GOVERNMENTAL ACCOUNTING

APBN and APBD

M.IKHSAN ADITYA PUTRA (1610533021)

WIDYA LESTARI (1610533037)

ADILLA IKHSANI (1610533041)

INTERNATIONAL ACCOUNTING

ECONOMIC FACULTY

ANDALAS UNIVERSITY
 Table of Content

Pages

Cover ……………………………………………………………………………………… i

Chapter I : Introduction

Background ……………………………………………………………………… 1

Chapter II : Discussion ………………………………………………………………….. 2

Chapter III : Conclution ………………………………………………………………......

References ...........................................................................................................................

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 Chapter I

Introduction

1.1 Background of Problem

To regulate national economic activities, a country must make income and expenditure
budgeting, as well as Indonesia. The State Revenue and Expenditure Budget (APBN) and Regional
Revenue and Expenditure Budget (APBD) are the main tools of the government to prosper the
people and government tools to manage the country's economy. as a government, APBN and
APBD tool not only regarding economic decisions, but also regarding political decisions. In this
context, the DPR with its legislative, budgeting and supervision rights needs to play a greater role
in understanding the APBN and APBD so that the APBN and APBD can truly effectively become
instruments for the welfare of the people and manage the country's economy well. In order to
realize good governance in the administration of state governance, reforms of Government
financial management have been introduced for the past few years. The reform gained a strong
legal foundation with the enactment of Law No. 17 of 2003 concerning State Finance, Law No. 1
of 2004 concerning State Treasury, and Law No. 15 of 2004 concerning Examination of
Management and Responsibility of State Finance.

1.2 Objective of the Research

This chapter will discuss about :
1. To describe the definition of APBN and APBD
2. To describe tht Legal Basis of State Budget the APBN and APBD
3. To describe APBN and APBD Functions

4. To describe the information data about APBN and APBD

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 Chapter II

DISCUSSION

Definition of a State Budget

State Budget (APBN), is. Issued by the DPR. The APBN lists problems and withdrawals of
money and money for one fiscal year (January 1 - December 31). APBN, APBN, and APBN
accountability every year determined by Law.

Legal Basis of State Budget

The 1945 Constitution is the highest legal basis in the structure of legislation in Indonesia.
Therefore, the regulation on state finances is always based on this law, especially in Chapter VIII
of the 1945 Constitution, Amendment IV article 23 regulates the State Budget (APBN).

"Article 23:

paragraph (1): The state budget for revenues and expenditures as a form of state financial
management is stipulated annually by law and carried out openly and responsibly for the greatest
prosperity of the people.

paragraph (2): The draft law on the budget of state revenues and expenditures is submitted by the
President to be discussed with the House of Representatives by taking into account the
considerations of the Regional Representative Council.

Paragraph (3): "If the DPR does not approve the draft State Budget for Expenditures and
Expenditures proposed by the President, the Government will run the State Budget for the past
year".

APBN TYPES

Article 11 of Law Number 17 of 2003 concerning State Finance stipulates the classification
of types of state expenditure consisting of Employee Expenditures, Expenditures on Goods, Capital
Expenditures, Interest, Subsidies, Grants, Social Assistance, Other Expenditures and Regional
Expenditures. Explanations about these types of shopping are as follows:

1. Employee Shopping

Expenditures which are compensation for employees either in the form of money or goods, which
must be paid to government employees at home and abroad both to state officials, civil servants
and employees employed by the government who are not civil servants in return for the work that
has been carried out , except work related to capital formation.

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 2. Shop for goods

Expenditures to accommodate purchases of goods and services that are used up to produce goods
and services that are marketed or not marketed and procurement of goods intended to be delivered
or sold to the public and shopping trips. This expenditure consists of goods and services,
maintenance and official travel shopping.

3. Capital Expenditures

Budget expenditure used, in order to obtain or add fixed assets and other assets that benefit more
than one accounting period and exceed the minimum capitalization of fixed assets or other assets
set by the government. The Fixed Assets are used for the day-to-day operations of a work unit not
for sale.Expenditures to accommodate purchases of goods and services that are used up to produce
goods and services that are marketed or not marketed and procurement of goods intended to be
delivered or sold to the public and shopping trips. This expenditure consists of goods and services,
maintenance and official travel shopping.

4. Debt Interest Payment

Government expenditures for the payment of interest made on the obligation to use debt principal
(principal outstanding) both domestic and foreign debt calculated based on the position of short-
term or long-term loans. This type of shopping is specifically used in the activities of the Financing
and Calculation Budget Section.

