MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIAN COPY

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1 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;

2 OF THE REPUBLIC OF INDONESIAN BE IT HEREBY RESOLVED: To enact : 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. 2

3 OF THE REPUBLIC OF INDONESIAN 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 3

4 OF THE REPUBLIC OF INDONESIAN 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). 4

5 OF THE REPUBLIC OF INDONESIAN 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. 5

6 OF THE REPUBLIC OF INDONESIAN 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; 6

7 OF THE REPUBLIC OF INDONESIAN 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. 7

8 OF THE REPUBLIC OF INDONESIAN 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. 8

9 OF THE REPUBLIC OF INDONESIAN 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. 9

10 OF THE REPUBLIC OF INDONESIAN 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; 10

11 OF THE REPUBLIC OF INDONESIAN 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. 11

12 OF THE REPUBLIC OF INDONESIAN 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

13 APPENDIX I REGULATION OF THE MINISTER OF FINANCE NUMBER 218/PMK.05/2013 ON GOVERNMENT DEBT ACCOUNTING SYSTEM 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 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. 1

14 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. 2

15 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 3

16 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 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 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. 4

17 2.3 Accounting Treatment of Debt 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 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 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 5

18 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 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. 6

19 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. 7

20 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 8

21 - 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. 9

22 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 Debt from KUN Debt from BUN Debt from KPPN 2. LIABILITY 21 SHORT-TERM LIABILITY 213 INTEREST DEBT 2131 Debt Borrowing Costs Debt Interest Foreign Interest Debt Domestic Interest Rate Domestic Debt Borrowing Discount Discount of Treasury Bills in Rupiah Discount of Current Portion Government Bonds in Rupiah Discount of Treasury Bills in Foreign Currency Discount of Current Portion Government Bond in Foreign Currency Discount Sharia State Treasury Securities in Rupiah Discount of Current Portion Sharia State Securities in Rupiah 10

23 Discount of Sharia State Treasury Securities in Foreign Currency Discount of Current Portion Sharia State Securities in Foreign Currency Premium Premium of Current Portion Currency Government Bonds Premium of Current Portion Currency Government Bonds Premium of Government Sharia Securities in Rupiah Premium of Government Sharia Securities in Foreign Currency Unadjusted Debt Discount Unadjusted Debt Discount Debt Interest of Treasury Dealing Room Debt Interest Repo-TDR 216 CURRENT PORTION of LONG-TERM DEBT 216 Current Portion of Long-Term Debt Current Portion of Long-Term Debt Current Portion of Foreign Long-Term Debt Current Portion of Domestic Long-Term Debt Current Portion of Rupiah Bonds Current Portion Currency Government Bonds Current Portion of Foreign Currency Government Bonds Current Portion of Bonds in Foreign Currency Current Portion of Islamic Securities Currency Government Current Portion of Islamic Securities Currency Government Current Portion of Islamic Securities in Foreign Currency Current Portion of Islamic Securities in Foreign Currency 22 LONG-TERM LIBIALITIES 221 DOMESTIC LONG-TERM DEBT 2211 Long-Term Debt of Domestic Banks Long-Term Debt of Domestic Banks Long-Term Bank Debt 2212 Long-Term Debt of Domestic Non-banking Long-Term Debt in Domestic Currency Government Bonds Debt Domestic Currency Government Bonds 11

24 22122 Long-Term Debt in Domestic Government Bonds in Foreign Currency Long-Term Debt in Domestic Government Bonds in Foreign currency Long-Term Debt IDR Sharia State Securities Long-Term Sharia State Securities in Rupiah Long-Term Debt Foreign Currency Sharia State Securities Long-Term Debt Sharia State Securities in Foreign Currency Discount Discount of Government Bonds in Rupiah Discount of Government Bonds in Foreign Currency Discount of Sharia State Securities in Rupiah Discount of Sharia State Securities in Foreign Currency Premium Premium of Government Bonds in Rupiah Premium of Government Bonds in Foreign Currency Premium of Sharia State Securities in Rupiah Premium of Sharia State Securities in Foreign Currency Long-Term Domestic Debt-Loan Long-Term Domestic Debt-Loan 222 LONG-TERM FOREIGN DEBT 2221 LONG-TERM DEBT OF FOREIGN BANKS Long-Term Debt of Foreign Banks Bilateral Debt Multilateral Debt Credit Export Debt Credit Commercial Debt Long-Term Debt of Foreign Other Banks 2223 Long-Term Debt of Other Foreign Long-Term Debt of Other Foreign Others Long-Term Debt Foreign 3 EQUITY FUNDS 31 CURRENT EQUITY FUNDS 3116 Cost Must Be Prepared to Pay Short-Term Debt Cost Must Be Prepared to Pay Short-Term Debt 12

25 Cost Must Be Prepared to Pay Short-Term Debt 3117 Gains/Losses Unrealized Exchange Difference Foreign Exchange Current Portion of Long- Term Foreign Debt Gains/Losses of Unrealized State Securities Gains/losses of Unrealized State Securities Market Stabilization 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 Cost Must Be Prepared to Pay Long-Term Debt Cost Must Be Prepared to Pay Long- Term Debt 3215 Gains/Losses of Long-Term Unrealized Exchange Difference Long Term Part Exchange Difference Long Term Foreign Debt 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 Acceptance of Domestic Financing Domestic Loans Acceptance of Domestic Financing of Local Government Acceptance of Domestic Financing of BUMN Acceptance of Domestic Financing of Local Company 7114 Proceeds from Sales of Securities in Foreign Countries Proceeds from Sale of Treasury Bills in the State Receipt Issuance/Sale of Treasury Bills Proceeds of Bond Sale Domestic Receipt Issuance Sales in Domestic Government Bonds 13

26 Proceeds of Interest Payable of Domestic Bond Proceeds from Sale of Domestic Sharia Securities Short-Term Receipt Issuance/Sales Sharia Securities Short-Term Receipt Sales of Domestic Sharia Securities Long- Term Receipt Issuance/Sales Sharia Securities Long-Term Receipt Rewards Prepaid Sharia Securities Long-Term Proceeds from Sale of Treasury Bills Sharia State Proceeds from Sale of Treasury Bills Sharia Receipt Issuance/ Sales SBSN in Project Financing Framework through SBSN PBS Receipt Issuance/Sales SBSN in Project Financing Framework through SBSN PBS 7116 Proceeds from Sale of Government Securities-Foreign Exchange Receipts Bonds State-Foreign Exchange Receipt Issuance / Sales Government Bonds-Foreign Exchange Proceeds of Interest Bond Payable- Foreign Exchange Acceptance of Treasury Bills-Foreign Exchange Receipt Issuance/Sales of Treasury Bills-Foreign Exchange Proceeds from sale of Foreign Sharia Securities Short-Term Receipt Issuance/Sales of Sharia Securities Currency-Short Term Proceeds from sale of Foreign Sharia Securities Long Term Receipt Issuance/Sales of Sharia Securities Currency-Long Term Receipt Rewards Prepaid Sharia Securities Currency-Long Term Receipt Issuance/Sales SBSN in Project Financing Framework through SBSN Currency PBS Receipt Issuance/Sales SBSN in Project Financing Framework through SBSN Currency PBS 14

27 712 ACCEPTANCE OF FOREIGN FUNDING 7121 Withdrawal Loan Program Withdrawal Bilateral Loan Program Withdrawal from OECF Loan Program Withdrawal from Other Bilateral Loan Program Withdrawal Multilateral Loan Program Withdrawal from the IBRD Loan Program Withdrawal of the ADM Loan Program Withdrawal Loan Program of the other Multilateral 7122 Withdrawal Project Loan Withdrawal Project Bilateral Loan Withdrawal Project Bilateral Loan Withdrawal Project Multilateral Loan Withdrawal Project Multilateral Loan Withdrawal Project Loan Facility Export Credit Withdrawal Project Loan Facility Export Credit Withdrawal Project Loan Leasing Withdrawal Project Loan Leasing Withdrawal Project Loan of Commercial Withdrawal Project Loan of Commercial Withdrawal Project Others Loan Withdrawal Project Others Loan 713 ACCEPTANCE OF RESCHEDULING COST FOREIGN DEBT 7131 Acceptance of Rescheduling Cost Foreign Debt Acceptance of Program Loan from Rescheduling of Cost Foreign Debt Acceptance of Program Loan from Rescheduling of Cost Foreign Debt Acceptance of Project Loan from Rescheduling of Cost Foreign Debt 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 Rescheduling Debt Interest on Foreign Loans Scheduling Back Debt Interest on Foreign Loans 15

28 72 EXPENDITURE FUNDING 721 DOMESTIC EXPENDITURE FUNDING 7211 Domestic Financing expenses-banking Domestic Financing expenses-banking Payment of Short-term Loans and Prepaid from the Banking Sector Spending for the Short Term Bank Loan Repayment 7212 Domestic Financing expenses-non Banking Expenditure Domestic Financing-Installment of Domestic Loan Expenditure Domestic Financing- Installment of Domestic Loanof Local Government Expenditure Domestic Financing- Installment of Domestic Loanof BUMN Expenditure Domestic Financing- Installment of Domestic Loanof Local Company 7213 Expenditures for Payment of Domestic Government Securities Expenditures for Payment of Domestic Treasury Bills Expenditures for Payment of Domestic Treasury Bills Expenditures for Payment of Domestic Treasury Bills through the Repurchase Expenditures for Repayment of State Bonds Expenditures for Repayment of State Bonds Expenditures for Repayment of State Bonds through the Repurchase Repayment of Domestic Bond Interest Payable Expenditures for Repayment of Sharia Securities- Short Term Expenditures for repayment of Sharia Securities Short-Term Expenditures for repayment of Sharia Securities Short-Term through the Repurchase Expenditures for Repayment of Sharia Securities- Long Term Expenditures for Repayment of Sharia Securities-Long Term 16

