Ministry Of Finance Allows SOEs To Borrow More Budget Balance Funds

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) issued Minister of Finance Regulation (PMK) Number 88 of 2024 regarding the procedures for providing loans sourced from the Over Budget Balance Fund (SAL).

"That to support government policies and maintain fiscal sustainability, the State General Treasurer can optimize budget balance funds more through placing budget balance funds more than in Bank Indonesia based on the mandate of the Law on the State Revenue and Expenditure Budget and/or the Revenue and Expenditure Budget of the Revised State," the considerations said in the regulation, quoted Wednesday, December 4.

Meanwhile, optimization of budget balance fund management can be carried out in the form of loans to State-Owned Enterprises (BUMN), Regional Owned Enterprises (BUMD), local governments (Pemda) or other legal entities that receive government assignments to implement national policies.

In addition, the SAL Fund loan can be carried out based on the mandate as stated in the Law on the State Budget or APBN-Change.

The provision of SAL Fund loans is carried out by prioritizing the principles of prudence, security, remuneration according to the provisions, and accountability.

The SAL Fund loan is given in rupiah currency and is an uncommitted credit line. This SAL Fund loan is channeled as a liquidity loan of the SAL Fund at once or gradually.

Furthermore, the uncommitted Credit line is the maximum limit for the accumulation of SAL Fund liquidity loans, whose disbursement is considering cash planning.

In addition, the SAL Fund loan period is the date for the start of the SAL Fund loan until the end date of the SAL Fund loan. And the final date of the SAL Fund loan is no later than the end of the fiscal year.

The liquidity loan of the SAL Fund is short-term, with a maximum duration of 90 calendar days and does not pass the final date of the SAL Fund loan. Where the SAL Fund liquidity loan is intended to support debtor liquidity in implementing national strategic programs.

Meanwhile, for guarantees, debtors are required to provide deposits or Government Securities (SBN) with a certain value. Deposits are at least 102 percent of the loan value, while SBN is at least 120 percent.

The guarantee in the form of Deposito must meet the following minimum criteria, namely in rupiah currency, the remaining time of maturity is at least 3 working days when the Sal Fund Liquidity Loan is due or an extension of the maturity date (rollover) so that the remaining maturity time becomes a minimum of 3 working days at the time of the maturity of the Sal Fund Liquidity Loan and is not used as collateral to other parties.

In addition, another criterion is that it can be disbursed at any time before the Deposit is due in the event that the debtor cannot carry out his obligations.

Meanwhile, the insurance criteria in the form of SBN must meet the following minimum criteria, namely in rupiah currency, the remaining time of maturity is at least 3 working days when the SAL Fund liquidity loan is due, is not used as collateral to other parties, and can be traded.