Ministry Of Finance Research Articles

Analysis of Factors Affecting Foreign Debt in Indonesia (Case Study 1990-2023)

This research aims to determine the factors that influence foreign debt by using data on foreign exchange reserves, exchange rates, and interest rates on Indonesia's foreign debt for the period 1990-2023. The data used in this research was obtained from the official websites of the Ministry of Finance of Indonesia, the Central Bureau of Statistics (BPS), and Bank Indonesia. This research uses multiple linear regression analysis. The results of this research show that foreign exchange reserves, exchange rates, and interest rates simultaneously influence Indonesia's foreign debt. Partially, foreign exchange reserves have a positive and significant effect on Indonesia's foreign debt, the exchange rate influences Indonesia's foreign debt, and interest rates have a positive effect on Indonesia's foreign debt.

Kewenangan Menteri Keuangan Memilih Ketua Dan Wail Ketua Pengadilan Pajak Berdasarkan Undang-Undang No.14. Tahun 2002

In the judicial system, the principle of independence must be upheld to ensure justice. However, there are indications that the autonomy of the tax court is being influenced. This is based on Article 8, paragraph (2) of Law Number 14 of 2002 on the Tax Court, which mandates the proposal of candidates for the positions of Chairman and Deputy Chairman of the Tax Court by the Minister of Finance. Ultimately, the Constitutional Court issued Decision No. 10/PUU-XVIII/2020 as a manifestation of judicial independence. The problem is how the authority of the Minister of Finance in selecting the Chairman and Deputy Chairman of the Tax Court before the Constitutional Court Decision No.10/PUU-XVII/2020, and what are the legal implications of this authority after the Constitutional Court Decision No.10/PUU-XVII/2020. This research is normative juridical in nature. The research is descriptive. Based on the research findings, the Ministry of Finance has the responsibility to guide the organization in both administration and finance of the tax court. Prior to the Constitutional Court's decision, the authority granted to the finance minister was not in line with the independence of the judiciary

Who determined the rules of the game in the Spanish financial reforms, 1970-1990?

ABSTRACT The aim of this paper is to analyze the Spanish regulatory reforms and to identify the key actors involved in the design and implementation of financial regulation and supervision. We examine the educational and professional profile of those at the helm of the main regulatory bodies (Ministers of Finance and the staff of the Bank of Spain) during the transition to democracy. The main hypothesis we wish to test is whether the reforms that took place in the 1970s and 1980s were carried out by people with a substantially different background to the protagonists of the reforms implemented during Franco’s regime. Our results show that the change in the regulators’ profile emerged in the late 1950s, with an increasingly influential role of the Bank of Spain’s Research Department, and that the reforms of the 1970s and 1980s were carried out by people with a solid academic and professional background, predominantly in economics.

Сучасний стан банківського кредитування суб’єктів малого підприємництва сфери оборони в україні

The article examines the current state of bank lending to small businesses in the defense sector in Ukraine. An analysis of the component expenditures of the state budget in 2021–2024 has been carried out; in particular, the share of defense expenditures has been determined. It has been found that defense production requires working capital for the purchase of components, covering the gap between the advance and the need for funds, relocation of enterprises, and provision of uninterrupted/alternative power sources. An analysis of current lending programs for small and medium-sized enterprises managed by Ukrainian banks in 2023 (JSC CB “PrivatBank”, JSC “Oschadbank”, JSC “Sense Bank”, JSC “Ukrgasbank”, JSC OTP BANK, JSC “Taskombank”, JSC “KredoBank”) has been carried out. The structure and volumes of loans issued to entrepreneurs within the framework of the Affordable Loans at 5-7-9% state program during the period of martial law have been studied, and their sectoral structure indicates that the funds have been being directed chiefly to agriculture – 52%, wholesale trade – 17% and food industry – 8%. A range of problems faced by small businesses in the defense sector in the process of bank lending has been outlined, in particular: lack of contracts with the Ministry of Defense of Ukraine, the need for weapon use approval, short-term nature, obtaining permission to export weapons, high interest rates, military risks, lack of collateral property, etc. The priority measures for expanding lending to the defense sector in Ukraine by the National Bank of Ukraine, the Ministry of Strategic Industries of Ukraine, and the Ministry of Finance of Ukraine have been systematized. It has been proposed that preferential state programs for bank lending be introduced to small businesses in the defense sector. Keywords: bank lending, small business, defense sector, support program, state program.

