Environment Minister Orders Overhaul of Third-Party Debt Administration
Environment Minister and Head of the Environmental Control Agency (BPLH) Jumhur Hidayat has instructed senior ministry officials to immediately carry out a comprehensive overhaul of the third-party debt administration system, which is deemed inadequate.
During a working meeting with House of Representatives Commission XII in Jakarta on Thursday, Jumhur stated that this internal reform measure is the ministry’s rapid response to follow up on recommendations from the Supreme Audit Agency (BPK).
“Instructing the Principal Secretary via memorandum to evaluate the financial management of the Ministry of Environment and ordering the Head of the Planning and Finance Bureau to carry out synchronisation,” he said.
He explained that through the official memo, the Principal Secretary was asked to move quickly to evaluate all financial governance, while the Head of the Planning and Finance Bureau is required to carry out periodic budget management synchronisation.
In addition to financial sector arrangements, firm instructions were also issued to the Principal Inspector via an official memorandum to immediately formulate mechanisms and technical policies regarding oversight within the ministry and the Environmental Control Agency.
As part of strengthening governance in the field, the Head of the General Bureau was also tasked with intensifying socialisation to all work units regarding the division of responsibilities in the state budget disbursement process.
Jumhur emphasised that the synergy of arrangements between planning, disbursement, and internal oversight aspects is expected to sustainably improve the ministry’s financial report opinion while preventing future budget deviations.
“So that is the action plan for the BPK recommendations that will be implemented,” he said.
The Environment Minister’s report received appreciation from members of House Commission XII, who were also participants in the meeting, as it was deemed to provide a rapid response in following up on the BPK’s findings and recommendations for the 2025 fiscal year.
Chairman of House Commission XII Bambang Patijaya said that the findings presented in the BPK report, along with their recommendations, had been directly addressed rigorously, complete with an action plan, and this was in accordance with regulations.
“So it means that according to regulatory provisions, 60 days after the submission of the BPK report to ministries and institutions, it must be followed up. I think with this action plan, the Environment Minister’s presentation is already quite good and commendable,” he stated.