ISEB2012.

Conceptual Paper

TIMING OF GOVERNMENT PROJECTS:

TO REDUCE INFLATION AND MAINTAINING STABILITY OF RUPIAH EXCHANGE RATE
Darmawan
Management Science Doctorate Program, School of Post Graduate Studies Indonesia University of Education Bandung, Indonesia darmawanmpa@windowslive.com

SCIENTIFIC SUMMARY
The inflation rate in Indonesia is usually increased at about the end of the year, the third quarter. This can be caused by many factors, most often the primary factor is the already endless number of primary agricultural crops, resulting in rising prices of rice in the market. Year-end holidays and religious holidays also encourage excessive consumption, it certainly contributes greatly increases the rate of inflation. On the other hand many of the ministries / agencies, which have for years been implementing the same project management. Almost all ministries / institutions have a low budget absorption in the first half. Even many tender new projects began in about August. This result, new projects can be run in October, November and December. Of course, this affects the accumulation of two possibilities, the amount of money in circulation and the possibility of project failure because of the financial year ending. Subsequently issued a dollar-Budget Revenues and Expenditures - Budget Revenue and Expenditure may increase the rate of inflation, of course, further encourage increased Rupiah exchange rate. Keywords: government projects, inflation, exchange rate Background: Data from the Central Bureau of Statistics show 1 the absorption of the budget in almost all ministries and agencies in the first semester (January-July) was so low. It affects the central government spending in general shows a characteristic absorption pattern of spending is low in the first half and piled at the end of the fiscal year. These data suggest at least the activities of government in this month alone except for routine expenditures, such as personnel expenditure, spending on services and the related services, stationery, and building repairs. Which means, spending an employee who is still dominating the State Budget and Regional Budget? In addition, almost none of the government project, the ministry / institution carried on in the month of this semester. This can be seen from the two indicators 1) at least factual project activities of government, both central and local governments and 2) little or virtually no government project tender offer in the national media during both the central government, local government, institutions and even other government agencies ( such as procurement of goods and services in college). Patterns that occur at the level of the central and local governments will interfere with the performance plan policies the State Budget on the economy in general. On the other hand, are likely to impact on economic growth, employment and poverty reduction target of fiscal policy in particular.
1

Based on the Central Government Financial Statements (LKPP) Semester I 2006-2011

ISEB2012. Conceptual Paper According to the Directorate General of Taxes, Government Project is a project listed in the Entry List Project (DIP) or equivalent document DIP including projects financed by the Loan Agreement Forwarding (PPP) / Subsidiary Loan Agreement (LOA). The project - a project of this government activity both goods and services spending will suddenly jumped in the last three months, October, November and December. In the month - this month, all the ministries / agencies, central government and provincial and district governments are busy. Even in November and December all the hotels of three stars and above, all of education and training ministries / agencies, central and local government is full of events working meetings, seminars, and workshop. All government organs will compete to be excessive spending that would end this budget. As will be the performance of a government organization is only measured by the absorption of the budget, rather than on the achievement of performance outputs, outcomes and benefits that are outlined in the budget year. Based on the Central Government Financial Statements (LKPP) semester of 2006 through the first half of 2010 shows the low absorptive capacity, which means at least a budget of government activities outside the regular shopping in January until the month of July. Percentage of budget does not even reach 50% (half of the budget) or even 40%. Data show the movement is only about 20% to 30%. Even at the end of the year was not much different, Year 2010, the absorption of capital expenditure only reached 84.49 percent, or about Rp 80.29 trillion from an allocation of Rp 95.02 trillion. However, in the State Budget of 2011 the government has increased allocation of capital expenditure amounted to Rp 140.95 trillion in the State Budget Amendment of 2011. Absorption of the realization of capital spending until early September 2011 only 26.9 percent of the allocations in the State Budget Amendment in 2011. Realizable value is lower than the absorption of capital expenditure over the same period last year amounted to 27.9 percent. Absorption of the budget that is often conducted by the Ministry / Agency on a large scale at the end of the year could trigger inflation. The inflation rate in November, even December of each year, is expected to also be triggered by the absorption of the state budget is aggressive at the end of the year. Which adds to the problem then is in addition to absorption due to massive budget by ministries / agencies, on November inflation rate is likely to occur because some of the prices of commodities such as rice and red pepper has increased. There are some commodities that experience price increases, such as rice, red pepper. The condition is likely to continue until December because the harvest had passed so that the distribution and supply of rice will depend on the remaining stock of reserves and imports. That inflation will be higher in December than November; the high rice prices have gone up because the harvest is almost over. This is exacerbated by climate change is difficult at this point in the forecast, so farmers difficult to regulate the growing season and plant species that will be in production by farmers. Of course this also because of religious holidays (Christmas day), end of year holiday, which often also lead to high demand for goods and services. Moreover, with the leave policy that the government is set to boost tourism. Hypothesis and Aims: Hypothesis of the paper is Is timing of the government project can reduce the rate of inflation so that the effect on maintaining stability of the rupiah exchange rate? The aims of this paper is to look for alternative policies that could be achieved for budgeting and realization, in an effort to reduce inflation, and maintaining stability of the rupiah exchange rate, by way of equitable distribution of government projects during the fiscal year.

