COMMISSION XI of the Indonesian House of Representatives (DPR RI) indicated that it would reject the proposal to provide State Capital Participation (PMN) to the Land Bank. This follows the government’s request to inject capital into the new agency this year.
Deputy Chairman of Commission XI of the House of Representatives Dolfie Othniel Frederic Palit requested that Bank Tanah be excluded from the discussion of the government’s proposed PMN grant. The reason is, the Finance Commission last year rejected the granting of PMN to the institution.
“We asked for our land bank to be excluded from the request for further investigation, meaning we do not agree. That was before it was clear, how might the recommendation of Commission XI not be followed? So we don’t need to investigate further,” he said in a Working Meeting with the Minister of Finance regarding the Introduction to the 2024 State Budget PMN Deepening, Monday (1/7).
The government is considered to have disrespected the function of Commission XI, which has the authority to oversee state financial affairs. The proposal for a capital injection for the Land Bank last year was originally rejected by the people’s representatives at the in-depth meeting on November 9, 2022.
At that time, the government proposed PMN to Bank Tanah amounting to Rp500 billion. Although it was not approved, policy makers still provided capital injection to Bank Tanah.
“We do not agree with the Land Bank, but finally there is a PP that provides PMN to the land bank. How is this? If it is like that, why is there a discussion forum here?” said Dolfie.
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Responding to this, Minister of Finance Sri Mulyani Indrawati said that the provision of PMN to the Land Bank is covered by Law 11/2020 concerning Job Creation. Further regulations regarding the Land Bank are contained in Government Regulation 64/2021 concerning the Land Bank Agency.
Of the two policies, said Sri Mulyani, the government was mandated to provide PMN of Rp2.5 trillion to Bank Tanah. She said the provision of PMN was still carried out because at that time the Job Creation Law was disputed at the Constitutional Court.
In its ruling, the Constitutional Court requested that the government not create new strategic regulations. The State Treasurer assessed that the provision of PMN for the Land Bank was not a strategic policy as stated by the Constitutional Court.
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“The land bank is not annulled from the Constitutional Court’s decision, so PMN can be carried out. Because PMN is not a strategic policy. We consider it can still be executed. So, it’s not that we don’t respect Commission XI, but it is an implementation of the Job Creation Law. So that is to avoid a regulatory vacuum with the Job Creation Law problem at the Constitutional Court,” explained Sri Mulyani.
The Minister of Finance’s explanation was once more refuted by Dolfie. According to him, the provision of PMN can only be done by the government as long as there is approval from the DPR, in this case Commission XI. “In accordance with the APBN Law, there must be a recommendation from Commission XI to be executed,” he said.
“If it goes according to one’s own interpretation, everything is possible. We don’t need RDP. What is needed is a recommendation from Commission XI. The in-depth study has been (done), we did not agree, then suddenly it came out (PMN), then what’s the point?” he concluded.
Meanwhile, in the meeting, the government proposed that Bank Tanah receive PMN of Rp1 trillion. The PMN funds are planned to be provided from the investment financing reserve fund in the 2024 State Budget of Rp13.676 trillion.
In addition to the provision of cash PMN, policy makers also proposed that Bank Tanah receive non-cash PMN in the form of State Property (BMN) at the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency in the form of six plots of land in Karawang, Semarang, and Bali worth Rp265.17 billion. (Z-2)
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