MINISTER OF FINANCE

OF THE REPUBLIC OF INDONESIA

COPY OF
REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF
INDONESIA NUMBER 224/PMK.08/2011
CONCERNING
PROCEDURES FOR MONITORING AND EVALUATION
OF LOANS AND GRANTS TO THE GOVERNMENT
BY THE GRACE OF GOD ALMIGHTY
THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,
Considering

: that in order to implement the provisions of Article 77

paragraph (1) of Government Regulation Number 10 of 2011
concerning Proceduresfor Provision of Foreign Loans And
Grant Revenuesand Article 26 of Government Regulation
Number 54 of2008 concerning Proceduresfor Provision and
Subsidiary ofDomesticLoans by the Government, it is
necessary to stipulate a Regulation of the Minister of
Finance on Procedures for Monitoring and Evaluation of
Loans And Grants to the Government;

In view of

: 1.

Act Number 1 of 2004concerning State Treasury (State

Gazette of the Republic of Indonesia of2004 Number 5,
Supplement to State Gazette of the Republic of
Indonesia Number 4355);

2.

Act Number 15 of 2004concerning Audit of the State

Financial
Management
And
Responsibility(State
Gazette of the Republic of Indonesia of2004 Number
66, Supplement to State Gazette of the Republic of
Indonesia Number 4400);

3.

4.

Government Regulation Number 54 of 2008concerning

Proceduresfor
Provision
and
Subsidiary
ofDomesticLoans by the Government (State Gazette of
the Republic of Indonesia of 2008 Number 115,
Supplement to State Gazette of the Republic of
Indonesia Number 4885);
Government Regulation Number 10 of 2011concerning

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Proceduresfor Provision of Foreign Loans And Grant

Revenues(State Gazette of the Republic of Indonesia
of2011 Number 23, Supplement to State Gazette of the
Republic of Indonesia Number 5202);
To stipulate

DECIDES :
REGULATION OF THE MINISTER OF FINANCE
CONCERNING THE MONITORING AND EVALUATION
OF THE LOAN AND GRANT TO THE GOVERNMENT.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Regulation of the Minister of Finance:
1.

Ministries / Agencies refer to state ministries / nonstate ministerial government agencies/ state agencies
responsible for the implementation of activities.

2.

Loan is any financing through a debt, which is

obtained by the Government from both domestic lender
and foreign lender, to be bound by a loan agreement
and not in the form of securities, and must be repaid
with certain requirements.

3.

Grant is every state revenue either in the form of

foreign exchange, foreign exchange converted into
Rupiah, Rupiah, goods, services and / or securities,
obtained from both domestic grantor and foreign
grantor that does not need to be repaid.

4.

Executing Agency, hereinafter referred to as EA, is

Ministries / Agencies, Local Governments, and State
Owned Enterprises becoming fully responsible person
for the implementation of activities financed from loan
and / or grant.

5.

Payment Order or Surat Perintah Membayar,

hereinafter referred to as SPM, is a document issued by
the Budget User / the Proxy of Budget Useror another
official designated to disburse fund sourced from the
Budget Implementation Checklist or other documents

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equalized with the Budget Implementation Checklist.

6.

Fund Disbursement Order or Surat Perintah Pencairan

Dana, hereinafter referred to as SP2D, is anorderissued
by the State Treasury Service Office as the Proxy of the
State
GeneralTreasurer
for
the
expenditure
implementation at the expense of the State Revenueand
Expenditure Budgetaccording to the SPM.

7.

Budget User or Pengguna Anggaran, hereinafter

referred to as PA, is anofficial authorized and
responsible for the budget use to relevantMinistries /
Agencies.

8.

Proxy of Budget User Kuasa Pengguna Anggaran,

hereinafter referred to asKPA, is an official that
obtainsan authority and responsibility fromthe PA to
usebudget authorized to him.

9.

Budget
Implementation
Checklist
or
DaftarIsianPelaksanaanAnggaran, hereinafter referred
to as DIPA, is a budget implementationdocument
prepared by the PA / KPA and endorsedby the Minister
of Finance as the State General Treasurer, which
functionsas the budget implementation document and
supporting document of government accounting.

