to the new requirement may include contingencies, depends on the certain condition. For instance, the debtor may be required to pay a certain amount, if the financial condition improved to the certain extent and period. To determine it, we must follow the principles set out in the accounting contingency that not provided for this statement.

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MINISTER OF FINANCE


The same principle applies to future cash payments which must be estimated. The restructuring information must be explained on Calk as parts of explanation of liability post includes the information of the old and the new effective interest rate as part of explanation of relating liability post.

Hereafter, debt restructuring can also be done by the policy of debt switching. It was taken in the context of debt management and issuance of the policy reasons, for several reasons namely: (1) the exchange of Bonds which had been circulated for other bonds that have

different maturity date and/or coupon by predicting gain/loss (Bond value will be repaid), Premium/ discount (bond value will be sold) and accrued/ deferred interest (value of interest accrued or to be received).

(2) reducing the budget deficit; and (3) reducing debt risk will be maturity date 2.7 Source document loan

Source document related to the loan is a loan agreement and memo customization. It includes:

1. Master data source document comprises: a. loan agreement with amendment loan agreement; b. amendment rescheduling/moratorium/organization; c. effectiveness date of loan agreement as a basic of calculation on

commitment fee; d. amendment to the extension of drawing limit serves to prevent illegal

drawing and encourages implementing projects to fulfill withdrawal timetable that has been set.

e. amendment to the extension of closing date; f. amendment changes the interest rate; g. amendment changes of owner or assignment or merger.

2. Source document of transaction data

The following documents are included in the source document of transaction data: a. Allocation for Loan Receipt Plan

- Budget Implementing Checklist, (DIPA) b. Allocation for Loan Principal payment

- DIPA c. Allocation for the Payment of Interest and Principal

- DIPA d. Disbursement Loan

- Notice of Disbursement (NoD)/ withdrawal Authorization (WA) - Withdrawal application - Warrant of bookkeeping/endorsement - Warrant of bookkeeping on withdrawal of foreign loans and grants

(SP4HLN) e. Payment for the Loan Principal Installment

- Notice of payment (NoD) - Payment application

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MINISTER OF FINANCE


- Warrant of disbursement f. Interest payments and loan

- Notice of payment (NoD) - Warrant of disbursement

g. Reclassification of loans - Maturity schedule

h. Loan Relief - Letter of Debt Relief from creditor

i. Loan restructuring - Moratorium/rescheduling

j. Accrued interest - Interest debt list - Adjustment memos

2.8 Source document of State Securities

State Securities hereinafter to as SBN source documents include:

a. DIPA from Directorate General of Budget; b. Warrant of payment from Sub Directorate transaction settlement, EAS

Directorate, DJPU; c. SBN resume the tender document from SUN Directorate and the

Directorate of Islamic Finance, DJPU; d. Notification of payment on installment of principal and SBN interest/cost

from BI. e. Warrant Entry-Settlement of SBN Auction Results.

2.9 Rebate

Rebate is a bonus that is given by creditor to Indonesian Government for the timeliness and PLN’s payment liabilities that has done by the Government. It is given by creditor to government because the several reasons and sometimes it is unclear of the type and the time of the loan. Thus, the accounting policy for rebates can be submitted as follows: a. rebate can be identified as a compensation for expenditure/expense in

the current budget expenditure that is recognized as refund/return on financing expenses. In practice, it can be seen that rebate is a deduction from income of creditor/seller and become cost-reducing expenditures of the debtor/buyer.

b. rebate can be identified as a compensation for expenditure/expense in the last budget as miscellaneous revenue. It is in accordance with PP 71/2010 on government accounting standard.

c. rebate is unknown or unidentified considered as other revenue.

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MINISTER OF FINANCE


CHAPTER III STANDARD CHART OF ACCOUNT AND JOURNAL DEBT AND FINANCING

3.1 BAS

Standard Chart of Account (BAS) means a list of estimation ledger of which is set and arranged systematically to facilitate planning, budget execution, and government accountability and Financial reporting. The BAS purposes: 1. to ensure financial plan (budget), realization and financial reporting state

in the same term; 2. to improve the quality of financial information; 3. to facilitate financial control. Account (estimate) associated with debt transaction refers to the regulations regarding the Standard Chart of Accounts. It includes: ACCOUNT BALANCE ACCOUNT CODE ACCOUNT DESCRIPTION

1. ASSET 11 CURRENT ASSETS 115 DEBT 1156 Debt from KUN 11561 Debt from KUN 115611 Debt from BUN 115612 Debt from KPPN

2. LIABILITY 21 SHORT-TERM LIABILITY 213 INTEREST DEBT 2131 Debt Borrowing Costs 21311 Debt Interest 213111 Foreign Interest Debt 213112 Domestic Interest Rate 213113 Domestic Debt Borrowing 21312 Discount 213121 Discount of Treasury Bills in Rupiah

