JAKARTA - The Financial and Development Supervisory Agency (BPKP) has begun compiling an overview of the audit of the palm oil sector in Indonesia. This process is a follow-up to a request from Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan regarding an audit of the palm oil industry governance some time ago.
Head of BPKP Muhammad Yusuf Ateh explained that the purpose of compiling an overview of the audit of the palm oil sector is to facilitate auditing of governance of the business processes of the palm oil industry from upstream to downstream.
"The scope of the audit carried out by the joint team with the Indonesian Attorney General's Office includes plantations, CPO mills, CPO derivative factories, distribution of CPO products and their derivatives, exports and the use of export levy funds," he said in the entry meeting auditing the governance of the palm oil industry and its derivatives, Friday, 1 July.
The scope of the palm oil industry governance audit, said Ateh, is very broad and involves many stakeholders. For this reason, BPKP will carry out collaborative audits.
The collaboration in carrying out the audit involves relevant agencies such as the Attorney General's Office, BPKP Representatives in 29 provinces, the Ministry of Finance (Directorate General of Customs and Excise, Directorate General of Taxes, Directorate General of Budget) and the National Police.
"This audit is expected to provide accurate information in making decisions to improve the overall governance of the palm oil industry," he said.
Meanwhile, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the palm oil industry in Indonesia is one of the strategic industries. Because more than 16.4 million people live and work in this industry, it is the largest producer of exports.
Luhut said, as part of improving the governance of the palm oil industry, President Joko Widodo ordered an audit of the current governance and improvements needed.
"Later on, from the results of the audit, we can get a comprehensive picture of governance and the necessary improvements," he said.
Therefore, Luhut asked the ministries/agencies and local governments to cooperate with BPKP in making this audit a success. Especially in terms of providing data and information needed to carry out the audit.
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