ISEB2012. Conceptual Paper Design: Simply Inflation can be defined as rising prices in general and continuous 2. This means an increase in the price of one or two items alone cannot be called unless the rise in inflation that resulted in price increases in other goods (domino effect). While the opposite of inflation is called deflation. Several indicators are often used to measure the rate of inflation such as the Consumer Price Index (CPI)3. CPI change from time to time show the price movement of goods and services consumed by the public. Since July 2008, the package of goods and services in the CPI as an indicator has been done based on Cost of Living Survey (SBH) in 2007 conducted by the Central Statistics Agency (BPS). Then, the BPS will monitor the price movement of goods and services on a monthly basis in several cities, the traditional and the modern market for some types of goods / services in each city. Other inflation indicators used by international best practice include: 1. Wholesale Price Index (WPI). WPI is the price of a commodity transaction that occurs between the seller and wholesaler first with buyer / trader the next big market in large numbers on the first of a commodity. 2. Gross Domestic Product Deflator (GDP). Describe the measurement of the price level of GDP final goods and services produced within a country. Generated by dividing the GDP deflator of GDP based on nominal prices to GDP at constant prices. According to Central Bureau of Statistics, inflation as measured by the CPI in Indonesia are grouped into 7 groups of expenditure (based on the Classification of individual consumption by purpose - COICOP), namely: Food Ingredients Group, The Food, Beverage, and Tobacco, Housing Group, the Group clothing, Group Health, Education and Sports Group and the last group of Transport and Communications. Besides COICOP groupings based on the way, the current BPS also publishes other inflation based grouping called disaggregation of inflation. Disaggregation of inflation is taken to produce an inflationary indicator that further illustrates the influence of fundamental factors. In Indonesia, in practice disagegasi CPI inflation is grouped into several types based on the cause: 1. Core inflation, the inflation component is likely to persist or persistent (persistent component) in the movement of inflation and are influenced by fundamental factors, such as: o Demand-supply interaction o The external environment: the exchange rate, international commodity prices, inflation in trading partner o Inflation expectations of traders and consumers 2. Non-core inflation, the inflation component of high volatility tends to be influenced by factors other than fundamentals. Non-core inflation components consist of: o Volatile components of inflation (Volatile Food): Inflation that is predominantly influenced by shocks (shocks) in foodstuffs such as harvesting, natural disturbance, or developmental factor prices of food commodities for domestic and international food commodity prices. o Inflation component of the government regulated price (Administered Prices): Inflation is predominantly influenced by shocks (shocks) in the form of government pricing policies, such as the price of subsidized fuel, electricity rates, transport rates, etc.
2 3

See Pratama, Rahardi. 2001:203. Ekonomi Makro. Jakarta: Salemba Empat, Universitas Indonesia. As a comparison can be seen also how to measure the rate of inflation: Nopirin. 2000. Ekonomi Moneter.

Yogyakarta: BPFE.

