GROUP 1

ASSIGNMENT 2

Arranged by:
Marsha Cantika 19080694012
Vincentius Arvin Sadtyo N. B. 19080694053
Muhamad Galang Alanna Ikhwan 19080694064
Rian Zakaria 19080694082
Inda Faiqotul Himmah 19080694085
Ahmad Akbar Yahya 19080694103
Zalza Berlinda Pratiwi 19080694104
Nikita Aprilia Sukmawidjaya 19080694114

ACCOUNTING MAJOR
FACULTY OF ECONOMICS AND BUSINESS
SURABAYA STATE UNIVERSITY
2021
QUESTIONS

1. Describe the Government's reform budget from 1945 to the present. Describe what
type of budget was used at the time and clearly give at the time of budget changes
between the time of 2019. Create images in interesting charts/images and up to
interesting results.

1945 Budgeting System

According to the Constitution

1947 Budget 1952 Klasifikasi

classification is Anggaran Masa Orde
divided into 3 Lama
functions

1998 Post-1998 Crisis of

1966 Old Order Period 1998 Stabilization and
Budget Classification Harmonization of the
Indonesian Economy

1999 APBN format 2000 Changes in the APBN 2001 Changes in the 2003 Post-Issuance
format to suit the Budgeting System Law No.17
at the beginning of period of the fiscal
Government Finance Static of 2003
the Reformation international standards year

2003 Budget classification is 2004 2004 Implementation of 2005

based on the explanation of
Law No.17 of 2003 on State Government Single
Emergency Fund Exploration and
Finance Account
Exploitation Fees

2011 Use of 3-month 2011 2011 Acceleration of 2013 Constitutional

SPN as a substitute for 3- Development in Papua Court Decisions and
Backlog on Foreign Loans
month SBI and West Papua Implementation of the
/ Grants
Provinces DPR RI's Budget Function

2014 Changes in the 2015 Year 2015: Welfare 2017 2017

Nomenclature of Regional
Transfers to Transfer to
Regions and Village Funds
Indicators Become Part
Changes in Budget Changes in Budget
of the State Budget
Financing Nomenclature
Financing Structure

