STATE FINANCES

According to the mandate of the Constitution of the Republic of Indonesia, especially in the preamble, Article 23, and Article 33, Indonesia had a duty to manage the wealth of the country including the areas of wealth in order to realize the maximum benefit of the people. For its implementation, the Constitution authorizes the state to control and use the entire wealth of the country is derived from the earth, water and natural resources contained therein. State Assets includes two terms, namely the assets owned by the government (public domain) and the wealth controlled by the State (private domain).

Since the reform of state finances rolled in early 2003, Indonesia has built a strong commitment to meet the principles of good governance (good governance) through financial management .  The scope of the changes that occur very basic and comprehensive including the management of state assets.  It started with the birth of three (3) packets Law Finance State consisting of Law Number 17 Year 2003 on State Finance, Law No. 1 of 2004 on state Treasury and Law No. 15 Year 2005 management Audit and state Financial Responsibility locomotives that have been made ​​ for a paradigm shift management of state assets.

The rationale for the issuance of Law No. 17 of 2003 is a state in the achievement of objectives as stated in the fourth paragraph of the Preamble of the Constitution of 1945 with the establishment of the state government that performs functions of government in a variety of subject . The formation of the state government determines rights and obligations that can be assessed with the money that needs to be managed in a country's financial system . Financial management as defined in the Constitution of the Republic of Indonesia in 1945 needs to be implemented in a professional, open , and responsible for the overall prosperity of the people .

The Law No. 1 of 2004 on State Treasury is the highest legal protection in the field of financial administration of the country. Definition of state finances by the object includes all the rights and obligations of states that can be valued in money , including policies and activities in the areas of fiscal , monetary and the separated management of state assets , as well as everything in the form of money , goods , or goods that can be used as a form of state-owned in connection with the implementation of rights and obligations .

In order to improve the efficiency and effectiveness of the investment and management of state property , State Treasury Law has been mandated to manage the technical and administrative guidelines in a Government Regulation No. 6 of 2006 on Management of State / Region .