Government Drafts Regulation on International Development Cooperation Funds

The government is preparing a Draft Regulation of the Minister of Finance (“PMK”) on Procedures for Managing International Development Cooperation Funds (Kerja Sama Pembangunan Internasional - “KPI”) (“Draft PMK”). This policy will regulate the use of KPI Fund development and supervision as a financial instrument sourced from the State Budget (“APBN”) through a government investment financing scheme.

“This Draft PMK was prepared as an implementation of the provisions of Article 6 of Regulation of the Government (“PP”) No. 48 of 2018 on Procedures for the Provision of Grants to Foreign Governments/Foreign Agencies, as amended by PP No. 57 of 2019 (collectively referred to as “PP 48/2018”),” said Unan Pribadi, Director of Harmonization of Laws and Regulations III (“HPP III”) of the Directorate-General of Laws and Regulations (“DJPP”) of the Ministry of Law to Hukumonline.

The scope covered includes the planning, allocation, disbursement, development, and administration of KPI Funds. These funds also come from the cash balance of the International Development Cooperation Fund Institution (“LDKPI”) and other legal sources, such as third-party funds or financial assets in accordance with laws and regulations.

“The process of harmonization, finalization, and consolidation of the concept is currently underway,” he added.