• During history, Indonesia has had three constitutions, namely: first, the 1945
Constitution (amendments); second, the 1949 Constitution (UUD 14-12-1949); third,
the 1950 Constitution (UUD 15-8-1950). The 1949 Constitution was used during the
RIS period and lasted only one year, after which it returned to the unitary state. Even
though they have returned to the unitary state, changes will be made to the
constitution, and temporarily used the Provisional Constitution (UUDS). However,
with the failure of the Konsituante to form a new constitution, through Presidential
Decree on July 5, 1959, it returned to the 1945 Constitution. Then with the fall of
Soeharto, starting in 1999, amendments were made to the 1945 Constitution. Now the
1945 Constitution has undergone four changes.
• During the period 1947 to 1949 the budget functions were classified according to
functions as ordinary service, special service, and special service. Then starting from
1957 the budget function was classified into six sectors: (1) the general sector,
consisting of the highest government agencies and finance; (2) The security sector,
 which consists of Defense, Justice, Domestic Affairs and Inter-Regional Relations; (3)
Prosperity sector, which consists of agrarian, agriculture, economy, trade, industry,
shopping, transportation, education and public works and manpower; (4) the cultural
sector, which consists of information; education, teaching and culture; and, religion;
(5) The social sector, which consists of: health, social affairs, labor; movement of
people's power; Veteran; and, (6) the foreign sector.
• Budget classifications for the Old Order Period, for example for 1952 and 1953, were
prepared based on ministries and state companies, for example Part I (Supreme
Government and Highest Government Agencies), and Part IBW I (Jawatan
Penggadaian). At that time each section was determined by means of a law.
• During the New Order government (Order), at least from TA. 1969/1970 until TA.
1998/1999, the APBN was prepared based on a balanced budget system (T account).
On the revenue side, it is divided into domestic revenue and development revenue.
Development revenue according to the APBNs is revenue originating from the
opposite value of the rupiah aid and or foreign loans. Development revenue is
composed of two components, namely program assistance and project assistance.
Program assistance is the opposite value of rupiah from foreign aid and / or loans in
the form of food and non-food as well as cashable loans. Meanwhile, project
assistance is the opposite value of the rupiah from foreign aid and / or loans used to
finance development projects
• During the New Order Period to the 2004 State Budget, the classification of functions
was differentiated between sectors and sub-sectors, for example the Irrigation Sector,
consisting of the Irrigation Development and Management Sub-sector; Irrigation
Development and Management Subsector; and the sub-sector for the development and
management of water sources. However, with the State Finance Law, the details of
expenditure by function are based on the explanation of Article 11 paragraph 5 of
Law No.17 of 2003 concerning State Finance, the functions consist of 11 functions
and 79 sub-functions. The eleven functions consist of: (1) Public Government
Services; (2) Defense; (3) Order, Security and Law; (4) Economy; (5) Environmental
Protection; (6) Housing and Settlements; (7) Health; (8) Tourism and Culture; (9)
Religion; (10) Education; and, (11) Social Protection. In the budgeting process, the
basis for budget allocation is the programs submitted by the state ministries /
agencies. The amount of the budget for each function or sub-function is a compilation
of the budget of the programs that include the function or sub-function concerned.
Furthermore, the compilation of these budget allocations into statistical data compiled
according to international standards as stipulated in the classification of the functions
of government (COFOG) published by the United Nations. Thus, the classification of
state expenditures by function can be used as a tool of analysis that describes the
development of a country's spending by function, sub-function and program, which
can then be compared with other countries whose expenditure details follow COFOG.
the basis of budget allocation is the programs submitted by the state ministries /
institutions. The amount of the budget for each function or sub-function is a
compilation of the budget of the programs that include the function or sub-function
concerned. Furthermore, the compilation of these budget allocations into statistical
data compiled according to international standards as stipulated in the classification of
the functions of government (COFOG) published by the United Nations. Thus, the
classification of state expenditures by function can be used as a tool of analysis that
 describes the development of a country's spending by function, sub-function and
program, which can then be compared with other countries whose expenditure details
follow COFOG. the basis of budget allocation is the programs submitted by the state
ministries / institutions. The amount of the budget for each function or sub-function is
a compilation of the budget of the programs that include the function or sub-function
concerned. Furthermore, the compilation of these budget allocations into statistical
data compiled according to international standards as stipulated in the classification of
the functions of government (COFOG) published by the United Nations. Thus, the
classification of state expenditures by function can be used as a tool of analysis that
describes the development of a country's expenditure according to function, sub-
function and program, which can then be compared with other countries whose
expenditure details follow COFOG.
• The success in stabilization, harmonization and normalization of the polsoskam is
very important for the stabilization and normalization of the economy. If successful,
markets that are no longer afraid of the shadow of the police, will be sensitive to
stimuli of macroeconomic stabilization. If the polsoskam and macroeconomic
stabilization begins to show tangible results, market and investor confidence will
gradually recover.
• In line with demands for reform, the government of President Habibie also made
efforts to reform the APBN system. In general, not much has changed but the
preparation of the APBN TA. 1999/2000 saw an effort to be made to be more
transparent. The APBN for the previous fiscal years was deemed less transparent and
had the impression of "deceiving" especially the development revenue posts. APBN
TA. 1999/2000 continued to use a balanced budget system but the development
revenue post changed its name to foreign revenue so that the revenue side of the
