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The Supreme Audit Agency (BPK) will next year start
conducting audits on the use of budgetary funds disbursed to the
regions.
The planned audits, as outlined by BPK chief Anwar Nasution, come amid
indications that budgetary funds often remain idle in investment banks
rather than being effectively spent on development projects.
"We previously lacked regional offices to carry out audits, but they
will be ready by next year," Anwar told reporters Friday after a public
lecture held in cooperation with the Russian audit board.
Anwar said the audits will be an extension of current audits, in which
the BPK only cross-checks what the central government reports on in its
annual state accounts.
"We will now examine whether regions actually receive funds allocated
to them, whether the amounts match up with any budget revisions and
what the funds are being used for," he said.
In the 2008 draft budget the government proposed the disbursement of Rp
262.2 trillion (US$29 billion) in funds to the regions, up from Rp
244.6 trillion in this year's revised budget.
Next year's funding will consist of Rp 64.5 trillion in tax and natural
resources revenues, Rp 176.5 trillion in general allocation funds
usually spent on regional routine expenditures and Rp 21.2 trillion in
special allocation funds for public development projects financed by
the central government.
The government will on top of that also provide Rp 9.5 trillion this
year and next year to support autonomy in certain regions.
President Susilo Bambang Yudhoyono is among those concerned about the
effectiveness of regional development funds.
The President in a speech last month to the Regional Representatives
Council (DPD) lamented the fact that some Rp 96 trillion in local
administration funds was still deposited in banks at the start of the
second quarter and some Rp 50 trillion was still idly invested in
central bank bills in mid-August.
Both the Coordinating Minister for the Economy, Boediono, and Finance
Minister Sri Mulyani Indrawati have asked the regions to properly use
their funding for development projects. However, the central government
is yet to enforce these requests.
Meanwhile, sharing Russia's experience on decentralization, Russian
Federation Accounts Chamber chairman Sergey V. Stephansin explained how
his country had established an association of local audit boards to
better coordinate financial examinations and supervision down to the
lowest level.
He also said Indonesia and Russia faced similar challenges in
conducting performance-based audits on state budget and economic
development policies, having to measure their impacts on productivity
and welfare improvement as well as financial transparency and
accountability.
The public lecture hosted Friday by the BPK in cooperation with the
Russian Accounts Chamber followed the signing of a cooperation
agreement between Indonesia and Russia during President Vladimir
Putin's visit to Jakarta on Thursday.
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