Remarks of President of the Republic of Indonesia at Submission of Audit Report of the 2020 Central Government Financial Report and the Audit Results Statement and Audit Report of Semester II of 2020, 25 June 2021, the State Palace, Jakarta

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh,

Good morning,

May prosperity be upon us,

Om Swastiastu,

Namo Buddhaya,

Greetings of virtue.

Distinguished Vice President of the Republic of Indonesia,

Distinguished Chairperson, Deputy Chairperson, and personnel of the BPK (Supreme Audit Agency),

Distinguished Cabinet Ministers,

Distinguished Heads of State Institutions, Secretaries General and Inspectors General of Government Ministries and Institutions,

Ladies and Gentlemen,

First and foremost, allow me remind all of you that the pandemic is not over. We must remain vigilant. The situation we are facing is challenging and it must be handled with quick and appropriate policies. It requires cooperation from all of us, at all levels of state institutions, from the Central Government to regional governments.

Since COVID-19 pandemic began in 2020, we have taken several extraordinary measures, including revising our State Budget. We have carried out the refocusing and reallocating of the budget at all levels of the Government and providing relaxation of the State Budget deficit to more than three percent over three years.

We must widen the deficit considering the increasing need for state spending for health care and the economy, at a time when state revenues are declining.

We have also encouraged state institutions to “share the pain”, to handle the pandemic with a spirit of togetherness, and to share the burden. The example is “burden sharing” carried out by the Government with central bank Bank Indonesia (BI).

With those policies, praise be to God, we were able to handle the increase in health spending and at the same time to protect Indonesia’s economy from pressures.

Even though we recorded a deep contraction in the second quarter of 2020, which was minus 5.32 percent, in the following quarter we managed to rebound and our economy posted a better growth until the first quarter of 2021 with minus 0.74 percent.

Ladies and Gentlemen,

Amid the challenging situation, the Government remains committed to maintaining and improving the quality of our financial report (LKPP). To that end, I would like to extend my appreciation to the BPK for amid various restrictions of activity and mobility during the pandemic, the agency has carried out an audit to the 2020 LKPP in a timely manner.

And praise be to God we got an Unqualified Opinion audit rating. It is an achievement amid a tough situation. The Government has earned unqualified opinion for five times in a row since 2016.

Ladies and Gentlemen,

The unqualified opinion is not our one and only goal. We are committed to making the best use of taxpayers’ money and manage it in a fair and accountable manner. The quality of spending should be better targeted. We must ensure that every penny spent benefit the communities and the people.

To that end, the Government will pay close attention to the BPK’s recommendations in managing the financing of the State Budget. The budget deficit should be financed by utilizing safe financing sources and should be implemented in a responsive manner to support countercyclical policies and speed up socio-economic recovery. It should be managed in a prudent, credible and measurable manner.

Finally, I order ministers, heads of institutions, and regional governments to follow up on the recommendations from the BPK.

That concludes my remarks this morning.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

Om santi santi santi om,

Namo Buddhaya. (RI/EP)