Indonesia Faces Potential Losses of Rp11 Trillion Due to Government's Non-Compliance with Regulations

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Adi Ahdiat 22/06/2023 13:50 WIB

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According to the Indonesian Supreme Audit Agency (BPK), the government's non-compliance in the second semester of 2022 resulted in a state loss of Rp536 billion, a potential loss of Rp11.5 trillion, a

State Losses Due to Non-Compliance by the Government/SOEs/Regional SOEs with Legal Regulations (Second Semester 2022)

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Indonesia Faces Potential Losses of Rp11 Trillion Due to Government's Non-Compliance with Regulations

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State Losses Due to Non-Compliance by the Government/SOEs/Regional SOEs with Legal Regulations (Second Semester 2022)

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The Indonesian Audit Board (BPK) found 1,766 instances of government non-compliance with regulations in the second half of 2022. This non-compliance resulted in a total of Rp536.81 billion in state losses, a potential loss of Rp11.53 trillion, and a shortfall in state revenue of Rp2.58 trillion.

These BPK findings are recorded in the *Summary of Semester Audit Results (IHPS) II 2022* report, published in June 2023. The report summarizes 388 BPK audit reports on the central government, regional governments and regional-owned enterprises (BUMD), state-owned enterprises (BUMN), and other bodies.

Specifically, in the second half of 2022, the BPK found that the central government had 268 instances of regulatory non-compliance, resulting in:

* State losses: Rp77.4 billion
* Potential state losses: Rp10.02 trillion
* Shortfall in state revenue: Rp1.04 trillion

Regional governments and BUMDs had 1,252 instances of non-compliance, resulting in:

* State losses: Rp369.2 billion
* Potential state losses: Rp177.8 billion
* Shortfall in state revenue: Rp163.8 billion

Meanwhile, SOEs and other bodies had 143 instances of non-compliance, resulting in:

* State losses: Rp75 billion
* Potential state losses: Rp1.2 trillion
* Shortfall in state revenue: Rp682.6 billion

In response to these findings, the BPK issued 10,218 recommendations, including that relevant entity leaders should recover losses, collect revenue shortfalls, and deposit them into state/regional/company coffers, and prevent potential losses from materializing. The BPK expects that implementing these recommendations will improve internal controls, make programs/activities more economical, effective, and efficient, recover/prevent losses, and increase state/regional/company revenue.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia Faces Potential Losses of Rp11 Trillion Due to Government's Non-Compliance with Regulations

Indonesia Faces Potential Losses of Rp11 Trillion Due to Government's Non-Compliance with Regulations

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Gianyar Regency Government's Regional Revenue Realization as of December 2025

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Indonesia Faces Potential Losses of Rp11 Trillion Due to Government's Non-Compliance with Regulations

Indonesia Faces Potential Losses of Rp11 Trillion Due to Government's Non-Compliance with Regulations

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Gianyar Regency Government's Regional Revenue Realization as of December 2025

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Realization of Manado City Government's Local Own-Source Revenue (PAD) as of December 2025

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