ISEB2012. Conceptual Paper Inflationary pressures arising from supply side (cost push inflation), from the demand side (demand-pull inflation), and of inflation expectations. The factors of cost push inflation can be caused by exchange rate depreciation, the impact of foreign inflation is mainly trading partner countries, an increase of commodity prices that set the government (administered prices), and the negative supply shocks occur due to natural disasters and disruption of distribution. Ibn Tamiyah4, in his book Majmu 'Fatwa Sheikh al-Islam delivered an important warning about the money as a commodity, namely: Trade Exchange will trigger inflation; loss of confidence in the stability of the currency will be discouraged people to make long-term contracts; domestic trade will decline because of stability concerns the value of money; international trade will decline; precious metals (gold & silver) which had previously been intrinsic currency value will flow out of the country. Factors that cause demand-pull inflation are high demand for goods and services relative to their availability. This paper concerns to understand the relationship of government projects, inflation and exchange rate. In a macroeconomic context, this condition is illustrated by real output exceeds potential output or the total demand (aggregate demand) is greater than the capacity of the economy. Meanwhile, the factor of inflation expectations is influenced by the behavior of economic agents in the community and uses the inflation expectations of economic activity in the decision. Whether inflation expectations are more likely to be adaptive or forward-looking. This is reflected in the behavior of price formation at the level of producers and traders, especially on the eve of the day-religious holidays (Eid, Christmas and New Year) and the determination of regional minimum wage (UMR). Despite the availability of goods is generally thought sufficient to support an increase in demand, but prices of goods and services in times of religious holidays and New Year's Eve warning to rise higher than the supplydemand conditions. Similarly, when determining the minimum wage, traders were also increases the price of goods even though the wage increase was not significant in driving the increased demand. To note the shift in the inflation rate is that if the domestic inflation rate (inflation rate of our country) is higher than the inflation rate in neighboring countries (or states associated with our trade both exports and imports) to make real domestic interest rate becomes competitive so as to put pressure on the rupiah value. Ties of foreign exchange rates with inflation example are Indonesia where inflation is higher than the USA and the exchange rate unchanged. This causes the price of exports of goods and services in Indonesia become relatively more expensive and unable to compete with goods and services from abroad. Indonesia exports will tend to decline while imports from other countries tend to increase. Impact, will experience the pressure and the yen depreciates or U.S. $ will have an appreciation of the Rupiah. In order to reduce inflationary pressures, the government (executive) and Bank Indonesia continuously improve coordination in monitoring and controlling inflation, which, among others, pursued through a policy to stabilize the exchange rate, maintaining adequate supplies and smooth distribution of basic material needs, lowering inflation expectations still at a high level, further minimizing the impact of administered prices, as well as controlling the aggregate demand in order not to exceed the capacity of the economy. With these policies are expected to increase in the rate of inflation can be inhibited, and economic growth can be moved up. In practice this coordination, the independence of Bank Indonesia are often co-opted by the political interests of the government. Although the legislation on the independence of the Bank Indonesia has been the same - as in understand, in practice this is not as easy as theory.
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Ibn Taymiyyah who was born in Bani Mamluk reign in 1263.

ISEB2012. Conceptual Paper

The relationship between inflation rate and the stability of the rupiah exchange rate that has been previously described is of course only in the reduction model of reality is actually for the benefit of limiting the scope of the problem and discussion in this paper. While the relationship with the distribution of the projects implemented by the central government and local government, a level of absorption of the budget (revenue and expenditure budget) will be defined by the model of the Relationship between timing of government projects, inflation, Rupiah exchange rate described in the following diagram:

Figure: Relationship between Equity Project Time, Inflation and Exchange Rate Stability Rupiah Potential Impact: The experience as a civil servant in the Ministry of religious affair, the problems that often lead to poor absorption of the budget is as follows, in the process of implementation of the procurement of goods and services: 1) technical specifications of goods / services does not exist / is not clear. 2) Fund source selection plan is not appropriate. 3) The cost of the field is not in accordance with the Standard of the Standard cost General and Special. 4) The number of complaints from the public or NGOs to the police and the Prosecutor. 5) The lack of socialization mechanisms of procurement of goods and services. 6) Lack of procurement committee of certified L. 7) legislation are often contradictory. 8) Land acquisition. The low absorption means least the project budget and government ministries / agencies and local government do government spending on goods and services. Since the issuance of Perpres No. 80/2003 on Guidelines for Procurement of Goods / Services, public servants are no longer fight each other to project leaders, often throwing job offers among the civil servants. This is often caused by an unnecessary fear of civil servants who became official commitment makers / officials charge of activities (PPK) because the case law involving these offices on projects in the previous fiscal year.

