SP2D: Definition, Process, Function, and Issuance Guidelines for SPM

SP2D is a crucial instrument in the management of state finances, often overlooked by many. Although it sounds technical, understanding SP2D can be the key to optimizing fund disbursement and ensuring that the state's budget is used effectively.

This article will thoroughly explain what SP2D is, the process of its issuance, and the requirements for submitting the Payment Order Letter (SPM) documents, which are vital in government financial administration.

What Is SP2D?

SP2D (Surat Perintah Pencairan Dana) or Fund Disbursement Order is a document issued by the Commitment Making Officer (PPK) in a government agency to authorize the disbursement of funds from the state treasury account to the recipient’s account.

The primary function of SP2D is to ensure that the funds needed by government agencies or third parties are disbursed quickly and on time. Without SP2D, the fund disbursement process could be delayed, potentially disrupting various government programs and projects.

SP2D plays a crucial role in maintaining transparency and accountability in state financial management. This document records all details of expenditures, including the amount of funds and their intended use.

By using SP2D, every financial transaction can be easily tracked, helping to prevent budget misappropriation and ensuring that funds are utilized according to the approved plan.

SP2D Issuance Process

The issuance process of SP2D (Surat Perintah Pencairan Dana) follows the Standard Operating Procedure (SOP) established in the Director General of Treasury Decree No. KEP-66/PB/2013, dated April 8, 2013.

This procedure ensures that each step in the SP2D issuance process is conducted correctly and efficiently. Below are the detailed stages:

• The work unit that requires funding submits a request to the Commitment Making Officer (PPK). This request must be accompanied by supporting documents such as a Payment Request Letter (SPP) and related budget documents.

• The PPK verifies all received documents. This verification includes checking the completeness of the documents and their compliance with applicable regulations. The PPK ensures that all administrative and technical requirements are met before proceeding to the next stage.

• After the document verification is completed, the PPK issues the SP2D. This document must contain complete information about the amount of funds, the purpose of the disbursement, and the recipient's details. The issued SP2D is then submitted to the State Treasurer (BUN).

• The State Treasurer conducts further inspection of the received SP2D. This inspection ensures that all information in the SP2D is accurate and in accordance with the applicable regulations. If any errors or discrepancies are found, the SP2D will be returned to the PPK for correction.

• After the SP2D passes the inspection, the BUN disburses the funds to the recipient's account. This disbursement process is typically done via electronic transfer to ensure the speed and security of the transaction. The disbursed amount must match the amount stated in the SP2D.

The issuance of SP2D requires the following documents:

• Payment Order Letter (SPM)

• Nominative List

• Other relevant supporting documents (such as Contracts, Invoices, Agreements, etc.)

• Absolute Responsibility Statement Letter (SPTJM)

• Ministry/Institution Work Plan and Budget (RKA-K/L) or Budget Implementation Document (DIPA)

• Handover Minutes (BAST)

• Payment Request Letter (SPP)

• Budget Credit Validation Proof

• Statement Letter of Activity Completion

• Bank Statement or Bank Account Report

• Progress Report of Activity Implementation

• Payroll (for salary payments)

  
  

The completeness and accuracy of these documents are crucial to ensure that the SP2D issuance process runs smoothly and in accordance with the applicable SOPs.

This standardized process ensures that every step in the issuance of SP2D is carried out with high transparency and accountability, helping to prevent the misuse of funds and ensuring that the state budget is used effectively and efficiently.

Also read: Here's an Example of a Business Proposal for Submitting a Business Partnership Request.

Provisions for Submitting the Payment Order Letter (SPM) Documents

The submission of the Payment Order Letter (SPM) is a crucial stage in the SP2D issuance process. The SPM is an official document issued by the Commitment Making Officer (PPK) to authorize the disbursement of funds that have been budgeted.

Here are some provisions that must be met in the submission of the SPM documents:

1. Each SPM document must be accompanied by complete supporting documents. These documents include:

   • Payment Request Letter (SPP)

   • Approved budget details

   • Relevant receipts or invoices

   • Related contract or work order letter.

2. The SPM must be prepared in accordance with the format established by the Ministry of Finance. This document must include the following information: a. SPM number and date, b. Name of the fund recipient, c.  Amount of funds requested, d. Corresponding budget allocation, e. Purpose of the fund usage.

3. Before submission to the State Treasury Service Office (KPPN), the SPM must undergo internal verification within the relevant agency. This verification aims to ensure that all information and supporting documents comply with the applicable regulations.

4. The SPM must be signed by the authorized official and stamped with the official seal of the agency. Without the signature and seal, the SPM will not be considered valid and cannot be processed further.

   
   

The Procedure for Submission to KPPN (State Treasury Service Office)

After the SPM is complete and verified, the document must be submitted to KPPN for the fund disbursement process. The procedure for submitting the SPM to KPPN is as follows:

• The complete SPM documents are submitted to KPPN. The submission can be made either directly or through the online system provided by KPPN.

• KPPN will examine the validity and completeness of the submitted SPM documents. This examination includes verifying the data and supporting documents to ensure that everything complies with the applicable regulations.

• If the SPM is declared complete and valid, KPPN will issue the SP2D. The SP2D will then be used as the basis for disbursing funds to the intended recipient's account.

• After the funds are disbursed, KPPN will inform the relevant agency about the receipt of the funds. This information is important to ensure that the funds are used in accordance with the intended purpose.

The submission of SPM documents that comply with the applicable provisions and procedures is crucial to ensuring the smooth disbursement of funds. By following these provisions, government agencies can ensure that the allocated funds are used effectively and for their intended purpose.

SP2D is an essential part of ensuring the smooth disbursement of funds in government agencies. By understanding the process of issuing and the requirements for submitting SPM documents, we can help maintain transparency and efficiency in the use of the state budget.

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