PRESS RELEASE

Bogor, Thursday (23 June 2022) – To optimize the quality of Financial Statements of Central Government (LKPP) as a form of accountability for the implementation of State Budget, BPK encourages the Government to make effective efforts to complete recommendations provided related to the results of the audit. This is particularly related to recommendations given on audit results of LKPP, Financial Statements of Ministries/Institutions (LKKL), and Financial Statements of State General Treasurer (LKBUN).

BPK has submitted 19.802 findings on the audits of LKPP, LKKL, and LKBUN with 42.553 recommendations provided to the audited entities. This was explained by Chairperson of the Audit Board of the Republic of Indonesia (BPK) Isma Yatun when handing the Audit Reports on LKPP for Fiscal Year of 2021 to President of Republic of Indonesia, Joko Widodo in Bogor Presidential Palace (23/6).

Monitoring results on the audit recommendations follow-up show that 75% has been followed-up in accordance with the recommendations provided, 19% has been followed-up but not in accordance with the recommendations provided, 5% has not been followed-up, and the remaining 1% cannot be followed-up.

Based on the audit results of BPK on LKPP, LKKL, and LKBUN for Fiscal Year of 2021, BPK gives Unqualified Opinion on LKPP for Fiscal Year of 2021 in all material respects in accordance with Government Accounting Standards. The Unqualified Opinion on LKPP for Fiscal Year of 2021 is given based on the unqualified opinion obtained by 83 LKKL and 1 LKBUN for Fiscal Year of 2021, which have significant impact on the LKPP for Fiscal Year of 2021.

There are four Ministries/Institutions, namely Ministry of Trade, Ministry of Manpower, National Research and Innovation Agency (BRIN), and The Indonesian Institute of Science, whose Financial Statements for Fiscal Year of 2021 obtain Qualified Opinion (WDP). In general, however, the audit opinion obtained by these four Ministries/Institutions do not have a material impact on the fair presentation of the LKPP for Fiscal Year of 2021.

The results of BPK audit also reveal weaknesses on Internal Control System and non-compliance with statutory regulations. Although the weaknesses do not have material impact on the fair presentation of LKPP for Fiscal Year of 2021, the Government still needs to follow-up BPK’s audit findings in order to improve the management of State Budget. The audit findings include: the management of incentives and tax facilities Year 2021 amounting to Rp15,31 trillion has not been fully adequate; and the process taken to collect non-performing tax receivables amounting to Rp20,84 trillion has not been effective.

Furthermore, in providing additional information regarding the implementation of State Budget Year 2021, BPK also submits Results of Review on the Implementation of Fiscal Transparency. In general, the review shows that the Government has met most of the fiscal transparency criteria based on international best practice.

LKPP is an accountability of Government on the implementation of State Budget, which includes Budget Realization Report, Statement of Changes in Accumulated Budget Surplus, Balance Sheet, Operational Report, Change in Equity Report, Cash Flow Statements, and Notes to the Financial Statements.

Public Relations and International Cooperation Bureau