10. Withdrawal Application, hereinafter referred to as

WA,is thewithdrawal of initial deposit of the Loanand /
or Grantfundforreplenishmentof a special account,
reimbursementof bailout account, withdrawal of fund
for
reimbursementofexpenses
pre-paid
by
the
Government,directpaymentto partners or intended
parties, andwithdrawal of fund in order to transfer
directly to the State General Treasury Account (RKUN).
11. Notice of disbursement or any equivalent documents,
hereinafter referred to as NOD, is a document showing
that the Lender and / or Grantor has done
disbursement of Loanand / orGrant, which contains
information of Loan and / or Grant, nameof project,
amount of money disbursed, method of disbursement,
anddisbursement
transactiondate,
used
as
a

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soucedocumentof recording of financing revenuesand /

or Grant revenues.
12. Bookkeeping / Endorsement Order or Surat Perintah
Pembukuan/Pengesahan,
hereinafter
referred
to
asSP3, isan orderissued bya Special KPPN as the Proxy
of State General Treasurer, which function is
equalizedto SPM/SP2D, to Bank Indonesia and Work
Unit (WU) to be recorded / endorsed as revenues and
expenditures in the State Revenue and Expenditure
Budget on the realized disbursement ofLoan and / or
Grant through the mechanismof direct payment and /
or letter of credit (L / C).
13. Disbursement Plan is a disbursement plan document
of Loan and / or Grant based on the work plan of
activities.
14. Disbursement ratio, hereinafter referred to as DR, is
the comparison betweenthe realized disbursement of
Loan and / or Grant and the commitment of the net
value.
15. Availability Period is a period available for
disbursement of Loanand / or Grant, which is a period
between the effective date of Loanand / or Grant
(effective date) until theclosing date of Loanand / or
Grant (closing date).
16. Elapse Time Ratio, hereinafter referred to as ETR, is
the comparison between a period exceeded from the
effective date to the period of disbursement of Loan
and / or Grant (availability period).
17. Progress Variant, hereinafter referred to as PV, is the
comparison between the DRandthe ETR.
18. Condition
Precedent
of
Effectiveness
is
the
requirementsagreed by the Lender and / or the
Grantorby receiving Loan and / or Grant to determine
the effectiveness of aLoan and / or Grant.
19. Memorandum of Disposition or Nota
hereinafter referred to asNodis, is

Disposisi,
a letter

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containinginformation such as the realization of L / C

and it serves asa covering letterto importers.
20. LoanRestructurization is loan
involves
the
lender
and
requirementsagreed upon in order
which
can
coverthe
asrescheduling,refinancing,debt
conversion and debt accelerated
maturity (prepayment).

reorganization that
creditorto
amend
to pay back the loan
schemes
such
forgiveness,debt
payment before its

21. Determination Letter of Work Plan and Budget of

Ministries
/
Agencies
or
SuratPenetapanRencanaKerjadanAnggaranKementerian
/Lembaga,hereinafter referred to as SP-RKAKL, is the
allocation of budget, which is determinedaccording to
the organizational unit and Programsand specified
intowork units based on the study of RKA-KL.
Article 2
This Regulation of the Minister of Finance is intended
to give guidelines in implementing the monitoring,
evaluation, reporting and publication of activities
financedby the Loan and / or Grant.
CHAPTER II
MONITORING, EVALUATION, AND REPORTING OF
LOANS AND GRANTS
Part One
Ministries / Agencies, Local Governments
and State Owned Enterprises
Paragraph 1
Monitoring and Evaluation
Article 3
(1)

Head of the Ministries / Agencies (K / L), Governor,

Regent / Mayor or President Director of State-Owned
Enterprises (SOEs), as the leader of EAshall do
monitoring and evaluation of performanceofactivities
financed by the Loanand / or Grant.