29 Expenditures for Repayment of Sharia Securities-Long Term through the Repurchase Repayment of Rewards Prepaid Sharia Securities-Long Term Expenditures for repayment of Treasury-Sharia Expenditures for repayment of Treasury-Sharia Expenditures for repayment of Treasury-Sharia through the Repurchase 7215 Expenditures for repayment of Government Securities- Foreign Currency Expenditures for repayment of Government Bonds- Foreign Currency Expenditures for repayment of Government Bonds- Foreign Currency Expenditures for repayment of Government Bonds-Foreign Currency through the Repurchase Repayment of Debt interest on bonds-foreign Currency Expenditures for repayment of Treasury-Foreign Exchange Expenditures for repayment of Treasury-Foreign Exchange Expenditures for repayment of Treasury-Foreign Currency through the Repurchase Expenditures for repayment of Treasury Sharia to Foreign Currency-Short Term Expenditures for repayment of Treasury Sharia to Foreign Currency-Short Term Expenditures for repayment of Treasury Sharia to Foreign Currency-Short Term Expenditures for repayment of Treasury Sharia to Foreign Currency-Long Term Expenditures for repayment of Treasury Sharia to Foreign Currency-Long Term Expenditures for repayment of Treasury Sharia to Foreign 17

30 Currency-Long Term through the Repurchase Repayment of Rewards Prepaid Sharia Securities of Foreign Currency-Long Term 722 FINANCING EXPENSES FOREIGN 7221 Principal Installment Financing Foreign Debt-Loan Program Principal repayments Foreign Debt-Loan Program Principal Installment Financing expenses (amortization) Foreign Debt-Loan Program Expenditures Instalment Principal Foreign Debt-Loan Program 7222 Principal Installment Debt Financing Foreign-Loan Project Principal repayments Foreign Debt-Loan Project Principal Installment Financing expenses (amortization) Foreign Debt-Loan Project Expenditures Instalment Principal Foreign Debt-Loan Project 7224 Refund Loans Refund Loans Refund Loans because Ineligible Expenditure up to PRINCIPAL REPAYMENT OF DEBT THROUGH THE RESCHEDULING 7231 Principal Repayment of Foreign Debt through the Rescheduling-Loan Program Expenditures of Rescheduling Foreign Debt-Loan Program Expenditures of Rescheduling Foreign Debt-Loan Program 7232 Principal Repayment of Foreign Debt through Rescheduling-Loan Project Expenditures of Rescheduling Foreign Debt-Loan Project Expenditures of Rescheduling Foreign Debt-Loan Project 7233 Repayment of Foreign Debt Interest through the Rescheduling- Loan Project Expenditures of Rescheduling Foreign Debt Interest Expenditures of Rescheduling Foreign Debt Interest 18

31 REVENUE ACCOUNT CODE ACCOUNT CODE ACCOUNT 4 STATE REVENUE 42 NON TAX STATE REVENUE 423 OTHERS NON TAX STATE 4233 Interest Income Income of Gain on Bond Redemption Income of Gain on Bond Redemption on Repurchase the Bonds-Long Term Income from Security Lending Transactions Income of Gain on Bond Redemption on Repurchase the Foreign Currency Bonds Income of Gain on Bond Redemption on Repurchase the Sharia Securities of Foreign Currency-Long Term Income of Gain on Bond Redemption on Repurchase the Sharia Securities of Foreign Currency-Long Term Premium Revenue of Bonds State Premium Revenue of Bonds State in Rupiah Premium Revenue of Bonds State in Foreign Currency Premium Revenue of Sharia Securities in Rupiah Premium Revenue of Sharia Securities in Foreign Currency Other fee income on the State Securities Transactions Income on Security Lending Transaction of SUN Other income on the Specific Purpose Account Revenues Price difference of Government Securities Revenues price difference of Government Securities Government Bonds coupon revenue Return on Revenue Assurance Services Government Return on Revenue Assurance Services Infrastructure 4239 Others Revenue Others Revenue Budget revenue etc. ACCOUNT EXPENDITURES CODE ACCOUNT DESCRIPTION ACCOUNT 19

32 5 STATE EXPENDITURES 54 EXPENDITURES PAYMENT LIABILITY DEBT 541 EXPENDITURES PAYMENT INTEREST DEBT 5411 Expenditure in Domestic Debt Interest Payments-Short Term Expenditure Treasury Bill Interest Payment Expenditure Treasury Bill Interest Payment-Rupiah Expenditure Treasury Bill Interest of SBN- TDR Expenditure Treasury Bill Interest of Repo- TDR Expenditure Payment of Fees/Other Liabilities Treasury Bill Rate Expenditure Payment of Treasury Bill Rate- Foreign Currency Expenditure Payment of Treasury Bill Rate- Foreign Currency Expenditure Payment of Interest of Government Securities-Foreign Currency- TDR Expenditure Payment of Interest of Repo- Foreign Currency-TDR Expenditure Payment of Fees/Other Liabilities Treasury Bill Rate-Foreign Currency 5412 Expenditure in Domestic Debt Interest Payments-Long Term Expenditure Treasury Bond Interest Payments Expenditure Treasury Bond Interest Payments-Rupiah Expenditure Payment of Fees/Other Liabilities Treasury Bonds Others Expenditure in Domestic Debt Interest Payments-Long Term Payments Expenditure Banking Lending Expenditure Payment of Fees/Other Liabilities Treasury Bonds Expenditure in Domestic Loan Interest Payment Expenditure in Domestic Loan Interest Payment Expenditure of Fees/Other Liabilities on Domestic Loan Expenditure Transfer Fee Payment Domestic Loans Expenditure Transfer Fee Payment Domestic Loans Bond Interest Payment Expenditure State-Foreign Currency 20

33 Bond Interest Payment Expenditure State- Foreign Currency Expenditure of Fees/Other Liabilities on other Bonds 5413 Expenditure Reward Payment of Domestic Sharia Securities Expenditure Reward Payment of Sharia Securities-Long Term Expenditure Reward Payment of Sharia Securities-Long Term Expenditure of Fees/Other Liabilities on Reward Payment of Sharia Securities- Long Term Expenditure Reward Payment of Sharia Securities- Short Term Expenditure Reward Payment of Sharia Securities- Short Term Expenditure of Fees/Other Liabilities on Reward Payment of Sharia Securities- Short Term Expenditure Reward Payment of Treasury Sharia Expenditure Reward Payment of Treasury Sharia Expenditure of Fees/Other Liabilities on Reward Payment oftreasury Sharia Expenditure Reward Payment of ShariaSecurities- Foreign Currency Long Term Expenditure Reward Payment of Sharia Securities-Foreign Currency Long Term Expenditure of Fees/Other Liabilities on Reward Payment of Sharia Securities Foreign Currency Long Term Expenditure Reward Payment of ShariaSecurities- Foreign Currency Short Term Expenditure Reward Payment of Sharia Securities-Foreign Currency Short Term Expenditure of Fees/Other Liabilities on Reward Payment of Sharia Securities Foreign Currency Short Term 5414 Expenditure Debt Interest Payments-Loans Program Expenditure Interest Loans Program Expenditure Interest Loans Program Expenditure of Fees/Other Liabilities on Loans Program Expenditure Interest Loans Project Expenditure Interest Loans Project Expenditure of Fees/Other Liabilities on Loans Project 21

34 54144 Expenditure Foreign Interest Debt through the Rescheduling the Loans Expenditure Foreign Interest Debt through the Rescheduling the Loans Program Expenditure Foreign Interest Debt through the Rescheduling the Loans Project Expenditure of Fees/Other Liabilities on Foreign Interest Debt through the Rescheduling Loans Expenditure for Payment of Transfer Fee Foreign Loans Expenditure for Payment of Transfer Fee Foreign Loans 542 EXPENDITURE FOR DISCOUNT PAYMENT ON DOMESTIC SECURITIES 5421 Expenditure for Discount Payment on Domestic Securities Expenditure for Discount Payment on Domestic Treasury Bills Expenditure for Discount Payment on Domestic Treasury Bills Expenditure of Fees/Other Liabilities on Discount of Domestic Treasury Bills Expenditure for Payment Discount on Domestic Bonds Expenditure for Payment Discount on Domestic Bonds Expenditure of Fees/Other Liabilities on Discount of Domestic Bonds Expenditure for Discount Payment onforeign Treasury Bills Expenditure for Discount Payment on Foreign Treasury Bills 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 Expenditure for Payment of Loss on Bond Redemption on the State Bond Repurchase Expenditure for Payment of Loss on Bond Redemption on the Domestic Bond Repurchase Expenditure for Payment of Loss on Bond Redemption on the Domestic Sharia Securities Repurchase Expenditure for Payment of Loss on Bond Redemption on the Foreign Bond Repurchase Expenditure for Payment of Loss on Bond 22

35 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 Expenditure for Discount Payment of Sharia Securities-Long Term Expenditure for Discount Payment of Sharia Securities-Long Term Expenditure of Fees/Other Liabilities on Discount of Sharia Securities-Long Term Expenditure for Discount Payment of Sharia Securities-Short Term Expenditure for Discount Payment of Sharia Securities-Short Term Expenditure of Fees/Other Liabilities on Discount of Sharia Securities-Short Term Expenditure for Discount Payment of Treasury Bills Expenditure for Discount Payment of Treasury Bills Expenditure of Fees/Other Liabilities on Discount of Treasury Bills Expenditure for Discount Payment of Sharia Securities-Foreign Currency Long Term Expenditure for Discount Payment of Sharia Securities-Foreign Currency Long Term Expenditure of Fees/Other Liabilities on Discount of Sharia Securities-Foreign Currency Long Term Expenditure for Discount Payment of Sharia Securities-Foreign Currency Short Term Expenditure for Discount Payment of Sharia Securities-Foreign Currency Short Term 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. 23

36 Allotment Expenditure Interest Payment/Cost of Debt Accounts receivable of KUN Allotment Expenditure Interest Payment/Cost of Debt + description of a budget item 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 Receipts Financing allocated + description of a budget item Debt to KUN 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. Accounts receivable of KUN Allotment Expenditure Financing + description of a budget item 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 Long-term Debt Funds will be required for payment of long-term debt Funds will be required for payment of short-term debt Current Portion Long-term Debt 24

