The Indonesian Supreme Audit Agency (BPK) found approximately 15,000 issues in government institutions that could result in losses totaling Rp18.37 trillion (approximately US$1.2 billion based on October 26, 2023 exchange rate).
These BPK findings are recorded in the Summary of Audit Results Semester I (IHPS I) 2022 report, released on October 4, 2022.
"IHPS I 2022 is a summary of 771 BPK Audit Reports on the central government, regional governments, State-Owned Enterprises (SOEs), and other bodies," BPK explained in the report.
BPK identified three major categories of problems in government institutions:
* Weaknesses in internal control systems;
* Non-compliance with legal regulations; and
* Inefficiency and ineffectiveness.
Of these three problem groups, the largest losses and potential losses were caused by non-compliance with regulations.
"8,116 issues represent non-compliance with legal regulations, amounting to Rp17.33 trillion," BPK stated.
Here are some BPK findings related to government non-compliance and their loss values as of 2021:
* Overpayments excluding volume deficiencies of work and/or goods: Rp1.9 trillion
* Expenditures not in accordance with or exceeding regulations: Rp679.68 billion
* Volume deficiencies of work and/or goods: Rp135.93 billion
* Goods/services specifications not in accordance with the contract: Rp39.13 billion
* Double and/or excessive official travel expenses: Rp13.16 billion
* Price mark-ups: Rp11.45 billion
* Goods/services contractors failing to complete work: Rp7.66 billion
* Double and/or excessive honorarium payments: Rp7.36 billion
* Use of money/goods for personal gain: Rp5.82 billion
* Fictitious official travel expenses: Rp2.54 billion
* Other fictitious goods/services expenditures or procurement: Rp759.61 million
"Regarding the identified problems, BPK provided 24,796 recommendations, including to the relevant entity leaders to determine and/or recover losses, collect revenue shortfalls, and deposit them into state/regional/company coffers, and to strive to prevent potential losses from becoming actual losses," BPK explained.
"Thus, state financial management and public services become more qualitative and beneficial in achieving national goals," BPK concluded.