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(2)

Monitoring and evaluation as referred to paragraph (1)

includethe following stages:
a.

implementation,
including
monitoring
and
evaluation of development of procurement process
of goods and / or services, performance of physical
implementation of activities, development of fund
absorption realization,development of achievement
of inputand output indicators, problems faced, and
follow-up as needed;and

b. post-activities, which include evaluation of outputs,

impacts,sustainability, and other indicators of
success.
Paragraph 2
Reporting
Article 4
(1)

Head of EA shall prepare a report of the monitoring and

evaluationresultsasreferred in Article 3, consisting of:
a.

quarterly reportof the activity implementation; and

b. post-activity report.
(2) Quarterly reportof the activity implementationas
referred toparagraph(1) letter ashall be submitted to
the Minister of Finance, for attention to the Director
General of Debt Management no later than 15 (fifteen)
working days after the end of the relevant quarter.
(3)

The deadline of each quarter as referredto paragraph

(2)shall be as follows:
a.

The first quarter iseach March 31;

b. The second quarter iseachJune 30;

c.

The third quarter iseachSeptember 30, and

d. The fourth quarter iseachDecember 31.

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(4) The form of a quarterly report as referred toparagraph

(3)shall refer to the report formas stated in the
Appendix,
which
constitutesan
integral
and
inseparable part of this Regulation of the Minister of
Finance.
(5)

Post-activity report as referred to paragraph (1) letterb

shall bein the form of a Project Completion Reportor
other similar documents.

(6)

Post-activity report as referred to paragraph (5) shall be

submitted to the Minister of Finance, for attention to
the Director General of Debt Management no lather
than 6 (six) months after the activitiesare declared over.

(7)

The report as referred to paragraph (1) shall be

addressed to:
Directorate General of Debt Management
Attention to the Directorate of Evaluation, Accounting
and Settlement
Jl. Lapangan Banteng Timur Number 2-4
Jakarta 10710
Email: monev@dmo.or.id
Faximile: (021) 3843712
Part Two
Ministry of Finance
Paragraph 1
Monitoring
Article 5

(1)

The Director General of Debt Management shalldo

monitoring totheabsorption realization and financial
aspect of Loan and / or Grant.

(2)

The monitoring as referred to paragraph (1) may involve

relevantunitswithin the Ministry of Finance.
Article 6

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(1)

The monitoring as referred in Article 5 shall be carried

out to data and information, including:
a.

Disbursement plan of an activeLoan and / or the

Grant agreementand an newLoan and / or the
Grant agreement in order to meet the needs of the
currentState
RevenueandExpenditureBudget(APBN);

b. The fulfillment of condition precedents of

effectiveness of Loan and / or Grant,including the
Loan cost requirementsand payment realization;
c.

amendment toLoan and / or Grant agreement;

d. Loanrestructurizationincluding
rescheduling,
prepayment,
debt
swapand
other
restructurizationschemes;

(2)

e.

Withdrawal plan of Loan and / or grantwhich are

allocated in the DIPA of the current year;

f.

Fund disbursementrealization of Loan and / or

Grant designatedin the SP2D, WA, SP3, Nodis and
other similar documents, and

g.

Fund disbursementrealization from the Lenderand

/ or Grantorthatis reflected in the NOD or other
similar documents.

The data and information as referred to paragraph (1)

are sourced from:
a.

the database of the Debt Management

Financial Analysis System (DMFAS);

and

b. quarterly report received from the K / L, the Local

Governments (LGs),and State-Owned Enterprises
(SOEs), as EA;
c.

the result of periodicand ad hoc meetings with K /

L, LGs, and SOEs as EA;and

d. other relevant documents or sources.

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Article 7
Monitoring as referred in Article 5 can be supported by:
a.

data and
activities;

information

obtained

from

on-sitevisit

b.
observation resultsof activity preparation, procurement
process of good/ service, implementation of physical
activities, administration process, andmanagement of
activities;
c.
information through interviews or collection ofprimary
dataand comparison result of activity targets,
indicators of success andprogress achieved in the
implementationofactivities;
d.
coordination and reconciliation of data with K / L, LGs,
and SOEs as EA or beneficiary of subsidiaryLoanand /
or Grant, carried out periodically or ad hoc;
e.
resultsof data exchange of Loan and / or Grant, carried
out by theDirectorate General of Debt Management
with:
1)

The Directorate General of Budget, related to the

data of SP-RKAKL and the planof fund withdrawal
of Loan and / or Grant, and / or

2)

The Directorate General of Treasury, related to data

of DIPA, realization data of withdrawal of Loan and
/ or Grant through SP2D, WA, Nodis,and SP3.
Article 8

Monitoring as referred in Article 5 can be in the form of

preparationofearly warning mechanism to:
a.

