PRESS RELEASE

Jakarta, on Wednesday (May 28, 2025) - The Audit Board of the Republic of Indonesia (BPK) submitted the Audit Report (LHP) on the Financial Statements of Central Government (LKPP) for fiscal year 2024 to the Regional Representative Council of the Republic of Indonesia (DPD RI) at DPD Building in Jakarta today (May 28). BPK provided an Unqualified Opinion (WTP) on LKPP for fiscal year 2024.

BPK’s audit results on LKPP for fiscal year 2024 highlighted two aspects of State Budget (APBN) management relevant to the Regional Budget (APBD) that still require attention: the distribution of Regional Transfer Funds (TKD), where regional governments have not fully reported on disbursement, utilization, and remaining funds, as well as grants allocated to General Election Commission (KPU) and General Election Supervisory Agency (Bawaslu) for funding the implementation of Simultaneous Regional Head Elections (Pilkada) of Regional Governments, which have not been adequately accounted for.

For BPK, the audit of LKPP represents a constitutional commitment to ensure that the use of the APBN significantly contributes to improving the welfare of the people. “This commitment aligns with the government's vision in the National Medium-Term Development Plan (RPJMN) 2025-2029, as well as the enactment of Law No. 1 of 2022 on Financial Relations between Central Government and Local Governments, along with its implementing regulation, namely Government Regulation Number 1 of 2024 on the Harmonization of National Fiscal Policy. This has introduced a new paradigm in the management of central and regional finances,” stated Budi Prijono, Vice Chair of BPK, at the event.

The goal of this harmonization is to strengthen fiscal decentralization, minimize disparities, and promote the quality of regional spending through effectiveness and accountability. Vice Cahir of BPK further emphasized that, in light of the constraint fiscal environment and rising expenditure demands, the management of the State Budget (APBN) and Regional Budget (APBD) necessitates enhanced precision, accountability, and transparency. Local governments are expected to respond with greater efficiency and responsibility in their financial management.

On that occasion, Vice Chair of BPK also presented the Summary of Audit Reports for the Second Semester of 2024 (IHPS II 2024) to DPD. This IHPS summarizes 511 audit reports, consisting of 16 financial audit reports, 227 performance audit reports, and 268 special purpose audit reports (PDTT). “For local governments and state-owned enterprises (BUMD), a total of 329 audit reports were summarized, which include 47 thematic performance audit reports related to national priorities for environmental development or National Priority 6 (PN 6),” stated Vice Chair of BPK.

During the second semester of 2024, BPK succeeding in saving state finances from potential losses, actual losses, and revenue shortfalls totalling Rp43.43 trillion. BPK also contributed to generate savings in government spending by rectifying subsidies/Public Service Obligation (PSO)/Compensation in 2023 amounting to Rp1.09 trillion. Consequently, these audits led to the return of Rp1.00 trillion to the state/regional/company/other agency treasuries during the audit process. The two regional governments that made the largest cash deposits and/or asset transfers were the North Sumatra Provincial Government and the East Java Provincial Government.

Public Relations and International Cooperation Bureau