Government's Non-Compliance with Regulations Costs Indonesia Trillions of Rupiah

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Adi Ahdiat 06/10/2022 14:30 WIB

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The Indonesian Supreme Audit Agency (BPK) found approximately 8,100 instances of government non-compliance with legislation. This represents the value of the resulting losses.

State Losses Due to Government Non-Compliance with Legislation (Semester I 2022)

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State Losses Due to Government Non-Compliance with Legislation (Semester I 2022)

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The Indonesian Financial Audit Agency (BPK) found approximately 8,000 instances of government non-compliance with regulations.

This government non-compliance resulted in losses to the Indonesian state totaling Rp5.96 trillion, plus a potential loss of Rp880.10 billion, and a revenue shortfall of Rp10.49 trillion.

These BPK findings are recorded in the Summary of Semester I Audit Results (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," explained the BPK.

Broken down by institution, the BPK found that the central government had 1,300 instances of non-compliance with regulations that could result in:

* State losses: Rp3.75 trillion
* Potential state losses: Rp361.31 billion
* State revenue shortfall: Rp831.72 billion

Regional governments had 6,544 instances of non-compliance that could result in:

* State losses: Rp1.45 trillion
* Potential state losses: Rp371.21 billion
* State revenue shortfall: Rp534.76 billion

Meanwhile, SOEs and other bodies had 272 instances of non-compliance that could result in:

* State losses: Rp750.24 billion
* Potential state losses: Rp147.58 billion
* State revenue shortfall: Rp9.12 trillion

"Regarding the problems found, the 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," the BPK clarified in its report.

"Thus, state financial management and public services become more qualitative and beneficial in achieving national goals," concluded the BPK.

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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Government's Non-Compliance with Regulations Costs Indonesia Trillions of Rupiah

Government's Non-Compliance with Regulations Costs Indonesia Trillions of Rupiah

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

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Government's Non-Compliance with Regulations Costs Indonesia Trillions of Rupiah

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

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