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Audit in a new democracy such as Indonesia

Crawford School of Public Policy | Arndt-Corden Department of Economics | Indonesia Project

Event details

Indonesia Study Group

Date & time

Wednesday 14 May 2014
12.30pm–2.00pm

Venue

Coombs Seminar Room B, Coombs Building 9, Fellows Road, ANU

Speaker

Paul Nicoll, Australian National Audit Office.

Contacts

Nurkemala Muliani
6125 5954

Despite the inclusion of Badan Pemeriksa Keuangan (BPK) in Indonesia’s first law and the Constitution, its role is widely misunderstood. This has confined BPK to a lesser role than that of counterparts in many other countries.

Public sector financial management legislation from 2004 broadened BPK’s role. Other 2004 legislation also modernised its role, as suggested by a new mandate to review the efficiency, economy and effectiveness of government operations (‘performance auditing’). Since that year, BPK has sought to implement these new responsibilities. But at the same time there are strong political, legislative and popular views that BPK ought to focus its limited resources mainly on its anti-corruption efforts.

We will describe BPK’s implementation of key aspects of the 2004 legislation, acknowledging progress and highlighting some challenges. A key question is what is and what ought to be the role of a national audit entity in a new democracy?

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