Will the new definition of a building structure as a subjectof real estate tax put an end to interpretation disputes?

Cascading terminological connections with the provisions of construction law have led to a pathological mechanismof amending the real estate tax without changing the tax act, but through changes to a large group of normativeacts that, prima facie, have nothing to do with taxes. As a result of the Constitutional Tribunal’s judgmentin case SK 14/21, the Ministry of Finance prepared an amendment to the Act on local taxes and fees, which is intendedto cut off connections with the provisions of construction law.

Debt repo of the Ministry of Finance of the Russian Federation

Debt repo of the Ministry of Finance of the Russian Federation

Making “strategic autonomy” rhyme with “fiscal austerity?” Unresolved conflicts of (geo)economic ideas in EU infrastructure policy

As a reaction to intensifying global competition, measures related to strategic autonomy are gaining traction on the EU level. Yet they coincide with a general return to fiscal consolidation. With current developments more inconclusive than previously suggested, this article asks how the central actors in EU economic policy, both public and private, position themselves in the autonomy-austerity conflict. It introduces a political-economic approach to the role of (geo)economic ideas and state-business relations in EU policy formation. The article focuses on infrastructure policy as a main field within which the conflict unfolds. A content analysis of official documents systematically maps the positions of relevant actors. While an influential group of southern finance ministries, Directorates-General, center-left parties, and trade unions is promoting strategic autonomy, a shrinking constellation around fiscal austerity contains relevant veto players. The deadlock results in the attempt to reconcile both ideas via “targeted flexibility”: consolidation via the expenditure side and a delegitimization of non-investment spending, coupled with a public de-risking of private investments. The approach is supported by European capital, yet highly inconsistent and runs up against pro-austerity forces. The findings have strong implications for the EU’s future geoeconomic strategy and its ability to compete globally.

Public Debt Management and Economic Growth in Sierra Leone (1973-2022)

Sierra Leone is a small developing country that continues to encounter enormous public debt challenges, principally as a result of inadequate Gross Domestic Product (GDP) and imprudent debt management. The country’s current debt-to-GDP ratio stands at 78.70%. The study investigates and analyses the impact of public debt on economic growth in Sierra Leone for the period 1973-2022. The study employs time series secondary data which were collected from various sources including the Central Bank of Sierra Leone and the Ministry of Finance. Key macroeconomic variables such as external debt stock-to-GDP ratio and domestic debt stock-to-GDP ratio were specified in the models employed in this study. The variables were tested for stationarity using unit root tests before applying the Autoregressive Distributed Lag (ARDL) approach in running the regression with a view to ascertaining both short run and long run effects of public debt on economic growth in Sierra Leone. Various diagnostic tests were carried out to appraise the robustness of the estimated growth equations using appropriate econometric criteria. The study empirically reveals a negative impact of public debt (both domestic and external) on economic growth in Sierra Leone both in the short run and in the long run. Furthermore, the study reveals that in order to ensure effective public debt management in Sierra Leone, there must be effective management of capital projects financed by public debt and to ensure stable exchange rates to reduce cost of financing debt. The study, therefore, proffers strategic recommendations in line with the findings, including a review of Sierra Leone’s debt management strategy to ensure that public debt is directed towards productive capital projects.

