The Supreme Audit Board of the Republic of Indonesia also known as Badan Pemeriksa Keuangan, BEPEKA in short, came into being on 1 January 1947. The origin of BEPEKA is enshrined in paragraph 5 of Article 23 of the Constitution of the Republic of Indonesia read with a decree of the People's Deliberative Assembly (Majelis Permusyawaratan Rakyat) passed on 28 December 1946. Although the Board was functioning for a number of years, it was only in the year 1965 that the first Act on BEPEKA was enacted. Under this act the BEPEKA was subordinate to the President and this did not fulfil the degree of independence contemplated in the Constitution. It was revoked in 1973 and replaced by Act No. 5 of 1973. This Act now governs the Supreme Audit Board and the Board now stands constitutionally on the same level as other high state institutions, namely, the Executive (the President); Parliament; the Supreme Court and the Supreme Advisory Council.
The Board which is the highest (supreme) audit institution in the land, is responsible for the auditing of the state finance, i.e. the budget implementations of the central government, the regional government, the state-owned enterprises, and those of the enterprises owned by the regional governments, in short, the entire wealth of the State.
Each audit result is complemented by necessary recommendations for improvement of administration and management of the entity under audit.
Bepeka notifies Parliament of its audit result on a yearly basis.
The Board is organised as a council of seven members including a Chairman and a Vice-Chairman. The seven members of the Board are appointed by the President of the Republic of Indonesia for a period of five years based on their nomination by Parliament.
As per the Act they are eligible for reappointment for a successive five year term of office.
The Board is assisted by a Secretariat headed by a Secretary General, who is the Chief Executive Officer, of the Board. He is appointed and relieved from his post by the President of the Republic of Indonesia or( the recommendation of the Board, Besides the Secretary General, the Board is also assisted by:
The Act itself provides for the independence of the Board. The very first article of the Act states that the Supreme Audit Board is a High State Institution which in the implementation of its task, is independent from the influence and powers of the government, yet is not superior to the government.
Indonesia can easily be considered the largest island nation in the world. Since the commencement of the first Five-Year Development Plan, Government programs and projects have steadily increased, with corresponding expansion of the State Budget. As a result, the Board's Audit coverage has increased significantly. Besides, the Board which may be considered as the external auditors of the Government, the Executive maintains its own internal audit institution, namely the BPKP or Badan Pengawasan Keuangan dan Pembangunan, (Agency for the Control of Finance and Development), which was founded in May 1983, by virtue of a Presidential Decision.
In conducting its audits, the Board interacts with BPKP, often utilising the observations in their audit reports and also those reports of the internal control units of the departments, regional governments and state enterprises.
The Board conducts the following audits:
- a financial audit: an audit covering all aspects of compliance with laws and regulations and of financial accountability.
- a performance audit; an audit carried out to evaluate the economy, efficiency and effectiveness of the management of public funds.
Based on the 1945 Constitution and Act No.5 of 1973 on Bepeka, the annual audit result-known by its acronym HAPTAH (Hasil Pemeriksaan Tahunan) are made known to Parliament and the Government as well.
The annual audit result broadly contains the following:
One aspect certainly not to be overlooked is the constant efforts to enhance the capabilities of the Board's auditors. Training programs and upgrading courses for auditors, aspirant auditors and administrative personnel are being held continuously, either as an in-house activity or in conjuction with other institutions and universities.
All these efforts are part of the Boards endeavour to improve and expand its role within the framework of national development in general, and the management of State Finance in particular.
It is noteworthy to mention that any improvement of the Board's role, is closely linked with the progress made, with regard to the audit methodologies adopted by the Board.
The Supreme Audit Board has taken active interest in promoting international cooperation and exchange of ideas and experiences. The Board has been on the Governing Board of ASOSAI since its inception in 1979 and on the Governing Board of INTOSAI from 1989.
The Board hosted the Fourth Assembly and Third International Seminar of ASOSAI in Bali in June 1988 and was its Chairman for three years from 1988 to 1991.