A member of BPK, Nyoman Adhi Suryadnyana, stated that state financial management is no longer solely measured by budget absorption, but also must be able to provide tangible benefits to the community through improved quality of life, equitable distribution of prosperity, and sustainable development.
“We hope that the planning and implementation by our fellow ministries/institutions in using their budgets in the future will begin to consider sustainability elements by adhering to ESG principles,” Suryadnyana said in Jakarta on Monday.
He explained that ESG principles encompass environmental, social, and good governance aspects so that every government program not only produces administrative output but also has a long-term impact on national development.
According to Suryadnyana, the BPK will begin incorporating ESG principles into its audit parameters next year. The step is expected to encourage ministries and institutions to develop more measurable, accountable, and results-oriented budget policies.
The BPK noted that Indonesia's Human Development Index (HDI) currently stands at 75.9, with a Gini ratio of around 0.375.
Although showing a positive trend, the indicator still requires improvement, particularly in education, health, and income equality, to support Indonesia's target of becoming a developed nation by 2045.
"One way is to start from planning. All the way through to implementation and evaluation, we must incorporate elements of state financial management," he said.
He added that implementing ESG from the planning stage will help ensure that every rupiah of the state budget is used effectively, transparently, and provides broader benefits to the public.
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Translator: Devi Nindy Sari Ramadhan, Cindy Frishanti Octavia
Editor: Azis Kurmala
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