213122 Discount of Current Portion Government Bonds in Rupiah

213123 Discount of Treasury Bills in Foreign Currency

213124 Discount of Current Portion Government Bond in Foreign Currency

213125 Discount Sharia State Treasury Securities in Rupiah

213126 Discount of Current Portion Sharia State Securities in Rupiah

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MINISTER OF FINANCE


213127 Discount of Sharia State Treasury Securities in Foreign Currency

213128 Discount of Current Portion Sharia State Securities in Foreign Currency

21313 Premium 213131 Premium of Current Portion Currency

Government Bonds 213132 Premium of Current Portion Currency

Government Bonds 213133 Premium of Government Sharia Securities

in Rupiah 213134 Premium of Government Sharia Securities

in Foreign Currency 21314 Unadjusted Debt Discount 213141 Unadjusted Debt Discount 21315 Debt Interest of Treasury Dealing Room 213151 Debt Interest Repo-TDR 216 CURRENT PORTION of LONG-TERM DEBT 216 Current Portion of Long-Term Debt 21611 Current Portion of Long-Term Debt 216111 Current Portion of Foreign Long-Term Debt

216112 Current Portion of Domestic Long-Term Debt

21612 Current Portion of Rupiah Bonds 216121 Current Portion Currency Government

Bonds 21613 Current Portion of Foreign Currency Government Bonds

216131 Current Portion of Bonds in Foreign Currency

21614 Current Portion of Islamic Securities Currency Government 216141 Current Portion of Islamic Securities

Currency Government 21615 Current Portion of Islamic Securities in Foreign

Currency 216151 Current Portion of Islamic Securities in

Foreign Currency 22 LONG-TERM LIBIALITIES 221 DOMESTIC LONG-TERM DEBT 2211 Long-Term Debt of Domestic Banks 22111 Long-Term Debt of Domestic Banks 221111 Long-Term Bank Debt 2212 Long-Term Debt of Domestic Non-banking

22121 Long-Term Debt in Domestic Currency Government Bonds 221211 Debt Domestic Currency Government

Bonds

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MINISTER OF FINANCE


22122 Long-Term Debt in Domestic Government Bonds in Foreign Currency 221221 Long-Term Debt in Domestic Government

Bonds in Foreign currency 22123 Long-Term Debt IDR Sharia State Securities

221231 Long-Term Sharia State Securities in Rupiah

22124 Long-Term Debt Foreign Currency Sharia State Securities 221241 Long-Term Debt Sharia State Securities in

Foreign Currency 22125 Discount 221251 Discount of Government Bonds in Rupiah

221252 Discount of Government Bonds in Foreign Currency

221253 Discount of Sharia State Securities in Rupiah

221254 Discount of Sharia State Securities in Foreign Currency

22126 Premium 221261 Premium of Government Bonds in Rupiah

221262 Premium of Government Bonds in Foreign Currency

221263 Premium of Sharia State Securities in Rupiah

221264 Premium of Sharia State Securities in Foreign Currency

22127 Long-Term Domestic Debt-Loan 221271 Long-Term Domestic Debt-Loan 222 LONG-TERM FOREIGN DEBT 2221 LONG-TERM DEBT OF FOREIGN BANKS 22211 Long-Term Debt of Foreign Banks 222111 Bilateral Debt 222112 Multilateral Debt 222113 Credit Export Debt 222114 Credit Commercial Debt 222119 Long-Term Debt of Foreign Other Banks 2223 Long-Term Debt of Other Foreign 22231 Long-Term Debt of Other Foreign 222311 Others Long-Term Debt Foreign 3 EQUITY FUNDS

31 CURRENT EQUITY FUNDS 3116 Cost Must Be Prepared to Pay Short-Term Debt 31161 Cost Must Be Prepared to Pay Short-Term Debt

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MINISTER OF FINANCE


311611 Cost Must Be Prepared to Pay Short-Term Debt

3117 Gains/Losses Unrealized 31171 Exchange Difference

311714 Foreign Exchange Current Portion of Long-Term Foreign Debt

31172 Gains/Losses of Unrealized State Securities 311721 Gains/losses of Unrealized State Securities

Market Stabilization 311722 Gains/Losses of Unrealized State

Securities Optimization of Cash

32 EQUITY INVESTMENT FUND 321 EQUITY INVESTMENT FUND

3214 Cost Must Be Prepared to Pay Long-Term Debt 32141 Cost Must Be Prepared to Pay Long-Term Debt

321411 Cost Must Be Prepared to Pay Long-Term Debt

3215 Gains/Losses of Long-Term Unrealized 32151 Exchange Difference Long Term

321511 Part Exchange Difference Long Term Foreign Debt

321513 Exchange Difference of Foreign Long-Term Debt

FUNDING ACCOUNT CODE ACCOUNT DESCRIPTION ACCOUNT 7 FINANCING 71 REVENUE FUNDING 711 DOMESTIC REVENUE FUNDING 7112 Acceptance of Domestic Financing of Non-Banking

71122 Acceptance of Domestic Financing Domestic Loans

711221 Acceptance of Domestic Financing of Local Government

711222 Acceptance of Domestic Financing of BUMN

711223 Acceptance of Domestic Financing of Local Company

7114 Proceeds from Sales of Securities in Foreign Countries 71141 Proceeds from Sale of Treasury Bills in the State 711411 Receipt Issuance/Sale of Treasury Bills 71142 Proceeds of Bond Sale Domestic 711421 Receipt Issuance Sales in Domestic Government Bonds

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MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA 711422 Proceeds of Interest Payable of Domestic Bond