Reflection of interest and other expenses on loans and borrowings in accounting (financial) statements: recommendations of state and non-state regulators

The Ministry of Finance of the Russian Federation, as the state regulator of accounting, annually discloses new aspects of improving interest and other expenses related to borrowing in accounting (financial) reporting forms, including by issuing annual recommendations to auditors and audit organizations on verifying the reliability of annual reports. Despite the apparent simplicity of reflecting interest on borrowed funds — either for expenses of the current period or in the value of an investment asset, practitioners do not have fewer questions over time. The non-governmental accounting regulator “Accounting Methodological Center” also in its recommendations sets out its position on the reflection of interest and other expenses mainly in connection with newly emerging types of contractual relations for the presentation of borrowed funds. When conducting research, we used such methods as analysis and synthesis, comparison, grouping method, analogy method, logical approach, systematic approach. As a result of the conducted research, this article, in particular, presents generalized requirements for the formation of information on interest and other expenses related to borrowing, depending on the purpose of use and form of borrowing, as well as part of cash flows from current (operating), investment and financial activities of reporting organizations. In addition, in this paper, proposals are made to improve the accounting standard for reflecting the costs associated with borrowing. The results of this study will be of interest to a wide range of readers studying various problems of modern Russian and foreign accounting, and can also be used in the educational process of higher educational institutions.

PENGARUH RETURN ON ASSET, CURRENT RATIO, DEBT TO ASSET RATIO, DAN UKURAN PERUSAHAAN TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN SUB SEKTOR PERTANIAN YANG TERDAFTAR DI BEI TAHUN 2018-2022

The Ministry of Finance had the worst financial results across all industrial and agricultural sectors in 2019. The lack of corporate assets is a factor. The purpose of this study is to find empirical evidence regarding the effect of return on assets (ROA), current ratio (CR), debt to asset ratio (DAR), and company size on financial distress. The population used is the agricultural sub-sector companies listed on the IDX as many as 23 companies with 5 years of observation. This study used a purposive sampling method. The analytical techniques used in this study are descriptive statistics, logistic regression analysis, hypothesis testing, and determinant testing. The results showed that return on assets (ROA) had no effect on financial distress. Current ratio (CR), and firm size had a negative effect on financial distress. Debt to asset ratio (DAR) had a positive effect on financial distress. Simultaneously return on assets (ROA), current ratio (CR), debt to asset ratio (DAR), and company size affect financial distress in agricultural sub-sector companies listed on the Indonesia Stock Exchange.

PERAN PENGELUARAN PEMERINTAH TERHADAP PENINGKATAN PENDAPATAN PER KAPITA: STUDI KASUS 34 PROVINSI DI INDONESIA

This study aims to see the effect of government spending on income per capita of 34 provinces in Indonesia. This study uses panel data regression (pooled data) to determine the effect of government spyending, namely education function, health function, and social assistance, on the dependent variable income per capita. The data used secondary data of 34 provinces in Indonesia over the period 2016-2020 published by the Ministry of Finance and Central Statistics Agency. The result showed that government spending on education and public service functions with 5% error rate are statistically significant have sign in accordance with expectation, then H1 and H4 are accepted. While spending on social function has reversed sign and health function has no influence on income per capita of 34 provinces in Indonesia for 2015-2019 period

Audit Committee and Tobin’s Q as a Measure of Firm Performance Among Nepalese Commercial Banks

The study examines the impact of audit committee on the performance of Nepalese commercial banks. Tobin’s Q and return on assets are selected as the dependent variables. The selected independent variables are audit committee size, audit committee meeting, audit committee meeting allowance, gender diversity, board size and leverage. The study is based on secondary data of 16 commercial banks with 111 observations for the study period from 2015/16 to 2021/22. The data were collected from Banking and Financial Statistics published by Nepal Rastra Bank, reports published by Ministry of Finance and annual report of respective banks. The correlation coefficients and regression models are estimated to test the significance and importance of audit committee size, audit committee meeting, audit committee meeting allowance, gender diversity, board size and leverage on the performance of Nepalese commercial banks. The study showed that board size has a positive impact on Tobin’s Q and return on assets. It implies that increase in board size leads to increase in Tobin’s Q and return on assets in Nepalese commercial banks. Further, gender diversity in the audit committee has a negative impact on Tobin’s Q and return on assets. This indicates that higher the number of females in the audit committee, lower would be the Tobin’s Q and return on assets. Similarly, the study showed that audit committee size has a negative impact on Tobin’s Q which indicates that increase in audit committee size leads to decrease in Tobin’s Q. Whereas, audit committee size has a positive impact on return on assets. It means that increase in audit committee size leads to increase in return on assets. Moreover, leverage has a positive impact on Tobin’s Q. It shows that higher the level of leverage ratio in the banks, higher would be the Tobin’s Q. However, leverage has a negative impact on return on assets indicating higher the level of leverage ratio in the banks, lower would be the return on assets.

