Ministry of Finance Refines SBSN Project Payment Scheme

The government will soon update the financing mechanism for projects based on State Sharia Securities (Surat Berharga Syariah Negara– “ SBSN ”). This regulation will replace Regulation of the Minister of Finance  (“ Permenkeu ”) No. 6/PMK.05/2019 on Procedures for the Execution of Payment for Activities Financed Through the Issuance of SBSN (“ Permenkeu 6/2019 ”).

Mid-Level Expert Financial Analyst for Financing and Financial Risk at Directorate of Sharia Financing, Directorate General of Financing and Risk Management (Direktorat Jenderal Pengelolaan Pembiayaan dan Risiko– “ DJPPR ”) of the Ministry of Finance (“ Kemenkeu ”), Agus Prasetya Laksono, explained that the substance refinement of this draft Regulation of the Minister of Finance includes the payment mechanism for SBSN projects, both through advance financing and through the SBSN Special Account (Rekening Khusus– “ Reksus ”).

“This draft Regulation of the Minister of Finance replacing Permenkeu 6/2019 is currently undergoing harmonization at the Ministry of Law in coordination with the State Secretariat and other relevant units. It is expected that this process will be completed within this year,” Agus told Hukumonline.

Furthermore, regulations on the onward distribution of SBSN to State-Owned Enterprises (“ BUMN ”) or Regional Governments (“ Pemda ”) will be stipulated in separate regulations at a later date. This will cover aspects such as the payment mechanism, fund allocation, and accountability in financial reporting, all of which will be the government’s responsibility to goods/services providers in the execution of SBSN-financed projects.