71143 Proceeds from Sale of Domestic Sharia Securities Short-Term 711431 Receipt Issuance/Sales Sharia

Securities Short-Term 71144 Receipt Sales of Domestic Sharia Securities Long- Term 711441 Receipt Issuance/Sales Sharia Securities Long-Term 711442 Receipt Rewards Prepaid Sharia Securities Long-Term

71145 Proceeds from Sale of Treasury Bills Sharia State 711451 Proceeds from Sale of Treasury Bills

Sharia 71146 Receipt Issuance/ Sales SBSN in Project Financing Framework through SBSN PBS 711461 Receipt Issuance/Sales SBSN in

Project Financing Framework through SBSN PBS

7116 Proceeds from Sale of Government Securities-Foreign Exchange

71161 Receipts Bonds State-Foreign Exchange 711611 Receipt Issuance / Sales

Government Bonds-Foreign Exchange 711612 Proceeds of Interest Bond Payable- Foreign Exchange 71162 Acceptance of Treasury Bills-Foreign Exchange 711621 Receipt Issuance/Sales of Treasury Bills-Foreign Exchange 71163 Proceeds from sale of Foreign Sharia Securities Short-Term 711631 Receipt Issuance/Sales of Sharia Securities Currency-Short Term 71164 Proceeds from sale of Foreign Sharia Securities Long Term 711641 Receipt Issuance/Sales of Sharia Securities Currency-Long Term 711642 Receipt Rewards Prepaid Sharia Securities Currency-Long Term 71165 Receipt Issuance/Sales SBSN in Project Financing Framework through SBSN Currency PBS 711651 Receipt Issuance/Sales SBSN in Project Financing Framework through SBSN Currency PBS

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MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA 712 ACCEPTANCE OF FOREIGN FUNDING 7121 Withdrawal Loan Program 71211 Withdrawal Bilateral Loan Program 712111 Withdrawal from OECF Loan Program 712119 Withdrawal from Other Bilateral Loan Program 71212 Withdrawal Multilateral Loan Program 712121 Withdrawal from the IBRD Loan Program 712122 Withdrawal of the ADM Loan Program 712123 Withdrawal Loan Program of the other Multilateral 7122 Withdrawal Project Loan 71221 Withdrawal Project Bilateral Loan 712211 Withdrawal Project Bilateral Loan 71222 Withdrawal Project Multilateral Loan 712221 Withdrawal Project Multilateral Loan 71223 Withdrawal Project Loan Facility Export Credit 712231 Withdrawal Project Loan Facility Export Credit 71224 Withdrawal Project Loan Leasing 712241 Withdrawal Project Loan Leasing 71225 Withdrawal Project Loan of Commercial 712251 Withdrawal Project Loan of Commercial 71226 Withdrawal Project Others Loan 712261 Withdrawal Project Others Loan 713 ACCEPTANCE OF RESCHEDULING COST FOREIGN DEBT 7131 Acceptance of Rescheduling Cost Foreign Debt 71311 Acceptance of Program Loan from Rescheduling of Cost Foreign Debt 713111 Acceptance of Program Loan from Rescheduling of Cost Foreign Debt 71312 Acceptance of Project Loan from Rescheduling of Cost Foreign Debt 713121 Acceptance of Project Loan from Rescheduling of Cost Foreign Debt 714 ACCEPTANCE OF RESCHEDULING THE FOREIGN INTEREST DEBT 7141 Acceptance of Rescheduling the Foreign Interest Debt 71411 Rescheduling Debt Interest on Foreign Loans 714111 Scheduling Back Debt Interest on Foreign Loans

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MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA 72 EXPENDITURE FUNDING 721 DOMESTIC EXPENDITURE FUNDING 7211 Domestic Financing expenses-Banking 72111 Domestic Financing expenses-Banking 721111 Payment of Short-term Loans and Prepaid from the Banking Sector 721112 Spending for the Short Term Bank Loan Repayment 7212 Domestic Financing expenses-Non Banking 72123 Expenditure Domestic Financing-Installment of Domestic Loan 721231 Expenditure Domestic Financing- Installment of Domestic Loanof Local Government 721232 Expenditure Domestic Financing- Installment of Domestic Loanof BUMN 721233 Expenditure Domestic Financing- Installment of Domestic Loanof Local Company 7213 Expenditures for Payment of Domestic Government Securities 72131 Expenditures for Payment of Domestic Treasury Bills 721311 Expenditures for Payment of Domestic Treasury Bills 721312 Expenditures for Payment of Domestic Treasury Bills through the Repurchase 72132 Expenditures for Repayment of State Bonds 721321 Expenditures for Repayment of State Bonds 721322 Expenditures for Repayment of State Bonds through the Repurchase 721324 Repayment of Domestic Bond Interest Payable 72133 Expenditures for Repayment of Sharia Securities- Short Term 721331 Expenditures for repayment of Sharia Securities Short-Term 721332 Expenditures for repayment of Sharia Securities Short-Term through the Repurchase 72134 Expenditures for Repayment of Sharia Securities- Long Term 721341 Expenditures for Repayment of Sharia Securities-Long Term

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MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA 721341 Expenditures for Repayment of Sharia Securities-Long Term through the Repurchase 721343 Repayment of Rewards Prepaid

Sharia Securities-Long Term 72135 Expenditures for repayment of Treasury-Sharia 721351 Expenditures for repayment of