ISEB2012. Conceptual Paper One other thing that leads to lower absorption of the budget is the execution of the Budget Document and Process Revisions. System of data collection, storage and distribution of data in the ministries / agencies are often very bad5. Budget planning is not done often cause the budget to be revised. They are often in the budget submission is not accompanied by adequate supporting documents, such as the Term of Reference (TOR), Budget Plan (RAB), and others, led to the proposed budget marked with an asterisk. Should be recognized and archiving the data collection process in many ministries / agencies have not been so good (even though it was started there was an attempt to perform online data collection directly by the smallest working unit in each ministry / agency). In fact, revision and "disappearances" budget asterisk require a time consuming process. Worse yet, if the revised budget was done several times, thus resulting in the absorption process is hampered shopping. It is concluded that the functional human resource planners in each ministry / institution is very bad. They are often found in the preparation of the Work Plan and Budget Activities ministry / institution is a duplicate of activities the previous year, which of course should require many adjustments. Adjustments are done by the planners was to raise the budget only a few percent of each budget item. Though the assumptions may change very much, such as changes in the number of employees, expansion of the organizational structure, assuming the price increase of goods prices, and many more that should be consider carefully. To the problems of absorption of the central government budget is low in the first semester so far, it is necessary to improve the government's efforts to accelerate the absorption of central government spending in the future. a) Call for ministries / agencies to promptly resolve the internal problems in budget execution; b) Ministry of Finance to communicate actively with ministries / agencies to assist in the completion of the implementation of the budget; c) The Policy Institute for Government Procurement (LKPP), are encouraged to increase socialization to all ministries / agencies and local government regarding procurement mechanisms. The low absorption of the budget or at least activity capital expenditures, government expenditures on goods and services this semester will result in two important respects, not the movement of the economy that should be in motion by the budget. And the second means there will be accumulation of budget in the next month. Which has not been studied is whether, if the budget better absorption, the available budget and do not lead to sufficient budget deficit? This can be seen in the example of the realization of the first semester of the 2006 budget the following: TABLE BUDGET AND REALIZATION (in trillions of rupiah) First half of FY 2006 budget Realization Revenue and Grants 625.2 236.6 Expenditure 647.7 237.9 Central Government Expenditures 427.6 134.3 Expenditures for Regional 220.1 103.6 Budget Deficit 22.4 1.3 Net financing 22.4 11.6 This becomes important because, to be a problem if the executor is also a budget: User Authorization budget (KPA), Officer Commitment / Activities Responsible Officer (PPK) and the treasurer are ready to realize budget, on the other hand the available budget in the finance department is not available?

Turseno, Slamet. 2011. Rendahnya Daya Serap Anggaran: Antara Rendahnya Kinerja Pemerintah dan Buruknya Penganggaran. Jakarta: Universitas Indonesia.

