The government needs to refine the General Allocation Fund (DAU)\nallocation mechanism, particularly for regions with negative fiscal\ngaps, so that the noble goal of eroding financial inequality between\nregions can be realised.<\/p>\n
The Audit Board of Indonesia (BPK) has found several crucial aspects\nin the management of Transfer to Regions (TKD) that require attention in\nthe Audit Results Report (LHP) on the 2025 Central Government Financial\nReport (LKPP).<\/p>\n
One of these findings concerns the 2025 DAU allocation, which does\nnot yet fully reflect the fiscal gap conditions of the regions.<\/p>\n
\u201cTherefore, the government needs to refine the DAU allocation\nmechanism, particularly for regions with negative fiscal gaps, so that\nthe noble goal of eroding financial inequality between regions can be\nrealised tangibly and optimally,\u201d said BPK Vice Chairman Budi Prijono in\na speech during the submission of the BPK\u2019s LHP on the 2025 LKPP to the\nRegional Representative Council (DPD), according to an official\nstatement in Jakarta on Monday.<\/p>\n
The BPK itself submitted the 2025 LKPP LHP administratively to the\nDPD on 26 May 2026 and presented it at the DPR Plenary Meeting on 30\nJune 2026.<\/p>\n
According to Budi, the LKPP not only represents the financial\nmanagement performance of the central government but also presents a\npicture of how national fiscal policy is translated into tangible\nprogrammes and funding transfers that reach all corners of the\ncountry.<\/p>\n
The audit of the LKPP aims to see the extent to which state financial\nmanagement is able to support equitable development, strengthen regional\nfiscal capacity, and improve community welfare throughout Indonesia.<\/p>\n
Amid increasingly dynamic development financing needs and\nincreasingly limited fiscal space, he continued, the management of the\nState Budget (APBN) and Regional Budgets (APBD) is required to be more\neffective, efficient, transparent, and accountable.<\/p>\n
Regional governments are expected to improve spending quality\n(spending better) by directing available resources to programmes that\nprovide direct benefits to the community, improve the quality of public\nservices, and encourage sustainable regional economic growth.<\/p>\n
Based on the audit results of the 2025 LKPP, the BPK issued an\nUnqualified Opinion (WTP). This achievement was supported by WTP\nopinions on 97 financial reports of ministries\/institutions and one\nFinancial Report of the State General Treasurer (LK BUN).<\/p>\n
\u201cAlthough one institution received a Qualified Opinion (WDP), this\ndid not have a material impact on the fairness of the 2025 LKPP as a\nwhole,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bpk-highlights-crucial-aspects-in-regional-transfer-fund-management-1783342529", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }