President Jokowi Orders Ministries, Gov’t Institutions to Follow Up Audit Board’s Recommendations
President Joko “Jokowi” Widodo has ordered ministries/institutions to follow up recommendations from the Audit Board of the Republic of Indonesia (BPK) on Audit Report of the 2021 Central Government Financial Report.
“Let me reiterate that ministries, heads of institutions, and heads of regional governments must immediately follow up and finish all audit recommendations from the BPK,” the President said at the Submission of the Audit Report of the 2021 Central Government Financial Report at Bogor Presidential Palace in West Java province, Thursday (06/23).
Meanwhile, Chairperson of the BPK Isma Yatun stated that the substance that caught the BPK’s attention during the audit of the 2021 Central Government Financial Report is the internal control system and compliance with regulations.
“Results of the BPK audit revealed a weakness in the internal control system and incompliance with provisions of laws and regulations, which did not cause material impacts on the normality of the 2021 Central Government Financial Report presentation, but it still needs to be followed up by the Government for State Budget management improvement,” she said.
According to Isma, the BPK pays close attention on the management of the 2021 tax incentives and facilities that amounted to Rp15.31 trillion, which is deemed insufficient. On this issue, the BPK recommended the Government to retest the validity of tax incentive and facility applications.
“On this issue, the BPK recommended the Government to, among others, retest the validity of tax incentive and facility applications that have been sent by taxpayers and approved, as well as to collect underpaid taxes and impose sanctions for providing incentives and facilities inappropriately,” she said.
Isma went on to say that the BPK also pays attention on the budgeting, implementation and accountability report of nonprogram COVID-19 management and national economic recovery expenditure, found in 80 ministries and institutions and amounted to Rp12.52 trillion. The budgeting and report are not completely in accordance with the provisions.
Therefore, the BPK recommended the Government to fix the expenditure budgeting and accountability report mechanism.
“On this issue, the BPK recommended the Government to improve the mechanism of expenditure budgeting, implementation, and accountability report to mitigate the risk of noncompliance in the process, failure to achieve outputs, and target inaccuracy in making expenditures,” Isma said.
Isma expressed hope that the recommendations from the BPK can be immediately carried out by the Government, including ministries, institutions, and State General Treasurer, while also expressing appreciation for ministries and institutions’ cooperation during the audit process.
“We highly appreciate the good cooperation during the audit process until the end of the audit process,” she said.
The BPK has given unqualified opinion to the 2021 Central Government Financial Report based on the audit of the Central Government Financial Report, Ministry/Institution Financial Report, and State General Treasurer Financial Report.
“Based on the BPK’s audit, the 2021 Central Government Financial Report received unqualified opinion due to the consolidation of 83 ministries and institutions, and one financial institution, the state general treasurer institution,” the BPK Chairperson said, adding that out of 87 ministries and institutions audited, four institutions namely Ministry of Trade, Ministry of Manpower, the National Research and Innovation Agency (BRIN), and the Indonesian Institute of Science (LIPI) received qualified opinion.
“But in terms of material aspects, the four ministries/institutions’ work programs and budgets did not have significant impacts on the Central Government Financial Report,” she remarked. (SLN/HIM/UN) (DH/MMB)