37 (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 Foreign Principal Loan Payments Accounts receivable of KUN Long-term Debt Funds will be required for payment of long-term debt 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 Funds will be required for payment of short-term debt Accrued interest 2. At the beginning of the budget year are madereversing entries, as follows: Accrued interest Funds will be required for payment of short-term debt 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 Debt to KUN acceptance of thedomestically loan/foreign 25

38 Funds will be required for payment of long-term debt Long-term Debt (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 Expenditure of financing debt installment payments Accounts receivable of KUN It's followed by the following journals to admit the debt reduction Funds will be required for payment of long-term debt Long-term Debt 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: Funds will be required for payment of long-term debt Accrued interest 2. Journal part of debt interest at maturity: Accrued interest Funds will be required for payment of long-term debt Funds will be required for payment of short-term debt debt borrowing costs h. Journal of bond sales is not on the date of the coupon/bond with discount Debt to KUN 26

39 Financing receipts of bond sales It is followed by the following journals on these sales: Funds will be required for payment of long-term debt Domestic debt bonds It is followed with interest prepaid, giving rise to the debt financing and the receipts journal Debt to KUN Acceptance rate debt Funds will be required for payment of long-term debt Domestic interest debt Furthermore, it is given a discount for the sales Expenditure of domestic payment discount Accounts receivable of KUN i. Journal of bond sales is not on the date of the coupon/bond with Premium Debt to KUN Financing receipts of bond sales It is followed by the following journals on these sales: Funds will be required for payment of long-term debt Domestic debt bonds It is followed with interest prepaid, giving rise to financing proceeds and debt interest to the journal Debt to KUN Acceptance rate debt Funds will be required for payment of long-term interest domestic interest debt 27

40 Furthermore, the sale of obtaining premium income, which raised revenue recognition Debt to KUN Bond premium of domestic income j. Journals of interest payments and debt interest Interest maturity is made when the payment using ordinary operating expenditure account Expenditure of bond interest payments Accounts receivable of KUN Besides, carried interest debt payments on maturing date to finance expenditure account to the journal: Financing expenditure on debt interest payments Accounts receivable of KUN It is followed by a journal which reduces the value of debt interest Domestic interest debt Funds will be required for payment of long-term debt 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 Discount Funds will be required for payment of long-term debt Funds will be required for payment of long-term debt Premium After the reporting date is made reversing journal Funds will be required for payment of long-term debt Discount Premium 28

41 Funds will be required for payment of long-term debt l. Journal of the recording of accrued interest Accrued interest is done only when the preparation of financial statements by adjusting Journal Funds will be required for payment of long-term debt Accrued interest After the reporting date is made reversing journal Accrued interest Funds will be required for payment of long-term debt 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 Financing expenditure of bond Accounts receivable of KUN Domestic debt bonds Funds will be required for payment of long-term debt 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 Financing expenditure of bond Accounts receivable of KUN Domestic debt bonds Funds will be required for payment of long-term debt Then, it is recognized the existence of loss at the time of purchase by the journal Expenditure of loss payments 29

42 Accounts receivable of KUN Bonds that have not matured can be bought back by the financing expenditure account and recognition of debt reduction by the journal Financing expenditure of bond Accounts receivable of KUN Domestic debt bonds Funds will be required for payment of long-term debt Then, it is recognized the existence of the gain when purchasing by journals Debt to KUN Revenue gain 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 Foreign exchange differences Short-term debt Funds will be required for payment of shortterm debt Short-term debt b. Increase in current portion of long-term debt and current of equity funds because of foreign exchange differences Foreign exchange differences Current part of long-term debt 30

43 Funds will be required for payment of shortterm debt Current part of long-term debt c. Increase in long-term debt and equity investment funds Foreign exchange differences Long-term debt Funds will be required for payment of longterm debt Long-term debt 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 Short-term debt Foreign exchange differences Short-term debt Funds will be required for payment of shortterm debt b. Decrease in current portion of long-term Current portion of long-term Foreign exchange differences Long-term debt Funds will be required for payment of shortterm debt c. Decrease in long-term debt and equity investment funds Long-term debt Foreign exchange differences Long-term debt 31

44 Funds will be required for payment of longterm debt 3. Journals for transactions Debtswitching Repayment of the exchangeable bonds Financing expenditure of bond Accounts receivable of KUN It is followed by Journal domestic debt bonds Funds will be required for payment of long-term debt Financing of the existence of loss when exchange occurred loss payment expenditure Accounts receivable of KUN Acceptance of the existence of the gain when exchange occurred Accounts receivable of KUN Revenue of gain Financing the presence of accrued interest which must be paid Expenditure of accrued interest Accounts receivable of KUN Financing the presence of accrued interest which is received Debt to KUN Receipt of accrued interest bonds Recording of Debt switching and the journal becomes Expenditure of accrued interest Accounts receivable of KUN 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

45 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

46 1. Allocation Plan of Loan Financing Revenue (Disbursement) Procedure No Description 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. MoF, DIT. APK, DJPBN / STAKEHOLDER DIPA Director Of EAS DIPA ST Sub-Div Chairman AP Sub-Div Chairman PH Accounting Sub-Sec Chairman PH Accounting Executor 2 Receiving a copy of DIPA documents from the Director of EAS to be used for SPM reference publication. DIPA 3 Receiving DIPA documents from the EAS Director and disposes it to the PH Accounting Sub-Sec Chaiman to be made bookkeeping into SAUP. DIPA 4 Receiving, examining and checking DIPA documents from AP Sub-Div disposes to the Executor for further process. DIPA 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 DIPA Loan Acc. Report Draft 6 Receiving, investigating, examining and initial the draft report of the accounting loan from the executor and disposed to AP Sub-Div Chairman. Loan Acc. Report Draft Loan Acc. Report Draft Loan Acc. Report Loan Acc. Report

47 Loan Acct. Draft Report 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 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. MoF, DIT. APK, DJPBN / STAKEHOLDER DIPA Director Of EAS DIPA SH Sub-Div Chairman AP Sub-Div Chairman PH Accounting Sub-Sec Chairman PH Accounting Executor 2 Receiving DIPA documents as the referrence of SPM Publication. DIPA 3 Receiving DIPA documents and disposes it to the PH Accounting Sub-Sec Chairman to be made bookkeeping into SAUP. DIPA 4 Receiving, examining and checking DIPA documents from AP Sub-Div and disposes to the Executor for bookkeping within SAUP and prepares the report. DIPA 5 Receiving, examining and checking DIPA documents DIPA Loan Acct. Draft Report

48 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 1 Receiving allocation planning document of loan interest payment (DIPA) from the Finance Minister and disposes to ST Sub-Div for the referrence of SPM publication and AP Sub-Div to be recorded. MoF, DIT. APK, DJPBN / STAKEHOLDER DIPA Director of EAS DIPA SH Sub-Div Chairman AP Sub-Div Chairman PH Accounting Sub-Sec Chairman PH Accounting Executor 2 Receiving DIPA documents as the referrence of SPM Publication. DIPA DIPA DIPA

49 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 from PH Accounting Sub-Sec Chairman then : 1. Doing bookkeeping in SAUP 2. Making the draft report of Loan Accounting and disposes it to the PH Accounting Sub-Section Chairman. 3. Keeping DIPA and reports in the Filling System DIPA 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. 1. Flowchart Loan Financing Revenue (Withdrawal) Procedure No Description Bank of Indonesia Lenders DIT APK DJPBN DIT.PEN/ DIT.SMI/ KPPN, DJPEN EAS Director AV Sub- Div ST Sub- Div AP Sub-Div Chairm an PH Acc. Sub-Sec Chairmain PH.Acc. Executor

50 1 Receiving a Notice of Disburshment (NOD) documents on withdrawal of loans from lenders and dispose to AV Sub-Div to be verified and ST Sub- Div to be published SPM and AP Sub- Div to be recorded and made a report. 2 Receiving EAS Director s disposition then examining/checking the correctness of NOD and continue to ST Sub-Div to be recorded and published SP4HLN. 3 Receiving NOD documents from AV Sub-Div and doing : 1. Research and verification on the correctness of NoD 2. Print out recording result of loan withdrawal 3. Publishing SP4HLN then continued SP4HLN attaching NOD and print out recording record of loan withdrawal to EAS Director for signing. 4 Receiving, examining and checking and signing SP4HLN the it is disposed to ST Sub-Div to be delivered to Loan KPPN and Grant/PKN Div/SMI Div as the basis of SP3 issuance (special for KPPN Special for Jkt VI) and recording the financing revenues, AV Sub-Div to be administered and AP Sub-Div for recording. NOD SP4 HLN NOD SP4 HLN NOD SP4 HLN SP4 HLN

51 No Description Bank of Indonesia Lenders DIT APK DJPBN DIT.PEN/ DIT.SMI/ KPPN, DJPEN EAS Director AV Sub- Div ST Sub- Div AP Sub-Div Chairm an PH Acc. Sub-Sec Chairmain PH.Acc. Executor 5 Receiving, examining and studying SP4HLN from EAS Director then disposed to PH Accounting Sub-Sec Chairman to be recorded and makes loan accounting report. SP4HL N 6 Receiving, checking, examining SP4HLN from AP Sub-Div then disposed it to the Executor to be made bookkeeping and makes loan accounting report. SP4HLN 7 Receiving, checking, examining SP4HLN from PH Accounting Sub-Sec Chairman then: 1. Bookkeping in the SAUP 2. Making report draft of Loan Withdrawal Accounting and continue to the PH Accounting Sub-Sec Chairman. 8 Receiving, examining, checking and initial loan accounting report draft from the Executor and disposed to the Sub-Div Chairman of AP. Loan Acc. Report Draft SP4HLN Loan Acc. Report Draft 9 Receiving, examining, checking and initial loan accounting report draft from the PH Accounting Sub-Sec Chairman and disposed to EAS Director to be signed. Loan Acc. Report Draft Loan Acc. Report Loan Acc. Report