Treasury-Sharia 721351 Expenditures for repayment of

Treasury-Sharia through the Repurchase

7215 Expenditures for repayment of Government Securities- Foreign Currency 72151 Expenditures for repayment of Government

Bonds- Foreign Currency 721511 Expenditures for repayment of

Government Bonds- Foreign Currency 721512 Expenditures for repayment of

Government Bonds-Foreign Currency through the Repurchase

721513 Repayment of Debt interest on bonds-Foreign Currency

72152 Expenditures for repayment of Treasury-Foreign Exchange 721521 Expenditures for repayment of

Treasury-Foreign Exchange 721522 Expenditures for repayment of

Treasury-Foreign Currency through the Repurchase

72153 Expenditures for repayment of Treasury Sharia to Foreign Currency-Short Term 721531 Expenditures for repayment of

Treasury Sharia to Foreign Currency-Short Term

721532 Expenditures for repayment of Treasury Sharia to Foreign Currency-Short Term

72154 Expenditures for repayment of Treasury Sharia to Foreign Currency-Long Term 721541 Expenditures for repayment of

Treasury Sharia to Foreign Currency-Long Term

721542 Expenditures for repayment of Treasury Sharia to Foreign

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MINISTER OF FINANCE


Currency-Long Term through the Repurchase

721543 Repayment of Rewards Prepaid Sharia Securities of Foreign Currency-Long Term

722 FINANCING EXPENSES FOREIGN 7221 Principal Installment Financing Foreign Debt-Loan Program 72211 Principal repayments Foreign Debt-Loan Program 722111 Principal Installment Financing

expenses (amortization) Foreign Debt-Loan Program

722112 Expenditures Instalment Principal Foreign Debt-Loan Program

7222 Principal Installment Debt Financing Foreign-Loan Project 72221 Principal repayments Foreign Debt-Loan Project 722211 Principal Installment Financing

expenses (amortization) Foreign Debt-Loan Project

722212 Expenditures Instalment Principal Foreign Debt-Loan Project

7224 Refund Loans 72241 Refund Loans 722411 Refund Loans because Ineligible

Expenditure up to 2007 723 PRINCIPAL REPAYMENT OF DEBT THROUGH THE RESCHEDULING 7231 Principal Repayment of Foreign Debt through the Rescheduling-Loan Program 72311 Expenditures of Rescheduling Foreign Debt-Loan Program 723111 Expenditures of Rescheduling

Foreign Debt-Loan Program 7232 Principal Repayment of Foreign Debt through Rescheduling-Loan Project 72321 Expenditures of Rescheduling Foreign Debt-Loan Project 723211 Expenditures of Rescheduling

Foreign Debt-Loan Project 7233 Repayment of Foreign Debt Interest through the Rescheduling- Loan Project 72331 Expenditures of Rescheduling Foreign Debt Interest 72331 Expenditures of Rescheduling

Foreign Debt Interest

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MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA REVENUE ACCOUNT CODE ACCOUNT CODE ACCOUNT 4 STATE REVENUE

42 NON TAX STATE REVENUE 423 OTHERS NON TAX STATE 4233 Interest Income

42332 Income of Gain on Bond Redemption 423321 Income of Gain on Bond Redemption on Repurchase the Bonds-Long Term 423322 Income from Security Lending Transactions 423323 Income of Gain on Bond Redemption on Repurchase the Foreign Currency Bonds 423324 Income of Gain on Bond Redemption on Repurchase the Sharia Securities of Foreign Currency-Long Term 423325 Income of Gain on Bond Redemption on Repurchase the Sharia Securities of Foreign Currency-Long Term 42333 Premium Revenue of Bonds State 423331 Premium Revenue of Bonds State in Rupiah 423332 Premium Revenue of Bonds State in Foreign Currency 423333 Premium Revenue of Sharia Securities in Rupiah 423334 Premium Revenue of Sharia Securities in Foreign Currency 42334 Other fee income on the State Securities Transactions 423341 Income on Security Lending Transaction of SUN 423342 Other income on the Specific Purpose Account 42335 Revenues Price difference of Government Securities 423351 Revenues price difference of Government Securities 423351 Government Bonds coupon revenue 44336 Return on Revenue Assurance Services Government 423361 Return on Revenue Assurance Services Infrastructure 4239 Others Revenue 42399 Others Revenue 423999 Budget revenue etc. ACCOUNT EXPENDITURES CODE ACCOUNT DESCRIPTION ACCOUNT

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MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA 5 STATE EXPENDITURES

