General Lecture: FEB UMM Invites the Chairman of BPK RI

Author : Humas | Friday, September 18, 2015 16:29 WIB

THE CHAIRMAN of the Audit Board of Republic of Indonesia (BPK RI), Dr Harry Azhar Aziz, MA, in the general lecture held by the Faculty of Economics and Business (FEB) of University of Muhammadiyah Malang (UMM) on Friday (18/9) at UMM BAU hall, stated that the financial reports in the provinces of Indonesia are not always being in accordance with the development of social welfare.

In front of more than 400 students, this ex-member of the Economic and Entrepreneurship Council of Muhammadiyah Central Board said that in 2014, the total of country’s asset is IDR 3.910,92 trillion comparing with the total in 2013 which is IDR 3.567,58 trillion. “With such enormous amount of money, have it being disbursed economically, efficiently and effectively? Does it significantly make an impact on the social welfare?” he questioned.

He added that in fact, according to the Credit Lyonnais Securities Asia (CLSA) of Asia-Pacific Markets, Indonesia scored 4,5 for rules and regulations. “That is the lowest score, far from Malaysia which scored 9,0 and Singapore which scored 8,5,” he informed.

Therefore, BPK was formed to audit the management and responsibility of country’s finance. The audit results are submitted to the representative institution and will be administered according to the constitution. “If there is any criminality found in the process of audit, we will report it to the Indonesian Corruption Eradications Commission (KPK), Attorney General and Police Department,” he explained.  

According to him, BPK is able to support the quality improvement of the financial statements in both central and local government. He also revealed that from the audit upon the Central Government Financial Report (LKPP) and the Financial Statements Ministry Institute (LKKL), BPK conveyed qualified opinion (WDP) LKPP in 2014.

BPK also conveyed unqualified opinion (WTP) upon 18 LKKLs, qualified opinion (WDP) upon 18 LKKLs and disclaimer of opinion (TMP) upon 7 LKKs. “As for the regional governments, during Semester I of 2014, out of 504 Local Government Financial Report (LKPD)s, , 251 acquired WTP, 230 acquired  WDP, 19 acquired TMP and 4 acquired adverse opinion (TW).

“From the acquisition of the opinions, it can be concluded that generally, the ministries and institutes have proven the better management of financial report than the regional governments had. This should be the main concern of the central government to support ad guide the regional governments in managing better financial report,” he informed.

Even though the financial reports are getting better, there are still problems regarding social welfare. According to Harry, this time BPK is arranging the policy of supporting the opinion achievement of financial report and the ability of the institutions in conducting the programs of prosperity improvement. “Ideally, the better opinions upon the financial reports are, the better implementation of the prosperity improvement programs will be,” he stated.

Derived from this, besides conveying opinions upon the financial reports, BPK will also conduct assessment upon the efforts by the government’s institutions in improving the social prosperity. “BPK provides the audit policy functioned to survey the management and allocation of state and regional spending. It is useful to reach the indicators of social prosperity,” said Harry.

This general lecture themed “Pengelolaan Keuangan Negara dan Kesejahteraan Rakyat” (The Financial Manaagement and Social Welfare) was opened by the head of Academic Administration Bureau (BAA) UMM, Dr Dwi Priyo Utomo, M.Pd. From the BPK RI, there were expert staffs from the central board and also the Secretary of BPK of Eastt Java.

“I was told by Sir Harry that their institution requires more than a thousand auditors. This will be a good chance for you, students, to contribute to your country once you are graduated,” said Dwi. (zul/han/t_far)




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