PRESS RELEASE

Jakarta, Thursday (March 28, 2024) - The Audit Board of the Republic of Indonesia (BPK) received unaudited Financial Statements of Central Government (LKPP) Fiscal Year 2023 during the Entry Meeting of LKPP Year 2023 Audit at BPK Head Office on Thursday (28/03). BPK urged the government to continue improving the quality of state budget allocation and implementation, so that the quality of LKPP as an accountability for state budget implementation can be followed by quality of achieving community-beneficial development results.

This was conveyed by Chair of BPK Isma Yatun during the entry meeting which was attended by Board Members of BPK as the Leaders of the State Financial Audit, Minister of Finance Sri Mulyani, and a number of other Advanced Indonesia Cabinet Ministers.

Audit of BPK on LKPP Fiscal Year 2023 aims to provide an opinion on the fairness of LKPP by taking into account conformance with Government Accounting Standards, compliance with laws and regulations, effectiveness of the Internal Control System, and adequacy of disclosure. "To provide adequate assurance, BPK will carry out a series of audit procedures based on the identification results and risk assessment, supported by the use of Big Data Analytics. The results of the LKPP Audit as a form of accountability for the implementation of the state budget are expected to provide adequate information on the extent to which the state budget is used to support the achievement of development plans and state goals," said Isma Yatun.

In conducting risk identification and assessment, BPK takes into account several factors. These include following-up on the previous audit results and considering the results of Performance Audit and Special Purpose Audit conducted by BPK in 2023 on budget implementation and financial reporting in 2023. Additionally, BPK considers various policies implemented during 2023, including the establishment of a new Budget Section or reporting entity in 2023, and the use of the End of Fiscal Year Escrow Account mechanism instead of Bank Guarantees mechanism.

Meanwhile, Board Member II of BPK Daniel Lumban Tobing said that in the audit of LKPP Fiscal Year 2023, BPK will prioritize areas such as state expenditure, state revenue, government investment, and government debt. BPK expects the cooperation of government officials in promptly providing necessary data, documents, and information to ensure the smooth and timely completion of the audit of LKPP Fiscal Year 2023.

Daniel further said that the financial information presented should be supplemented by information on the Government's performance achievements that demonstrate the extent to which APBN funds may be used to fulfil the specified development goals and benefit the community. "For this reason, it is important for the Government to immediately design an adequate infrastructure or support system to integrate financial information reporting with Government performance information reporting," he explained.

Representing the Government, Minister of Finance Sri Mulyani emphasized her commitment, appreciation, and hope that effective communication and collaboration between the Government and BPK could be continued. The Government has followed-up all BPK recommendations and monitored their progress in order to comprehensively resolve the problem points.

Public Relations and International Cooperation Bureau