54 EXPENDITURES PAYMENT LIABILITY DEBT 541 EXPENDITURES PAYMENT INTEREST DEBT 5411 Expenditure in Domestic Debt Interest Payments-Short Term 54111 Expenditure Treasury Bill Interest Payment 541111 Expenditure Treasury Bill Interest Payment-Rupiah 541112 Expenditure Treasury Bill Interest of SBN- TDR 541113 Expenditure Treasury Bill Interest of Repo- TDR 541119 Expenditure Payment of Fees/Other Liabilities Treasury Bill Rate 54112 Expenditure Payment of Treasury Bill Rate- Foreign Currency 541121 Expenditure Payment of Treasury Bill Rate- Foreign Currency 541122 Expenditure Payment of Interest of Government Securities-Foreign Currency- TDR 541123 Expenditure Payment of Interest of Repo- Foreign Currency-TDR 541129 Expenditure Payment of Fees/Other Liabilities Treasury Bill Rate-Foreign Currency 5412 Expenditure in Domestic Debt Interest Payments-Long Term 54121 Expenditure Treasury Bond Interest Payments 541211 Expenditure Treasury Bond Interest Payments-Rupiah 541219 Expenditure Payment of Fees/Other Liabilities Treasury Bonds 54122 Others Expenditure in Domestic Debt Interest Payments-Long Term 541221 Payments Expenditure Banking Lending 541229 Expenditure Payment of Fees/Other Liabilities Treasury Bonds 54123 Expenditure in Domestic Loan Interest Payment 541231 Expenditure in Domestic Loan Interest Payment 541232 Expenditure of Fees/Other Liabilities on Domestic Loan 54124 Expenditure Transfer Fee Payment Domestic Loans 541241 Expenditure Transfer Fee Payment Domestic Loans 54125 Bond Interest Payment Expenditure State-Foreign Currency

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MINISTER OF FINANCE


541251 Bond Interest Payment Expenditure State- Foreign Currency 541259 Expenditure of Fees/Other Liabilities on other Bonds 5413 Expenditure Reward Payment of Domestic Sharia Securities 54131 Expenditure Reward Payment of Sharia Securities-Long Term 541311 Expenditure Reward Payment of Sharia Securities-Long Term 541312 Expenditure of Fees/Other Liabilities on Reward Payment of Sharia Securities- Long Term 54132 Expenditure Reward Payment of Sharia Securities- Short Term 541321 Expenditure Reward Payment of Sharia Securities- Short Term 541321 Expenditure of Fees/Other Liabilities on Reward Payment of Sharia Securities- Short Term 54133 Expenditure Reward Payment of Treasury Sharia 541331 Expenditure Reward Payment of Treasury Sharia 541332 Expenditure of Fees/Other Liabilities on Reward Payment ofTreasury Sharia 54134 Expenditure Reward Payment of ShariaSecurities- Foreign Currency Long Term 541341 Expenditure Reward Payment of Sharia Securities-Foreign Currency Long Term 541342 Expenditure of Fees/Other Liabilities on Reward Payment of Sharia Securities Foreign Currency Long Term 54135 Expenditure Reward Payment of ShariaSecurities- Foreign Currency Short Term 541351 Expenditure Reward Payment of Sharia Securities-Foreign Currency Short Term 541352 Expenditure of Fees/Other Liabilities on Reward Payment of Sharia Securities Foreign Currency Short Term 5414 Expenditure Debt Interest Payments-Loans Program 54141 Expenditure Interest Loans Program 541411 Expenditure Interest Loans Program 541219 Expenditure of Fees/Other Liabilities on Loans Program 54142 Expenditure Interest Loans Project 541421 Expenditure Interest Loans Project 541429 Expenditure of Fees/Other Liabilities on Loans Project

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MINISTER OF FINANCE


54144 Expenditure Foreign Interest Debt through the Rescheduling the Loans 541441 Expenditure Foreign Interest Debt through the Rescheduling the Loans Program 541442 Expenditure Foreign Interest Debt through the Rescheduling the Loans Project 541449 Expenditure of Fees/Other Liabilities on Foreign Interest Debt through the Rescheduling Loans 54146 Expenditure for Payment of Transfer Fee Foreign Loans 541461 Expenditure for Payment of Transfer Fee Foreign Loans

542 EXPENDITURE FOR DISCOUNT PAYMENT ON DOMESTIC SECURITIES 5421 Expenditure for Discount Payment on Domestic Securities 54211 Expenditure for Discount Payment on Domestic Treasury Bills 542111 Expenditure for Discount Payment on Domestic Treasury Bills 542119 Expenditure of Fees/Other Liabilities on Discount of Domestic Treasury Bills 54212 Expenditure for Payment Discount on Domestic Bonds 542121 Expenditure for Payment Discount on Domestic Bonds 542129 Expenditure of Fees/Other Liabilities on Discount of Domestic Bonds 54214 Expenditure for Discount Payment onForeign Treasury Bills 542141 Expenditure for Discount Payment on Foreign Treasury Bills 542149 Expenditure of Fees/Other Liabilities on Discount of Foreign Treasury Bills 544 EXPENDITURE FOR PAYMENT OF LOSS ON BOND REDEMPTION 5441 Expenditure for Payment of Loss on Bond Redemption 54411 Expenditure for Payment of Loss on Bond Redemption on the State Bond Repurchase 544111 Expenditure for Payment of Loss on Bond Redemption on the Domestic Bond Repurchase 544112 Expenditure for Payment of Loss on Bond Redemption on the Domestic Sharia Securities Repurchase 544113 Expenditure for Payment of Loss on Bond Redemption on the Foreign Bond Repurchase 544114 Expenditure for Payment of Loss on Bond

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MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA Redemption on the Foreign Sharia Securities Repurchase 545 EXPENDITURE FOR DISCOUNT PAYMENT ON THE DOMESTIC SHARIA SECURITIES