52 10 Receiving, examining, checking and signing loan accounting report from Sub- Div Chairman of AP and then delivered to the stakeholders. 2. Loan Principal Instalment Payment Procedure No Description 1 Receiving a Notice of Payment (NOP) documents on principal instalment of loans from lenders and dispose to AV Sub-Div to be verified and ST Sub-Div to be published SPM and AP Sub-Div to be recorded and made a report. 2 Receiving EAS Director s disposition then examining/checking the correctness of the invoice and the collectable value by lenders and continue to ST Sub-Div to be published SPM. Bank Of Indonesia Lenders NOP DIT APK DJPBN KPPN SPECIAL JAKARTA IV EAS Director NOP AV Sub- Div NOP ST Sub- Div AP Sub-Div Chairm an PH Acc. Sub-Sec Chairmain PH.Acc. Executor SPM & SPM Cov. letter

53 3 Receiving NOP documents from AV Sub-Div and doing : 1. Research and verification on the correctness of the invoice 2. Print out payment to be made 3. Publishing SPM and SPM covering letter concept and then forward it enclosed with SPM to the Director of EAS to be signed. 4 Receiving, examining, inspecting and signing an SPM Covering letter then be disposed to ST Sub-Div to be sent to the KPPN Special for Jakarta VI to be published SP2D. 5 Receiving, inspecting and examining SPM along with the recording result of interest payment data of ADK from ST Sub-Div and then dispose to PH Accounting Sub-Sec Chairman to be done into bookkeeping and make a loan accounting report. No Description 6 Receiving, inspecting and examining SPM along with the results of interest payment and loan cost ADK data recording from AP Sub-Div and then dispose to Executor to be recorded and make a loan accounting report. Bank Of Indonesia Lenders DIT APK DJPBN KPPN SPECIAL JAKARTA IV EAS Director AV Sub- Div ST Sub- Div AP Sub-Div Chairman PH Acc. Sub-Sec Chairman SPM PH.Acc. Executo r SPM& Loan Acc. Report Draft

54 7 Receiving, checking, examining SPM along with ADK the results of interest payment and loan cost data recording from PH Accounting Sub- Sec Chairman then: 1. Bookkeping in the SAUP 2. Making report draft of Loan Accounting and disposed to the PH Accounting Sub-Sec Chairman. 3. Submitting Loan Accounting Report (LRA) to KPPN Special For Jakarta IV. 8 Receiving, investigating, examining SPM and publishing SP2D and continue to Bank Indonesia as the basis for the fund transfer to the lender by KPPN Special for Jakarta VI, the copies of SP2D and publication list of SP2D sent to EAS Director to be administered. 9 Receiving, investigating and examining SP2D then doing : 1. Transfer to lenders 2. Send a list of realitation payment of interest and loan cost to the EAS Director. MINISTER OF FINANCE

55 No Description 10 Receiving SP2D/SP2D publishing lists from KPPN Special JKT VI and realization lists of interest payment and loan cost, then dispose to : 1. ST Sub-Div to update the DMFAS data. 2. AV Sub-Div PHLN to be verified. 3. AP Sub-Div to be recorded and making loan accounting report. 11 Receiving, inspecting and examining SP2D/SP2D realization list and the realization list for interest payment and loan cost and then to up-date DMFAS data and dispose to AV Sub Div to be verified. Bank Of Indonesia Lenders DIT APK DJPBN KPPN SPECIAL JAKARTA IV EAS Director SP2D Payment Realizati on List AV Sub- Div ST Sub- Div SP2D Payment Realizati on List AP Sub-Div Chairman PH Acc. Sub-Sec Chairman PH.Acc. Executor 12 Receiving, inspecting and examining SP2D /SP2D realization lists and realization of interest payment and loan cost and verifying on the up- date DMFAS data that is done by ST Sub- Div, then forward it to the AP Sub-Div to be recorded and made loans accounting reports. 13 Receiving, inspecting and examining SP2D/SP2D realization lists and realization list for interest payment and loan cost from AV Sub-Div and then dispose to PH Accounting Sub-Sec Chairman to be recorded and make a SP2D Payme nt Realiza tion List SP2D Payment Realizati on List SP2D Payment Realizati on List

56 loan accounting report. 14 Receiving, inspecting and examining SP2D/SP2D realization list and realization list of loan principal instalments payment from AP Sub-Div then dispose the Executor to be recorded and make loan accounting report. No Description 15 Receiving, inspecting and examining realization lists of SP2D and interest payment and loan cost, from PH Accounting Sub-Sec Chairman for later : 1. Doing bookkeeping in SAUP. 2. Creating the draft of loan accounting report and forward to PH Accounting Sub-Sec Chairman. 3. Sending documents SP2D/lists of SP2D realization and realization list of interest payment and loan cost to AV Sub-Div to be filled in system. Bank Of Indonesia Lenders DIT APK DJPBN KPPN SPECIAL JAKARTA IV EAS Director SP2D- ULN Payment Realizatio n List AV Sub- Div ST Sub- Div AP Sub-Div Chairman PH Acc. Sub-Sec Chairman PH.Acc. Executo r SP2D Payment Realizati on List Copy of SPM, SP2D, Loan ACC.Report Concept Loan Acc.Report Concept Loan Acc.Report Concept

57 16 Receiving, investigating, examining and initial report draft of loan accounting from executor and diposed to AP Sub-Div Chairman. 17 Receiving, investigating, examining and initial draft report of the loan accounting from the PH Accounting Sub-Sec Chairman and continued to the EAS Director to be signed. 18 Receiving, examining, checking and signing the loan accounting report from AP Sub-Div Chairman, then send it to the stakeholders. 3. Payment Procedure of Interest and Loan Cost No Description 1 Received a Notice of Payment (NOP) documents on interest and loan costs from lenders and dispose to AV Sub- Div to be verified and ST Sub-Div to be published for SPM and AP Sub- Bank Of Indonesia Lenders NOP DIT APK DJPBN KPPN SPECIAL JAKARTA IV EAS Director NOP AV Sub- Div ST Sub- Div AP Sub-Div Chairm an PH Acc. Sub-Sec Chairmain PH.Acc. Executor NOP

58 Div to be recorded and make a report. 2 Receiving EAS Director s disposition then examining/checking the correctness of invoice and the collectable value calculation made by lenders and dispose to ST Sub-Div to publish SPM 3 Receiving NOP documents from AV Sub-Div and doing : 1. Inspection and examination on the correctness of invoice. 2. Print out payment to be made 3. Publishing SPM and SPM Covering letter draft attached with SPM to the EAS Director to be signed. 4 Receiving, examining, inspecting and signing SPM covering letter then be disposed to ST Sub-Div to be sent to KPPN Special for Jakarta VI to publish SP2D. 5 Receiving, inspecting and examining SPM along with ADK of data recording results of interest and loan costs payment from ST Sub-Div then dispose to the PH Accounting Sub- Sec Chairman to be recorded and made loan accounting report.

59 No Description 6 Receiving, inspecting and examining SPM along with ADK of the results of the interest and loan cost payments data recording from AP Sub-Div and then dispose to Executor to be recorded and make a loan accounting report. 7 Receiving, checking, examining SPM along with ADK of results of the interest and loan cost payment data recording from PH Accounting Sub- Sec Chairman then: 1. Doing bookkeping in the SAUP 2. Making report draft of Loan Accounting and disposed to the PH Accounting Sub-Sec Chairman. 3. Submitting Loan Accounting Report (LRA) to KPPN Special For Jakarta IV. 8 Receiving, investigating, examining SPM and publishing SP2D and continue to Bank Indonesia as the basis for the fund transfer to the lender by KPPN Special for Jakarta VI, the copies of SP2D and publication list of SP2D sent to EAS Director to be administered. Bank Of Indonesia Lenders DIT APK DJPBN KPPN SPECIAL JAKARTA IV SP2D EAS Director AV Sub- Div ST Sub- Div AP Sub-Div Chairman PH Acc. Sub-Sec Chairman SPM PH.Acc. Executo r SPM& Loan Acc. Report Draft SP2D FUND Payment Realization List

60 9 Receiving, investigating and examining SP2D then doing : 1. Transfer to lenders 2. Send a list of realization payment of interest and loan cost to the EAS Director. No Description 10 Receiving SP2D/SP2D publishing lists from KPPN Special JKT VI and realization lists of interest and loan cost payment, then dispose to : 1. ST Sub-Div to update the DMFAS data. 2. AV Sub-Div PHLN to be verified. 3. AP Sub-Div to be recorded and making loan accounting report. 11 Receiving, inspecting and examining SP2D/SP2D realization list and the realization list for interest and loan cost payment and then to up-date DMFAS data and dispose to AV Sub Div to be verified. 12 Receiving, inspecting and examining SP2D /SP2D realization lists and realization of interest and loan cost payment and verify the up- date DMFAS data that is done by ST Sub- Bank Of Indonesia Lenders DIT APK DJPBN KPPN SPECIAL JAKARTA IV EAS Director SP2D Payment Realizati on List AV Sub- Div ST Sub- Div SP2D Payment Realizati on List AP Sub-Div Chairman PH Acc. Sub-Sec Chairman PH.Acc. Executor SP2D Payme nt Realiza tion List SP2D Payment Realizati on List

61 Div, then forward it to the AP Sub- Div to be recorded and made loans accounting reports. No 13 Receiving, inspecting and examining SP2D/SP2D realization lists and realization list for interest and loan cost payment from AV Sub-Div and then dispose to PH Accounting Sub- Sec Chairman to be recorded and make a loan accounting report. 14 Receiving, inspecting and examining SP2D/SP2D realization list and realization list of loan principal instalments payment from AP Sub- Div then dispose the Executor to be recorded and make loan accounting report. Description Bank Of Indonesia Lenders DIT APK DJPBN KPPN SPECIAL JAKARTA IV EAS Director AV Sub- Div ST Sub- Div AP Sub-Div Chairman PH Acc. Sub-Sec Chairman PH.Acc. Executo r

