PRESS RELEASE

Jakarta, Monday (August 31, 2020) - The Audit Board of the Republic of Indonesia (BPK) mentioned opportunities to manage a better fiscal decentralization instrument during the Covid-19 pandemic. There are three opportunities, namely at defensive, recovery and rising stages. In the defensive stage, regional government administration activities have to make an optimal use of virtual technology, as well as updating population data and information. The recovery stage includes health and economic recovery. At this stage, by using updated population data, local governments could carry out vaccinations in a structured manner.

Meanwhile, at the rising stage, a policy breakthrough is needed to drive the economy. "Local governments can issue interest subsidy programs for enterprises including start-ups and projects funded by the regional budget. Improved governance that has gone through a series of system and procedure improvements during defensive and recovery stages was complemented by the strengthening of the internal control system through the assessment of the risk profile," the BPK Chairman Agung Firman Sampurna mentioned at a public lecture held by BPK and University of Indonesia themed Opportunities, Obstacles and Challenges of Fiscal Decentralization Policy Implementation during the Covid-19 Pandemic. The public lecture took place in Jakarta today.

The public lecture was attended by BPK Vice Chairman and Board Members, Rector of the University of Indonesia Ari Kuncoro, Deputy Rector and lecturers of the Faculty of Economics and Business, University of Indonesia. The public lecture was also followed by the signing of a Memorandum of Understanding between BPK and University of Indonesia concerning the increasing synergy and coordination to support the audit, the implementation of education, research, and community service, as well as the institutional capacity building.

The public lecture and the signing of the MoU aimed at increasing understanding on the implementation of fiscal decentralization policies and developing the institutional capacity of BPK and University of Indonesia. The event was also intended to increase synergy and coordination to support the audit, the implementation of education, research, and community service, as well as to increase the institutional capacity. The MoU would come into force from the date it was signed up to 5 years ahead.

In his presentation, the BPK Chairman also emphasized that in addition to identifying challenges and opportunities for managing fiscal decentralization, the important prerequisite for economic improvement was the commitment. BPK and University of Indonesia were committed to apply the principles of good governance, particularly transparency and accountability.

Public Relations and International Cooperation Bureau