Indonesian Political, Business & Finance News

Law on Bepeka needs revision: Prof. Arifin

| Source: JP

Law on Bepeka needs revision: Prof. Arifin

JAKARTA (JP): The 1973 Law on the Supreme Audit Agency
(Bepeka) needs revising because it places the agency under the
government's authority, a new law professor said.

Arifin Soeriaatmadja said in his inauguration as a University
of Indonesia professor Saturday that the law had sought its
reference to the 1925 colonial law which reduced such an agency
to a government's tool.

The 1945 Constitution says the agency is an independent body
which is free from the government's influence but does stand
above the government. The agency reports its findings to the
House of Representatives.

"It seems to me that by using a colonial law as legal basis,
the 1973 law gives the agency the same jobs and authority as
those of the government-formed Development and Finance Control
Board (BPKP)," Arifin said.

Initiated in 1983, the board carries out the government's
internal supervision and auditing. Its jobs affect the state
budget and those of provinces and state-owned companies.

Arifin said the use of colonial-made law as the agency's legal
basis had caused controversy about the agency's position.

"In a bid to conform to the colonial law, the agency is given
extra authority other than that already provided by the
constitution," Arifin said.

According to the 1973 law, the auditing and supervising are
also conducted on provincial budgets and those of state-owned
companies.

The constitution clearly restricts the agency's jobs to
supervising and auditing the state budget endorsed by the House.

Arifin said that despite the fact that Bepeka reports to the
House, the agency does not serve as the House's instrument to
audit the government's finance as the U.S. Congress' General
Accounting Office does.

He said a new law which gives the agency a stronger legal
basis was needed in the face of challenges in the 21st century.

"The new law should contain auditing and supervisory norms
that apply to both the Supreme Audit Agency and the Development
and Finance Control Board," Arifin said.

He suggested that the new law recommend decentralized and
gradual supervision in a bid to minimize double jobs.

"The new law should confirm that the agency deals with the
broad and strategic issues of the state finance and the board
carries out technical jobs," Arifin said.

Arifin is the 10th professor from the Indonesia University
established this year. His inauguration takes the number of
university professors to 222. (39/amd)

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