History
The Audit Board of the Republic of Indonesia (BPK RI) with the first office located in Magelang, Central Java, was established on December 28, 1946 under the Government Stipulation No. 11/OEM BPK RI. It started to perform its role on January 1, 1947 and changed its name into Dewan Pengawas Nasional (National Supervision Board) when Republic of Indonesia Serikat (the United Republic of Indonesia) was established. However, since the issuance of Presidential Decree on July 5, 1959 and Indonesia returns to the 1945 Constitution, in pursuant to Article 23, Paragraph 5, Financial Supervisory Board returned to Badan Pengawas Pemeriksa Keuangan Operasional (Operational Financial Audit Board). In undertaking the tasks, BPK RI refers to Law No. 15, Year 2006.
Constitutional Position
The function of BPK RI is enshrined in the 1945 Constitution in separate chapters that comprise three articles – Chapter VIIA, Article 23E, 23F and 23G, which says: “To audit state finance management and responsibility, an independent and self-reliant Audit Board is established”. The result of the financial audit is submitted to the House of Representatives (DPR), Regional Representatives Council (DPD) and Regional House of Representatives (DPRD) according to their respective authority. The results of the audit are followed up by representatives of institutions and/ or institutions based on the law.” BPK RI is legally equal to the Position of President. The position of BPK RI is independent but not an institution that is superior to the government. BPK RI is a separate institution and therefore, there is no relation with the government based on superior and subordinate consideration. BPK RI is elected by DPR and should account to the parliament.
Authority
BPK RI has mandate to conduct a number of audit consisting the management of state finances and responsibilities undertaken by the central government, local government and other state institutions; Bank Indonesia, State-Owned Enterprises, Public Service Board, the Regional Owned Enterprises and institutions or other agencies that manage state finances. BPK RI submits the results of the examination to House of Representatives (DPR), Regional Representatives Council (DPD) and Regional House of Representatives (DPRD) according to their respective authority. The results of the audit are followed up by representatives of institutions and/ or institutions based on the law. Examination results have been submitted is stated open to the public. For the continuation of examination, BPK RI also presents the written examination results to the President, governors, regents or mayors according to their respective authority. If any criminal element found in the inspection process, BPK RI reports these results to the authorized party, maximum of one month since the finding. BPK RI is authorized to determine the object of inspection, plan and carry out the examination, determine the time and method of examination, as well as inspection reports, prepare and present the inspection report. BPK RI have the authority to look for information or request any documents needed from the auditees.BPK RI also have the authority to assess and determine the amount of loss suffered by the state . State assessments and state financial losses or the determination of which party is obliged to pay compensation determined by the decision of BPK RI.
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