62 15 Receiving, inspecting and examining SP2D realization list and list of interest and loan cost payment, from PH Accounting Sub-Sec Chairman for later : 1. Doing bookkeeping/recording in SAUP. 2. Creating the draft of loan accounting report and forward to PH Accounting Sub-Sec Chairman. 3. Sending documents SP2D/lists of SP2D realization and realization list of loan interest and cost payment to AV Sub-Div to be filled in system. SP2D- ULN Payment Realizatio n List SP2D Payment Realizati on List Copy SPM, SP2D, Loan Acc.Repor t Draft 16 Receiving, investigating, examining and initial report draft of the implementing loan accounting and diposed to AP Sub-Div Chairman. Loan Acct.Repo rt Concept 17 Receiving, investigating, examining and initial draft report of the loan accounting from the PH Accounting Sub-Sec Chairman and continued to the EAS Director to be signed. Loan Acct. Report Draft LOAN ACC.RE PORT LOAN ACC.REP ORT LOAN ACC.RE PORT

63 18 Receiving, examining, checking and signing the loan accounting report from AP Sub-Div Chairman, then send it to the stakeholders. 4. Loan Report Preparation No Description 1 Making the Loan report concept. EAS Director AP Sub-Div Chairman PH Accounting Sub-Sec Chairman Data Consolidation Sub-Sec Chairman Report & Publication Presentation Sub-Sec Chairman PH Accounting Executor Loan Acct. Report Draft 2 Receiving, verifying, researching and submitting to the Sub-Sec Chairman of Data Consolidation. Loan Acct. Report Draft 3 Receiving, verifying, researching and consolidating with SBN report and submits it to the Sub-Sec Chairman of Reports and Publications Presentation. Draft of Government Debt Report Draft of Debt Management Financial Report Draft of Debt Management Financial Report

64 4 Receiving, verifying, researching and preparing draft financial report of debt management and submit it to the AP Sub- Dev Chairman. 5 Receiving, examining and initial the concept of covering letter and financial report of debt management and submit it to the Director of EAS. 6 Receiving, inspecting and signing debt management financial report to be submitted to the stakeholders. 5. Debt Reclasification No Description 1 Receiving the document / print out payment schedule namely the data portion of long-term debt that has become short-term debt and to dispose to AP Sub-Div to be reclassified, recorded and make reports. DIT. APK, DJPBN EAS Director Doc.Payment Schedule AP Sub-Div Chairman PH Accounting Sub-Sec Chairman PH Accounting Executor 2 Receiving EAS Director disposition then examining / checking the accuracy of the documents and forward the payment schedule to the Accounting PH Sub-sec Chairman. Doc.Payment Schedule Doc.Payment Schedule - Payment Sch. - Reconciliation

65 3 Receiving payment schedule documents from the AP Sub-div and conducting : 1. Research and verification on the accuracy of the payment schedule document 2. Reclassifying long-term debt to short-term debt then forwards the payment schedule documents to the Executor to be recorded / journals henceforth to be made the draft report. 4 Receiving documents and disposition reclassification from PH Accounting Sub-sec Chairman and doing : 1. Research and verify a payment schedule document 2. Long-term debt reclassified to short-term debt and then do the recording / journals henceforth be made the draft report 5 Receiving, investigating, examining and initial concept of the loan accounting report from the Executor and forward it to the AP Sub-Div Chairman. 6 Receiving, investigating, examining and initial report draft of the loan accounting report from PH Accounting Chairman and forward it to the EAS Director to be signed. 7 Receiving, investigating, examining and signing the loan accounting report from AP Sub-Div Chairman then send it to the stakeholders. 6. Debt Deletion No Description Lender DIT.AKP DJPBN EAS Director AV Sub-Div ST Sub-Div AP Sub-Div Chairman PH Acct. Sub-Sec Chairman PH Acct. Executor

66 1 Receiving debt deletion documents partially or completely from Lenders and disposing it to the AV PH Sub-Div to be verified and ST Sub-Div to be made Deletion Letter. Delletion Doc. Delletion Doc. 2 Receiving EAS Director disposition then examining / checking the correctness of the debt deletion document continued to ST Sub-Div to be made Debt Deletion Letter. Delletion Doc. 3 Receiving debt relief documents from AV PH Sub-Div and doing: Research and verification of the debt deletion document then proceeds to EAS Director to be signed. Delletion Doc. 5 Receiving, investigating, examining the debt documents and forward to the PH Accounting Sub-Sec Chairman as a basic for recording of debt deletion. Delletion Doc. 6 Receiving, investigating, examining documents and Debt Deletion Decree and continued to the Executor to record the debt deletion and to make it a report. 7 Receiving, investigating, examining documents and Debt Deletion Decree, for later: 1. Doing Bookkeeping / recording in SAUP 2. Creating Loan Accounting reports draft and forward to the PH Accounting Sub-Div Chairman. 3. Submitting debt deletion documents to AV Sub-div to filling-in the system. 8 Receiving, examining, and inspecting the bookkeping and debt deletion report as well as put initial on it for then forwarding it to AP Sub-Div Chairman. - Debt deletetion report. - Loan Acct. Report Delletion Doc. - Debt deletetion report. - Loan Acct. Rp - Debt deletetion report. - Loan Acct. Report 9 Receiving, examining, inspecting the bookkeping and debt deletion report as well as put initial on it for then forwarding to the EAS Director to be signed - Debt deletetion report. - Loan Acct. Rp - Debt deletetion report. - Loan Acct. R - Debt deletetion report. - Loan Acct. Rp

67 10 Receiving, examining, checking and signing the loan accounting report from AP Sub-Div Chairman, then send it to the stakeholder. 7. Reconciliation of Foreign Loan No Description 1 The Executor prepares the recapitulation document for financing revenues and loan payments as a reconciliation of foreign loans with Dit. PKN and KPPN Special for Loan and Grant, to be recorded and make a report in every month. 2 Accounting Sub-Sec Chairman received document concept of withdrawal and payment as the reconciliation basis of loan with DIT. PKN and KPPN Special for Loan and Grant, for further research and examination on the document validity that will be disposed to AP Sub-Div Chairman. 3 AP Sub-Div Chairman receives, examines recapitulation document concept of withdrawals and loan payments, hereinafter along with the Executor and PH Accounting Sub-Div Chairman reconcile with DIT. PKN and KPPN Special for Loan and Grant. 4 The Executor prepares a reconciliation result draft report on withdrawal and payment to be submitted to the PH Accounting Sub-Div Chairman for examination, then be initialed by PH Accounting Sub-Sec Chairman to be submitted to AP Sub-Div Chairman and EAS Director. 5 PH Accounting Sub-Sec Chairman receives reconciliation result draft report of withdrawal and DIT. APK, DJPBN/ STAKEHOLD ERS Financial Report EAS Director AP Sub-Div Chairman Financial Report PH Accounting Sub-Sec Chairman Financial Report BA Recon. And Recon.Result Report PH Accounting Executor Financial Report BA Recon. And Recon.Result Report BA Recon. And Recon.Result Report BA Recon. And Recon.Result Report

68 payment then it is researched and initialed subsequently forwarded to the AP Sub-Div Chairman and EAS Director. 6 AP Sub-Div Chairman receives draft reports of withdrawal and payment reconciliation result to be examinated and signed and then reported to the EAS Director to filling in the system in Aklap (Accounting Report) No. 8. Debt Restructuring Description 1 Receiving Debt Restructuring Agreement (Moratorium/Rescheduling/Debt Swap) document from the Directorate General of PU and/or the lender, then dispose to AV Sub-Div to be administered. Lender/Dirgen. PU - Moratorium Doc. - Rescheduling Doc. - Debt Swap Doc DIT.APK DJPBN EAS Director - Moratorium Doc. - Rescheduling Doc. - Debt Swap Doc AV Sub- Div ST Sub- Div AP Sub- Div Chairman PH Accounting Sub-Sec Chairman PH Accounting Executor 2 Receiving EAS Director disposition then administer and make copies of the documents to be forwarded to ST Sub-Div. - Moratoriu m Doc. - Reschedu ling Doc. - Debt Swap Doc Copy of Restrc.Doc. Copy of Restrc.

69 3 Receiving a copy of the Moratorium/ Rescheduling / Debt Swap Agreement Documents from AV Sub-Div and make recording on DMFAS and print the change results caused by restructuring. 4 Receiving, investigating, examining Moratorium / Rescheduling / Debt Swap Agreement Document Copies and dispose to PH Accounting Sub-Sec Chairman for further processing. 5 Receiving disposition from Sub-Div Chairman, researching, checking Moratorium/ Rescheduling/ Debt Swap Agreement Document Copies and forward to the executor to be recorded into a journal and prepared a draft report. No. Description 6 Receiving, investigating, examining Moratorium / Rescheduling / Debt Swap agreement documents and then: 1. Doing Bookkeeping/records in Debt Accounting System; 2. Prepared a draft of loan accounting report and forward documents to PH Accounting Sub-Sec Chairman. 3. Filling the agreement document copy of Lender/Dirgen. PU DIT.APK DJPBN EAS Director AV Sub- Div ST Sub- Div AP Sub- Div Chairman PH Accounting Sub-Sec Chairman PH Accounting Executor Copy of Restrct. Doc. Loan Acc. Report Draft Loan Acc. Report Draft

70 the Moratorium/ Rescheduling / Debt Swap. 7 Receiving, examining, and inspecting the bookkepping and loan accounting report and initiated then continued to AP Sub-Div Chairman. 8 Receiving, examining, and inspecting the bookkepping and loan accounting report and initial to further forward to EAS Director to be signed. 9 Receiving, examining, checking and signing the loan accounting report from AP Sub-Div Chairman then send it to the stakeholders. 9. Realization of SBN Publication. No. Description KPPN JKT IV DJPBN Dit.SBN EAS Director ST Sub-Div Chairman AKLAP Sub-Div Chairman SBN Accounting Sub-Sec Chairman SBN Accounting Executor