ISEB2012. Conceptual Paper Alternative loans have been taken will only add to the burden of the State Budget. The author tries to give an alternative. As we know, the tax payment by the taxpayer is always tried to be postponed until the final payment to the limit of time. Regulation of the Minister of Finance No. 184/PMK.03/2007) for SPT: for the Annual Income Tax an individual taxpayer, no later than 3 (three) months after the end of the Fiscal Year; to the Annual Income Tax agency, maximum of four months after the end of tax year. If we want a greater realization of state revenues, we can make the taxpayers pay more quickly and on time by providing a progressive reduction of the tax based on the time of payment. Therefore, this could be one way also for the taxpayers to get a tax deduction. Indeed, for the treasurer is also expected to promptly pay the tax may be levied on the country as soon as possible.6 We should also understand that the purpose of infrastructure development is the main economic activity in the sector rill. On the other hand, the problem is, if in an industrial area (in Dayeuhkolot Bandung West Java for example), all access roads to the industrial park will be improved. Whether it is roads Mohamad Toha, Banjaran Highways, Roads BuahBatu - Bojongsoang, and Andir Baleendah Road in repair at the same time (as has happened during the regime of SBY). Then where road access into this area? It is forced to taken for granted that the month of October, November and December are, very severe congestion will start from 5.30am till dawn hours of 21 o'clock at night. That gives the difficulty to the manufacturer's factory workers, raw materials. Because, it is difficult to getting into the big rig trucks to enter (the road in use during this period is usually only one direction). In addition, this is a common sight throughout the industry in West Java have ever seen. Does this then mean the industry should break during the construction of this infrastructure? How many billion in losses that businesses suffer? How many billions of tax will lose? How many of our workers to be laid off work? Then the impact would be enormous if this happens. Therefore, any alternative that happens, the buildup of government projects in a particular region or a buildup of government projects in the same month, will be the same trouble to both the welfare of the people in the short and the stability of our exchange rate. If we compare the means of Transport Development goals.7 (GOAL TARGET achievements (outcomes)) The increased capacity of transport infrastructure to reduce the backlog and bottleneck capacity of transport infrastructure, national road conditions and a steady 90% with minor damage and no serious damage. Average speed 60 km / h road vehicles in national share of the domestic sea freight transportation 100% and export 10%. Share of railway transport of goods 7% and 23% of passengers, passenger growth in air transport DN 9.78% and 12.3% LN. Maintaining the share of public transport users 50% in urban areas, increasing public accessibility to health facilities and transport infrastructure, transport systems founding of urban and rural transport in remote areas, rural, border and island leader who can reach all levels of society. Increase in service pioneer in remote areas, border, and isolated. Availability of PSO for transportation services in developing regions and urban areas. Increased affordability of transportation services for the people who have disabilities and the elderly, increasing the safety of the community to service facilities and transportation infrastructure, reduced the ratio of the number of transport accidents to population, decline in the ratio of the number of transport accident fatalities to the number of accidents, institutional restructuring, implementing regulations clearly provide separation between the regulator, owner and operator in the operation of transport services, adaptations and mitigation of climate change on transportation, the achievement levels of vehicle emissions in accordance with Euro-2 standard and the implementation of motor vehicle emissions testing, conversion of the use of public transport on CNG fuel by 20%. Based on the exposure
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Pardiharto (Kakanwil DJPBN Prov. Sulsel), 2012. In the event of understanding the mechanism of liquefaction Budget Stabilization 2012 KPPN Parepare Sulawesi Selatan. Media Center Perbendaharaan. 7 Skala Prioritas Pembangunan Infrastruktur RPJMN 2010 2014

ISEB2012. Conceptual Paper of the conclusion is simply a means transportation Development goal is the passage of real economy so that public welfare objectives could be achieved. Managerial Impact: In the medium term, improvements need to be comprehensive improvements, including: 1. Improve human resource capabilities (User Authorization Budget (KPA), Officer Commitment / Activities Responsible Officer (PPK) and the treasurer) related budget management and procurement of goods and services. Training in budget management is very important8 this is because the regulation in this field is constantly changing. Often, indeed, training is only given to the treasurer of the expenditure on each work unit. Though spending unit treasurer had no authority to make budget planning and evaluation. On the other hand, a lot of commitment maker officials / officers responsible for the activities do not have a certificate of eligibility as a project leader. So many of these projects in a work unit under the leadership of the project come from a higher work unit. Owner of the certificate is very little, even in an area of ministry offices, employees who only have a certificate of no more than a handful. The situation is better by comparing many graduation employees are not appointed to follow the certification in Bappenas. If the selection of this certification is more open to public servants who are interested and more training held earlier enough, certainly this obstacle can be more easily resolved. 2. Improve data quality in the preparation of the budget for the preparation of a better budget planning. Budget planning in Indonesia undertaken in stages, starting from the lowest unit through RKAKL program. The unfortunate thing is that many of these work units that submit plans to the people who do not have enough competence. Data support the preparation of the budget is also often very bad. Many of the treasurers who do not have adequate educational qualifications that is more reliant on the previous year's data and the addition of a minor. Assumptions used are also sometimes not quite valid. Anticipation can be done to fix this is to strengthen the institutions managed data archivists and essential considering the computer. So as to provide good quality data to be managed by a financial manager. If the unit in question does not have a functional planner is able to include the User Authorization Budget with more intense. It is quite reasonable, because essentially the owner's vision, mission organizations that are leaders in this regard is the User Authorization Budget. Although the order of preparation of objectives and programs of the organization, more organizations involving more members of the unit concerned. 3. Socialization of Perpres No. 54/2010 as a replacement for the Perpres No. 80/2003 on Guidelines for Procurement. To speed up the thawing process on the budget of ministries / agencies, the government has also provided an opportunity for ministries / agencies to implement the auction