5451 Expenditure for Reward Payment on the Domestic Sharia Securities 54511 Expenditure for Discount Payment of Sharia Securities-Long Term 545111 Expenditure for Discount Payment of Sharia Securities-Long Term 545119 Expenditure of Fees/Other Liabilities on Discount of Sharia Securities-Long Term 54512 Expenditure for Discount Payment of Sharia Securities-Short Term 545121 Expenditure for Discount Payment of Sharia Securities-Short Term 545129 Expenditure of Fees/Other Liabilities on Discount of Sharia Securities-Short Term 54513 Expenditure for Discount Payment of Treasury Bills

545131 Expenditure for Discount Payment of Treasury Bills 545139 Expenditure of Fees/Other Liabilities on Discount of Treasury Bills 54514 Expenditure for Discount Payment of Sharia Securities-Foreign Currency Long Term 545141 Expenditure for Discount Payment of Sharia Securities-Foreign Currency Long Term 545149 Expenditure of Fees/Other Liabilities on Discount of Sharia Securities-Foreign Currency Long Term 54515 Expenditure for Discount Payment of Sharia Securities-Foreign Currency Short Term 545151 Expenditure for Discount Payment of Sharia Securities-Foreign Currency Short Term 545159 Expenditure of Fees/Other Liabilities on Discount of Sharia Securities-Foreign Currency Short Term

3.2 Journal Standard Debt and Financing a. Allotment Expenditure

Journal Standard for allotment expenditure is done by debiting the accounts receivable of KUN and crediting allotment expenditure which is plus by description of a budget item of each allotment expenditure in DIPA.

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MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA Allotment Expenditure Interest Payment/Cost of Debt

Estimated name Debit Credit Accounts receivable of KUN xxx Allotment Expenditure Interest Payment/Cost of Debt + description of a budget item

xxx

b. Estimated Receipts Financing allocated Journal Financing Standards for revenue estimation which is allocated by debiting Estimated Receipts Financing allocated and crediting from KUN debt with an amount equal to the cost of admission in DIPA. For instance:

Estimated name Debit Credit Estimated Receipts Financing allocated + description of a budget item

xxx

Debt to KUN xxx c. Allotment Expenditure Financing

Journal Standard for allotment expenditure financingis done by debiting the accounts receivable of KUN and crediting allotment expenditure financing of each financing in DIPA.

Estimated name Debit Credit Accounts receivable of KUN xxx Allotment Expenditure Financing + description of a budget item

xxx

d. Current Portion Long-term Debt

The normal balance to approximate Current portion Long-term debt is credit. Current portion of long-term debt is credited for loans maturing at the time of reclassificationand debited for the amount paid at the time of repayment. It recorded at nominal value.Debt in foreign currencies are converted to Rupiah based BI middle rate when the transaction occurred. It is also recognized when payment maturities dates within 12 (twelve) months after the reporting date through reclassification. 1. Journal when reclassification of approximate Long-Term Debt

Estimated name Debit Credit Long-term Debt xxx Funds will be required for payment of long-term debt

xxx

Estimated name Debit Credit

Funds will be required for payment of short-term debt

xxx

Current Portion Long-term Debt xxx

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MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA (Note: Long-Term Debt Ledgers for each creditor (series) should be carried out to

identify the source of the loan.)

2. Journal at the time of payment Estimated name Debit Credit

Foreign Principal Loan Payments xxx Accounts receivable of KUN xxx


Long-term Debt xxx Funds will be required for payment of long-term debt

xxx

e. Debt Borrowing Costs

Debt Borrowing Costsarising from Debt Interest and Other Borrowing Costs accrued at the end of the budget year. In this case will be made that adjustment memo which will be used as a source document in making adjusting entries to record the Debt Borrowing Costs.Normal balance estimates of debt borrowing cost is credit. Debt borrowing cost are recorded at nominal value.Debt in foreign currencies are converted to Rupiah based BI middle rate when the transaction occurred.Debt borrowing cost are recognized in the end ofbudget year. 1. Adjusting entries at the end of the budget year



xxx

Accrued interest xxx

2. At the beginning of the budget year are madereversing entries, as follows: Estimated name Debit Credit

Accrued interest xxx Funds will be required for payment of short-term debt

xxx

Standard Journal for Debt Payment can be seen in the journal expenditure realization.

f. Long-Term Debt

Long-term debts are recognized when they are received and recorded at nominal value.Debt in foreign currencies are converted to Rupiah based BI middle rate when the transaction occurred.The normal balance either domestically or abroad is credit. 1. Journal when the received of funds

Estimated name Debit Credit Debt to KUN xxx acceptance of thedomestically loan/foreign xxx

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MINISTER OF FINANCE



Funds will be required for payment of long-term debt

xxx

Long-term Debt xxx (Note: Long-Term Debt Ledgers for each creditor (series) should be carried out to identify the source of the loan.)