71 1 Receiving SBN issuance of auction documents from the SBN Director and dispose to ST Sub-Div Chairman to be settled and AKLAP Sub-Div Chairman to be accounted. 2 Receiving the auction documents from EAS Director then publishes SPM concept to be signed by EAS Director. 3 Accepting and signing SPM and then submitting it to the KPPN JKT VI. 4 Accepting SPM and publishing SP2D then be copied to the EAS Directorate. 5 Receiving and examining : 1. Auction documents from EAS Director. 2. SPM from ST Sub-Div Chairman 3. SP2D from EAS Director then disposes it to SBN Accounting Sub-Sec Chairman. 6 Receiving, investigating, and verifying the Tender Documents, SPM and SP2D from AP Sub-Div Chairman then dispose to the Executor. 7 Receiving, investigating, and checking the Auction Documents, SPM and SP2D then booked in the Accounting System, making SBN accounting reports, and filling documents. (Bookkeeping includes the recording of financing revenues and expenditures due to the publication). 8 Receiving, investigating, examining and initial the draft of SBN accounting reports from the Executor and forward them to AKLAP Sub-Div Chairman. 9 Receiving, investigating, examining and initial the draft report of SBN Accounting from the SBN Sub-Sec Chairman and forward it to EAS Director to be signed. 10 Receiving, examining, checking and signing the SBN accounting report from AKLAP Sub-Div Chairman for later delivering it to the stakeholders. SP2D Auctio n Doc Auction Doc SPM SBN Acc. Report SPM Auction Doc SPM SP2D SBN Acc.Report Draft Auction Doc SPM SP2D SBN Acc.Report Draft SBN Acc.Repo rt Draft

72 10. Realization of SBN Cash Buyback No. Description 1 Receiving Cash Buyback auction documents from the SBN Director and dispose to ST Sub-Div Chairman to be settled and AKLAP Sub-Div Chairman to be accounted. 2 Receiving the auction documents of SBN publication from EAS Director then publishes SPM concept to be signed by EAS Director. 3 Accepting and signing SPM and then submitting it to the KPPN JKT VI. 4 Accepting SPM and publishing SP2D then be copied to the EAS Directorate. 5 Receiving and examining : 1. Auction documents from EAS Directorate. 2. SPM from ST Sub-Div Chairman 3. SP2D from EAS Director then disposes it to SBN Accounting Sub-Sec Chairman. 6 Receiving, investigating, and verifying the Auction Documents, SPM and SP2D from AP Sub-Div Chairman then dispose to the Executor. 7 Receiving, investigating, and checking the Auction Documents, SPM and SP2D then booked in the Accounting System, making SBN accounting reports, and filling documents. KPPN JKT IV DJPBN SP2D Dit.SBN Auction Doc EAS Director Auction Doc SPM ST Sub-Div Chairman SPM AKLAP Sub-Div Chairman Auction Doc SPM SP2D SBN Accounting Sub-Sec Chairman Auction Doc SPM SP2D SBN Accounting Executor SBN Acc.Repo rt Draft 8 Receiving, investigating, examining and initial the draft of SBN accounting reports from the Executor and forward them to AKLAP Sub-Div Chairman. SBN Acc.Report Draft SBN Acc.Report Draft SBN Acc. Report

73 9 Receiving, investigating, examining and initial the draft report of SBN Accounting from the SBN Accounting Sub-Sec Chairman and forward it to EAS Director to be signed. 10 Receiving, examining, checking and signing the SBN accounting report and deliver it to the stakeholders. 11. SBN Buyback Realization (Debt Switch) No. Description 1 Receiving buyback auction documents by SBN debt switch from the SBN Director and dispose to ST Sub-Div Chairman to be settled and AKLAP Sub-Div Chairman to be accounted. 2 Receiving the auction documents of SBN publication from EAS Director then publishes SPM concept to be signed by EAS Director. 3 Accepting and signing SPM and then submitting it to the KPPN JKT VI. 4 Accepting SPM and publishing SP2D then be copied to the EAS Directorate. 5 Receiving and examining : 1. Auction documents from EAS Directorate. 2. SPM from ST Sub-Div Chairman 3. SP2D from EAS Director then disposes it to SBN Accounting Sub-Sec Chairman. 6 Receiving, investigating, and verifying the Auction Documents, SPM and SP2D from AP Sub-Div Chairman then dispose to the Executor. KPPN JKT IV DJPBN SP2D Dit.SBN Auction Doc EAS Director Auction Doc SPM ST Sub-Div Chairman SPM AKLAP Sub-Div Chairman Auction Doc SPM SP2D SBN Accounting Sub-Sec Chairman Auction Doc SPM SP2D SBN Accounting Executor SBN Acc.Repo rt Draft SBN Acc.Report Draft

74 7 Receiving, investigating, and checking the Auction Documents, SPM and SP2D then booked in the Accounting System, making SBN accounting reports, and filling documents. 8 Receiving, investigating, examining and initial the draft of SBN accounting reports from the Executor and forward them to AKLAP Sub-Div Chairman. 9 Receiving, investigating, examining and initial the draft report of SBN Accounting from the SBN Accounting Sub-Sec Chairman and forward it to EAS Director to be signed. 10 Receiving, examining, checking and signing the SBN accounting report from AKLAP Sub-Div Chairman and deliver it to the stakeholders. 12. Flowchart of Accounting Procedure and System for SBN Acquittal Realization No Description 1 Receiving the invoice on SBN interest payments that will be due from Bank Indonesia and disposing it to ST Sub- Div Chairman to be settled and accounted. 2 Receiving notifications about SBN interest payments that will be due from EAS Director then publishing SPM concept to be signed by EAS Director. 3 Accept and signing SPM then submitting it to the KPPN JKT VI. Administering Bank/Trustee Invoice KPPN JKT IV DJPBN Dit.SBN EAS Director Invoice SPM ST Sub-Div Chairman SPM AKLAP Sub-Div Chairman ABN Accounting Sub-Sec Chairman SBN Accounting Executor SP2D Debit Advice

75 4 Accepting SPM and publishing SP2D then be submitted to the Directorate of EAS. 5 Receiving SP2D and issuing the receipt of payment and then be forwarded to the EAS Directorate. 6 Receiving Debit Advice from the trustee and SP2D copy from the Dit. PKN then dispose to AKLAP Sub-Div Chairman. 7 Receiving and examining : 1. Notification from EAS Director. 2. SPM from ST Sub-Div. 3. SP2D from EAS Director then dispose to SBN Accounting Sub- Sec Chairman. 8 Receiving, examining, verifying the notification letter, SPM, SP2D from AKLAP Sub-Div Chairman then dispose to Executor. No Description 9 Receiving, investigating, and checking the Auction Documents, SPM, and then SP2D then accounted into the accounting system, making SBN accounting reports, and filing documents. Administering Bank/Trustee KPPN JKT IV DJPBN Dit.SBN EAS Director ST Sub-Div Chairman AKLAP Sub-Div Chairman ABN Accounting Sub-Sec Chairman SBN Accounting Executor SBN Acc.Report Draft SBN Acc.Report Draft

76 10 Receiving, investigating, examining and initial the drafts of SBN accounting reports from the Executor and forward them to AKLAP Sub-Div Chairman. 11 Receiving, investigating, examining and initial the SBN accounting draft report from SBN Accounting Sub-Sec Chairman and continue to EAS Director to be signed. 12 Receiving, examining, checking and signing SBN accounting report from AKLAP Sub-Div Chairman then delivering to the stakeholders. 13. Interest Payment Realization/SBN No Description Administering Bank/Trustee KPPN JKT IV Dit.SBN EAS Director ST Sub-Div AKLAP Sub-Div ABN Accounting SBN Accounting

77 1 Receiving the invoice on SBN interest payments that will be due from Bank Indonesia and disposing it to ST Sub-Div Chairman to be settled and accounted. 2 Receiving notifications about SBN interest payments that will be due from EAS Director then publishing SPM concept to be signed by EAS Director. 3 Accept and signing SPM then submitting it to the KPPN JKT VI. 4 Accepting SPM and publishing SP2D then be submitted to the Directorate of EAS. Invoice DJPBN Chairman Chairman Sub-Sec Chairman SP2D Invoice SPM SPM Executor 5 Receiving and examining : 1. Notification from EAS Director. 2. SPM from ST Sub-Div. 3.SP2D from EAS Director then dispose to SBN Accounting Sub-Sec Chairman. 6 Receiving, examining, verifying the notification letter, SPM, SP2D from AKLAP Sub-Div Chairman then dispose to Executor. 7 Receiving, examining, checking the Auction Document, SPM and SP2D then booked in the accounting system, make SBN accounting report and filling document. 8 Receiving, examining, checking and initials SBN accounting report draft from the executor and dispose to AKLAP Sub-Div Chairman. 9 Receiving, examining, checking and initials SBN accounting report draft from SBN Accounting Sub-Sec Chairman and dispose to EAS Director to be signed. 10 Receiving, examining, checking and signing SBN accounting report from AKLAP Sub-Div SBN Acct.Report Invoice, SPM,SP2D SBN Acct.Report Invoice, SPM,SP2D SBN Acct.Report Draft SBN Acct.Report Draft

78 Chairman and deliver it to the stakeholders. MINISTER OF FINANCE

79 Remarks: 1. EAS : Evaluation, Accounting and Settlement 2. TS : Transaction Settlement 3. AP/AKLAP : Accounting and Reporting 4. PH : Loan and Grant 5. SAUP : Accounting System of Government Debt 6. AV : Administration and Verification 7. SP4HLN : The Approval Letter of Loan and Foreign Grant Withdrawal 8. SPM : :Instruction Letter to Pay 9. SP2D: Fund Disbursement Letter 10. SBN : Debt Management 11. PU: Debt Management.