Financial Technology as a Basis for Financial Inclusion and its Impact on Profitability: A Case of Nepalese Commercial Banks

This study examines the impact of financial technology as a basis for financial inclusion on the profitability of Nepalese commercial banks. Return on assets and return on equity are selected as the dependent variables. Similarly, number of ATMs, number of branches, debt to assets ratio, credit to assets ratio, credit to deposit ratio and deprived sector lending are selected as the independent variables. This study is based on secondary data of 16 commercial banks with 112 observations for the study period from 2015/16 to 2021/22. The data were collected from Banking and Financial statistics published by Nepal Rastra Bank, reports published by the Ministry of Finance, and annual reports of respective banks. The correlation coefficients and regression models are estimated to test the impact of financial technology on the profitability of Nepalese commercial banks. The results showed that number of ATMs of a bank has a positive effect on return on assets and return on equity. This implies that increase in the number of ATMs of the bank leads to increase in return on assets and return on equity. Likewise, number of branches of a bank has a positive effect on return on assets and return on equity. This implies that increase in the number of branches of the bank leads to increase in the return on assets and return on equity. Similarly, debt to assets ratio has a positive effect on return on assets and return on equity. This indicates that higher the debt to assets ratio, higher would be the return on assets and return on equity. Likewise, credit to deposit ratio has a negative effect on return on assets and return on equity. This indicates that higher the credit to deposit ratio, lower would be the return on assets and return on equity. Similarly, credit to asset ratio has a negative effect on return on assets and return on equity. This indicates that higher the credit to asset ratio, lower would be the return on assets and return on equity. Furthermore, deprived sector lending has a negative effect on return on assets and return on equity. It implies that higher the deprived sector lending of a bank, lower would be the return on assets and return on equity.

Impact of Financial Development on Economic Growth of Nepal

This study examines the impact of financial development on economic growth of Nepal. The dependent variables are real gross domestic product and per capita income. The independent variables are money supply, stock market capitalization, private sector credit, financial access and net foreign direct investment inflows. The study is based on time series data for the period by Ministry of Finance and Central Bureau of Statistics of Nepal. The correlation coefficients and regression models are estimated to test the significance and importance of financial development on economic growth in Nepal. The study showed that stock market capitalization has a positive impact on real gross domestic product and per capita income. It indicates that higher the stock market capitalization, higher would be the real gross domestic product and per capita income. Similarly, there is a positive impact of private sector credit to GDP on real gross domestic product and per capita income. It indicates that increase in private sector credit leads to increase in real gross domestic product and per capita income. In addition, broad money supply has a positive impact on real gross domestic product and per capita income indicating that higher the broad money supply, higher would be the real gross domestic product and per capita income. Similarly, financial access has a positive impact on real gross domestic product and per capita income. It indicates that increase in financial access leads to increase in real gross domestic product and per capita income. Likewise, net foreign direct investment inflow has a positive impact on real gross domestic product and per capita income. It indicates that increase in net foreign direct investment inflow leads to increase in real gross domestic product and per capita income of Nepal.

Legal conditions of the principles of management control in the public finance sector and the rules of coordination of control

The principles of management control and coordination of management control are described in Section I, Chapter 6 - Articles 68 - 71 of the Act of August 27, 2009 on Public Finance. Detailed rules on the manner of preparation and specimens of documents required by the provisions of the aforementioned Act are established in the Decree of the Minister of Finance of September 29, 2010 on the activity plan and the report on its implementation, and in the Decree of the Minister of Finance of December 2, 2010 on the model statement on the state of management control. Requirements relating to the establishment, evaluation and improvement of management control systems for the public finance sector are specified in Announcement No. 23 of the Minister of Finance dated December 16, 2009 on management control standards for the public finance sector. Guidance on monitoring and evaluating the adequacy, effectiveness and efficiency of management control is provided in Announcement No. 3 of the Minister of Finance dated February 16, 2011 on detailed guidelines for self-evaluation of management control for units in the public finance sector. The guidelines supporting effective risk management in units of the public finance sector are announced in Announcement No. 6 of the Minister of Finance of December 6, 2012 on detailed guidelines for the public finance sector on planning and risk management. The article analyzes the legal regulations of Articles

