Home » News » Indonesia’s Rp 200 Trillion Bank Aid Sparks Legal Concerns

Indonesia’s Rp 200 Trillion Bank Aid Sparks Legal Concerns

by Emma Walker – News Editor

Summary of didik’s ‌Arguments Regarding the Rp 200 Trillion Expenditure

Didik, as presented in the text, argues that the expenditure of Rp 200 trillion from the state budget is likely ​ unconstitutional and a violation of state law, specifically Law No. 1 of 2004 concerning State Treasury. Here’s a breakdown ‍of his key points:

1. Presidential Orders & Government Work Plan (RKP): State officials are bound​ by the RKP and must follow established procedures. Programs cannot simply‌ appear and be funded outside ⁣of this framework.

2.Budgetary‍ Process & DPR‍ Involvement: The state budget ⁢is a public matter and requires legislative approval. All programs utilizing the budget must go⁢ through a formal legislative process involving the DPR (Parliament), commissions,⁤ the Budget Agency, and the Minister of Finance. This process includes detailed discussion and approval of⁣ ministry allocations.

3.Legislation is Key: Any program spending ⁤without going through this legislative process ‌is a‌ constitutional violation, representing⁣ the “will ⁢of the individual” rather than a legally sanctioned policy.

4. DPR Deliberation & Approval: ‌Every rupiah of the state budget must ‍be discussed and approved by the DPR, formulated by the Budget Agency, and then approved in a plenary session. ⁣ Implementation can⁤ only occur after this⁢ process. Ministerial ⁣or Governor decrees are insufficient.

5. Ministry of Finance’s Role: The Ministry of Finance manages‍ the budget (revenue, expenditure, and debt) and must operate within the ⁣bounds of the law.

6. Violations of Law No. 1/2004: ⁢The Rp 200 trillion expenditure specifically violates several articles of this law:
‌ * Article 22, Paragraph 9: Spending on programs​ not persistent by the State Budget is a direct violation.
‌ * Article 22, Paragraph 8: Funds should only ‌be placed in commercial banks for operational purposes of the APBN, not channeled to industry through credit schemes.
* Article 22, Paragraph 4: While the Minister of Finance can open accounts​ at commercial banks, these‍ are limited to APBN operational interests, not funding programs ⁣outside the approved budget.

7. Proper program Initiation: Programs must originate from a well-defined legislative process through the APBN, with clear provisions for funding and implementation. ​ They cannot be based on ‍”cursory memory” or spontaneous statements.

In essence, Didik is arguing for strict adherence to the legal and ⁤constitutional process for allocating and spending public funds, emphasizing the crucial role of the ‍DPR in budgetary oversight and control. He believes the Rp 200 trillion expenditure bypassed‍ this process and is therefore illegal.

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