Regional Regulation on Additional US$2.3 Million Government Equity Participation in East Kutai BPR is expected to have a positive impact on improving people’s life.
Heaptalk, Jakarta — The East Kutai Regency Government and the Regional House of Representatives (DPRD) approved the regional regulation draft (Raperda) on Additional Government Equity Participation of Rp35 Billion, worth US$2.3 million (US$1 equals Rp14,936) in East Kutai Rural Bank (BPR).
The draft was accepted at the 7th DPRD Plenary Meeting led by the East Kutai DPRD Chair, Joni, accompanied by Deputy Chair I, Asti Mazar, which took place in the East Kutai DPRD Meeting Room (05/16).
According to East Kutai Regent Ardiansyah Sulaiman, the discussion of this Raperda is part of the mandate of Law No. 23 of 2014 on Regional Government. Further, the law is the legal basis for regional governments to exercise their authority based on the spirit of regional autonomy, particularly the authority to formulate and form regional regulations based on regional needs.
The drafting of this Raperda is a regional requirement. Ardiansyah hoped that the ratification of the Raperda to become a Regional Regulation (Perda) will be able to have a positive impact on improving people’s lives, particularly small and medium-sized communities through the development of micro, small, and medium enterprises.
“This is proof of the concern and earnestness of the Regional Government and members of the council in carrying out their duties and functions, especially in the formation of legal products that are beneficial, fair, and provide legal certainty in our beloved East Kutai Regency,” said Ardiansyah.
Meanwhile, the chair of the special committee (Pansus) for Raperda on Government Equity Participation in BPR as well as Chair of Commission B for the Economy and Finance of the East Kutai DPRD, Hepnie Armansyah, said that the Raperda was a proposal by the East Kutai Regional Government which had been included in the legislative program of the Regional Regulation Formation Body (Bapemperda) DPRD for the 2023 fiscal year.
Hepnie said, “After the directors of East Kutai BPR explained to the special committee, they showed good performance, the financial position referred to the financial statements in good condition and was able to provide benefits to shareholders in the form of dividends.”
Referring to Government Regulation No. 12 of 2019 on Regional Financial Management article 78 paragraph 1, Hepnie stated that regions can include capital as referred to in article 70 paragraph 40b in regional-owned enterprises (BUMD) or state-owned enterprises (BUMN). These provisions become the legal basis for regional governments in adding equity participation for BPRs.
