House of Representatives Seeks to Harmonize Budget Management under State Finance Omnibus Law

The Working Committee (“Panja”) of Commission XI of the House of Representatives (“DPR”) continues to deliberate the Draft Bill on State Finance (“Draft Bill”), which is being formulated using an omnibus law approach. The Bill will not only amend Law No. 17 of 2003 on State Finance (“Law 17/2003”) but also harmonize several related laws and regulations, including Law No. 1 of 2004 on State Treasury (“Law 1/2004”), Law No. 15 of 2004 on the Audit of State Financial Management and Accountability (“Law 15/2004”), as well as provisions concerning Non-Tax State Revenue (“PNBP”).

“This Draft Bill will not merely amend existing legislation but will also harmonize several other laws, thereby providing legal certainty for professional and accountable decision-making in state financial management,” stated Chairman of Commission XI of the DPR Mukhamad Misbakhun.

This policy direction is also aligned with the application of the Business Judgment Rule (“BJR”) in state financial governance, whereby losses arising from business risks or market dynamics are not automatically classified as criminal offenses involving state financial losses. The Draft Bill also seeks to integrate PNBP provisions, which have thus far been fragmented across dozens of Government Regulations (“PP”) and Ministerial Regulations, to ensure certainty in data management and collection mechanisms.

“We aim to complete the Draft Bill this year,” he added.