Remarks of President of the Republic of Indonesia at the Opening of the 2023 National Coordination Meeting of the Government Internal Comptroller at the Office of BPKP, Jakarta, June 14, 2023
Assalamualaikum warahmatullahi wabarakatuh,
May prosperity be upon us all,
Greetings of virtue.
Distinguished Head of the Supreme Audit Agency (BPK),
Distinguished Coordinating Ministers, Ministers in attendance,
Distinguished Head of the Development Finance Comptroller (BPKP) Muhammad Yusuf Ateh, along with all the BPKP ranks,
Distinguished Commander of the Indonesia National Defense Forces (TNI), Chief of the National Police, Head of the Corruption Eradication Commission (KPK),
Ladies and Gentlemen.
First of all, I would like to thank the BPKP that has worked hard to maintain governance so that it can be more effective and more efficient. Currently the Government is focusing on increasing productivity, especially towards Golden Indonesia 2045.
It’s not an easy job. We already have the target but the challenges are not easy. We know the global situation is not good, neither is the global economy. While I was in Japan’s Hiroshima at the G7, I met with Managing Director of IMF Kristalina Georgieva. She said that now there are 96 countries who are IMF patients. In the past in 1998, there were not even 10 countries and it was already so chaotic. Ninety-six countries show that the current global situation is really in a very difficult situation. Maybe in the last 1-2 weeks we also read that in Europe, technically they have entered recession. Such bad information.
Therefore, every Rupiah that we spend from the State Budget, from the Regional Budget, from the SOEs, all must be productive. Because it is very difficult to make money, be it through taxes, non-tax state revenue, royalties, dividends. It is not easy. Not easy.
Once again, it is not easy to realize Golden Indonesia 2045. This is where the role of supervision is important. The supervisory role is extremely important. Why do I often go to the field? Because I want to make sure that the Government’s programs can actually reach the people and the community. We are lack of it (supervision). We must keep monitoring and checking them. We must watch them, be careful, we must check it right away, one by one. Still, we miss it even though we already checked it.
I ask that the supervision must be carried out on the result, not the procedure. I have told Mr. Ateh, Head of the BPKP, that many of our state budget and regional budget are not used optimally. I need to remind everyone, both the Central Government and regional governments, in using the budget because 43 percent is not a small figure. The budgeting itself is not correct.
For example, there is a stunting budget of Rp10 billion. Check it out and see what the 10 billion is for. Do not mention to buy eggs, milk, protein, vegetables for Rp10 billion. Look at the details. Last week, I checked the budget of Ministry of Home Affairs. The Rp10 billion budget for stunting were used for, among others, Rp3 billion for official travel expenses, Rp3 billion for meetings, Rp2 billion for strengthening the development of something. There is not even reach Rp2 billion to buy eggs. Then, when will the stunting issue be resolved if it’s like this? This must be changed. If the budget is Rp10 billion, the Rp2 billion should be for miscellaneous and the Rp8 billion is for eggs, fish, meat, vegetables for those who are stunted. It must be like that.
Another example, the budget for the development of MSME in a regency (I am not going to mention which regency). The total budget for MSME development is Rp2.5 billion. [As much as] Rp1.9 (billion) was for honorarium and business trips, it’s always like that. The remaining Rp600 million was used for empowerment this, development that, things which are not concrete. What should be done is, use all of the budgets for working capital, to buy production machines, for marketing and exhibitions. Those are concrete actions.
This is the duty of the BPKP. Your duty must be result oriented. Give directives to the Central Government, regional governments, SOEs, ministries/agencies to create concrete actions so that it can be productive.
I saw again in a regency, regarding the construction of an agricultural center. This is clear, you must build a hall for it. I see most of you are smiling, meaning that the BPKP actually understands all of these issues. I just want to emphasize that our orientation must be result-oriented if we want to be able to compete with other countries.
Back to the topic. Construction of halls, to build and rehabilitate halls. The budget is Rp1 billion. I checked again, Rp1 billion is considered small money, but I still check it. Out of the Rp1 billion, Rp900 million must be used for rehabilitation. But the fact is, Rp734 million was for honorarium, meetings and business trips. Rp734 (million) means 80 percent. This is wrong. This is the duty of the BPKP, to turn around the 80 (percent) for concrete purposes and 20 (percent) for honorariums, official travel, meetings. By doing that, the state budget and regional budget can be productive. Because BPKP’s scope of work includes provinces, regencies, and cities, meaning that you can oversee, can supervise, can direct them. All of state institutions are reluctant to the BPKP. Use this for the sake of the country.
Another example, we know that there is still a lot of poverty. Areas with high poverty rate, but the social protection budget is less than one percent. It should be prioritized first. Things like this need to be closely watched, identify the problem, give recommendations, assist, oversee, so that our budget is truly productive.
Once again, we are competing, now we are competing with other countries. And, we are fortunate that our economic growth in the G20 is in the top two. Last year our growth stood at 5.3 percent. In the first quarter of this year, our growth was still above five—5.03 percent, right? Our inflation has also decreased. Previously it was 5.9 (percent), now it is at 4 percent. The macro economy is already good, only if we monitor on what I said earlier, it, we must assist it, we must control it.
Therefore, once again, the strengthening of internal supervision should not just be an accessory and the data must be transparent. If there are mistakes, show me along with the solution. Also, I ask all regions not to ignore the recommendations made by the BPKP.
Lastly, this is good news. Previously the Head of BPKP asked me on the remuneration budget for BPKP personnel. He asked me, “Has the Presidential Decree been signed?”. I told him that I had signed the Decree. But please remind on issues that I mentioned earlier.
That concludes my remarks on this auspicious occasion. By saying bismillahirrahmanirrahim I officially open the 2023 National Coordination Meeting on Government Internal Comptroller.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.