Suarya, I Nyoman. 2010. Pengaruh Kompensasi, Pelatihan, Kepemimpinan dan Lingkungan Kerja Pada Kinerja Pengelolaan Anggaran Pemerintah Kabupaten Tabanan. Denpasar: Universitas Udayana

ISEB2012. Conceptual Paper after the State Budget of the House of Representatives set (November-December) without having to wait for the determination of DIPA. Legislation should arrive from the center of power to the unit below the smallest unit of work is often poor. Lack of training of training, lack of socialization through seminars, workshops and other activities seem quite similar. Many work units below do not even know the laws / regulations that are in more than a year passes. Actual laws and regulations do not require large funds. Socialization stages this can be done through education and training centers of each ministry / agency. So the budget can be directly used in the current year are accepted immediately after each work unit through DIPA. Not as long as this, the tender process did not begin at the end of the semester of the current year. 4. Preparation of the revised regulations regarding the mechanism of the budget document to be more geared towards the long-term perspective is not just for one fiscal year. Long-term perspective in the budget documents is still having problems. This is not only because of regulatory issues. Also the choice of accounting system of our government that adopts a zero base budgeting. In some ways, it will make changes to other fundamental changes. Of course, such a change must go through the good review, not by reason try and error. Because the impact of the failure of the budget will not only lead to chaos but also further implementation of the government is a danger to the achievement of public welfare in general is a major goal of development. 5. Improvement of legislation governing the planning, implementation and evaluation of the budget so that synchronized with each other. A simple example in 2011 the government's abandonment of some projects in Bontang. Because of the closure of land mines, which finally stopped the dredging of sand production, was affected to some government projects are under way. Some budget-funded construction projects are starting the process is constrained due to lack of supply of sand as the main raw material development. One of the current government projects in the construction stage development project in plaster grouper 1 RT 16 Village of Tanjung Sea, South Bontang. This is because either the project planner, Ministry of Mine and Parliament have not been communicating well. So that good decisions on a side not to harm the other. Both of which are equally aimed at the welfare of the people. Autonomy and the central government authorities in the other hand is also often a problem at the level of law making and implementation. Impression arises in many areas and the regional head of local government into a small empire, which was to have the power to establish the area as a direct election system. This system gives the feel of the full powers of local government to manage the chosen area. Collision of authority is usually the case on the issue of business licenses, restrictions and area businesses are often in the debate on who the authorities, central government or local government? Regulation of this order becomes very important, so that the subsequent project implementation is not until there is a problem in the implementation, only in because of problems of regulatory authorities. 6. Efforts to increase the absorption of the budget do not mean reducing the quality and accountability aspects of shopping, including the achievement of an unqualified LKPP (WTP).

ISEB2012. Conceptual Paper

Our attention then shifted, if only to enhance the absorption budget evenly throughout the year makes us ignoring aspects of good governance. Of this reduction will be very dangerous. Make our officials to be careful too that even lead to inaction or even fear of legal problems in the future, nor is it a good choice. Provision of adequate compensation to the managers of the budget, making good regulations and laws and regulations in question, is expected to make the budget implementation to be faster, regular, and evenly without prejudice to good governance. This is happening during our officials are ignoring aspects of quality and accountability and then end up in jail or our officials fear, and then choose not to be the leader / project manager. Any option that is just as bad, as the same does not provide much benefit for people. Good control of yourself, your boss, communities and good regulations are expected to be a good solution.