5.Subsidy

Expenditures or budget allocations given by the government to state companies, government

agencies or other third parties that produce, sell, export or import goods and services to meet the
needs of the people so that the selling price can be reached by the community. This expenditure is
used, among others, to channel subsidies to the public through BUMN / BUMD and private
companies.

6. Grant

Government expenditures in the form of transfers in the form of money, goods or services are non-
compulsory, specifically the designation and non-binding and not continuously assigned to other
governments, regional governments, communities and community organizations and international
organizations.

7. Social Assistance

Transfer of money or goods given to the public to protect against the possibility of social risk.
Social assistance can be directly given to community members and / or community organizations
including assistance to non-governmental institutions in education and religion. This expenditure is
in the form of money / goods or services to the community which aims to improve the welfare of
the community, is not continuous and selective.

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 8. Other shopping

Central government expenditures / expenditures which cannot be classified into expenditure items
above. These expenditures are unusual and unexpectedly recurring such as natural disaster
management, social disasters and other unpredictable expenditures that are needed in the
framework of administering governmental authority.

9.Regional Expenditures (Transfer to Regions)

The portion of central government expenditure is in the form of distribution of APBN funds to
regional governments in the framework of implementing regional autonomy, the amount of which
is based on calculations based on criteria set out in the Law and regulations. Regional expenditures
are divided into two major groups, namely the Balancing Fund, which is a budget expenditure /
allocation for the regional government in the form of revenue-sharing funds, general allocation
funds and special allocation funds intended for the needs of local governments, and

Special Autonomy and Adjustment Funds are budget expenditures / allocations for local
governments in the form of special autonomy funds and adjustment funds aimed at the needs of
local governments.

The central government expenditure mechanism is regulated and determined by the Ministry of
Finance, while regional spending follows the mechanism established by each regional government.

Recording of APBN

Along with the stages of APBN implementation, K / L and the State General Treasurer
carry out reporting and recording in accordance with Government Accounting Standards (SAP) so
as to produce a Central Government Financial Report (LKPP) consisting of a Budget Realization
Report (LRA), Balance Sheet, Cash Flow Statement ( LAK), and Notes to Financial Statements
(CALK).

The financial statements of state ministries / institutions prepared by the minister / agency
leader are submitted to the Minister of Finance no later than two months after the fiscal year ends.
Then the Minister of Finance compiled a recapitulation of the financial statements of all state
ministry agencies. The Minister of Finance as the State General Treasurer also prepares a Cash
Flow Statement. All financial statements are prepared by the Minister of Finance as the fiscal
manager as a manifestation of the central government's financial statements submitted to the
President in fulfilling the accountability of the implementation of the State Budget.

The President submits the Central Government Financial Report to BPK no later than three
months after the fiscal year ends. An audit of government financial statements must be completed
no later than two months after the financial statements were received by the BPK from the
Government. Law Number 17 of 2003 concerning State Finance Article 30 states that the President
submits the Draft Law on the accountability of the implementation of the State Budget to the DPR
in the form of a financial report that has been examined by the Supreme Audit Agency, no later
than six months after the fiscal year ends.

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 The Central Government Financial Report includes at least the Budget Realization Report,
Balance Sheet, Cash Flow Statement, and Notes to the Financial Statements, and encloses the
financial statements of state and other companies. Regarding the form and content of the
accountability report, the implementation of the State Budget is prepared and presented in
accordance with Government Accounting Standards.

INFORMATION DATA OF APBN 2018

1. Country income 2. State Expenditures

Optimization in the field of taxation in 2018 isTransferring consumptive spending into
sharpened by the issuance of legislation related toproductive spending in the context of
financial data access and information disclosure. accelerating economic growth and accelerating
Optimizing state revenues while maintaining thethe realization of state spending
investment climate Shopping efficiency and increased productive
Optimizing state revenues with realistic taxspending to support the program
revenue targets based on the latest database priority
Continuing to strengthen the quality of state
spending and continue to consistently carry out
non-priority spending efficiency without
reducing the achievement of output targets
planned

3. Budget Deficit 4. Budget Financing

Efficiency in budget financing, through
Controlling the budget deficit within safecontrolled deficits and debt ratios,creative
limits, through optimizing income, spendingfinancing development, as well as Sovereign
efficiency, especially consumer spending Wealth Fund allocation (endowment funds) for
education as a long-term savings for future
generations. Develop innovative and creative
financing (Creative financing) Encourage
efficient and sustainable financing.

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Economic Condition

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APBN POSTURE 2018 (triliun rupiah)

2017 2018

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 APBD

DEFINITION APBD

APBD is a regional annual financial plan that is discussed and agreed upon jointly by the Regional
Government and the DPRD, and is determined by the Regional Regulation (Permendagri No.13 of
2006). Thus the APBD is a tool / container to accommodate various public interests that are
realized through various activities and programs where at certain times the benefits will truly be
felt by the community.