2. Journal when payment of debt Estimated name Debit Credit

Expenditure of financing debt installment payments

xxx

Accounts receivable of KUN xxx It's followed by the following journals to admit the debt reduction

Estimated name Debit Credit Funds will be required for payment of long-term debt

xxx

Long-term Debt xxx

g. Debt Interest Debt Interest are recognized when the debt occurred and is recorded at the nominal value. Debt in foreign currencies are converted to Rupiah based BI middle rate when the transaction occurred. The normal balance estimates of debt interest is credit. 1. Journal to record the emergence of the debt interest:



xxx

Accrued interest xxx

2. Journal part of debt interest at maturity: Estimated name Debit Credit

Accrued interest xxx Funds will be required for payment of long-term debt

xxx



xxx

debt borrowing costs xxx

h. Journal of bond sales is not on the date of the coupon/bond with discount Estimated name Debit Credit

Debt to KUN xxx

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MINISTER OF FINANCE


Financing receipts of bond sales xxx It is followed by the following journals on these sales:


xxx

Domestic debt bonds xxx It is followed with interest prepaid, giving rise to the debt financing and the receipts journal

Estimated name Debit Credit Debt to KUN xxx Acceptance rate debt xxx



xxx

Domestic interest debt xxx Furthermore, it is given a discount for the sales

Estimated name Debit Credit Expenditure of domestic payment discount xxx Accounts receivable of KUN xxx

i. Journal of bond sales is not on the date of the coupon/bond with Premium

Estimated name Debit Credit Debt to KUN xxx Financing receipts of bond sales xxx It is followed by the following journals on these sales:


xxx

Domestic debt bonds xxx It is followed with interest prepaid, giving rise to financing proceeds and debt interest to the journal

Estimated name Debit Credit Debt to KUN xxx Acceptance rate debt xxx

Estimated name Debit Credit Funds will be required for payment of long-term interest

xxx

domestic interest debt xxx

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MINISTER OF FINANCE


Furthermore, the sale of obtaining premium income, which raised revenue recognition

Estimated name Debit Credit Debt to KUN xxx Bond premium of domestic income xxx

j. Journals of interest payments and debt interest Interest maturity is made when the payment using ordinary operating expenditure account

Estimated name Debit Credit Expenditure of bond interest payments xxx Accounts receivable of KUN xxx Besides, carried interest debt payments on maturing date to finance expenditure account to the journal:

Estimated name Debit Credit Financing expenditure on debt interest payments xxx Accounts receivable of KUN xxx It is followed by a journal which reduces the value of debt interest

Estimated name Debit Credit Domestic interest debt xxx Funds will be required for payment of long-term debt

xxx

k. Journal of unamortized recording the discount / premium

Unamortized the discount / premium is done only when the preparation of the Report of the Finance with adjusting journal

Estimated name Debit Credit Discount xxx Funds will be required for payment of long-term debt

xxx



xxx

Premium xxx After the reporting date is made reversing journal


xxx

Discount xxx

Estimated name Debit Credit Premium xxx

28

MINISTER OF FINANCE



xxx

l. Journal of the recording of accrued interest

Accrued interest is done only when the preparation of financial statements by adjusting Journal


xxx

Accrued interest xxx After the reporting date is made reversing journal

Estimated name Debit Credit Accrued interest xxx Funds will be required for payment of long-term debt

xxx

m. Journal of bond purchases when maturity date

Bonds which have matured purchased with the financing account and recognition of debt reduction by the journal

Estimated name Debit Credit Financing expenditure of bond xxx Accounts receivable of KUN xxx

Estimated name Debit Credit Domestic debt bonds xxx Funds will be required for payment of long-term debt

xxx

n. Journal of purchase bonds before maturity

Bonds that have not matured can be bought back by the financing expenditure account and recognition of debt reduction by the journal



xxx

Then, it is recognized the existence of loss at the time of purchase by the journal

Estimated name Debit Credit Expenditure of loss payments xxx

29

MINISTER OF FINANCE


Accounts receivable of KUN xxx Bonds that have not matured can be bought back by the financing expenditure account and recognition of debt reduction by the journal



xxx

Then, it is recognized the existence of the gain when purchasing by journals

Estimated name Debit Credit Debt to KUN xxx Revenue gain xxx Calculations of Premium / Discount per bond series, will be done through a separate mechanism, then be made an adjustment memo to be used as a source document in making adjusting entries to record the unamortized premium / discount.

o. Recording of foreign exchange differences 1. Journal to record the increase in the debt and equity balance, which is

caused foreign exchange differences that is based on BI middle rate at the reporting date. a. Increase in short-term debt and current of equity funds because of

foreign exchange differences Estimated name Debit Credit

Foreign exchange differences xxx Short-term debt xxx

Estimated name Debit Credit Funds will be required for payment of short-term debt

xxx

Short-term debt xxx

b. Increase in current portion of long-term debt and current of equity funds because of foreign exchange differences

Estimated name Debit Credit Foreign exchange differences xxx Current part of long-term debt xxx


30

MINISTER OF FINANCE



xxx

Current part of long-term debt xxx c. Increase in long-term debt and equity investment funds

Estimated name Debit Credit Foreign exchange differences xxx Long-term debt xxx


xxx

Long-term debt xxx

2. Journals to record a decrease in the balance of debt and equity funds due to the difference of BI middle rate at the reporting date. a. Decrease in short-term debt and current of equity funds

Estimated name Debit Credit Short-term debt xxx Foreign exchange differences xxx

Estimated name Debit Credit Short-term debt xxx Funds will be required for payment of short-term debt

xxx

b. Decrease in current portion of long-term

Estimated name Debit Credit Current portion of long-term xxx Foreign exchange differences xxx

