BPK Reveals 3 Significant Issues in the Annual Financial Statements of Bank Indonesia for Fiscal Year 2023
Jakarta, BPK Public Relations - The Audit Board of the Republic of Indonesia (BPK) identified issues related to the inadequate implementation of Bank Indonesia's (BI) duties sustainability management. This has led to an increased operational risk to BI's critical duties and a risk of disruption of the data center and disaster recovery center.
Board Member II of BPK Daniel Lumban Tobing conveyed this to the Governor of Bank Indonesia Perry Warjiyo, when submitting Audit Report on the Annual Financial Statements of Bank Indonesia (LKTBI) for fiscal year 2023 at Bank Indonesia office in Jakarta on Thursday (13/6).
"BPK recommends the Governor of Bank Indonesia to refine the disaster recovery plan (DRP) draft and execute it in the implementation of task management of Bank Indonesia," said Board Member II of BPK.
BPK also identified issues related to the insufficient regulation of reference price determination for Government Securities (SBN) and insufficient operational management of Bank Indonesia-Fast Payment (BI-Fast).
These issues resulted in potentially biased information on the SBN’s asset valuation presented in BI's financial statements, and the possibility of inability to provide optimal BI-FAST services to the public.
Board Member II of BPK stated that these issues had no materially impact on the fairness of LKTBI for fiscal year 2023. LKTBI was also presented fairly in accordance with Government Accounting Standards (SAP), adequate disclosures, compliance with the statutory regulations and Internal Control System (SPI).
"Therefore, based on these considerations, BPK provides an Unqualified Opinion to LKTBI fiscal year 2023," said Board Member II of BPK.
In addition to conducting audits, BPK is also obligated to monitor the implementation of follow-up on BPK’s audit recommendations as outlined in BPK Audit Report. This monitoring is carried out to optimize the quality of accountability for the implementation of the State Budget (APBN).
During the audit period until fiscal year 2023, BPK provided 521 audit recommendations to Bank Indonesia. Monitoring results of the follow-up to BPK recommendations indicates that 410 recommendations (78.69%) have been followed up, 106 recommendations (20.35%) are still being followed up, and 5 recommendations (0.96%) are unable to be followed up for valid reasons.
Board Member II of BPK expected the Governor of Bank Indonesia to continue taking concrete actions to follow up on BPK's audit recommendations. BPK is confident that BI is committed to continuously improving the quality of its financial reporting.
“In general, BPK supports many initiatives taken by BI that aimed at strengthening and improving governance in the monetary sector, payment systems, and macroprudential policies, BPK supports the various policies implemented by BI. However, BPK also reminds BI to continue to uphold the well-established and conserved governance," he stated.
Senior Deputy Governor of Bank Indonesia Destry Damayanti and all Deputy Governors of Bank Indonesia, Director General of Audit II Nelson Ambarita, audit team for the LKTBI for fiscal year 2023, and high-level officials of Bank Indonesia and BPK also attended the meeting.