BPK says govt accounting standard may not work

Rendi A. Witular, The Jakarta Post, Jakarta

The new accounting standard for government departments will not work unless there is a change in the mentality of corrupt officials and more serious antigraft law enforcement, a senior official says.

"This kind of standard can be made in 100 days ... But it won't work well if corrupt officials continue to exist because they will simply try to find loopholes in the new system," Supreme Audit Agency (BPK) chairman Anwar Nasution said at the State Palace on Wednesday.

To fight against corruption Anwar urged the government to reeducate civil servants, increase their salaries and step up graft investigations in government.

Vice President Jusuf Kalla officially launched the new accounting standards on Wednesday, which he said were aimed at creating a more transparent and accountable public service.

Kalla said the government hoped bring financial reporting by central government and local administrations up to professional standards.

"Starting next year, all government and local administrations will use the same method, making standardized reports on balance sheet, revenues, expenditure and cashflow in a more transparent and accountable way," he said.

The accounting standard will be imposed on all government agencies and ministries, while the Ministry of Home Affairs will soon issue guidelines to help local administrations apply the system.

The Ministry of Finance is responsible for preparing the regulations.

At present, the state budget is created based on a supply and demand system without taking into account a detailed analysis of revenue and expenditure of the departments and regional administrations it funds.

The system, which is not transparent, has long been abused by corrupt politicians and officials.

Finance minister Jusuf Anwar said with the new system, the government hoped to more effectively control state funds.

"The new system will require governments to explain the state and regional budgets, the flow of cash coming in and out, and will include notes for every financial transaction," Jusuf said.