Get to know more closely the State Finance Law

At the end of the 20th century, Indonesia began to implement state financial law. This law explains that the state is capable and can have authority in the affairs of its citizens. This law is a number of written laws collected to regulate the rights and obligations of the state in the financial sector in the form of money and goods related to state and public activities. This legal basis is located at the opening of the 1945 Constitution to achieve the country’s goals. To find out more about this law, you can find it in some of the reviews below.

Foundation of State Financial Law

In implementing the law, of course there is a foundation that is able to strengthen the legal position. The legal foundation of state finance is not only located in the opening of the 1945 Constitution but also in articles 23A to 23E of the 1945 Constitution relating to state finance. There are several other bases originating from the law. The said law includes, among others, Law no. 17 of 2013 concerning state finance, Law no. 1 of 2004 concerning state treasury, Law no. 3 of 2004 concerning Bank Indonesia and others. This financial law has a position in public law but it is also possible to be in private law which also intersects with state interests. Therefore, this law has a wide range.

Scope of State Finance Law

What is meant by state finance which is the main focus of this country’s financial law is all state assets in any form, which are separated or not separated, including all state assets and all rights and obligations. In other words, state finance is related to the state budget, regional budget, assets and state finances in Perjan, Perum, PN-PN and several other companies. This understanding refers to the Corruption Crime Act. This scope is confirmed by article 2g of the State Finance Law. This article regulates the rights and obligations of the state.

State rights are collecting taxes, issuing and circulating money and making loans. This state right allows the state to have authority in managing the country’s finances and wealth. While what is meant by state obligations is to provide services and pay loan bills to third parties. The state has financial resources derived from taxes on income, value added of goods and services, sales of luxury goods, stamp duty; customs (import duties, sugar excise and tobacco excise) and other receipts. The results of the country’s financial resources are managed by planning, implementing, monitoring and accountability for state finances. State finance is in the power of the House of Representatives (DPR) and the President.

Supervision of State Financial Law

With the existence of check and balance, of course the course or implementation of this law has an institution that oversees. This aims to oversee the management and accountability of state financial management. The party overseeing state finances is carried out by the inspector general, the provincial inspectorate, the district / city inspectorate, the financial and development oversight body and the financial audit or BPK. It is these bodies that examine the incongruity and irregularities in managing state wealth. So, there is no state loss that is detrimental to the state and society.

The loss in question can occur with intentions or negligence in serving in the procurement of goods (higher prices), asset release, asset utilization, bad credit and asset placement.

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