The government, through the Minister of Finance, has issued Minister of Finance Regulation (PMK) Number 53 of 2026 concerning Procedures for Managing International Development Cooperation Funds. This regulation governs the management mechanism of the International Development Cooperation Fund by the International Development Cooperation Fund Agency (LDKPI), including funding sources, use of development proceeds, administration, and fund supervision.

PMK Number 53 of 2026 was established on July 22, 2026, and has been in effect since its promulgation on July 29, 2026. The main focus of this regulation is on fund governance within the framework of state finances, thus regulating the institutional aspects and accountability of related agencies.

Definition of the International Development Cooperation Fund and Background of the Regulation's Issuance

PMK Number 53 of 2026 defines the International Development Cooperation Fund as an endowment fund managed by LDKPI. The principal of this fund is maintained, while the proceeds from its development are utilized to support the duties and functions of LDKPI, such as providing grants to foreign governments or foreign institutions.

The issuance of this regulation is a follow-up to Government Regulation (PP) Number 48 of 2018 concerning Procedures for Granting Grants to Foreign Governments or Foreign Institutions, as amended by PP Number 57 of 2019. Through this PMK, the Ministry of Finance provides technical guidelines to ensure that the management of grant funds and international development investments is carried out in an orderly, transparent, and accountable manner.

Main Aspects of International Development Cooperation Fund Management

Broadly speaking, the management of the International Development Cooperation Fund regulated in PMK Number 53 of 2026 covers several main aspects:

  • Planning and Allocation: Budgeting procedures, allocation through the State Budget mechanism, and administration of endowment funds.
  • Disbursement and Development Mechanism: Disbursement of government investment funds to LDKPI accounts and optimization of fund development proceeds.
  • Use of Development Proceeds: Allocation of investment returns for foreign grant programs, LDKPI operational costs, and special government assignments.
  • Accountability and Supervision: Obligation to prepare financial reports, evaluation by the Steering Committee and Supervisory Board, and supervision by authorized audit institutions.
  • Administrative Information System: Development of an integrated information system to ensure data security and supervision transparency.

Funding Sources for the International Development Cooperation Fund

The funding structure of the International Development Cooperation Fund comes from several official sources managed within the framework of the State General Treasurer:

  • Government Investment Financing allocated through the Government Investment State General Treasurer budget sub-section.
  • LDKPI cash balance originating from the accumulated surplus of Non-Tax State Revenue income and expenditure.
  • Other legal and non-binding sources in accordance with statutory provisions.

PMK Number 53 of 2026 does not directly require all private companies to hold specific permits. Its impact on business entities is indirect, namely if the company is involved as a cooperation partner, provider of goods and services, or implementer of project activities financed through the International Development Cooperation Fund scheme.

For business entities that have the potential to become vendors or implementing partners of LDKPI programs, fulfillment of basic legality qualifications and financial transparency remain primary requirements. Companies need to ensure their establishment legality through PT Establishment as well as ownership of basic permits such as NIB to meet partnership criteria with government agencies.

In addition, tax administration compliance such as PKP status determination and orderly Annual SPT reporting are crucial points in state-budget-based procurement qualifications.

FAQ About PMK Number 53 of 2026

What is PMK 53 of 2026?
PMK 53 of 2026 is a regulation that governs the procedures for managing the International Development Cooperation Fund, including funding sources, use, administration, development, and supervision.

Who is the main subject of this regulation?
The main subjects are LDKPI, the Ministry of Finance, relevant ministries or agencies, and other parties involved in the management or implementation of International Development Cooperation Fund programs. Private companies do not automatically become direct subjects simply by having a PT or NIB.

Does this PMK specifically regulate corporate taxation?
Not specifically. This PMK focuses on the governance of the International Development Cooperation Fund. Corporate tax obligations remain subject to applicable tax regulations, including provisions for Annual SPT reporting and transaction compliance.

Can all private companies receive International Development Cooperation Funds?
Not automatically. Fund receipt or involvement in programs depends on the grant mechanism, goods/services procurement, or official cooperation established by LDKPI and statutory provisions.

When did PMK 53 of 2026 come into effect?
This PMK was established on July 22, 2026, and has been in effect since its promulgation on July 29, 2026.

Awan Kusuma Legalitas Business Legality and Licensing Consultation Services

Although PMK Number 53 of 2026 regulates government agency governance, ensuring the readiness of your company's legality is a strategic step if your business wants to participate in the government project procurement or cooperation ecosystem.

The Awan Kusuma Legalitas team is ready to help ensure your business entity meets legal qualifications through services:

  • Legal Entity Legitimacy through PT Establishment services.
  • Integrated Business Identity Registration and NIB Processing.
  • Business Tax Administration Assistance, including PKP Confirmation and Annual SPT Reporting.

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