RPP on the Revision of the Government Investment Scheme

The Ministry of Finance is preparing amendment to Regulation of the Government No. 63 of 2019 (“ PP 63/2019 ”) on Government Investment. Draft Regulation of the Government  (RPP) is aimed at strengthening the framework for non-permanent long-term central government investments, thereby making it more flexible and responsive.

"One of the changes is the clarification that government investments will be of a non-permanent long-term nature and are not intended to be held on a sustainable basis," stated a Hukumonline source at the Ministry of Finance.

The government seeks to balance the function of investment as both a state financial management instrument and a fiscal policy tool. This is achieved by adopting a portfolio approach, a legally protected cut-loss mechanism, and flexibility in the reuse of funds through the State General Treasurer Investment Account (Rekening Investasi Bendahara Umum Negara- “ RIBUN ”).

The sources of investment funds have also been expanded, not only including allocations from the State Revenue and Expenditure Budget (“ APBN ”) and budget surpluses, but also proceeds, service/business revenues, grants, sovereign Sharia securities, and other lawful sources.