Universitas Gadjah Mada
Faculty of Economics and Business

Chairman of Financial Auditing Agency (BPK), Dr. H. Harry Azhar Azis, M.A., said currently there were more government agencies receiving Normal Without Exception (WTP) assessment from the BPK. Linear correlation, however, has not been seen between such ranking and increased people prosperity.

“Unfortunately, the WTP assessment does not seem to impact on increased people prosperity,” said Harry when being keynote speaker in the the CEO Talk The Walk on Friday (26/2) at Faculty of Economics and Business UGM.

Harry pointed out examples from East Nusa Tenggara Province that in years 2012-204 received a Normal With Exception (WDP) opinion. Despite such opinion for three years, there were not increased indicators of prosperity. Between 2012-2014 open unemployment rates in subsequence were 3.04 %, 3.25%, and 3.26%. IPM showed 60.81, 61.68, 62.26 and poverty rate decreased insignificantly, that is 20.41%, 20.24%, and 19.60%. Gini Ratio Index were 0.36, 0.36, and 0.352.

Likewise, Bengkulu province between 2012-2014 received a WTP, but the prosperity indicators in the past three years did not improve.  Fluctuative unemployemnt rates were 3.62%, 4.61%, and 3.47%. Poverty percentages were 17.50%, 17.51%, and 17.75%, in other words, there were still many impoverished people.

“These examples explained to us that currently there has been no clear correlation between improving opinion and increasing people prosperity,” he said.

Such condition also happens in other parts of Indonesia. Improved opinion does not always go with increasing people prosperity.

“Ideally, the efforts to earn a WTP should be followed by efforts to have good performace in terms of financial management. Every programme and project is done economically and efficiently; there is no corruption, and the people are getting more prosperous,” said Harry.

When delivering his speech titled the Function of Financial Auditing Agency in State Financial Management and People Prosperity, Harry said that currently BPK started to strengthen their capacity in performance observation, which among others are done through boosting achievement of opinion on financial reports with agency capacity in carrying out people prosperity programmes. His office will improve the performance observation to be able to assess entity ability in carrying out development programmes, especially related to people prosperity. Evaluation will also be made on budgeting whether it has been correctly directed towards people prosperity.

Harry added BPK would prioritise performance observation of programme that to reduce poverty rate and income gap, as well as programme to increase human development index (health, education and purchase power).

“With these measures the BPK can reinstate the benefit of their observation in order to increase people prosperity,” he concluded.

Source: ugm.ac.id