BPK Audits Accountability for the Realization of the Indonesian National Armed Forces Budget Fiscal Year 2023
JAKARTA, BPK Public Relations – The Audit Board of the Republic of Indonesia (BPK) conducts an audit on financial statements of the Ministry of Defence for the fiscal year 2023 at Organizational Unit of Indonesian National Armed Forces from January 22, 2023, to May 17, 2024. The expenditure budget of the Organizational Unit of the Indonesian National Armed Forces for 2023 was Rp54,39 trillion, with actual expenditures amounting to Rp53,68 trillion, representing 98.71% of the total budget.
Board Member I of BPK, Nyoman Adhi Suryadnyana, stated that in support of this audit, BPK had previously conducted an interim audit of units within the Army’s Headquarters, Main Command, and Central Executive Agencies at the end of the last year.
"Following the interim audit, several issues require particular attention. We hope that these issues can be promptly addressed and prevented from recurring," stated Board Member I of BPK during the entry meeting held at the Army Headquarters in Jakarta on Thursday (1/2).
Budgeting inaccuracies and cases of intangible fixed assets (ATB) that have become useless owing to license expiration and misclassification were among the issues raised by Board Member I of BPK. Additionally, BPK identified cases of State Property (BMN) utilization without valid permits from the Ministry of Finance and inability to deposit Non-Tax Revenue (PNPB) as required by contracts.
During the meeting, attended by the Indonesian Army Chief of Staff, General Maruli Simanjuntak, it was conveyed that the audit schedule remained tentative and flexible throughout the ongoing audit. Audit samples were collected from Jakarta, West Java, Central Java, and East Java.
Director General of Audit I, Akhsanul Khaq, the Indonesian Army Vice Chief of Staff of, Lt. Gen. Arif Rahman, as well as officials from the Indonesian Army Headquarters and the audit team from the Directorate General of Audit (AKN) I of BPK attended the meeting.
BPK is mandated to conduct the audits on the financial statements annually. It aims to assess the fairness of financial statements, reflected in opinions on the accuracy of financial information presented.
In this audit, BPK uses a risk-based audit (RBA) approach, focusing on high-risk aspects of accounts/working units to obtain adequate assurance in the accuracy of financial statement presentations and opinion determinations.