BPK Formulates Three Strategies To Improve The Effectiveness Of BUMN Audit

Member VII BPK Slamet Edy Purnomo. (Photo: Doc. Antara)

JAKARTA - The Supreme Audit Agency (BPK) has formulated three change strategies to increase the effectiveness of auditing State-Owned Enterprises (BUMN).

"The first is the implementation of an integrated audit approach for the integration of performance checks and compliance that focuses on policy, efficiency, and effectiveness of accountable state financial management," said Member VII BPK Slamet Edy Purnomo in an official statement in Jakarta, quoted from Antara, Saturday 18 May.

The second strategy is the examination of integrated mandatory performance on significant SOEs supported by strong big data and data analytics.

Third, the active role of BPK and synergy with stakeholders in encouraging the strengthening of the governance and risk management functions starting from the Ministry of SOEs, Holding, and BUMN.

"It is hoped that with joint efforts, governance and strengthening BUMN risk management, SOEs can achieve their objectives optimally and contribute to national development," he said.

Edy emphasized the urgency of good governance and risk management for SOEs in achieving strategic goals and facing various challenges. According to him, SOEs must be able to adapt to global issues such as climate change and show concern for environmental, social, and governance (ESG) aspects.

"For SOEs in Indonesia, of course, this should also be a concern that should not stop at procedural matters, but also substantively fulfill it," he said.

Furthermore, he highlighted the five problems faced by SOEs. Starting from conflicts of interest, unhealthy competition between SOEs, biased performance assessments, very high survival costs, and high moral hazards. Weak governance and high moral hazard are considered to have damaged business strategies within SOEs.

In this case, Edy encourages SOEs to adopt the practice of GRC (government, risk, and compliance) that has been implemented in the banking industry, where each aspect is regulated by regulations and added ESG aspects to be environmental, social, government, risk, and compliance (ESGRC).