Loan and / or Grant that will reach the expiry of

validityperiod within2 (two) quarters ahead from the
current quarter;

b.

Loan and / or Grant whose validityperiod is expired,

but there is still a remaining undrawn fund;

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c.

Loan and / or Grant that have not been effectiveand /

or requirements of the first withdrawal are not met,
and

d.

Loan and / or Grant that have been declared effective

butno withdrawal of fundis made.
Paragraph 2
Assessment, Identification, and Measurement
Article 9
Based on the data and information as referred in
Article 6, the DirectorGeneral of Debt Management
shall conduct the following things:

a.

Assessing
the
compliance
of
the
implementation with theplan related to:

activity

1)

the fulfillment of condition precedents of

effectiveness for the effectiveness of Loan and / or
grant agreement;

2)

disbursement plan;

3)

allocation of Loan and / or Grant fund to the DIPA;

4)

application of Loan and / or Grant withdrawal;

5)

withdrawal realization of Loan and / or Grant, and

6)

issuance of SP3.

b.

Identifying problems arising in the implementation of

activities, which can inhibit the absorption of Loan and
/ or Grantandthe completion steps.

c.

Measuring the relationship of the progress in the

implementation of activities and the indicators of the
activity performance.
Paragraph 3
Evaluation

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Article 10
(1)

The Directorate General of Debt Management shall do

evaluationof the data consistency of the Loan and / or
Grantbudget planning and its realization.

(2)
The evaluationas referred to paragraph (1) shall be
carried out through the following ways:
a. comparingbetween the plan of fund disbursement
and the allocation of fund in DIPA;
b. comparing between the allocation of Loan and / or
Grant in DIPA and the realization of Loan and / or
Grant disbursement in the form of SP2D,WA,
Nodis, and SP3;
c. comparing between WA and SP3 from KPPN
especially with the realizationof NOD or other
equivalent documents from the Lender and / or
Grantor, and
(3)

d. measuring or comparing between the achievement

of current implementation of activities by using the
PV calculation technique.
Based on the calculation resultsof PV as referred to in
paragraph (2)letterd, the Directorate General of Debt
Management categorizes the implementation of
activities financed by Loan and / or Grantas follows:
a.

on and above schedule for activities with a PV

value of 1, which means the realization of the
disbursement of relevant Loan and / or Grant is
appropriate or faster than the planned schedule;

b. Behind schedule for activities with a PV value =

1> x> 0.30,whichmeans the realization of the
disbursement of relevant Loan and / or Grant is
slower than the planned schedule;
c.

At risk for activities with a PV value 0.30,which

means the realization of the disbursement of

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relevant Loan and / or Grant is acutely delayed so

that it has a highrisk in arisingadditional costs to
be borne by the APBN.

(4)

Especially for Loan and / or Grantwith zero

disbursement, the calculation resultsof PV are grouped
into2 (two) categories, namely:
a.

Behind schedule when the ETR has exceeded 1%

(one percent) to70% (seventy percent) of the
Availability Period;

b. At risk if the ETR has exceeded 71% (seventy-one

percent) of the planned Loan and / or Grant
disbursement period;
Article 11
(1)

The Minister of Finance can coordinate with the

Minister of National Development Planning / Head of
National Development Planning Agency to do a semiannual joint evaluation on the implementation of
activities financed by the Loan and / or Grant.

