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Jakarta Post

BPK finds irregularities in social assistance distribution by state lenders

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, April 5, 2018   /   10:51 am
BPK finds irregularities in social assistance distribution by state lenders Social Affairs Minister Idrus Marham (second right) explains the progress of the distribution of social assistance to journalists in a press conference at the ministry in Jakarta on March 12. (JP/Karina Tehusijarana)

The Supreme Audit Agency (BPK) has recorded a number of irregularities in the distribution of government social assistance by members of the Association of State-Owned Banks (Himbara).

“The distribution of social assistance by Himbara has not been supported by a clear mechanism or transparent system,” said BPK head Moermahadi Djanagara in the second half 2017 auditing result summary (IHPS) of 2017 issued on Thursday as reported by kontan.co.id.

The BPK recorded ineffectiveness and several inefficiencies in the distribution of the assistance, like failure in the distribution of Prosperous Family Cards (KKS) to recipients and the late distribution of non-cash assistance.

In the document, the agency also criticized unclear agreements between the Social Affairs Ministry and state-owned banks because it did not clearly mention the regions that became the responsibility of each bank.

The BPK also recorded that the banks had not returned Rp 79.9 billion (US$5.59 million) of funds that failed to be distributed to the recipients.

To improve the program, the BPK proposed several recommendations to improve the distribution of social assistance.

First, Himbara is expected to create guidance in the distribution of social assistance and improve supervision in goods and services procurement.

Second, the budget use should be strictly based on existing regulations.

Third, officials who failed to abide by the regulation in carrying out their duty would be punished.

Fourth, the government should improve its agreement with banks in the distribution of the assistance.

Fifth, the government must require banks to immediately transfer undistributed funds to the state treasuries. (bbn)