Conclusion In the system adopted policy in Indonesia, the government / executive does not have the authority to monetary policy. Stability of the rupiah exchange rate, as long as this is a policy domain and policy analysis from Bank Indonesia. However, many governments rise and fall due to the stability of a country's exchange rate. We do not need to look for evidence that is too far away, the fall of the Republic of Indonesia's first president, Sukarno, and the fall of former President Soeharto is a good example of the closest and has not been forgotten. Like where it is not, suppression of the Rupiah against the U.S. dollar could drop the previous President Soeharto who was so strong. Past events would have to be a good lesson for the present and the future of our state and nation. Government / executives can affect monetary situation without interfering in monetary policy. Implementation of fiscal policy can be used as a tool for the government to manage it well, set in an acceptable range of favorable exchange rate stability of the national economy in general. Because the stability of the rupiah exchange rate is very important for the movement of rill sector. Further movement of the rill sector is critical to the achievement of the state; protect the whole of Indonesia and the entire homeland of Indonesia, promote the general welfare, the intellectual life of the nation and participate establishment of world order based on freedom, abiding peace and social justice. A number of activities in the State Budget allocation of funds is an activity or pro-people. Notify authors quote a speech by President of the Republic of Indonesia Susilo Bambang Yodhoyono the introductory budget speech, which is the realization of the 2012 budget absorption, should be encouraged. The wider community can enjoy the target in the first quarter (January-March) of 2012 in order to achieve 20%, so the state budget in 2012 is truly pro-people and their benefits. Budget of the State is economic stimulus. If the funds the State Budget of much absorbed in the early years of the development will be spinning wheels, all sectors will be engaged, will open the field of business and employment. So therefore will reduce the effect on the increase in unemployment and welfare. Therefore, all the organs of government should be encouraged to realize the Budget of the State, which has been awaited millions of people of Indonesia, is looking forward to his welfare.

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ISEB2012. Conceptual Paper

References
BI. 2011. Penyempurnaan Protokol Manajemen Krisis Bank Indonesia Sebagai Upaya Memelihara Stabilitas Sistem Keuangan. Jurnal Kajian Stabilitas Keuangan No 17, September 2011. BI. 2012. Pengenalan Inflasi. Diakses dari situs Informasi dan Edukasi Bank Indonesia, http://www.bi.go.id/web/id/Moneter/Inflasi/Pengenalan+Inflasi/, [Accessed 8.02.2012] Ditjen Pajak. 2012. Jatuh Tempo Pembayaran Pajak. Diakses dari situs Ditjen Pajak DepKeu, http://www.pajakonline.com/engine/learning/view.php?id=178, [Accessed 8.02.2012] Martowardoyo, Agus. 2012. Penyerapan Belanja kementerian / lembaga Kurang Optimal. Jakarta: Press Release Dirjen Anggaran. Departemen Keuangan RI. Nopirin. 2000. Ekonomi Moneter ed. 5 cet. 5. Yogyakarta: BPFE. PKS. 2011. Daya Serap APBN Rendah Pemerintah Diminta Perbaiki Manajemen. Jakarta: Press Release PKS Komisi XI, DPR. Pratama, Rahardi. 2001. Ekonomi Makro. Jakarta: Salemba Empat, Universitas Indonesia. Suarya, I Nyoman. 2010. Pengaruh Kompensasi, Pelatihan, Kepemimpinan dan Lingkungan Kerja Pada Kinerja Pengelolaan Anggaran Pemerintah Kabupaten Tabanan. Denpasar: Universitas Udayana. Suminto, 2004. Pengelolaan APBN dalam Sistem Manajemen Keuangan Negara, Dokumen Ilmiah Budget in Brief 2004. Jakarta: Ditjen Anggaran Depkeu. Turseno, Slamet. 2011. Rendahnya Daya Serap Anggaran: Antara Rendahnya Kinerja Pemerintah Dan Buruknya Penganggaran. Jakarta: Universitas Indonesia. Ulfa, Almizan. 2003. Indonesia Satu dan Stabilitas Kurs Rupiah: Analisis Stabilitas Exchange Rate Indonesia. Jurnal Keuangan dan Moneter, Vol. 6, No. 2, 2003.

Biography
Darmawan, was born in Tasikmalaya, West Java - Indonesia in 1976. Basic education to upper secondary school completed in his hometown. He had gained knowledge of the diverse. Mathematics Education at the Institute of Teacher Training and Education, Bandung (1994). Textile Engineering at the College of Textile Technology, Textile Center - Ministry of Industry and Commerce (1998) and the Telecommunications and Information Management at the College of Business Management Divlat PT. Telkom Bandung (2000). He had also studied at the Mathematics UNINUS. He has also studied in Mathematics for Middle School at the Graduate School of UPI Bandung. In addition, he completed the Masters in Business Administration in Finance State in STIA Jakarta, Institute of Public Administration. He is currently completing Management Science Doctorate Program, School of Post Graduate Studies Indonesia University of Education.

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