Government Prepares New Regulation on Regional Loans

The government is currently formulating a Draft Regulation of the Minister of Finance (“ RPMK ”) on the Provision of Regional Loans for the Implementation of National Fiscal Policy. This policy is being prepared as a follow-up to Government Regulation No. 1 of 2024 on the Harmonization of National Fiscal Policy (“ PP 1/2024 ”), and aims to provide legal certainty regarding the mechanism for the granting of regional loans through Bank Financial Institutions (Lembaga Keuangan Bank– “ LKB ”) as well as Non-Bank Financial Institutions (Lembaga Keuangan Bukan Bank– “ LKBB ”).

“This RPMK will also serve as a basis for the implementation of national strategic projects, one of which is Waste-to-Energy (PSEL),” said Unan Pribadi, Director of Harmonization of Laws and Regulations III (HPP III) at the Directorate General of Legislation (DJPP) of the Ministry of Law, to Hukumonline.

In addition, the government is also refining the RPMK on Central Government Accounting Policies. This regulation will serve as a comprehensive guidelines for accounting entities and reporting entities in preparing the central government’s financial statements.

“Its progress is currently at the harmonization stage and inter-ministerial discussions,” he added.