Estimated name Debit Credit Long-term debt xxx Funds will be required for payment of short-term debt

xxx

c. Decrease in long-term debt and equity investment funds

Estimated name Debit Credit Long-term debt xxx Foreign exchange differences xxx

Estimated name Debit Credit Long-term debt xxx

31

MINISTER OF FINANCE



xxx

3. Journals for transactions Debtswitching

Repayment of the exchangeable bonds Estimated name Debit Credit

Financing expenditure of bond xxx Accounts receivable of KUN xxx It is followed by Journal

Estimated name Debit Credit domestic debt bonds xxx Funds will be required for payment of long-term debt

xxx

Financing of the existence of loss when exchange occurred

Estimated name Debit Credit loss payment expenditure xxx Accounts receivable of KUN xxx Acceptance of the existence of the gain when exchange occurred

Estimated name Debit Credit Accounts receivable of KUN xxx Revenue of gain xxx Financing the presence of accrued interest which must be paid

Estimated name Debit Credit Expenditure of accrued interest xxx Accounts receivable of KUN xxx

Financing the presence of accrued interest which is received

Estimated name Debit Credit Debt to KUN xxx Receipt of accrued interest bonds xxx Recording of Debt switching and the journal becomes

Estimated name Debit Credit Expenditure of accrued interest xxx Accounts receivable of KUN xxx

CHAPTER IV DEBT ACCOUNTING SYSTEM AND PROCEDURE

This chapter will be described in a series of accounting systems and procedures of the various inter-related debt transactions, to generate output reports the debt to

32

MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA parties interested in taking action. It is expected that the functions contained in the Directorate of EAS, DGAT, can be accomplished and is progressing well. Accounting systems and procedures are implemented to deal with the debt transaction, consisting of:

A. FOREIGN ACCOUNTING SYSTEM AND PROCEDURE

33

MINISTER OF FINANCE

OF THE REPULIC OF INDONESIA 1. Allocation Plan oF Loan Financing Revenue (Disbursement) Procedure

No Description

MoF, DIT. APK, DJPBN /

STAKEHOLDER

Director Of EAS

ST Sub-Div

Chairman

AP Sub-Div

Chairman

PH Accounting

Sub-Sec Chairman

PH Accounting Executor

1 Receiving allocation document of financing revenues plan of PLN (DIPA) from the Finance Minister and disposes to ST Sub-Div ST for the referrence of SPM publication and AP Sub-Div to be recorded.

2 Receiving a copy of DIPA documents from the Director of EAS to be used for SPM reference publication.

3 Receiving DIPA documents from the EAS Director and disposes it to the PH Accounting Sub-Sec Chaiman to be made bookkeeping into SAUP.

4 Receiving, examining and checking DIPA documents from AP Sub-Div disposes to the Executor for further process.

5 Receiving , examining and checking DIPA documents from PH Accounting Sub-Sec Chairman for : 1. Doing bookkeeping in SAUP 2. Making the draft report and forward it to the PH

Accounting Sub-Section Chairman. 3. Keeping DIPA and reports in the Filling System

6 Receiving, investigating, examining and initial the draft report of the accounting loan from the executor and disposed to AP Sub-Div Chairman.

DIPA

DIPA

DIPA

DIPA

DIPA

Loan Acc. Report Draft



Loan Acc. Report

Loan Acc. Report

DIPA

MINISTER OF FINANCE


7 Receiving, investigating, examining and initial the accounting report draft from PH Accounting Sub-Section Chairman and disposes it to the Director of the EAS to be signed.

8 Receiving, investigating, examining and signing loan accounting report from AP Sub-Div Chairman then sending it to the relevant parties.

2. Allocation Planning of Principal Installment Payment of Foreign Debt

No Description


STAKEHOLDER

Director Of EAS

SH Sub-Div

Chairman

AP Sub-Div

Chairman

PH Accounting

Sub-Sec Chairman


1 Receiving allocation document of principal installment payment (DIPA) from the Finance Minister and disposes to ST Sub-Div ST for the referrence of SPM publication and AP Sub-Div to be recorded.

2 Receiving DIPA documents as the referrence of SPM Publication.

3 Receiving DIPA documents and disposes it to the PH Accounting Sub-Sec Chairman to be made bookkeeping into SAUP.

4 Receiving, examining and checking DIPA documents from AP Sub-Div and disposes to the Executor for bookkeping within SAUP and prepares the report.

5 Receiving, examining and checking DIPA documents DIPA

DIPA DIPA

DIPA

DIPA

DIPA

Loan Acct. Draft Report

Loan Acct. Draft Report

DIPA

MINISTER OF FINANCE


from PH Accounting Sub-Sec Chairman then : 1. Doing bookkeeping in SAUP 2. Making the draft report and disposes it to the PH

Accounting Sub-Section Chairman. 3. Keeping DIPA and reports in the Filling System

6 Receiving, investigating, examining and initial the draft report of the accounting loan from the executor and disposed to AP Sub-Div Chairman.

7 Receiving, investigating, examining and initial the accounting report draft from PH Accounting Sub-Section Chairman and disposes it to the Director of the EAS to be signed.

8 Receiving, investigating, examining and signing loan accounting report from AP Sub-Div Chairman then sending it to the relevant parties.

3. Planning Allocation of Loan Interest Payment

No Description


STAKEHOLDER

Director of EAS

SH Sub-Div

Chairman

AP Sub-Div

Chairman

PH Accounting

Sub-Sec Chairman


1 Receiving allocation planning document of loan interest payment (D