PRESS RELEASE

Jakarta, Tuesday (26 July 2022) – Board Member IV of the Audit Board of the Republic of Indonesia (BPK), Haerul Saleh, submitted 2 Audit Reports (LHP), namely Financial Audit Report of Ministry of Energy and Mineral Resources (ESDM) for Fiscal Year of 2021 and Financial Audit Report on Special Transaction Budget Division of Upstream Oil and Gas (Budget Code of BA 999.99) – State-Owned Asset (BMN) from Cooperation Contract Contractor (KKKS) in Accounting Unit as Proxy of Budget User State General Treasurer (UAKPA BUN) under Ministry of Energy and Mineral Resources (ESDM) for Fiscal Year of 2021. Minister of Energy and Mineral Resources, Arifin Tasrif, received the audit reports in person in Auditorium of BPK Office, today (26/7). Based on the audits, BPK provided Unqualified Opinion (WTP) on Financial Statements of Ministry of Energy and Mineral Resources for Fiscal Year of 2021.

Referring to the Financial Audit Report of Ministry of Energy and Mineral Resources (ESDM) for Fiscal Year of 2021, BPK reveals some issues: 1) Non-Tax State Revenue (PNBP) of Rp84,399 billion in Ministry of Energy and Mineral Resources for period ended on 31 December 2021. Some sources of the revenue are from royalties and Mining Sales (PHT) that their calculation and receipt processes use electronic application of ePNBP Version 2. The application is created to improve previous application of ePNBP Version 1. However, verification process using Version 2 focusses only for transactions that are reported having overpayment and full settlement (nil). Transactions that are reported to have underpayment have no priority for verification; 2) Non-Tax Receivable of Rp24,398 billion in Ministry of Energy and Mineral Resources for period ended on 31 December 2021. In addition to the receivable presented in the financial statements, there are mineral and coal sales transactions for period of 2018 and 2020. Although billing codes of the transactions have been issued, collection letters to payer amounting to Rp487 billion and USD29 million have not been issued yet. On top of that, some billing codes of Rp46 billion and USD12 million have been failed to issue that the transactions are unable to be reported as receivable.

Referring to the Financial Audit Report on Special Transaction Budget Division of Upstream Oil and Gas (Budget Code of BA 999.99) – State-Owned Asset (BMN) from Cooperation Contract Contractor (KKKS) in Accounting Unit as Proxy of Budget User State General Treasurer (UAKPA BUN) under Ministry of Energy and Mineral Resources (ESDM) for Fiscal Year of 2021, BPK points out some issues. As many as 10,509 Line Items of State-Owned Asset (BMN) amounting Rp6.6 billion and USD46 million under Cooperation Contract Contractor (KKKS) with company namely, PT Pertamina Hulu Rokan (PHR), have not been found and their recording of State-Owned Asset amounting USD3.3 million is not in accordance with actual condition.

While submitting the audit reports, Haerul Saleh also conveys importance of follow-up to audit recommendations provided by BPK. As mentioned in article 20 of Law Number 15 of 2004, officials of audited entities are obliged to make follow-up to audit recommendations. They have to give response to or explanation of follow-up to audit recommendations. The response or explanation are to be reported to BPK in 60 days at the latest upon receiving the audit report. BPK hopes Inspectorate General in Ministry of Energy and Mineral Resources to actively initiate coordination to make follow-up to audit recommendations using application system, namely Information System for Monitoring Follow-up of Audit Recommendation (SIPTL), in accordance with its authority.

"We remind Secretary General and Inspector General of Ministry of Energy and Mineral Resources to carry out their best efforts to make follow-up to audit recommendations so that the audit reports submitted to the Ministry of Energy and Mineral Resources may generate the most benefits to improve state financial management and accountability," Haerul Saleh explained.

Public Relations and International Cooperation Bureau