(2)

The Joint Evaluation as referred to paragraph (1) shall

be conducted inan effort to:
a. accelerating the Loan and / or Grant absorbtion
implemented by the K / L;
b. decidingproblem solving measures to very slow
implementation of activities and / or activities that
are risky to burden the state finance, including
cancellation of Loan and / or Grant; and
c.

doing a reviewto the outcomes and the impacts of

activities financed by the Loan and / or Grant
whose implementation period have expired.
Paragraph 4
Follow-Up Steps
Article 12

Based on the assessment, identification, measurement,

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and evaluation as referred in Article 9 and Article 10,

the Director General of Debt Management shall give
recommendations on the problem solving stepsof the
Loan and / or Grant implementation with the
categories of behind schedule and at risk include:
a.

encouraging the K / L to take acceleration

measures of Loan and / or Grant absorption;

b. proposing an amendment to fund allocation of the

Loan and / or Grant from the allocation as stated
in the Loan and / or Grant agreement;
c.

facilitating the K / L, LGs, and SOEs in solving

problems ofLoan and / or Grant absorption with
relevant parties, or

d. proposing the cancellation of part or whole Loan

fund as stated in the Loan agreement.
Article 13
The Proposalfor cancellation of Loan as referred in
Article 12letterd shall be carried out by at least meeting
the following requirements:
a.

based on the results of coordination with the

Ministry of National Development Planning and K /
L as EA;

b. considering the benefits and costs of cancellation;

c.

the loan is in the at risk status of at least 90%

(ninety percent) from the total time of fund
disbursement;

d. the loan potentially raises a risk of additional costs

that can be burden on the state finance;
e.

taking attention to the legal aspects, including

default clause or cross default in a loan
agreement, and

f.

considering theGovernment reputation risk.

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CHAPTER III
PUBLICATION
Article 14
(1)

Based on the results of monitoring and evaluation as

referred in Chapter II, the Director General of Debt
Management shall prepare are port of the Loan and /
or Grant development on a quarterly basis.

(2)

The report of the Loan and / or Grant development as

referredto paragraph (1) shall at least include:
a.

Loan and / or Grant development in aggregate;

b. Loan and / or Grant performance;

c.

plan analysis and realization of Loan and / or

Grant absorption;

d. a report and an analysis result of on-site visit

activities
to
activities
experiencing
late
disbursement;
e.

calculation of PV of the Loan and / or Grant

absorption performance, or

f.

conclusions and recommendationsof the problem

solving or acceleration measures in the Loan and /
or Grantabsorbtion.

(3)
The report of the Loan and / or Grant development as
referredto paragraph (2) shall be submitted to the K /
L, LGs, SOEs as EA and to other relevant instantions.
(4)
The report of the Loan and / or Grant development as
referredto paragraph (2) shall be issued on the official
website of the Directorate Generalof Debt Management
in the context of the principles of transparency and
public accountability.
CHAPTER IV
TRANSITIONAL PROVISION

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Article 15
At the time this Regulation of the Minister of finance
comes into force, monitoring, evaluation, and reporting
of Loans and / or Grants of the Government, the
process of which has started before this Regulation of
the Minister of Finance is set, shall still refer to the
Regulation of the Minister of Finance Number
33/PKM.08/2010
on
Monitoring,
Evaluation,
Reporting, Publication and Documentation of Loans
And / Or Grants of the Government to the expiry of the
relevant Loan and / or Grant agreement.
CHAPTER V
CLOSING PROVISION
Article 16
At the time this Regulation of the Minister of Finance
comes into force, Regulation of the Minister of Finance
Number 33/PMK.08/2010 concerning Monitoring,
Evaluation, Reporting, Publication and Documentation
of Loans and / or Grants of the Government shall be
revoked and declared null and void.
Article 17
This Regulation of the Minister of Finance shall come
into force on the date of its promulgation.
For public cognizance, this Regulation of the Minister
of Finance shall be promulgated by placing it in State
Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on December 19, 2011
MINISTER OF FINANCE
Signed,
AGUS
MARTOWARDOJO
Promulgated in Jakarta

D.W.

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OF THE REPUBLIC OF INDONESIA

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On December 19, 2011

MINISTER OF LAW AND HUMAN RIGHTS
Signed,
AMIR SYAMSUDDIN
STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2011 NUMBER 853