80 CHAPTER V REPORTING OF DEBT AND FINANCING Financial Report is arranged to provide relevant information about financial position and all transaction carried out by Reporting Entity for a period of reporting. Financial Report is mainly used to compare realization of income, expenditure, transfer, and disbursement using the determined budget, evaluate financial condition, evaluate effectivity and effeciency of a Reporting Entity, and to help in determining the edherence toward law and regulation. Each Reporting Entity obligates to report efforts performed and the results achieved in the implementation of activities systematically and structured at a period of reporting for the importance of accountability, management, transparency, and balance of among generations. Government Financial Report is intended to meet general purpose of financial report, but it does not fulfill particular needs of users. Financial Report for general purpose is a report intended to fulfill mutual need of mostly report users. Regarding with reporting of debt and financing, DJPU employed SAP, as set forth in PP 71/2010, as a reference preparation of SAUP. In addition to the arrangement of Financial Report aims general, DJPU enables to result Financial Report arranged for certain needs. One of application used to result debt report with that specific aim is DMFAS (Debt Management and Financial Analysis System). Application of this DMFAS constitutes a supporting system that may result additional report toward arrangement of government Financial Report. If it is necessary, DMFAS may be used to result debt report in detail as a complement of government Financial Report.

81 REPORTING PERIOD Financial Report is presented at least two times in a year which is Financial Report of semester I and year-end Financial Report. Besides, for the purpose of reconsiliation of Financial Report is arranged every month. COMPONENT OF FINANCIAL REPORT Financial Report can be differentiated based on purpose which consist of general and specific purposes. Debt Report and Financing consist of: a. Debt Financial Report and Financing for general purpose (Accountability Report) consist of: 1. LRA consists of: a) LRA of Debt Interest Budget b) LRA of Acceptance and Financing Expenditure; 2. Balance; 3. CaLK; b. Debt Financial Report and Financing for specific purpose (managerial report) which consist of: 1. report of debt position (managerial report); 2. report of debt aging schedule 5.1. LRA LRA displays source outline, allocation, and the use of economic resources managed by government, that draws comparison between budget and its realization in one reporting period. Factor involved directly by LRA of debt consist of budget, income and financing. Each factor is defined as:

82 a. Revenues (cash base) is all revenues of RKUN that adds equity of current fund in related a relevant fiscal year period becoming government right, and it does not need to be repaid by government. Income is acknowledged when cash revenues occured in RKUN. b. Expenditure (cash base) is all expenditure from RKUN which decrease equity current fund in a related fiscal year period which the repayment will not be received by government. Expenditure is acknowledged when cash expenditure occured from RKUN. c. Financing Revenue is all incomes of RKUN / General Account of Regional Cash, among others that can come from loan and SBN sale. Financing Revenue is acknowleded when it is received by RKUN/ Region. Accountancy of Financing Revenue is conducted based on gross principle, that is by booking gross revenues and does not record nett amount (record the amount of Financing Revenue after having compensation with expenditure). d. Financing expenditure is all expenditure of RKUN/RKUD, among others repayment of loan principal, SBN aquittal, and loan given to other entities. Financing Expenditure is acknowledged when it is issued by RKUN/RKUD The following is the illustration of Budget Plan Report of Debt REPORT OF DEBT INTEREST BUDGET PLAN 20XI 20X0 REVENUE Other Revenues EXPENDITURE Debt Interest FINANCING Revenues of Domestic Debt SBN Revenues of Debt - Foreign Loan Revenues of Debt - Foreign SBN FINANCING REVENUE XXX XXX Payment of Principle Foreign Loan-SBN Payment of Principle Debt Foreign Loan Revenues of Debt-Foreign SBN

83 FINANCING EXPENDITURE XXX XXX The example of LRA detail form as attached. 5.2 BALANCE Balance describes financial position of a Reporting Entity on asset, Obligation, and fund equity on certain date. Elements which are directly included by Balance of debt consist of: 1. Short-term Liabilities: a. Short-term SBN; b. Interest Debt; c. Current Portion of Long-Term Debt 2. Long-term Liabilities: a. Domestic Debt SBN; b. Foreign Debt PLN ; c. Foreign Debt SBN The following is an illustration of Balance on Debt BALANCE 20X1 20X0 SHORT-TERM LIABILITY Short-term SBN Interest Debt Current Portion of Long term Debt LONG TERM LIABILITY Domestict Debt SBN Foreign Debt PLN

84 Foreign Debt SBN The example of detail form of Balance report is as attached. 5.3 CaLK CaLK includes narrative explanation or detail of numbers mentioned in LRA, Balance and Report of Cash Flow. CaLK also includes information of accounting policy used by Reporting Entity and other information which is obligated and suggested to be revealed in SAP and necessary statements to result the display of Financial Report naturally. CaLK particularly consists of: 1. Display information about debt policy, achievements of target of APBN regulation, and also the obstacles faced in achieving target; 2. Display overview of the financial performance achievement for along reporting year; 3. Display information of basic of arrangement of Financial Report and accounting policies chosen to be applied as transactions and other importance events; 4. Reveal information which is obligated by SAP which has not been displayed in the cover page of Financial Report; 5. Explanation of estimation of LRA and Balance; 6. Display measurement base of debt; 7. Display source and kinds of loan in detail; 8. Display necessary additional information for naturally presentation, which is not displayed in the cover page of Financial Report.

85 CHAPTER VI JOURNAL SIMULATION A. Journal Simulation and Debt Reporting 1. Debt journal illustarion a. PLN fund Revenue of Rp Description Debit Credit Debt to KUN Foreign Loan Revenue Description Debit Credit Prepared fund for Long-Term Debt payment Long-Term Debt

86 b. The due Principal Installment of Foreign Loan of Rp (1) Reclassification from Long-Term Debt to Current Portion of Long-Term Debt: Estimation Name Debit Credit Long-Term Debt Prepared fund for Long-Term Debt payment Estimation Name Debit Credit Prepared fund for Long-Term Debt payment Current Portion of Long-Term Debt (2) The maturing date of PLN Principal Payment: Estimation Name Debit Credit Current Portion of Long-Term Debt Prepared fund for Short-Term Debt payment Estimation name Debit Credit Principal Payment of PLN Receivable from KUN c. Interest payment in amount of Rp Journalizing of emerging debt interest payment : Estimation Name Debit Credit Debt Interest Expenses Receivable from KUN d. Interest Debt in amount of Rp Bookkeeping of emerging Debt Interest:

87 Estimation Name Debit Credit Prepared fund for Short-Term Debt payment Debt Interest e. Exchange Rate Deviation The presentation of Exchange Rate Deviation is formulated as follows: a. Foreign debt balance in foreign currency multiplies with the middle exchange rate of Bank Indonesia on the balance sheet date minus foreign debt balance in foreign currency on the date on balance sheet multiplies with the middle exchange of Bank Indonesia on the last date of loan withdrawal. b. The last withdrawal exchange rate is done with the following provision: The loan which the last withdrawal in and before 2004 uses a middle exchange rate of Bank Indonesia on December 31st, The loan which the last withdrawal exchange rate after 2004 uses the middle exchange rate of Bank Indonesia on the date of the last withdrawal. In the event of last withdrawal currency is different with the outstanding currency on the current year, then the exchange rate is calculated with the last withdrawal in rupiah divided by the result of last currency convertion. Loan ID Forex Outstanding MTU Forex Value Balance Outstanding (31/12/20xx atau 30/06/20xx) Middl e Excha nge Rate Rupiah Value Date of Currenc y Fore x Valu e Last Advance Rupia h Value Exchang e Rate 31/12/2 004 Last Withdraw al Exchange Rate =3x =8/7 Outstanding Rupiah 11=3x9* 11=3x10** Deviatio n 12=5-11 The example of the increasing of long-term debt calculation because of the Exchange Rate Deviation: Transactions JPY Exchange Rate IDR Balance end , Withdrawal ,

88 Sub Total Payment 2007 (700) 80,00 (56.000) Sub Total Final Balance , Exchange Rate Deviation - (8.000) Estimation Name Debit Credit Exchange Rate Deviation Long-Term Debt Estimation Name Debit Credit Prepared fund for Long-Term Debt payment Long-Term Debt After journalizing, the next step is to post the transactions into the ledger based on transaction date. By reffering to the transactions illustration above, the debt statement can be presented as follows: THE LEDGER Receivable from KUN PLN Revenues Debt to KUN Prepared fund for Long-Term Debt Prepared fund for short-term Debt

89 Long-Term Debt PLN Principal Payment Current Portion of Long-Term Debt Interest Payable Debt Interest Expenses Exchange Rate Deviation BALANCE Long-Term Debt Interest Debt Exchange Rate Deviation (8.000) Prepared fund for (1.000) short-term Debt Prepared Fund of (48.000) Long-Term Debt LRA Revenues 0 Debt Interest Expenses Deficit (1.500) The Revenue of PLN The Principal PLN Payment (5.000) Netto Financing 5.000

90 2. Journal Illustration of SBN: a. The Journal of Bond Sales on the date of coupon/bond Estimation Name Debit Credit Debt to KUN Bond Sales Financing Revenue Followed by the aftermark journal for the acknowledgment of debt for those transactions, which are: Estimation Name Debit Credit Prepared fund for long-term debt Bond Domestic Debt b. The Journal of Bond Sales which is not on the date of coupon/bond with discount: Estimation Name Debit Credit Debt to KUN Bond Sales Financing Revenue Followed by the afterward Journal upon such transactions are: Estimation Name Debit Credit Prepared fund for long-term debt payment Bond Domestic Debt Followed by the prepaid interest so that causes financing revenue and interest debt with the following journal: Estimation Name Debit Credit Debt to KUN Interest Debt Revenue Estimation Name Debit Credit

91 Prepared fund for long-term debt payment Domestic Interest Debt Hereafter, the discount is given for the sales so that it causes expenses of discount payment with the following journal: Estimation Name Debit Credit The expenses of domestic discount payment Receivable from KUN c. The journal of Bond Sales which is not on the date of coupon/bond with premium Estimation Name Debit Credit Debt to KUN Bond Sales Financing Revenue Followed by the following journal upon those transactions, which are: Estimation Name Debit Credit Prepared fund for long-term debt payment Bond Domestic Debt Followed by the prepaid interest that causes financing revenue and interest payable with the following journal: Estimation Name Debit Credit Debt to KUN 1.000

