Jokowi Asks Prabowo To Join BPK's Findings In The Komcad Budget At The Ministry Of Defense

JAKARTA - President Joko Widodo (Jokowi) ordered the Minister of Defense (Menhan) Prabowo Subianto to make improvements to the findings of the Supreme Audit Agency (BPK) regarding the Reserve Component (Komcad) budget run by the Ministry of Defense (Kemenhan).

"And I have ordered all ministers, not just one matter (Komcad), because yesterday I just submitted a report for the other semester; and there are many findings, and that is what needs to be improved and convey everything to the BPK," said Jokowi at the Indo Defense Exhibition 2022 Expo & Forum in Jakarta, quoted from Antara, Wednesday, November 2.

Based on the audit of the BPK's internal control system and compliance with the Ministry of Defense's financial statements for the 2021 fiscal year, it was found that a number of goods procurement worth IDR 531.96 billion had not been included in the 2021 budget.

In addition, more than half of the budget value, which is around IDR 235.25 billion, is used for the formation of Reserve Components (Komcad).

"Such findings in ministries are always there, the most important thing is that administrative procedures can be improved," added Jokowi.

Previously, BPK had sent a letter to Defense Minister Prabowo to follow up on the findings.

"In general, the improvements made will be followed up by the finance minister as the coordinator and will submit a letter from the president to all ministries and institutions to follow up on our findings and improvements," said BPK Member I Nyoman Adhi Suryanyana at the Presidential Palace complex, Jakarta, on Tuesday 1 November.

In its report, BPK stated that the procurement of goods for Komcad included the procurement of supporting activities worth Rp123.07 billion), vehicle assets worth Rp44.8 billion, and assault rifles worth Rp67.3 billion.

The items have been distributed to the three Military Regional Main Regiments (Rindam), Special Forces Education and Training Centers (Pusdiklatpassus), implementing basic military training activities (latsarmil), and Komcad rounding.

According to BPK, these items should have been disabled as fixed assets of at least Rp230.57 billion. The problem is, recording cannot be done because some of the goods were imported and distributed prior to the budget.

Komcad support activities in 2021 are still being proposed as an additional budget of Rp123.07 billion for the 2022 Fiscal Year.

BPK also revealed the need for funds for Komcad activities in the form of vehicle procurement worth Rp68.69 billion and a 5.56 mm caliber assault rifle worth Rp582.99 billion, which was recorded as a domestic loan contract in 2021 and 2022. In fact, the budget financing contract has not been effective.

As a result, BPK considers that there are potential legal problems with assets worth IDR 527.27 billion at the Ministry of Defense. The Ministry of Defense also has the potential to receive bills for third party expenditures worth a total of IDR 1.07 trillion, most of which are for the formation of Komcad 2021.

BPK said the problem arose because the Commitment Making Officer (PPK) in the Ministry of Defense Sub-District made the procurement of goods before the budget was available, so this violated Law Number 17 of 2003 concerning State Finances.

BPK recommends to the Defense Minister to order the Head of the Barahan and PPK to immediately complete budgeting and payment for the implementation of activities and instruct the Inspectorate General of the Ministry of Defense to verify the work results and the reasonable value of the payment.