The Relationship Between Oda, Import–Export Turnover, and Vietnam’s Economic Growth During the Period 1995 – 2022 (SDG)

Objectives: This article studies the relationship between official development assistance (ODA), import-export turnover, and Vietnam’s economic growth during the period 1995–2022. Method: Using qualitative combined with quantitative research methods, based on the database collected by year from 1995 to 2022 from the website of the General Statistics Office, International Monetary Fund, Ministry of Finance, and World Bank...The database was analized by the Eview 12 Software. Results and Discussion: Vietnam’s economic growth depends on the operation of ODA budget solutions and total export turnover over time. ODA capital has a positive impact but is not as clear as total import-export turnover. In the first stage, when ODA capital rises, GDPR increases too, but in the later stages, continuing to increase ODA capital will not benefit the Vietnamese economy, while total export turnover has a positive effect on Vietnam’s economic growth for a long time. Research Implications: ODA capital only has a positive impact in the early stages when Vietnam enters the innovation phase, but in the later stages, international trade plays a more important role in Vietnam’s economic growth. Under the condition that other factors remain unchanged when total export turnover increases by 1%, GDPR increases by 0.416906%. Value: From the results of the analysis, the research team proposes solutions to selectively attract ODA, effectively use capital to ensure that infrastructure continues to be developed more modernly, and strengthen international trade activities to motivate sustainable economic growth.

Procedure for coordination of legislative norms of financial and tax law within the framework of public law regulation

The article explores the peculiarities of harmonizing legislative norms of financial and tax law within the framework of public legal regulation. It is established that the norms of financial and tax law shape the rules for managing the financial system and taxation, contributing to a balance between the state’s needs for financial resources and the preservation of economic stability for citizens and businesses. The demarcation of norms of financial and tax law by the subject of regulation is characterized, emphasizing the common method of legal regulation. It is determined that the norms of financial law regulate budgeting, financial planning, state debt, financial accounting, financial stability, and additional sources of funding. Norms of tax law cover tax rates, tax incentives, tax accounting and reporting, and combating tax evasion. It is noted that due to the common features and subject of legal regulation, conflicts arise between the norms of financial and tax law. It is established that the public legal regulation of conflicts between the norms of financial and tax law involves a systematic and organized process aimed at harmonizing legislative norms and resolving conflicts through the activities of the executive authorities of Ukraine. The competencies of central executive authorities that contribute to the harmonization of norms of financial and tax law are characterized. It is determined that the Cabinet of Ministers of Ukraine, the Ministry of Finance, the State Tax Service, the Ministry of Justice, and the National Bank of Ukraine play a key role in resolving conflicts and coordinating strategies in the financial and tax sectors. It is noted that central executive authorities coordinate and cooperate for systematic conflict management and the achievement of harmony in financial and tax legislation. The efficiency of harmonizing norms of financial and tax law is ensured by creating an Interdepartmental Committee, conducting consultations and discussions, as well as adopting and implementing harmonized subordinate legislative acts. Attention is drawn to the fact that the effectiveness of harmonizing norms of financial and tax law is determined by the efficiency of the procedure for developing harmonized subordinate legislative acts conducted by central executive authorities.

Perbandingan Hukum Lelang Non Eksekusi Sukarela pada E-Market Place Auction antara Indonesia dengan Amerika Serikat

This research aims to compare non-executive voluntary auction laws on e-marketplaces between Indonesia and the United States. In Indonesia, the regulatory framework for non-executive voluntary auctions falls under the jurisdiction of the Ministry of Finance, focusing on transparency, consumer protection, and fairness in the auction process. The study highlights that despite Indonesia's adoption of digital technology to enhance auction accessibility and efficiency, regulations are still evolving to keep pace with technological advancements and market developments. Meanwhile, in the United States, non-executive voluntary auctions are detailed under federal and state laws, emphasizing consumer protection, transaction security, and robust enforcement to prevent harmful business practices. These stringent regulations encompass participant verification, bidding processes, and transaction settlement to ensure fairness and safety for all involved parties. The findings of this research indicate that differences in legal regulations, implementation, and approaches between Indonesia and the United States influence how non-executive voluntary auctions are conducted and governed in both countries. This comparison provides deep insights into the challenges and opportunities in developing legal policies that support digital economic growth in this era of globalization.

