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Tax and Revenue Management

Indonesia to use e-audit system in Western province

By Clarice Africa | 1 December 2011

The Supreme Audit Agency (Badan Pemeriksa Keuangan) will be using an electronic audit system to reach the isolated towns of West Papua as part of the agency’s move to enhance and improve the financial accountability of government institutions.

West Papua is a province of Indonesia covering the western peninsula of the island of New Guinea and has a population of 761,000 people.

The e-audit system, which has already been implemented in other regions, would enable financial reports from the local administration, the central government, and relevant state firms to be uploaded to the agency’s database.

The system would establish a link-and-match relationship between the government and parties related to state financial management and the Supreme Audit Agency.

With the system, the government will be able to check and monitor state finances, and track irregularities in the financial reports more efficiently

According to Supreme Audit Agency Chief Hasan Bisri, the e-audit system is urgently needed in West Papua because financial reports from the region were often late and not properly made.

He added that the number of local administrations in West Papua had more than doubled in the last five years. The number of auditors, meanwhile, had always been limited,

“Through this system, we will be able to study and prevent state losses earlier, and also improve the province’s financial accountability and transparency” he said.

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