PRESS RELEASE

BPK Gives 21,425 Audit Recommendations For State Financial Governance Improvements

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JAKARTA, Wednesday (11 November) - The Audit Board of the Republic of Indonesia (BPK) gave 21,425 audit recommendations in the first semester of 2020. These recommendations were expected to make internal control carried out by government be more effective, and that programs/activities could be implemented more economically, effectively, and efficiently. In addition to that, state losses could be recovered/prevented, and state revenues could be improved. Thus, the improvement of state financial governance and public services would be better in order to obtain state goals.

These were disclosed in the Summary of Audit Reports of the First Semester of 2020 (IHPS I 2020) submitted by BPK Chairman, Agung Firman Sampurna, to President of the Republic of Indonesia, Joko Widodo, at the National Palace, Jakarta, on Wednesday (11/11). The IHPS I 2020 stated that BPK gave 21,425 recommendations on problems found in its audit findings during the first semester of 2020.

BPK audit results revealed 7,868 audit findings which contained 13,567 problems of IDR8.97 trillion. It comprised of 6,173 (50%) problems of internal control system, 6.702 (49%) problems of non-compliance with laws and regulations problems worth IDR8.28 trillion, and 152 (1%) problems of uneconomical, inefficiency, ad ineffectiveness worth IDR692.05 billion.

Upon these problems, BPK recommended:

  1. the leaders of the relevant entities to withdraw excess payment or determine and collect the lack of revenues and deposit it in the state/regional/company accounts;
  2. State-Owned Enterprises/subsidiaries, as the operator, to rectify subsidy/Public Services Obligations (KPP) and compensate funds year 2019 of IDR4,77 trillion;
  3. two relevant Contractors Cooperation Contract (KKS) to rectify cost recovery of IDR26.61 billion and USD52.47 million or IDR777.14 billion in total.

In addition to that, BPK also recommended:

  1. Director General of Tax to update information system used to ensure the validation of Tax Receivables and Allowance for Tax Receivables, as well as to ensure that Land and Building Tax Receivables that was integrated with the information system of the Directorate General of Tax;
  2. Minister of Finance, along with Minister of State-Owned Enterprises, as Shareholders to measure the Government’s obligations as controller of PT. Asabri (Persero) and PT. Asuransi Jiwasraya (Persero) which arose as the implementation of Article 15 of Law No. 40 of 2014.

BPK further recommended:

  1. Minister of Finance to coordinate with the relevant institutions in developing provision settlement planning and standards for the presentation of Long-term Liabilities on Pension Program;
  2. Ministers/Head of Institutions, as Property Users to immediately settle the accountability for the expenditures realization with the aim of being handed over the community in cash, in accordance with applicable regulations. This included problems related to oil palm plantation rejuvenation (PPKS) aid at Oil Palm Plantation Funds Management Agency that had not been accounted for.

It was explained in the IHPS I 2020 that since 2005 up to 30 June 2020, BPK had submitted 571.466 audit recommendations to the audited entities worth IDR259.38 trillion. Cumulatively, up to 30 June 2020, these recommendations had been followed up by the entities by handing over assets and/or depositing money to the state/regional/company accounts worth IDR111.01 trillion. The IHPS I 2020 also contained the monitoring results of state/regional losses settlement year 2005 up to 30 June 2020 with a predetermined status worth IDR3.43 trillion.

Meanwhile, related to monitoring results of audit reports on investigative, state loss calculation and expert testimony for the period of 2017 up to 30 June 2020, BPK had submitted:

  1. 22 investigative audit reports with an indication value of state/regional losses amounting to IDR 8.70 trillion, in which 9 audit reports had been used for initial investigation processes and 13 reports had been used for investigation processes;
  2. 238 reports of state loss calculation worth IDR 29.10 trillion, in which 50 reports had been used for investigation processes and 188 cases had been assumed as P-21 (investigation file were completed). BPK also had provided expert testimony at the trial stage on 226 cases, all of which were used in prosecution by Public Prosecutor.

Public Relations and International Cooperation Bureau

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