Audit Board Finds Problems with Education Funds in 288 Local Governments
Jakarta, CNBC Indonesia — The Audit Board of Indonesia (BPK) has uncovered persistent problems in the management of education funding, health services and local revenue by regional governments, despite most local financial statements receiving an unqualified opinion.
The findings are set out in the Summary of Semester I 2026 Audit Results (IHPS), which BPK submitted to the Regional Representative Council (DPD RI) on Thursday (8 October 2026).
BPK Member VI Fathan Subchi said the report summarises 762 audit reports, including 548 concerning regional governments: 546 financial audits, one performance audit and one audit for a specific purpose.
After examining 546 regional government financial statements (LKPD) for 2025, BPK issued unqualified opinions to 509 local governments, qualified opinions to 35, and disclaimers of opinion to two.
BPK also recognised improvements in financial governance by a number of local governments.
“BPK appreciates the efforts of 33 local governments that succeeded in improving their 2025 financial-statement opinion from qualified to unqualified by addressing problems identified in previous years. This achievement demonstrates local governments’ commitment to improving the management and accountability of regional finances,” Fathan said in a statement.
Nevertheless, BPK identified various problems in public financial management, involving a total of Rp49.28 trillion. Of this amount, Rp1.80 trillion had been returned to the state, regional governments, companies or other entities while the audits were under way.
For local governments and regionally owned enterprises, the amount returned was Rp740.93 billion.
BPK stressed that resolving public financial problems requires more than repaying losses; it also calls for better governance, as many of the issues involve multiple sectors and institutions.
In education, BPK found that the management of Education Unit Operational Assistance (BOSP) funds in 288 local governments did not fully comply with regulations.
BPK recommended that regional heads process the repayment of BOSP overpayments and submit a repayment summary to the Ministry of Finance, to be used as a basis for calculating future BOSP allocations.
In the health sector, BPK found that contributions for BPJS Kesehatan participants were still being paid using membership data that was neither valid nor up to date.
BPK therefore asked regional heads to coordinate with BPJS Kesehatan and the Ministry of Home Affairs to update the membership data used to calculate contributions covered by local governments.
As for local revenue, BPK found that collection of the Land and Building Acquisition Duty (BPHTB) from the Complete Systematic Land Registration Programme (PTSL) remained inadequate.
To address this, BPK recommended that regional heads coordinate with their local Land Offices to obtain data on PTSL properties that may be subject to BPHTB.
BPK said the findings underscore the importance of cooperation between institutions to improve the management of state and regional finances, so that remedies address the root causes rather than being merely administrative.