APBN 2000

The budget of revenues and expenditures of state budget year 2000 has a special
meaning for the nation of Indonesia. First aside as the first APBN proposed by the
new government for the period of 1994-2004. The period of APBN in Indonesia
during the New Order period began from 1 April to 31 March of the following year. In
the current government, the fiscal year covers a period of one year, from 1 January to
31 December. Secondly, the form of presentation of the APBN itself which starts this
year is served following international standard of presentation. Third and most
important, the APBN is arranged in the new life of the Indonesian nation
The State Budget of 2000 fiscal year is the transitional APBN to a new fiscal year
adjusting to the calendar year. The format and structure of the APBN, which has been
prepared in the form of T (T-Account) tables based on the balanced and dynamic
budgetary principle, is converted into a deficit budget financed by domestic and
foreign sources of financing. In this new APBN format there has been a
reclassification (reclassification) of state revenue and expenditure items. The changes
in the structure and format of the APBN are intended to facilitate the analysis of fiscal
policy strategies implemented by the government, but also to facilitate the
comparative analysis between the development of Indonesia's fiscal operations and
the fiscal operations of other countries. In addition, the new format of APBN is also
intended to facilitate the analysis, monitoring, and control in the implementation and
management of the state budget.

APBN 2000 is directed to achieve six strategic goals, namely:

 First: reflect on efforts towards achieving fiscal sustainability by:
- lowering the budget deficit as a percentage of GDP from 6.8 percent in the
1999/2000 APBN to 5 percent in fiscal year 2000
- reducing net foreign borrowing from 4.4 percent of GDP to 2.0 percent of GDP
- strengthening efforts to increase state revenues derived from domestic sources,
so that dependence on foreign loans can be gradually reduced.
 Secondly: reflects efforts to continue the creation of fiscal stimulus, which among
others through the sharpening of priorities of development budget allocation for
community empowerment programs of economically weak groups.
 Third: to support the banking sector restructuring program by providing bank
recapitalization interest cost.
 Fourth: in order to realize the fiscal sustainability, the amount of subsidy,
especially not directed to the target group, should be reduced gradually, and at the
right time will be removed. The provision of subsidies for several strategic
commodities related to the wider community, especially for the underprivileged
will be done more selectively and transparently with better mechanisms in order
to be truly directed to the target.
 Fifth: initiate efforts and measures to improve the salaries and income of public
sector apparatuses, such as civil servants, members of TNI / POLRI, and pension
recipients, including gradually improving the level of good positioning for both
state officials and government officials.
 Sixth: reflect the pre-implementation of Law No. 25 of 1999 and at the same time
strengthen the implementation of decentralization and the realization of regional
autonomy, among others by enlarging the allocation of subsidy (transfer) funds to
local governments, either in the form of routine and regional development funds.

APBN 2001
APBN 2002

Some general principles are used as the basis for the preparation
APBN 2002, among others, is the state budget must be prepared,
1. to encourage the creation of an increasingly healthy state budget in the future;
2. to the extent possible ensuring continuity
Budget; and
3. always based on the ability to source resources
Domestic financing
.
APBN 2002 is the third state budget proposed by the government as the
implementation of the Guidelines of State Policy (GBHN) 1999-2004 and is the first
APBN under the Gotong Royong Cabinet. Other than refers to GBHN 1999-2004, the
preparation of the budget year budget 2002 also refers to the National Development
Program (Propenas) 2000-2004, Repeta 2002, agreements reached In preliminary
discussions with Parliament, as well as programs the work of the Gotong Royong
Cabinet.

As a state administration plan covering various programs and or activities to be

conducted by the executive, legislative and judicial branches in fiscal year 2002, the
preparation of the 2002 State Budget must also be based on considerations and
approximate estimates of both external and internal factors Which affects the Budget
of the fiscal year of 2002. These factors consist of the factors of national economic
condition and world economy, and the progress of APBN implementation up to the
current period. The 2002 Memorandum of Understanding and the 2002 State Budget,
will sequentially provide an explanation of the basic assumptions of the draft 2002
State Budget, which summarizes the 2001 Indonesian economic performance, global
economic developments, sociopolitical and security conditions, and macroeconomic
policies in 2002, Which underlies the assumptions of macroeconomic indicators in the
2002 State Budget. These assumptions include economic growth, inflation rate, rupiah
exchange rate, international oil prices and crude oil production levels. The basic
assumptions have been adjusted to the agreement with the House of Representatives