Basic Regional Finance and Regional Budget

The legal basis for the administration of regional finances and the making of APBD are as follows.

a. UU no. 32 of 2003 concerning Regional Government.

b. UU no. 33 of 2003 concerning Financial Balance between Central and Regional Governments.

c. PP No. 105 of 2000 concerning Regional Financial Management and Accountability.

d. Decree of the Minister of Home Affairs No. 29 of 2002 concerning Management Guidelines,
Regional Financial Accountability and Procedures for Supervision, Compilation and Calculation of
APBD.

APBD Objectives

Basically the purpose of preparing the APBD is the same as the purpose of the APBN drafting. The
APBD is prepared as a guideline for the receipt and expenditure of state administrators in the
regions in the context of implementing regional autonomy and for increasing the prosperity of the
community. With APBD, waste, fraud and mistakes can be avoided.

TYPES OF APBD

Article 79 of Law Number 22 of 1999 jo Article 3 and 4 of Act Number 25 of 1999 jo Article 157
of Law Number 32 of 2004 states that the source of revenue / revenue in the region consists of:

1. Regional Original Revenue (PAD), which consists of local taxes, regional retributions, the
results of separated regional wealth management, and other legitimate local revenue.

2. The Trade Fund, which consists of tax-sharing funds, non-tax revenue-sharing funds, general
allocation funds (DAU), and special allocation funds (DAK).

3. Other Legitimate Regional Revenues.

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Furthermore, pursuant to Government Regulation Number 105 of 2000 concerning Regional
Financial Management, it is said that regional income is the right of regional government which is
recognized as an increase in the value of net wealth. Regional revenues are money that enters the
region within a certain fiscal year period. Further said, that the amount of income budgeted in the
APBD is a measured estimate rationally and can be achieved for each source of income.

Law Number 25 of 1999 Article 21 states that the expenditure budget in the APBD must not
exceed the revenue budget. In the explanation of the article, that the area must not exceed the
revenue budget. In the explanation of the article, that the region must not budget expenditure
without certainty in advance regarding the availability of funding sources and encourage regions to
increase the efficiency of their expenditure. In line with this Government Regulation Number 105
of 2000 concerning Regional Financial Management states that the amount of expenditure
budgeted in the APBD is the highest limit for each type of expenditure.

APBD function

Minister of Home Affairs Regulation No: 13 of 2006 states that the APBD has several functions as
follows:

1. Authorization function. Regional budgets are the basis for implementing regional revenues and
expenditures in the year

2. Planning function. Regional budgets become guidelines for management in planning activities in
the year.

3. Monitoring function. The regional budget serves as a guideline for assessing whether regional
government implementation activities are in accordance with the stipulated provisions.

4. allocation function. Regional budgets must be directed to create jobs or reduce unemployment
and waste of resources, and improve the efficiency of economic effectiveness.

5. Distribution function. Regional budgets must pay attention to the sense of justice and propriety.

6. Stabilization function. Regional budgets become a tool to maintain and strive to balance regional
economic fundamentals

Source of Regional Revenue and Expenditure Budget

The following are sources of local government revenue :

1. Retribution (User Charges)

Regarded as an additional source of revenue, the main objective is to improve efficiency by

providing information at the request of public service providers, and ensuring that what is provided

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by public service providers is a minimum of Marginal Cost for the community. There are three
types of levies, including:

1. Certain Licensing Fees (service fees)

such as the issuance of permits (marriage, business, motorized vehicles) and various kinds of fees
applied by the local government to improve services. The application of fees / tariffs to the public
for what is required by law is not always rational.

2. Public Services Levies (Public Prices)

is the government's revenue from the sale of private goods and services. All sales services provided
in the area to be personally identifiable from the public benefit costs to provide tariffs for leisure /
recreation facilities. These costs should be regulated at a private, no tax and subsidy level, which is
the most efficient way of achieving public policy objectives, and it would be better if the subsidy
tax was calculated separately.

3. Business Services Retribution (specific benefit charges)

in theory, it is a way to benefit from a contrarian taxpayer such as fuel oil tax or Land and Building
tax.

2. Land and Building Taxes (Property Taxes)

Property Tax (PBB) has an important role in terms of local government finances, local
governments in most developing countries will be able to manage their finances but property rights
relate to property taxes. If local governments are expected to play an important part in the financial
services sector (for example: education, health), they should need access to more elastic sources of
income.

