Govt Project Should Use Non-Cash Transaction

Fitri Novia Heriani, Robert Sidauruk

The Audit Board of the Republic Indonesia (BPK) has recommended that the Central Government and regional governments utilize non-cash transactions and banking services when making disbursements for capital and bureaucracy expenditure.

Hadi Purnomo, Chairman of BPK, delivered this recommendation during a press conference at BPK’s office in Jakarta on Monday. The Chairman further explained that such measures need to be taken to facilitate BPK auditing transactions carried out by government institutions.

As a first step to realizing this recommendation, BPK has provided information on the concept of non-cash transactions to every governor in Java and all state-owned enterprises (BUMN). This action, Hadi hopes, will lead to real commitment from every governor to implement the recommendation.

Hadi further noted that the use of non-cash transactions will also be imposed on private entities that win bids on government’s projects. For transactions with third parties using Government funds, private entities will be prohibited from using cash payments.

If the Government starts to implement the recommendation, Hadi believes that the BPK will be able to ensure the exact amount and sources of every transaction conducted by the Government.

Moreover, the audit results obtained by the BPK will also serve as comparative data for transactions used by the State Treasury Office Service (Kantor Pelayanan Perbendaharan Negara / KPPN) as the intermediary institution for the Government when making payments.

Andi Timo Pangerang, Deputy Chairman of Commission XI at the House of Representatives, expressed support for the BPK recommendation.

“We must reduce cash transactions for payments and transactions by the Government to a minimum,“ added Andi.

However, Andi also asserted that such a recommendation must be followed by well-prepared infrastructure development.

Andi further recommended that the BPK conduct discussions with Bank Indonesia to establish the legal framework for such transactions before implementing the recommendation.

(hot/kc)

Fitri Novia Heriani, Robert Sidauruk

The Audit Board of the Republic Indonesia (BPK) has recommended that the Central Government and regional governments utilize non-cash transactions and banking services when making disbursements for capital and bureaucracy expenditure.

Hadi Purnomo, Chairman of BPK, delivered this recommendation during a press conference at BPK’s office in Jakarta on Monday. The Chairman further explained that such measures need to be taken to facilitate BPK auditing transactions carried out by government institutions.

As a first step to realizing this recommendation, BPK has provided information on the concept of non-cash transactions to every governor in Java and all state-owned enterprises (BUMN). This action, Hadi hopes, will lead to real commitment from every governor to implement the recommendation.

Hadi further noted that the use of non-cash transactions will also be imposed on private entities that win bids on government’s projects. For transactions with third parties using Government funds, private entities will be prohibited from using cash payments.

If the Government starts to implement the recommendation, Hadi believes that the BPK will be able to ensure the exact amount and sources of every transaction conducted by the Government.

Moreover, the audit results obtained by the BPK will also serve as comparative data for transactions used by the State Treasury Office Service (Kantor Pelayanan Perbendaharan Negara / KPPN) as the intermediary institution for the Government when making payments.

Andi Timo Pangerang, Deputy Chairman of Commission XI at the House of Representatives, expressed support for the BPK recommendation.

“We must reduce cash transactions for payments and transactions by the Government to a minimum,“ added Andi.

However, Andi also asserted that such a recommendation must be followed by well-prepared infrastructure development.

Andi further recommended that the BPK conduct discussions with Bank Indonesia to establish the legal framework for such transactions before implementing the recommendation.

(hot/kc)

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