PRESS RELEASE

Jakarta, Tuesday (12 May 2020) - The Audit Board of the Republic of Indonesia (BPK) reported the results of performance audits conducted on regional governments, Regional-Owned Enterprises (BUMD) and Regional Public Service Agencies (BLUD) to the Regional Representatives Council (DPD). These audits were as included in the Summary of Audit Reports of the Second Semester of 2019 (IHPS II 2019). The summary was handed by the BPK Chairman, Agung Firman Sampurna, to the Chairman of the DPD through an online meeting on Tuesday.

"Significant performance audits include the audit on management of special and special autonomy funds, food production security, and public transportation management," the Chairman said in his remarks.

Based on its audit, the BPK concluded that the management of the special funds Fiscal Year 2018 and of the first semester of 2019 as managed by Yogyakarta Province was not as effective. On the other hand, there were still problems in the use of special autonomy funds in Papua Province that could affect its effectiveness in achieving the objectives of special autonomy as mandated by the Law.

With regard to the audit on food production security implemented from 2018 up to the first semester of 2019, the BPK mentioned some problems needed to be immediately addressed by Regional Government of Pidie Jaya, Southwest Aceh and Northern Aceh, due to the regional governments’ efforts to increase the food production security.

Additionally, the audit on the public transportation development found problems needed to be soon solved by the DKI Jakarta Province as it would affect effectiveness and efficiency of the development of the integrated road-based transportation.

The special-purposed audits needed close attention were those conducted on the operation of regional banks. The BPK further concluded there were 2 regional banks that had been in accordance with the criteria, 5 regional banks had been in accordance with the criteria with exceptions, and 3 regional banks had not been in accordance with the criteria.

Those audit results were included in the IHPS II 2019, which disclosed 4,094 audit findings with 5,480 problems. The IHPS II 2019 was an overview of BPK’s 488 audit reports on central government, regional governments, State-Owned Enterprises (BUMN) and other agencies. It comprised of 1 financial audit report (1%), 267 performance audit reports (54%) and 220 special-purposed audit reports (45%).

In his remarks, the BPK Chairman hoped that the information provided in the IHPS II 2019 could support DPD’s duties and authority according to Laws and regulations. The synergy between BPK and DPD’s effective supervision could encourage the state financial management to bring a positive impact to the national objectives. Public

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