APBN TA. 1999/2000 consists of domestic revenues and foreign revenues. Foreign
revenue is revenue originating from the opposite value of the rupiah from foreign
loans. Foreign revenue consists of two components, namely program loans and
project loans. Program loan is the opposite value of rupiah from foreign loans in the
form of food and non-food as well as loans that can be converted into rupiah. Project
loans are the opposite value of the rupiah and foreign loans used to finance
development projects.
• Starting TA. 2000 (the transitional budget year before the adjustment of the fiscal year
to the calendar year), the APBN format is prepared according to international
standards, namely the Government Finance Statistics (GFS). In contrast to the
balanced budget system where program and project loans are included in the revenue
post, the APBN with the GFS format uses a deficit spending system where domestic
loans and foreign loans are a source of financing to cover the budget deficit and are no
longer classified as revenue. Revenue is divided into tax revenue and non-tax state
revenue.
• APBN is implemented in a certain period of 12 months, which is called the budget
year. Starting from 2000, to be precise the APBN for the 2001 Fiscal Year, has used
the calendar year as the budget year. The calendar year in question starts on January 1
and ends on December 31. Previously, the fiscal year started April 1 to March 31 of
the following year. Due to this change, the 2000 fiscal year lasted only nine months,
namely from 1 April 2000 to 31 December 2000.
• The enactment of Law No.17 of 2003 concerning State Finances, is the basis for
changes in the APBN budgeting system in Indonesia. Important changes in the
budgeting system through Law No.17 of 2003 concerning State Finances are: first, the
application of a Budgeting Approach with a Medium Term Perspective; second, the
implementation of Integrated Budgeting; and, the third applies Performance Based
Budgeting.
• 2003 Budget Classification based on the explanation of Law No.17 of 2003
concerning State Finances Details of expenditure based on economic classification or
type of expenditure, based on the explanation of Article 11 Paragraph 5 of Law No.17
of Year on State Finance, then state expenditure is detailed based on the economic
classification / type of expenditure which consists of from personnel expenditure,
material expenditure, capital expenditure, subsidized interest, grants, social assistance
and other expenses. With the change in the new format, development expenditure in
the previous APBN was classified into personnel expenditure, material expenditure,
capital expenditure and other expenditure.
• 2004 Emergency Fund Emergency Fund is a fund originating from the State Revenue
and Expenditure Budget allocated to regions experiencing national disasters,
extraordinary events, and / or solvency crises.
• 2004 Implementation of Government Single Account As one of the government's
efforts to improve state treasury management is to implement a Government Single
Account (Treasury Single Account). The adoption of a Single Government Account
allows for a consolidated cash flow where receipts and expenses come from a single
account. To implement a Single Government Account, it is necessary to change the
mechanism for channeling APBN funds (cash disbursements) as well as the
mechanism for managing state revenues through the existing perception bank. This is
necessary to achieve the principle of a Single Government Account, namely state
revenues are received on the same day and state expenditures are made in a timely
manner and there is transparency of government cash flows.
• 2005 Exploration and Exploitation Fees Exploration and Exploitation fees (royalties)
are the production fees of mining business rights holders for the proceeds from
exploration / exploitation opportunities.
• 2011 Use of 3-month SPN as a substitute for 3-month SBI In addition to using the 3-
month SPN as the reference rate for Variable Rate series SUN, starting in 2011 the
interest rate used in the macro assumption reference for determining the APBN is the
3-month State Treasury Bills (SPN) interest rate, no longer 3 months SBI
• 2011 Backlog on Foreign Loans / Grants Backlog is the use of government bailout
funds in order to withdraw foreign loans / grants through a Special Account (Reksus)
mechanism that has not been requested or has not received replacement or has not
received replacement from foreign lenders / grants. In other words, a backlog is a
condition for SP2D that has burdened the Reksus, but the accountability has not been
filed.
• 2011 Accelerated Development of Papua and West Papua Provinces Accelerated
Development of Papua and West Papua Provinces or P4B are government policies
and programs carried out systematically, planned, measured and synergistically in
order to accelerate the improvement of the welfare of the people of Papua and West
Papua Provinces.
 • 2013 Constitutional Court Decision and Implementation of the DPR RI Budget
Function The Constitutional Court (MK) decided to cut the authority of the DPR
Budgetary Body in deliberating the State Budget (APBN). This decision was issued in
response to a request for judicial review of a number of articles in the Law
• 2014 Changes in the Nomenclature of Regional Transfers to Transfer to Regions and
Village Funds . In accordance with the mandate of Law Number 6 of 2014 concerning
Villages, the Nomenclature of Transfers to Regions has changed to Transfer to
Regions and Village Funds
• 2015 Year 2015: Welfare Indicators Become Part of the State Budget In the 2015
APBN-P, the Government and DPR RI agreed to include the components of the
people's welfare indicators into the APBN. Prior to 2015, it was recorded that since
2012 welfare indicators such as poverty reduction, the contribution of labor
absorption from economic growth, and the open unemployment rate were mentioned
in the State Budget Law.
• 2017 Changes in Budget Financing Structure In order to make budget financing more
informative, transparent and easy to understand by stakeholders, the 2017 State
Budget has a change in the classification of budget financing, which originally in the
2016 APBN-P consisted of debt financing and non-debt financing into debt financing,
financing. investment, lending, guarantee obligations and other financing. In terms of
budget financing, debt financing controls are carried out within reasonable and
maintained limits as well as investment financing to promote priority sectors and
community economic activities.
• 2017 Changes in Budget Financing Nomenclature Changes in nomenclature in budget
financing posts aim to make budget financing more informative, transparent, and easy
to understand by stakeholders.

