Dana Alokasi Umum (General Allocation Grant)

Description
General Alocation Grant (GAG) is a one of central government transfer to local government which source from APBN. GAG alocated to reduce horizontal imbalance and donate for local necessities.

GAG is a block grant alocation. It means, local government can use GAG for donate project base on priority and improve public service for implementing local government autonomy

Base Legal
Law number 33 year 2004 “Perimbangan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah” and Government Regulation number 55 year 2005 “Dana Perimbangan”

GAG Alocation
GAG alocated to local government (province, municiple, and city)
GAG budget state minimal 26% of PDN Netto on APBN.
Proportion of GAG for province and municipal/city base on quantity of autority

Phase of GAG Formulation
1. Academic Phase
The first, Independent team from some chosen university gives input concerning calculation of GAG and concept to arrange implementation of GAG policy base on Law number 33 year 2004 and consider to characteristic autonomy in Indonesia
2. Administrative Phase
Ministry of Finance arrange coordination and verification row data for GAG formalation with BPS, Minister of Home Affair, Bakosurtanal, Ministry of Civil Servant and BKN.
3. Political Phase
Government make simulation and calculation formula of GAG, base on GAG basic data cross check. Government with DPR-RI discusses and chose the best simulation of GAG formula
4. Allocation Phase
Final result of agreement of GAG calculation between DPR (Panitia Kerja Transfer ke Daerah) and government (Ministry of Finance as a leader team) is specified with President Regulation

GAG Formulation
GAG, allocated based on fiscal gap principle which represents difference between region fiscal need to region fiscal capacities and basic alocation which represent salary of local civil servant.

GAG = Basic Allocation + Fiscal Gap

Basic Allocation = Salary of Local Civil Servant
Fiscal Gap = Fiscal Capasity – Fiscal Needs

GAG Variable :
Fiscal Needs Variabel :
1. Population
2. Area
3. Human Development Index
4. Construction Index
5. Domestic Regional Product



Fiscal Capasity Variabel :
1. Own Resources
2. Revenue Sharring Fund (Tax and Natural Resourcees)

GAG Calculation Methode
Total wage of Civil Servant count for a year base on salary realization report on previous year (t-1). Salary realization include basic salary and allowance stipulated in the applicable salary regulation

Fiscal Gap
Fiscal Gap of each local government : Fiscal Needs minus by Fiscal Capasity.
Fiscal Gap Allocation of each local government derives from percentage of Fiscal Gap of each local government (Fiscal Gap of each local government devide total Fiscal Gap national) multiplication with Fiscal Gap National allocation.

Fiscal Needs
KbF = TBR (á1IP +á2 IW + á3 IPM +á4 IKK +á5 IPDRB/kap)

Exp:
TBR= Total Average of Local Government Expenditure
IP = Population
IW = Area
IPM = Human Development Index
IKK = Construction Index
PDRB = Domestic Regional Product
.á = constanta index

Fiscal Capasity
KpF = PAD + DBH Pajak + DBH SDA

Exp:
PAD = Own Resourcees
DBH Pajak = Tax Revenue Sharring
DBH SDA = Natural Revenue Sharring

Just Wait and See

For a couple month, we are being worry about the condition of macro economic. The US economic dropped by miss calculation of US housing debt. Suddenly, this tragedy influence the macro economic and being a globa recession. As we seen on the TV News, the effect of global recession gradually impact on indonesian economic.

The real impact of global reccesion in Indonesia is on sharp decreasing of BEI Index. The BEI Index drop from 2.700 point (january 208) to 1.200 point (december 2008). A lot of international manufacture collaps, some of them bangkrupt, many of them still alive but dischard a lot of their employee and worker. the crude oil (main support of manufacture) price gradually dropped, that's a logic impact of manufacture collaps.

In Indonesia, the global reccession were immidatelly effect on macro consumption pattern especialy on electronic, car and real estate demand. We don't know about the effect of global reccesion on basic need consumption product. As we seen on the market, most of the market were still crowd with a consumen, and a lot of stuff still exist in market. I hope the global reccesion would not make a big effect on basic need supply

Iraqi Dinar, What a Wonderfull Investment

Can you imagine on 2 years investment at least, our investment will grow up until 500 times. No wonder everybody will rush to invest on this basket. Some people don't believe with this issues but others who love take a high risk will try to find this investment, they believe high risk is a tight relationship with a high return or profit.

If you want to take a risk for getting a giant refund, you can buy a Iraqi Dinar . Why do we have to buy a Iraqi Dinar ? Well, a Iraqi Dinar is a legal money on iraq state now. After the US invation, Iraq Dinar going to down to the lowest point. As a record, before Gulf Crisist, 1 Iraq Dinar is equivalent with USD 3.3. On 2006 is the lowest point of Iraq Dinar, it change that USD 1 is equivalent with Iraq Dinar 1532. Today Iraq government is going to be stable and Iraq Dinar going to step enclose with the equilibrium position on curency, as the last record USD 1 is equivalent with Iraq Dinar 1234, the government believe that on 2 years next the Iraq Dinar will be louch on the position USD 1 = Iraq Dinar 1.

If we want take a high value investment, you should take as many as Iraq Dinar for your investment, on the black market, Iraq Dinar sell on many package: Iraq Dinar 25.000, Iraq Dinar 45.000, Iraq Dinar 70.000 and Iraq Dinar 100.000. on December Iraq Dinar 25.000 sell on Rp.600.000,- and this position will be change depend on internal stabilize on iraq and value of oil (we know that iraq is top 2 of oil producer in the world). the analyst predict on next month Iraq Dinar will increase sharply