Submitting 20 Audit Reports to SKK Migas and 14 BUMN, BPK Highlights Various Issues on Internal Control Systems and Operations of SKK Migas and BUMN
JAKARTA, BPK Public Relations - The Audit Board of the Republic of Indonesia (BPK) submitted audit reports to entities under the Directorate General of Audit VII, including Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) and 14 State-Owned Enterprises (BUMN). These reports were submitted directly by Board Member VII of BPK Slamet Edy Purnomo to the Board of Commissioners and Directors of BUMN as well as Secretary of SKK Migas in Jakarta on Monday (30/9).
From the 20 reports submitted, 178 audit findings totaling Rp41.75 trillion and EUR6.8 million were identified, and BPK will monitor the follow-up. The audit results indicated that the state finances managed by BUMN was not properly managed in accordance with laws and regulations in an efficient, economic, effective, transparent, and responsible manner, taking into account fairness and compliance, as mandated by Article 3 of Law Number 17 of 2003.
"The common thread of the issues occurring in BUMN and SKK Migas mainly lies in governance problems, specifically the governance structure, governance process, and governance outcome, which can serve as lessons learned for each other to improve future performance," said Board Member VII of BPK in his remarks.
In response to these issues, BPK has requested Board of Directors of BUMN to conduct a research on decision-making mechanisms that result in regulatory costs or other problems in programs or assignments that were not yet founded on good corporate governance.
BUMN and SKK Migas play a crucial role in accomplishing the state and national development goals specified by Article 33 paragraphs (2), (3), and (4) of the 1945 Constitution. BUMN and SKK Migas are key drivers and participants in economic activities that have substantial impact on the national economy, with the goal of maximizing benefits and state revenues for community welfare and prosperity, as well as national development.
"BPK's recommendations emphasize the need to strengthen the role and oversight functions of the Board of Commissioners, the Internal Control System, and risk management functions in BUMN to support and implement the national development agenda in a sustainable manner," added Slamet Edy Purnomo.
BPK urged BUMN and SKK Migas to follow up on BPK's recommendations in a timely manner, as mandated by law. In accordance with Law Number 15 of 2004 Article 20 paragraph (3), the response and clarification shall be submitted to BPK no later than 60 (sixty) days after the receipt of an audit report.
This meeting was attended by Director General of Audit VII Bernardus Dwita Pradana and high-officials of Directorate General of Audit VII.