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Jakarta Post

Jokowi urged to probe Rp 19.48t in potential state losses

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, April 17, 2017   /   06:28 pm
Jokowi urged to probe Rp 19.48t in potential state losses Supreme Audit Agency (BPK) head Harry Azhar Azis (right), accompanied by BKP secretary general Hendar Ristriawan, speaks to journalists during a press conference in Jakarta on Oct.5, 2016. (Antara/Puspa Perwitasari)

The Supreme Audit Agency (BPK) has urged President Joko “Jokowi” Widodo to investigate the agency’s findings on potential state losses worth Rp 19.48 trillion (US$1.47 billion) in 2016.

“It is the government’s task to follow-up our recommendations. [Therefore], we have requested President Joko Widodo conduct a follow-up,” said BPK chairman Harry Azhar Azis at the State Palace after meeting with the President on Monday as reported by kontan.co.id.

The finding was based on an audit of the central government, the regional administrations, state-owned enterprises and other institutions.

(Read also: Poor reporting, irregularities cause state losses: BPK)

The BPK report showed three major problems, Harry said.

First, problems in the national health insurance scheme, which lacked professional human resources in community health centers (Puskesmas) and hospitals, as well as 155 regions, whose health insurance had not been integrated into the national scheme.

Secondly, the BPK also found overlapping responsibility between the central and regional administrations in providing education infrastructure in junior high schools (SMP), senior high schools (SMK) and vocational schools (SMK).

Thirdly, four main tax offices allegedly did not transfer revenue from value added taxes, which could lead to a potential administrative fine of Rp 117.70 billion.

The BPK said the government needed to pay serious attention to receivables worth Rp 1.85 trillion over the use of frequencies at the Communications and Information Ministry that potentially might not be paid. Another finding included the collection of tuition fees and rental fees from state-owned properties that had not been approved by the finance minister. (bbn)