“(The MoU has been signed) In order to improve the effectiveness, efficiency, and accountability of the management of state finances," according to a statement issued by the Finance Ministry, received in Jakarta on Friday.
The MoU for supervisory cooperation on the management of state finances has been signed as this year, the state budget will remain the main instrument for bringing about health and national economic recovery from the COVID-19 pandemic crisis through the National Economic Recovery Program (PEN), the ministry said.
The government has allocated a budget of Rp699.43 trillion for PEN this year, an increase of 21 percent from the temporary realization of Rp579.78 trillion under last year's PEN program.
This year’s budget is focused on health management programs, social protection, support for Micro, Small and Medium Enterprises (MSMEs) and corporations, as well as business incentives.
The need for the MoU arose out of the necessity to strengthen cooperation, in terms of supervision, between policy makers, program executors, the Government Internal Supervisory Apparatus (APIP), law enforcement officials, and the Supreme Audit Agency (BPK), the ministry explained.
This supervision will also actively involve the community as beneficiaries of the program, and the civil society to carry out the role of social control, it added.
"The public is expected to participate in supervising the management of the state budget and providing information to the supervisory apparatus if they become aware of any irregularities," according to the ministry’s statement.
The collaboration between the Ministry of Finance and BPKP will focus on improving the capacity of APIP of Ministries / Institutions (K / L) and regions as well as Internal Supervision Units (SPI) at SOEs and the public service agency for carrying out joint supervision.
The MoU covers a wide range of matters, from end-to-end state budget supervision, supervisory management, prevention and handling of cases with indications of fraud, to exchange of data and information, the ministry informed.
It also includes increasing the capacity and capability of the APIP and SPI, supporting budget implementation at the expense of the state budget, and improving the quality of regional financial management within the national fiscal framework, it added. (INE)
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EDITED BY INE