Fitri Novia Heriani, Kartini L Makmur, Robert Sidauruk
The arrest of Rudi Rubiandini, the Head of the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas), on corruption allegations should be used as momentum to reform the institution’s internal budgeting systems. The current system as it stands has the potential to be a source of monetary abuse, including bribery and corruption.
The Audit Board of the Republic of Indonesia (BPK), recommended in June this year that the SKK Migas budget to be included under the State Budget in an effort to prevent unallocated funding, commonly known as “non-budgeted expenses” (dana non-budgeter).
In the recommendation, Hasan Bisri, Member of BPK, concluded that the SKK funding mechanism violates the law as it overlaps with the authority of the House of Representative (DPR) as a budget controlling institution.
Responding to the issue of reforming the SKK Migas funding mechanism, the Minister of Finance Chatib Basri explained that the Government is currently considering an alternative way to fund SKK Migas.
The Minister said that there are two possible options, either allocating funds through the State Budget or under the Public Service Agency (Badan Layanan Umum – BLU) funding mechanism.
For the first option, SKK Migas must be part of the Ministry of Energy and Mineral Resources in order to obtain funds from the State Budget. Under the second option, the State will sell goods/service to SKK Migas without profit, as provided for under Article 1 (23) of Law No. 1 of 2004 on State Treasury.
Uchok Sky Khadafi, a researcher at the Indonesian Forum for Budget Transparency (Fitra), contends that the funding for SKK Migas must be allocated from the State Budget, to simplify supervision by the House.
“Allocating funds via the BLU will provide an opportunity for SKK Migas to create its own financial and budget reports. Such a mechanism will not eradicate potential acts of corruption within the institution,” says Uchok.
Deputy of Management at SKK Migas, Akhmad Syahroza, said that the proposed plan to change the funding mechanism does not raise any concerns for SKK Migas itself. Akhmad further noted that even if the option selected is to allocate funds from APBN, this will not affect the performance of SKK Migas.
“One thing should be clarified, SKK Migas is only eligible to recieve 1% of the total state revenue received from oil and gas activities. Moreover, the funds derived from this 1% allocation are subject to any necessary deductions and an independent audit,” explains Akhmad.
(hot/kc)
Fitri Novia Heriani, Kartini L Makmur, Robert Sidauruk
The arrest of Rudi Rubiandini, the Head of the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas), on corruption allegations should be used as momentum to reform the institution’s internal budgeting systems. The current system as it stands has the potential to be a source of monetary abuse, including bribery and corruption.
The Audit Board of the Republic of Indonesia (BPK), recommended in June this year that the SKK Migas budget to be included under the State Budget in an effort to prevent unallocated funding, commonly known as “non-budgeted expenses” (dana non-budgeter).
In the recommendation, Hasan Bisri, Member of BPK, concluded that the SKK funding mechanism violates the law as it overlaps with the authority of the House of Representative (DPR) as a budget controlling institution.
Responding to the issue of reforming the SKK Migas funding mechanism, the Minister of Finance Chatib Basri explained that the Government is currently considering an alternative way to fund SKK Migas.
The Minister said that there are two possible options, either allocating funds through the State Budget or under the Public Service Agency (Badan Layanan Umum – BLU) funding mechanism.
For the first option, SKK Migas must be part of the Ministry of Energy and Mineral Resources in order to obtain funds from the State Budget. Under the second option, the State will sell goods/service to SKK Migas without profit, as provided for under Article 1 (23) of Law No. 1 of 2004 on State Treasury.
Uchok Sky Khadafi, a researcher at the Indonesian Forum for Budget Transparency (Fitra), contends that the funding for SKK Migas must be allocated from the State Budget, to simplify supervision by the House.
“Allocating funds via the BLU will provide an opportunity for SKK Migas to create its own financial and budget reports. Such a mechanism will not eradicate potential acts of corruption within the institution,” says Uchok.
Deputy of Management at SKK Migas, Akhmad Syahroza, said that the proposed plan to change the funding mechanism does not raise any concerns for SKK Migas itself. Akhmad further noted that even if the option selected is to allocate funds from APBN, this will not affect the performance of SKK Migas.
“One thing should be clarified, SKK Migas is only eligible to recieve 1% of the total state revenue received from oil and gas activities. Moreover, the funds derived from this 1% allocation are subject to any necessary deductions and an independent audit,” explains Akhmad.
(hot/kc)