BPK urges local governments to maintain fiscal space to support development

Jakarta (ANTARA) - The Supreme Audit Agency (BPK) is urging local governments to maintain a balance between increasing revenues and spending efficiency to ensure fiscal space remains intact to support development. This effort is deemed necessary to strengthen regional fiscal independence through the optimisation of local economic potential and quality spending management. “BPK encourages regional leaders to strengthen fiscal independence by optimising local economic potential,” said BPK Member V Bobby Adhityo Rizaldi during the entry meeting for the detailed audit of the 2025 Local Government Financial Statements (LKPD) for the region under the Directorate General of State Financial Audit V (Ditjen PKN V) of BPK, as per its official statement, quoted in Jakarta on Wednesday. According to him, economical, efficient, and effective regional financial management also needs to be supported by digital transformation through the implementation of the Republic of Indonesia Regional Government Information System (SIPD RI). The use of this technology is expected to improve data quality, prevent potential deviations, and strengthen transparency and accountability in regional financial management. BPK also emphasises the use of a risk-based approach in auditing LKPD (risk-based audit), focused on areas with high potential risks. This approach is reinforced by the utilisation of big data analytics to produce more targeted, objective, and value-added audits. In addition, Bobby continued, the role of the Regional People’s Representative Council (DPRD) as a strategic partner of local governments is also in the spotlight. Effective oversight from the DPRD is considered crucial in ensuring that every budget allocation is on target and provides maximum benefits to the community. His side also appreciates the achievements of local governments in maintaining the quality of financial reports, reflected in the high percentage of unqualified opinions without exceptions (WTP). Nevertheless, BPK reminds that such opinions are not the end goal, but rather part of ongoing efforts to improve the quality of financial governance. “The WTP opinion is an achievement, but the main goal and mandate of the Constitution is public welfare,” said the BPK Member V.