PRESS RELEASE

Jakarta, Wednesday (29 July 2020) – The Audit Board of the Republic of Indonesia gave an Unqualified Opinion (WTP) towards the Ministry of Foreign Affairs Financial Statements Year 2019. The financial statements has fairly presented all material respects, the financial position of the Ministry as of 31 December 2019, and budget realization, operational and changes in equity for year ended on that date, in accordance with Government Accounting Standards.

“In conducting audit on the financial statements Year 2019, we do not find any significant issues that have an impact to the fairness of the Ministry of Foreign Affairs Financial Statements. However, Unqualified Opinion does not necessarily mean that the Ministry’s financial statements are free from any errors. BPK still finds some issues in the internal control system and non-compliance with the statutory regulations that need to be improved”, explained BPK Board Member I Hendra Susanto during the submission of the Audit Report on the Ministry of Foreign Affairs Financial Statements Year 2019 to the Minister of Foreign Affairs Retno L. P. Marsudi at the Ministry’s Office, Jakarta on today (29/7).

This activity was also attended by Director General of Audit Unit I Novy Gregory Antonius Pelenkahu, Vice Minister of Foreign Affairs Mahendra Siregar, High Officials from the Ministry of Foreign Affairs as well as Representatives from Embassy of the Republic of Indonesia and Consulate General of the Republic of Indonesia through videoconference.

In conducting audit on the Ministry of Foreign Affairs Financial Statements, BPK found some significant issues related to the Internal Control System, such as administration of cash had not been orderly regulated and there was a difference in the reconciliation of cash balance at 13 Indonesian representatives abroad; controlling towards PNBP management and presentation had not been adequately implemented; administration of inventories at five central working units and nine Indonesian representatives abroad had not been regulated orderly; and administration of state-owned assets in the form of fixed assets and other assets at four central working unites and 11 Indonesian representatives abroad had been orderly regulated.

Furthermore, in relation to incompliance with the statutory regulations, BPK found some significant issues including procurement of goods and services at the two central working units of the Ministry of Foreign Affairs did not comply with the provisions resulting in overpayment and minimal late penalties; payment of foreign allowances (TLN) housing allowances (TSR) at six Indonesian representatives abroad did not comply with the provisions resulting in overpayment; as well as the implementation of exhibitions/festivals/expositions aimed to promote Indonesia using external supports at Indonesian representative offices abroad had not been adequately regulated.

On this opportunity, BPK also handed the Specific Audit Reports on the Construction of the ASEAN Secretariat (ASEC) Building in Jakarta, which was carried out by the Ministry of Foreign Affairs using multi years framework from 2017 to 2019. The results of the initial audit show that the ASEC Building did not meet the assessment standard of Greenship New Building with a platinum rating by Green Building Council Indonesia (GBCI). During the audit process, BPK’s initial audit findings were immediately followed-up by the Ministry of Foreign Affairs which in turn the ASEC Building had successfully received a platinum rating. In addition to that, there were some issues found during the construction, particularly related to incompatibility of the work quantities recommended by BPK to be returned to the state account.

BPK hoped that the Ministry of Foreign Affairs committed to follow-up BPK’s audit results. In relation to the follow-up of BPK’s recommendation on the financial audit, BPK expected the increased commitment, control and monitoring from the Proxy Budget User (KPA), Government Internal Supervisory Apparatus (APIP), and the head of each working units toward the implementation and accountability of expenditure budget; the improvement of internal control system by completing inadequate policies and procedures; as well as the increased competence of the budget and activities managers.

BPK expected that Officials of the Ministry would take several existing weaknesses into account and would immediately follow-up the issues in accordance with appliance provisions. The objective was that the opinion on the Ministry’s Financial Statements could be maintained in the following years and that the accountability for all could be obtained.

Public Relations and International Cooperation Bureau