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Current Year Revenue Sharing Fund and Underpayment Revenue Sharing Fund 2019 is being Relaxed to Tackle COVID-19 and Protect Local Economy

Jakarta, 21/04/2020 Ministry of Finance - Local Government (Pemda) was given the Revenue Sharing Fund (DBH) distribution relaxation in the current year and underpayment DBH 2019 relaxation for COVID-19 handling and protecting the region from economic threats.

The DBH facility for local governments is allocated based on the portion of the adjusted state revenue plan that is generated according to economic development.

Some of the DBH is used for handling COVID-19, including infrastructure spending 25% of the General Transfer Fund (DTU) can be used for handling COVID-19, both the health sector, Social Safety Net (JPS), and other urgent expenditures.

A maximum of 25% of the remaining Forest Natural Resources (SDA) and Reforestation Fund DBH can also be used for handling COVID-19 and / or economic threats to the country / region.

The DBH distribution mechanism for the relaxation of the current year DBH distribution is the Director General of Fiscal Balance (Dirjen PK) to submit a proposal for relaxation to the Minister of Finance. If approved, relaxation is determined by the Minister of Finance Decree (KMK).

While the relaxation mechanism for DBH 2019 Underpayment, Minister of Finance can determine the temporary allocation for DBH 2019 Underpayment based on the prognosis of the realization of state revenue that is generated.

If the Audit Report (LHP) of Central Government Financial Report is available, the definitive Underpayment is determined. Then, after the determination of the temporary and / or definitive allocation, Underpayment DBH can be distributed.

Local Government reconciliation, State Treasury Service Office (KPPN), and Tax Office (KPP) as DBH Tax requirements are done online .

Reports on prevention and / or handling of COVID-19 such as health performance reports, social assistance reports, are required to report on the distribution of DBH Quarter II / III, and replace the local government performance reports in managing environmental sanitation.

Submission of the distribution requirements is sufficient through softcopy. (nr/f)