Article 23 Paragraph (5) of the 1945 Constitution stipulated that in order to audit the accountability of the State Finance, an audit body should be established by statutory regulation. The audit findings shall then be submitted to the Parliament.
1 Januari 1947 - Early Establishment
Based on the mandate of the 1945 Constitution, Government Decree Number 11/OEM concerning the establishment of the Audit Board (BPK) on 1 January 1947 which temporary located in Magelang, Central Java was issued on 28 December 1946. At that time, BPK had only nine employees and was led by R. Soerasno as the first Chairman. Beginning its duties, BPK issued a letter Number 94-1 dated 12 April 1947 announcing its mandate to all government institutions in Indonesia, while still adopting the legislation previously applied by Algemene Rekenkamer (Audit Board of the Dutch East Indies) namely ICW and IAR.
6 Nopember 1948 - Located in Yogyakarta
Based on Government Decree Number 6/1948 dated 6 November 1948, BPK’s head office was moved from Magelang to Yogyakarta. The Republic of Indonesia with Yogyakarta as capital city was equipped with the Audit Board in accordance with Article 23 Paragraph (5) of the 1945 Constitution. The Chairman of BPK Yogyakarta was represented by R. Kasirman, who was appointed on 1 August 1949 based on the President Decree Number 13/A/1950 dated 31 Januari 1950.
14 Desember 1949 - Financial Supervisory Board
During the period of the Federation of the Republic of Indonesia (RIS), a Financial Supervisory Board was set up under the Constitution of RIS on 14 December 1949. R. Soerasno, who was previously the Chairman of BPK Yogyakarta, was appointed as the Chairman of the RIS Financial Supervisory Board started from 31 December 1949. The head office of RIS Financial Supervisory Board was located in Bogor, at the former office of the Algemene Rekenkamer during the government of Netherland Indies Civil Administraion (NICA).
1 Oktober 1950 - BPK (the 1950 Interim Constitution)
With the return of state to the Unitary State of the Republic of Indonesia on 17 August 1950, the RIS Financial Supervisory Board, which was located in Bogor since 1 October 1950, was then merged with BPK. This decision was under the 1950 Interim Constitution. Its head office was located in Bogor, at the former office of the RIS Financial Supervisory Board. The employees of the RIS Financial Supervisory Board came from BPK Yogyakarta dan Algemene Rekemkamer in Bogor.
5 Juli 1959 - BPK (the 1945 Constitution)
President Decree was issued on 5 July 1950 stipulated that Indonesia returned to the original 1945 Constitution. Consequently, the Financial Supervisory Board under the 1950 Interim Constitution once again became BPK under Article 23 Paragraph (5) of the 1945 Constitution.
Despite going through these changes, its activities were still based on the ICW and IAR.
12 Oktober 1963 - Regulation in Lieu of Law (Perpu) Number 6 Year 1964
Some President mandates, such as Economic Declaration, Ambeg Parama Arta, the People’s Consultative Assembly (MPRS) Decree Number 11/MPRS/1960, and MPRS Resolution Number 1/Res/MPRS/1963, had stated some desires to improve BPK to be an effective tool of control. In order to obtain the objective, Government had issued Regulation in Lieu of Law (Perpu) Number 7 Year 1963 (LN Number 195 Year 1963) in 12 October 1963, which was then amended by Law Number 6 Year 1964 concerning New Structure of BPK.
Law Number 5 Year 1973 - BPK
Government issued Law Number 17 Year 1965 to replace Law Number 6 Year 1964, which among others stipulated that the President, as the Great Leader of the Revolution, hold the highest authority in auditing and research on the preparation and management of the State Finance; BPK Chairman dan Vice Chairman were set as Coordinating Minister and Minister respectively.
Finally, the People’s Consultative Assembly issued a decree Number X/MPRS/1996 ordering the return of BPK to its original position and function as a high state institution. Consequently, the Law providing base for BPK to conduct its function needed to be changed, which was later realized in 1973 with the issuance of Law Number 5 Year 1973 concerning the Audit Board.
The Decree of the Assembly Number VI/MPR/2002 - Independent and Professional
In the Reformation era, BPK gained constitutional support from the People’s Consultative Assembly of the Republic of Indonesia (MPR RI) during the 2020 Annual Session, strengthening BPK’s position as a state financial external auditor. Through the Decree of the Assembly Number VI/MPR/2002, it was emphasized that BPK was the only external auditor of the State Finance and that its role needed to be strengthened as an independent and professional institution.
In this regards, articles regarding BPK in the 1945 Constitution were amended. Before the amendment, there was only one article regulating BPK. Furthermore in the Third Amendment of the 1945 Constitution, there were one separated chapter (Chapter VIII A) regulating BPK with its three articles (article 23E, 23F, and 23 G) and seven paragraphs.