2. Describe relationship planning, budgeting and accounting in local government.

Expressed in monetary units The budget is expressed in units or units that can be
applied to various activities of the company. The budget is an important component in the
management control system, because the budget functions as an operationalization of the
formulated strategy and programs to achieve it. Thus, the budget describes certain programs
in action plans and the sources of costs provided.

a. Budgeting Function
A budget is only a tool and however good a budget will not function properly if the
people who use the budget cannot use it properly. Nafarin 2006: 12 states "The budget as a
management tool in carrying out its functions has the same function as management
including planning, implementation and supervision functions". The budget function is
described as follows:

1) The Budget Planning function is a written planning tool that demands careful
thought, because the budget provides a clear and tangible picture in terms of
units and money, of the objectives to be achieved, potential sources of profit
and ways of realizing them.
2) The function of the Budget Execution is a guideline in the implementation of
work, so that work can be carried out in harmony with the achievement of
 profit goals. So the budget is used to harmonize the coordination of each part
of the activity. Thus, each division must carry out its duties in a harmonious,
directed and coordinated manner as planned or set out in the budget.
3) Budget Supervision function is a means of control or supervision. Supervision
is carried out by assessing the evaluation of the implementation of its work,
namely by comparing the realization of the plan with the plan. 2. Taking
corrective action if deemed necessary if there are deviations that harm an
entity.

b. Budgeting and Accounting Relationship

In simple terms, accounting is defined as a systematic way of recording, categorizing,
summarizing, analyzing and interpreting financial events that occur and will be carried out by
the company. From this understanding it appears that accounting presents historical data,
presenting financial events that occur from day to day in an orderly and systematic manner.
Meanwhile, the budget provides estimates for a certain future period of time. When
connected, it can be seen that budget and accounting have a very close relationship, namely:

1) Accounting provides historical data which is very useful for making estimates
that will be included in the budget, which will later serve as a work guideline
in the future. Thus accounting is very useful in budgeting.
2) Accounting also records systematically and regularly about the
implementation of the budget later. Thus accounting provides complete budget
execution data. This data on the realization of the budget will be compared
with what is stated in the budget estimate itself to conduct a performance
appraisal. Because accounting data is indispensable for preparing a budget and
is indispensable for comparison with the budget in order to carry out the work
supervisory function, all recording techniques and all systematics used in
accounting must be the same and in line as well as the systematics used in the
budget.

3. Give your value about the implementation of Pancasila, especially sila IV in the
public planning process in Indonesia. Do the judge distance the results of existing
research and divided with the course of democracy in other countries.

Public sector planning and budgeting has unique or different characteristics

compared to non-public organizations (corporations). In public sector planning and
budgeting issues related to planning and budgeting such as participation, budget gaps,
performance loyalty and other dimensions. The development planning process
emphasizes the work plan as a process of input in the form of finance, labor, facilities,
and others. The planning process begins with information about the availability of
resources, and the direction of national development, or it can be said that it is in
accordance with the needs, the dynamics of reform and a more democratic and open
government, so that the people know best what they need. Community involvement in
the policy making process and development planning is a driving factor for successful
development. Currently, the index of community participation in development is still
low, this is indicated by the presence of people who do not understand the
development process and planning.
Unlike the democracies of other countries, for example, Europe uses liberal
democracy. Liberal democracy is an understanding that focuses on individual
 interests. Liberalism tends to prioritize individual freedom over the interests of
society. Sometimes the interests of society can be overpowered by individual
interests.