Factors That Influence Financial Performance with Capital Expenditure as a Moderating Variable in the Regency / City Government of Sumatera Utara Province

This study aims to analyze and evaluate (1) comprehensive regional development to produce regional growth that is in line with the regional budget; (2) making good and appropriate financial management so that the improvement of the economic development process has an impact after the implementation of the regional autonomy policy; (3) Each region can be responsible for regional authority in regional development so that good financial management is expected to be a reality for local governments to support their growth and development; (4) Increasing the potential of financial performance and this ability is indicated by compliance with specific rules and regulations as stipulated by SAP when managing financial. This research was conducted in the district /city government in the area of ​​North Sumatra Province. The population used was 33 districts/cities (25 districts and eight cities) with the year of observation for five years starting from 2018 to 2022 the number of observations was obtained as many as 165, the data used was secondary data, the data collection method which was the data documentation method was obtained From the Directorate General of Finance Balance of the Ministry of Finance of the Republic of Indonesia, the website of the Central Statistics Agency, the website of each regional government that is the research sample, and other related sources. The results of this study indicate that (1) Local own-source revenue has a significant positive effect on financial performance; (2) operating expenditure has a significant positive effect on financial performance; (3) Revenue sharing fund has a significant positive effect on financial performance; (4) General Allocation Fund has no significant effect on financial performance; (5) Special Allocation Fund has a significant positive effect on financial performance; (6) the working period of regional heads has no significant effect on financial performance; (7) capital expenditure can moderate the effect of local own-source revenue on financial performance; (8) Capital expenditure cannot moderate the effect of operating expenditure on financial performance; (9) Capital expenditure can moderate the effect of revenue sharing fund on financial performance; (10) Capital expenditure cannot moderate the effect of general allocation funds on financial performance; (11) Capital expenditure can moderate the effect of special allocation funds on financial performance; (12) Capital expenditure cannot moderate the effect of the working period of regional heads on financial performance. Keywords: good governance, financial management system, regional autonomy policy, financial performance.

Empowerment of Ultra Micro MSME’s Through Financing of Sharia Non-Bank Financial Institutions

Economic growth, especially MSMEs, cannot be separated from the role of the microfinance institution sector. Financial institutions are intermediation institutions whose function is to connect parties who have excess funds with parties who lack funds. Based on Law No.10 of 1998 concerning amendments to Law No.7/1992 concerning banking, bank financial institutions consist of commercial banks and people's credit banks. The Ministry of Finance of the Republic of Indonesia, issued Ultra Micro Financing Products (UMI) which are The advanced stage program from the social assistance program to business independence targets micro businesses at the lowest levels, which cannot yet be facilitated by banking through People's Business Credits. UMI is a maximum financing facility of IDR 20 million per customer group and is distributed by non-bank financial institutions (LKBB). This research was carried out in North Sumatra (SUMUT) with the aim of identifying differences between Ultra Micro (UMi) business actors before and after receiving financing assistance from sharia non-bank financial institutions. This research was carried out between June and August 2023. This research uses quantitative analysis methods. The Normality Test is carried out with the aim of finding out whether the data used in a regression model is normally distributed or not. If the distributed data is proven to be normal, this means that the sample used can represent the population used by the measurement. If the significant value is 0.05, it can be declared to have a normal distribution. From the results of research on the Empowerment of Ultra Micro MSMEs through Sharia Non-Bank Financial Institution Financing in North Sumatra before and after receiving Ultra Micro Financing (UMi): There is a development between daily income before and after financing. Sales revenue after getting financing is better than sales revenue before getting financing