BPK Gives Unqualified Opinion on Financial Statements of The Ministry of Environment and Forestry for Fiscal Year Of 2020
Jakarta, Friday (13 August 2021) – The Audit Board of the Republic of Indonesia (BPK) gives Unqualified Opinion on Financial Statements of the Ministry of Environment and Forestry (MoEF) for Fiscal Year of 2020. Board Member IV of BPK, Isma Yatun directly hands the audit report to Minister Siti Nurbaya Bakar on today (13/8). The audit is conducted according to Law No. 15 of 2004 on State Financial Management and Accountability Audit and Law No. 15 of 2006 on the Audit Board.
On the financial statements of the MoEF for fiscal year of 2020, BPK pays attention to some issues, such as:
- Revenue, BPK still finds recurring issues related to inadequate monitoring and control of the Ministry over mining activities in forest areas. There are several risks of violation in the use of forest areas, including:
- UNLICENSED mining production operational activities in the forest areas;
- Mining production operational activities in the forest areas whose Borrow-to-Use Forestry Permit (IPPKH) has been revoked;
- Mining activities in the Forest Conservation Area that must well governed.
These may potentially increase the risk of forest and environmental damage during a certain period of time, and non-tax revenue deriving from forestry sector may not go according to the prescribed budget.
2. Expenditure, BPK still finds several issues, among others:
- a. Overpayment of Goods and Capital Expenditures because the works are not in accordance with the contract
- b. Covid-19 pandemic handling activities through National Economic Recovery (PEN) program, in the form of canal blocking construction by the Directorate General for Environmental Pollution and Degradation Control (DG EPDC), do not refer to the guidance for peat wetting infrastructure. As a result, the construction is not optimally beneficial for wetting peat ecosystems.
On this occasion, Board Member IV conveys that cooperation and synergy between BPK and Government Internal Supervisory Apparatus (APIP) are important. “The cooperation between BPK and the APIP, in this case is the Inspectorate General of the MoEF, which has been running well so far, can be further enhanced. BPK hopes that the Inspectorate General review the adequacy of appropriate and accurate audit evidence/documentation on the Ministry’s financial management information data before being submitted to BPK,” Isma Yatun explained.
Furthermore, in relation to Monitoring of BPK’s Audit Recommendation Follow-up (TLRHP), Board Member IV says that BPK has an application system named Follow-up Monitoring Information System (SIPTL) that can be accessed by the MoEF. It is hoped that the system can be well utilized to accelerate the completion of audit recommendation follow-up.
Public Relations and International Cooperation Bureau