Anies Once Had Debt To Bank To Pay Commitment Fee For Formula E, Ministry Of Home Affairs Said It Was Allowed

JAKARTA - The Director-General of Regional Finance of the Ministry of Home Affairs (Kemendagri) Mochamad Ardian Noervianto responded to the issue of debt to banks by the Governor of DKI Jakarta Anies Baswedan to pay the commitment fee for Formula E.

Ardian said, as long as the proposed debt was included in a short-term loan, this was allowed.

"As long as the expenditure to be financed from short-term loans is in the Regional Budget (APBD), this is allowed," said Ardian when contacted, Thursday, November 11.

Local government short-term loans are regulated in Indonesian Government Regulation Number 56 of 2018 concerning Regional Loans.

In Article 12 paragraph (1), it is stated that short-term loans are regional loans with a period of less or equal to 1 fiscal year with the obligation to repay the loan which includes principal, borrowed interest, and other costs, all of which must be repaid in the current budget year. .

Then, Article 12 paragraph (2) states that short-term loans can be sourced from other regions, bank financial institutions and non-bank financial institutions. Then in Article 12 paragraph (3), it is stated that short-term loans are used only to cover cash flow shortages.

Moreover, in carrying out short-term loans, local governments do not need to seek approval from the legislature or consideration from the Ministry of Home Affairs.

"According to Government's Decree (PP) Number 25 of 2018, short-term loans do not ask for consideration from the Ministry of Home Affairs or approval from the Regional Representative Council (DPRD). Neither are they reported to the Ministry of Home Affairs," said Ardian.

For information, previously circulated a power of attorney from the Governor of DKI Jakarta Anies Baswedan to the Head of the DKI Youth and Sports Agency (Dispora) to apply for a regional loan to the bank to organize Formula E. The power of attorney was signed on August 21, 2019.

The day after the power of attorney was issued, Dispora DKI submitted a debt to Bank DKI in the amount of 10 million pounds or IDR 180 billion to pay the first term commitment fee. The Head of Dispora DKI confirmed that his party applied for a debt to Bank DKI. Even so, he emphasized that the debts were still in accordance with the rules.

"The payment of term 1 commitment fee of IDR 180 billion in October 2019 through a short-term loan from Bank DKI was carried out in accordance with applicable regulations," said Firdaus, Tuesday, November 9.

Firdaus explained that the reason the DKI Provincial Government owed it was because the payment deadline was tight. The DKI Provincial Government must pay the commitment fee no later than 1 year before the implementation, which is in 2019.

Then, Firdaus confirmed that the debt had also been paid through the 2019 Budget Change Implementation Document (DPPA).

"The loan has been repaid through the disbursement of the Jakarta Youth and Sports Agency's DPPA (Dispora) in December 2019," said Firdaus.