3. Excise Taxes

Excise taxes have a significant potential for local revenue sources, especially for administrative
reasons, and efficiency. Especially excise on vehicle taxes. The tax can clearly be exploited more
fully than is normally the case in most countries, from an administrative perspective in the form of
fuel taxes, and automotive taxes. Fuel taxation is also related to road use, and external effects such
as vehicle accidents, pollution and congestion. Privatization of toll roads in principle can serve the
benefit tax function, based on the features of the age and size of vehicle engines (older, larger cars
usually give more contribution to pollution), location of vehicles (cars in cities add pollution, and
congestion), driver records (20 percent of drivers are responsible for 80 percent of accidents), and
especially the weight of the vehicle wheels (the weight of a fast vehicle has more damage to the
road, and requires more expensive roads to build).

4. Personal Income Taxes

Among several countries where subnational governments have a large expenditure role, and most
fiscal autonomies are Nordic countries. These regional income taxes are basically imposed on a

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flat, regional level is established on the same tax base as national income tax and collected by the
central government.

APBD Preparation Method

APBD is arranged through several stages of activities. These activities, among others, are as
follows.

a. The Regional Government prepares a Regional Revenue and Expenditure Plan (RAPBD).

b. The Regional Government submits the RAPBD to the DPRD to be discussed together between
the regional government and the DPRD. In this discussion the Regional Government (Executive) is
carried out by the Executive Budget Team consisting of Regional Secretary, BAPPEDA, and other
parties deemed necessary, while the DPRD is conducted by a Budget Committee whose members
consist of each faction.

c. The RAPBD that has been approved by the DPRD has been ratified into APBD through
Regional Regulations to be implemented.

APBN Implementation

The implementation of the budget begins with the approval of the budget implementation
document by the Minister of Finance. Budget documents that have been ratified by the Minister of
Finance are submitted to the minister / agency leader, the Supreme Audit Agency (BPK), the
Governor, the Director General of Budget, the Director General of the Treasury, the relevant Head
of the Regional Office of the Directorate General of Treasury, the relevant State Treasurer (KPPN),
and Budget User Proxy. The document is a reference and legal basis for the implementation of the
state budget carried out by Ke, Emterian / Institution and State General Treasurer. Important
documents in the implementation of the budget are the Budget Implementation Entry List (DIPA)
and other documents that are equivalent to DIPA. Whereas payment documents include, among
other things, a Payment Request Letter (SPP), a Payment Order (SPM), and a Fund Disbursement
Order (SP2D). Article 17 of the State Treasury Law states that Budget Users / Proxy of Budget
Users carry out the activities listed in the budget implementation document that has been ratified
and authorized to enter into ties / agreements with other parties within a predetermined budget
limit. Furthermore, guidelines for the implementation of the budget are regulated in Presidential
Decree Number 42 of 2002 concerning Guidelines for the Implementation of the State Revenue
and Expenditure Budget, as amended by Presidential Decree Number 72 of 2004.

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 CHAPTER III :

CONCLUSION

State of Revenue and Expenditure Budget (APBN) will represent the activity plan for the
state in one year period. This statement could be the performance measurement of the state. There
are nine things that will be includes in State of Revenue and Expenditure Budget, such as: 1)
Employee Shopping, 2) Shop of Goods, 3) Capital Expenditure, 4) Debt Interest Payment, 5)
Subsidy, 6) Grant, 7) Social Assistance, 8) Other Shopping, and 9) Regional Expenditure.

And also the financial statements of state ministries / institutions prepared by the minister /
agency leader are submitted to the Minister of Finance no later than two months after the fiscal
year ends. The contain that include in State of Revenue and Expenditure Budget 2018 are 1)
Country Income, 2) State Expenditure, 3) Budget Deficit, and 4) Budget Financing.

And Regional of Revenue and Expenditure Budget (APBD) will describe the plan of certain
region in a year. Although this APBD made by the Regional Government, APBD should follow the
state regulation. The sources of APBD are: 1) Retribution, 2) Land and Building Tax, and 3) Excise
Taxes, and 4) Personal Income Tax.

The main purpose of APBN and also APBD is as a guideline for the receipt and expenditure
of state administrators in state and the regions in the context of increasing the prosperity of the
community. So, with APBD and APBD, waste, fraud and mistakes can be avoided.

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 REFERENCE

a. Buku Tinta Emas Perbendaharaan

b. http://www.anggaran.depkeu.go.id

c. http://www.wikiapbn.org

d.https://www.kemenkeu.go.id/dataapbn

e.https://www.kajianpustaka.com/2015/02/pengertian-dan-fungsi-apbd.html

f.https://id.wikipedia.org/wiki/Anggaran_Pendapatan_dan_Belanja_Daerah

g.http://www.djpbn.kemenkeu.go.id/portal/id/pelaksanaan-apbn.html

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