92 Interest Payable Revenue Estimation Name Debit Credit Prepared fund for long-term debt payment Domestic Interest Payable Hereafter, premium revenue is given for those transactions so it causes the revenue acknowledgment with the following journal : Estimation Name Debit Credit Debt to KUN Government Bond Premium Revenue d. Journal of interest payment and interest debt The payment for interest at maturity is paid using regular operational expenses account with the follwing journal: Estimation Name Debit Credit Bond Interest Payment Expenses Receivable from KUN Besides, the payment is paid for interest payable at maturity with financing expenses account with the following journal: Estimation Name Debit Credit Interest Debt Payment Financing Expenses

93 Receivable from KUN Followed with the aftermark journal which decreases the value of interest debt with the following journal: Estimation Name Debit Credit Domestic interest payable Prepared fund for long-term debt payment e. Journal of unamortize discount/premium recording Unamortize towards discount/premium is done only at the preparation of Finance Report with the adjustment journal as follows: Estimation Name Debit Credit Discount Prepared fund for long-term debt payment Estimation Name Debit Credit Prepared fund for long-term debt payment Premium After the date of reporting, then reversing journal is reported: Description Debit Credit Prepared fund for long-term debt payment Discount Estimation Name Debit Credit Premium Prepared fund for long-term debt payment f. The Journal of Bond Purchase Before the Maturity Date

94 Bond that has not matured can be repaid with financing expenses account and debt reduction acknowledgment with the following journal: Estimation Name Debit Credit Bond Financing Expenses Receivable from KUN Estimation Name Debit Credit Bond Domestic Debt Prepared fund for long-term debt payment Hereafter, loss is acknowledged while purchasing with the following journal: Estimation Name Debit Credit Loss payment expenses Receivable from KUN Bond that has not matured can be repaid with financing expenses account and debt reduction acknowledgement with the following journal: Estimation Name Debit Credit Bond financing expenses Receivable from KUN Estimation Name Debit Credit Bond Domestic Debt Prepared fund for long term debt payment Hereafter, gain is acknowledged at the time of purchasing with the following journal: Estimation Name Debit Credit Debt to KUN Gain Revenues After journalizing is done, the next step is doing posting into the ledger based on transactions date. With reffering to the transaction illustration above so Debt statement can be presented as follow:

95 THE LEDGER Debt to KUN Bond sales financing revenue Prepared fund for long term debt payment Interest Debt Revenue Bond DN Debt DN Discount Financing Cost Receivable from KUN ON Premium Income

96 Interest Payable Income DN DIscount expenses Receivable from KUN Bond interest financing expenses ON Premium Revenues Interest Payable financing Expenses Premium Bond financing expenses Gain Revenues Discount Loss Payment Expenses DN Interest Debt

97 REALIZATION REPORT OF EXPENSES BUDGET Debt Interest expenses: Bond Interest Discount Loss THE REALIZATION REPORT OF FINANCING Financing Revenue: Bond sales Interest Debt Revenue: Financing Expenses: ( ) -Bond Acquittal ( ) -Interest Debt Payment (1.000) Netto Financing BALANCE Bond domestic debt Premium Discount (4.500) Prepared fund for long term debt ( ) payment

98 CHAPTER VII CLOSING By setting SAUP Module, there is a guideline in arranging and displaying Financial report based on principles as set forth in PP 71/ It is expected to have an effort to realize transparation and accountability of state financial management particularly debt may be happened. The arrangement of SAUP Module was not the last purpose in implementing debt accountancy, but it will be followed up with the most important stage that is formulating comprehensive Debt Application System, so that it may help to arrange Financial Report which is accurate, informative and on time as mandated in the Government Regulation Number 8 Year 2006 on Financial Reporting and Government Institution Work and Regulation of Finance Minister number 171/PMK.05/2007 on Accounting System and Financial Reporting of Central Government.

99 1. BUDGET REALIZATION REPORT EXAMPLE OF REPORT FORMAT BUDGET REPORT REALIZATION FOR THE YEAR END DECEMBER 31st, 20XX (IN RUPIAH) STATE MINISTRY/AGENCY : (XXX) XXXXXXXXXXX REPORT CODE : LRAKT DATE : XX/XX/XXXX PAGE : XX PROD.ID : XXXXXXXX No. DESCRIPTION BUDGET REALIZATION REALIZATION ABOVE (UNDER) % BUDGET REALIZATION A STATE REVENUE AND GRANT 1. Tax Revenues 999,999,999, ,999,999, ,999,999, ,999,999,99 2. Non Tax State Revenues 999,999,999, ,999,999, ,999,999, ,999,999,99 3. Grant Revenues 999,999,999, ,999,999, ,999,999, ,999,999,99 TOTAL OF INCOME AND GRANT (A.1+A.2+A.3) 999,999,999, ,999,999, ,999,999, ,999,999,99 B STATE EXPENDITURE 1. Employee Expenditure 999,999,999, ,999,999, ,999,999, ,999,999,99 2. Goods Expenditure 999,999,999, ,999,999, ,999,999, ,999,999,99 3. Capital Expenditure 999,999,999, ,999,999, ,999,999, ,999,999,99 4. Disbursement of Debt Interest 999,999,999, ,999,999, ,999,999, ,999,999,99 5. Subsidy 999,999,999, ,999,999, ,999,999, ,999,999,99 6. Grant 999,999,999, ,999,999, ,999,999, ,999,999,99 7. Social Aid 999,999,999, ,999,999, ,999,999, ,999,999,99 8. Other Expenditure 999,999,999, ,999,999, ,999,999, ,999,999,99 TOTAL OF STATE EXPENDITURE (B.1+B.2+B.3+B.4+B.5+B.6+B.7+B.8) 999,999,999, ,999,999, ,999,999, ,999,999,99 C EXPENDITURE OF REGION 1. Expenditure of Balancing Fund 999,999,999, ,999,999, ,999,999, ,999,999,99

100 2. Expenditure of Particular Autonomy Fund and Adjustment TOTAL OF REGION EXPENDITURE (C.1 + C.2) 999,999,999, ,999,999, ,999,999, ,999,999,99 999,999,999, ,999,999, ,999,999, ,999,999,99 D FINANCING 1. DOMESTIC FINANCING (NETO) 999,999,999, ,999,999, ,999,999, ,999,999,99 a. Domestic Banking 999,999,999, ,999,999, ,999,999, ,999,999,99 b. Non Domestic Banking (Neto) 999,999,999, ,999,999, ,999,999, ,999,999,99 2. FOREIGN FINANCING (NETO) 999,999,999, ,999,999, ,999,999, ,999,999,99 a. Withdrawal of Foreign Loan 999,999,999, ,999,999, ,999,999, ,999,999,99 b. Foreign Debt Principal Instalment Payment 999,999,999, ,999,999, ,999,999, ,999,999,99 TOTAL OF FINANCING (D.1+D.2) 999,999,999, ,999,999, ,999,999, ,999,999,99 2. BALANCE BALANCE PER DESEMBER 31ST 20X1 AND 20X0 ACCOUNT DESCRIPTION OF ACCOUNT 20X1 20X LIABILITY SHORT-TERM LIABILITY SHORT-TERM LIABILITY Current Portion Of Long-Term Debt Debt of Loan Cost Sunsidy Debt Debt of State Treasury Letter / State Obligation- Short-term Total of Short-term Liability OTHER SHORT-TERM LIABILITY Other Short-term Debt Total Other Short-term Liability TOTAL SHORT-TERM LIABILITY XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

101 22 LONG-TERM LIABILITY 221 DOMESTIC LONG-TERM DEBT XXXX XXXX 2211 Banking Domestic Long-term Debt XXXX XXXX 2212 Non-Banking Domestic Long-term Debt XXXX XXXX 2219 Other Domestic Long-term Debt XXXX XXXX Total Domestic Long-term Liability XXXX XXXX 222 FOREIGN LONG-TERM DEBT 2221 Banking Foreign Long-term Debt XXXX XXXX 2222 Non-Banking Foreign Long-term Debt XXXX XXXX 2223 Other Foreign Long-term Debt XXXX XXXX Total Foreign Long-Term Obligation Liability XXXX XXXX TOTAL LONG TERM LIABILITY XXXX XXXX TOTAL LIABILITY XXXX XXXX 3 FUND EQUITY 31 CURRENT FUND EQUITY 311 Current Fund Equity 3116 Funds will be provided to pay short-term debt XXXX XXXX Total of Current Fund Equity XXXX XXXX 32 FUND EQUITY OF INVESTMENT 321 FUND EQUITY OF INVESTMENT 3214 Funds shall be provided for payment of long-term debt XXXX XXXX Total of Fund Equity of Investment XXXX XXXX TOTAL OF FUND EQUITY XXXX XXXX TOTAL LIABILITY AND FUND EQUITY XXXX XXXX Copy as its original version THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA HEAD OF GENERAL BUREAU u.b HEAD OF ADMINISTRATIVE DEPT OF THE MINISTRY Signed MUHAMAD CHATIB BASRI

102 MODEL FORMAT RESPONSIBLE STATEMENT GENERAL DIRECTOR OF DEBT MANAGEMENT Responsible Statement Financial Report of Budget Section (Government Debt) Semester.../Year... which we arrange as Accountancy Unit of Assistant of BUN-Government Debt, which consist of (i) Report of Budget realization, (ii) Balance, and (iii) Notification of Financial Report as attached is our responsibility. That Financial Report has been arranged based on system of adequate intern management and its content has displayed information of budget implementation and financial position properly based on accounting standard of government. Jakarta, Director General of Debt Management, (...) Copy as its original version THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA HEAD OF GENERAL BUREAU u.b HEAD OF ADMINISTRATIVE DEPT OF THE MINISTRY Signed MUHAMAD CHATIB BASRI GIARTO NIP