Democracy in Indonesia uses democracy with a presidential system because

the source of democratic teachings in Indonesia is Pancasila, so the name is
democratic Pancasila. The identity or democratic characteristic of Pancasila is the
fourth principle of Pancasila, namely democracy led by the wisdom of wisdom in
deliberation / representation. This precept is related to our behavior to always consult
in solving problems. Its implementation is also inspired by the other four precepts.
Conceptually, the democratic practice of Pancasila is based on the teachings of
Pancasila itself.

Planning according to a technical approach is carried out using scientific methods and
frameworks by institutions or work units. Planning according to a participatory approach is
carried out by involving parties with an interest in development. Development planning
consists of four stages, namely:

a. Planning
b. Plan setting
c. Control over the implementation of the plan
d. Evaluate the implementation of the plan

The four stages are held continuously to form a complete planning cycle. Control over
the implementation of development is meant to ensure the achievement of development goals
and targets as stated in the planning document through corrections and adjustments.
Evaluation of plan implementation is part of development planning activities that
systematically collect and analyze data and information to assess the achievement of
development goals, objectives and performance. A very important element of decision
making in planning is the process of developing and selecting steps to be taken to deal with
problems experienced by public sector organizations.

4. Make a strategy to improve but which my brother transported at number 3 head of

the brother in the position at the time of becoming the local government.

Strategies to correct weaknesses regarding the implementation of Pancasila, especially

precepts IV in the public planning process in Indonesia:
• As head of government, we should really think about the preparation of a public
development plan in a mature and structured manner
• After preparing the plan in great detail beforehand, it is better if in determining our
plans as the head of the government, we must really divide the jobs for a cabinet in
good proportions and must be able to ensure that each division takes an active role
and understands a plan that has been prepared previously and in compiling the head of
government must also make the decision to develop and select the steps to be taken to
address the problems experienced by public sector organizations
• Carry out internal and external control over the implementation of public
development to ensure the achievement of development goals and targets as stated in
the planning document through corrections and adjustments with precise execution
• Evaluating the implementation of plans regularly used to collect and analyze data and
information to assess the achievement of development goals, objectives and
performance, this is very important so that the development process and planning for
the public run optimally and can minimize problems that occur besides that can also
be used as a reference for making good decisions for further execution
• The last strategy, the most important thing is to carry out the plan in a sustainable
manner, determine the plan, control the implementation of the plan, evaluate the
implementation of the plan continuously over and over again to form a complete
planning cycle so as to strengthen the implementation of Pancasila, especially
principle IV in the public planning process in Indonesia

5. Read 3 other countries that are well based on society.

a. England

There are three connection systems of decision making

✓ Public Expenditure Survey Committee (PESC) System
✓ Program Analysis da Review (PAR)
✓ Staff Review Policy Center (CPRS)
b. France
✓ PPBS applications in defense organizations are knownas "planning,
programming, and preparation of the budget"and offer acoordinated
framework for centralized decision making and control.
✓ Applications in civil departments known as "optimization of public
expenditure," whichemphasizes more on the application of investment
assessment techniques.
✓ Both, combined in, would be the rationalization of the budget choice
rasionalisation des choixbudgetaires-RCB
✓ RCB mempunyaitigakomponen: yaitustruktur program, sruRCB has three
components: program structure, analytical studies, and information
systems.dianalitis, dan sisteminformasi.
c. Sweden
Currently, the budget system in Sweden has several elements that combine
planning, medium-term forecasting, and efficiency measurement.

d. Greece
Greece for three years has initiated the implementation of the form of ZBB
andproductivityassessmentprogram. Zero Based Budgeting (ZBB) is a budget
system based on estimated activity, not on what has been done in the past.
Each activity will be evaluated separately.

e. Austria, Denmark, Germany, New Zealand and the Netherlands are among the
countries that have broadly introduced reforms involving the selection of
budget reclassification into programmes, medium-term forecasts, introduction
to assessment techniques, productivity measurement and performance in some
parts.