PRESS RELEASE

Jakarta, Thursday (23 July 2020) – Directorate General of Audit IV of the Audit Board of the Republic of Indonesia (BPK) submitted the Audit Report on the Ministry of Energy and Mineral Resources Financial Statements (ESDM) Year 2019 and the Audit Report on State Assets originated from Contractor Partnership Contract (KKKS) Year 2019, to the Minister of ESDM at the Ministry of ESDM in Jakarta, today (23/7).

The Audit Report was handed directly by BPK Board Member IV Isma Yatun, “ The Financial Audit is not specifically intended to reveal the existence of fraud in the financial management. Nevertheless, if the auditors find any irregularities, fraud or violations to the statutory regulations, particularly those that have impacts to potential state losses and indication of state losses, thus it should be revealed in the Audit Report. In certain limits related to its materiality, this might or might not affect the audit opinion on the financial statements as a whole”, explained Isma Yatun in her remarks.

Based on its audit conducted to the Ministry of ESDM Financial Statements Year 2019, BPK gave Unqualified Opinion (WTP), whereas, to the State Assets Originated from KKKS Financial Statements Year 2019, BPK gave a Conclusion According to the Criteria with Exceptions.

The audit opinion is a professional statement of the auditors regarding the “fairness presentation” of the financial statements in accordance with Government Accounting Standards. Therefore, the Unqualified Opinion is not a “guarantee” of the absence of fraud encountered or the possibility of the emergence of fraud in the future. This needs to be said given that there are still many misunderstanding about the meaning of BPK’s Audit Opinion.

BPK emphasized that in the revenue account, BPK still found inadequate management of Non-Tax State Revenue (PNBP) of Natural Resources (SDA), among others the e-PNBP application has not yet fully reliable so that it can cause insufficient potential revenue, incorrect revenue calculation, insufficient fines. BPK also found some significant issues such as the Process of State Assets Handover to the Community/Regional Government has not yet optimal and the Process of State Capital Equity of the Ministry of ESDM to PT Pertamina (Persero) in the form of Government Aid whose status has not been defined (BPYBDS) has been protracted.

On these issues, BPK recommended the Minister of ESDM to take some improvement measures such as improve the e-PNPB application by fixing and adding any features to accommodate the needs of PNBP SDA business process as well as by evaluating the calculation on the application. BPK also recommended the Minister of ESDM to instruct the Secretary General and the relevant Echelon I Officials to immediately made a problem lists to accelerate the inventory handover that will be given to the Community/Regional Government and to take acceleration efforts in resolving the state capital equity.

On this opportunity, BPK Board Member IV also suggested the Minister of ESDM to use a valid application and database system in carrying out its duties and to integrate the application systems so that the monitoring of tasks implementation can be done in real time. “BPK hopes the information technology system of the Ministry of ESDM will be able to provide digital documents starting from planning, implementation and reporting of budget management activities. This includes licensing management databases in the oil and gas, minerals and coals, electricity and renewable new energy sector. As a consequence, BPK can also use the system for its auditing purposes”, BPK Board Member IV explains.

In addition to that, BPK also expected the Ministry of ESDM to have an electronic documentation for PNBP management and expenditure process in the form of images, videos and any other electronic devices which record the activity processes starting from planning, implementation of SDA exploitation activities, testing of production results and PNBP SDA calculation and its accountability process. It was also expected that the management process of goods and capital expenditures can be recorded electronically. The documentation would then be reviewed by Inspectorate General of Ministry of ESDM as the quality assurer. This is important as in the future, BPK will utilize the information technology to test the electronic database and documentation for the budget execution, particularly in this Covid-19 pandemic outbreak.

The Secretary General and its officials, particularly those handling the Information Technology System, and the Inspectorate General that plays its roles as both consultant and quality assurer for the working units within the Minister of ESDM, were demanded to be more creative in the future. Hopefully the Ministry of ESDM can continue to transform into an advanced and modern Ministry.

Public Relations and International Cooperation Bureau