Government Proposes Acceleration for SLA Discussion

The government proposes the Subsidiary Loan Agreement (SLA) discussion and other budget financing allocation between House of Representatives (DPR) and the government to be accelerated.

This was stated by Minister of Finance Agus D.W. Martowardojo when he attended the work meeting with Commission XI DPR discussing Draft State Budget (RAPBN) 2014 preparation cycle in Jakarta.
This statement followed the absorption of SLA service level subsidiary loan, which remains under the ceiling set in the APBN. In addition, this also relates to the allocation of other budget financing, such as State Capital Participation (PMN) and revolving fund, which are considered ineffective. “One of the causes of low SLA absorption and ineffective allocation of other budgets financing is the slow discussion that we perform between the government and the related commissions in DPR,” Minister explained.

For information, in the conclusion of RAPBN discussion in the past few years, it was noted that SLA and the allocation of other budget financing would be further discussed with the related commissions. However, Minister said, from the past experiences, discussion with related ministries were considered less effective. “Based on the experiences in the past few years, discussion with related commissions took quite a lot of time, so the budget document was not issued, and in turn, several activities could not be executed in the beginning of the year,” he explained.

This proposal of acceleration of SLA discussion and the allocation of other budget financing between DPR and the government will also be performed in terms of following up the urge from World Bank, Asian Development Bank (ADB), and Islamic Development Bank (IDB). “Several international institutions, such as World Bank, ADB, dan IDB, also expect Indonesia to follow up this SLA discussion timely,” Minister stated.

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