Indonesian Political, Business & Finance News

Governor Khofifah Attends BPK RI's 2025 LKPD Entry Meeting, Optimistic About Retaining WTP and Continuously Improving Regional Financial Reporting Quality

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Governor Khofifah Attends BPK RI's 2025 LKPD Entry Meeting, Optimistic About Retaining WTP and Continuously Improving Regional Financial Reporting Quality
Image: MEDIA_INDONESIA

Governor of East Java Khofifah Indar Parawansa attended the entry meeting for the audit of the 2025 Regional Government Financial Statements (LKPD) within the Directorate General of State Financial Audit V of the BPK RI in Jakarta on Thursday (2/4).

On that occasion, Governor Khofifah was optimistic that East Java would be able to maintain its achievement of an Unqualified Opinion (WTP) as it has obtained for ten consecutive years from the 2015-2024 fiscal years.

Not only that, Governor Khofifah also conveyed her commitment to continue strengthening synergy with regents and mayors in East Java to improve the quality of regional financial reporting, including through the optimisation of the Regional Government Information System (SIPD).

According to her, the utilisation of SIPD needs to be continuously strengthened, especially in ensuring the accuracy of recording and reporting regional finances.

“This achievement is certainly something we are grateful for together. However, what is more important is how we continue to follow up on all the recommendations given so that the quality of financial governance becomes even better,” she said.

On that occasion, she also outlined East Java’s 2025 economic achievements, which grew by 5.33%. Not only that, East Java’s contribution to the national economy reached 14.40% and to the island of Java 25.29%.

On the fiscal side, the realisation of regional revenue reached Rp29.88 trillion or 104.65% of the target, reflecting the optimisation of Locally Generated Revenue (PAD).

Meanwhile, investment performance reached Rp147.7 trillion, the highest in the last six years. Exports grew by 16.61%, while domestic and international trade missions generated transactions of more than Rp20 trillion.

From the social side, East Java’s poverty rate in 2025 is around 9.3% and shows a downward trend, although in absolute terms it remains a concern in future policy formulation.

“These achievements are a reflection for all of us, as well as a reminder that there is still homework that we must complete together,” she said.

Amid these achievements, she reminded of the global dynamics full of challenges and uncertainties, from geopolitical pressures to volatility in food and energy prices.

Therefore, local governments are required to be even more careful and efficient in budget management, including through strengthening productive spending and refocusing on sectors that directly impact the community.

She also emphasised the importance of support for National Strategic Programmes, from food security, extreme poverty alleviation, to industrial development and social protection.

“The challenges ahead are not only about the ability to spend the budget, but ensuring value for money, that every rupiah spent truly provides optimal impact for public welfare,” she stressed.

Meanwhile, the Head of State Financial Audit V, Bobby Adhityo Rizaldi, emphasised the importance of strengthening regional financial governance, especially through the optimisation of the Regional Government Information System (SIPD).

Therefore, he asked regional heads to ensure that the system’s implementation runs well, including in the aspects of recording and financial reporting. Given that one of the factors that could potentially affect the opinion of financial statements is inaccuracy in asset recording.

“Inaccurate asset recording can be one of the things that hinders or even lowers the opinion. Therefore, we ask that identification and mitigation be carried out seriously,” he said.

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