KEY NATIONAL INDICATORS AND AUDIT ROLES OF THE SUPREME AUDIT INSTITUTION IN INDONESIA The Audit Board of the Republic of Indonesia Tsaghkadzor, April 27 th 2016

Agenda 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th Background 2.SAI of Indonesia: Strategic Plan Development 3.Indonesian KNIs SAI Indonesia Strategic Plan Audit Policies Audits of Government Development Plans 7.Roles of SAI of Indonesia in KNIs 8.Future Challenges

Background 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th  Indonesian KNIs and New SAI Strategic Plan  KNI and Audit Policies  Auditing Planning Focuses  Audits of Government Development Plans

INDONESIAN KNI’s th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th Sovereign, self-reliant, Indonesia with mutual cooperation value VISION 1.Achieving national security to protect sovereignity of territory, promote self-reliant economy, secure maritime resources, and describe Indonesia characteristic as an archipelago state. 2.Achieving properous, sustainable and democratic society. 3.Achieving free and active foreign affarirs policy and strengthening maritime state identity 4.Achieving high quality of life, properity and welfare. 5.Achieving competitive nation. 6.Achieving a self-reliant, developed, strong, and national interest based maritime country. 7.Achieving society with Indonesia personality and culture. MISSION

National Development Strategy 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th Development Norm Development Dimmensions QUICK WINS & PROGRAMS People (31 Indicators) People (31 Indicators) Prioritised Sectors (92 Indicators) Prioritised Sectors (92 Indicators) Equality and Regions (38 Indicators) Equality and Regions (38 Indicators) Necessary Conditions (35 Indicators) Rule of Law Stability Politic & Decmocracy Governance & Bureaucratic Reform Education Health Housing Income Regions :(1) Villages, (2) Outer, (3) Non Java, (4) Easter Food Security Energy & Electricity Maritime Tourism & Industry 1)Develop people and communtiy; 2)Improve welfare, prosperity and productivity, reduce income inequality, and focus on low and middle class productivity improvement, without hampering and reducing high class players as agents of development. 3)Develop without environment distruction, and without reducing evironment support and ecosystem balance. Mentality/character

KNI & SAI Strategic Plan 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th KNI as important reference of SAI Strategic Plan Development  Vision of SAI  Strategic objectives of SAI  Audit Policy, especially for planning & budgeting

SAI Indonesia Strategic Plan 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th  Framework of Development  Vision  Mision  Strategic Objectives  Audit Policies

Basic References 1.National Objectives 2.Mandates and Functions of the Audit Board 3.Stakeholders Interest 4.Government Development Plans and Bureaucratic Reform 5.Quality Control System of the Audit Board 6.The Accountability Organization Maturity Model 7.ISSAI 12: Value and Benefit of SAI Basic References 1.National Objectives 2.Mandates and Functions of the Audit Board 3.Stakeholders Interest 4.Government Development Plans and Bureaucratic Reform 5.Quality Control System of the Audit Board 6.The Accountability Organization Maturity Model 7.ISSAI 12: Value and Benefit of SAI Strategic Environment: 1.National Environment 2.International Environment Strategic Environment: 1.National Environment 2.International Environment Baselines 1.Achievement of Mandate and Function Implementation 2.Achievement of Institutional Development 3.Other Results Baselines 1.Achievement of Mandate and Function Implementation 2.Achievement of Institutional Development 3.Other Results Expected Conditions 1.Increased Benefit of Audits 2.Improved Audit Qualiity Expected Conditions 1.Increased Benefit of Audits 2.Improved Audit Qualiity AUDIT BOARD OF INDONESIA’S STRATEGIC PLAN FOR Framework of Audit Board Strategic Plan Development 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th

The Accountability Organization Maturity Model FORESIGHT INSIGHT OVERSIGHT 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th

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SAI Indonesia Strategic Plan 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th  Vision “Encouraging governments in managing state finances to achieve national objectives through beneficial and high quality audits”  Mission:  Auditing independently state finances  Governing SAI with integrity, independence and professionalism  Strategic Objectives  Enhancing audit benefits  Improving audit quality

9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th Previous Audit Results Government KNIs Stakeholders Views Audit Themes & Focuses For Audit Plan Policy

Audit Themes & Focuses for th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th DimensiTemaFokus A. Macro Economic Development National and Financial Economic Programs a. Audits on Economic and Bureaucratic Reform Programs b. Audits on Promoting Productivity and Competitiveness of State Owned Enterprises B. People1. HealthAudits on national health insurance and programs 2. Educationa. Audits on 12-year Compulsory Education Program b. Audits on Teacher Quality Improvement Programs c. Audits on Higher Education Access Programs 3. Character and MentalityAudits on Government National Character Improvement Programs 4. Family Planning & Demography Audits on Family Planning and Demography Programs C. Prioritized Sectors1. Food Securitya. Audits on Food Production and Diversification Programs b. Audits on Supporting Infrastructure for Food Security Programs 2. Energy SecurityAudits on Energy Supply Availability Programs 3. MaritimeAudits on Maritime and Connectivity Programs D. Equality of Income and Regional Development 1. Regional Developmenta. Audits on Village Development Programs b. Audits on Border Areas Development c. Audits on National Connectivity 2. Income EqualityAudits on Poverty reduction Programs E. Necessary Conditions 1. Defense and SecurityAudits on National Defense and Security Programs 2. Governance & Buraucratic Reform Audits on Public Services Programs

Audits of Govt Development Plan 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th Performance audit on effectiveness of central government annual budgetary process in supporting government plan implementation (2015) 2. Special-purposed audit (compliance audit) on mid-term development plan of West Papua Province (2015) 3. Special-purposed audit (compliance audit) on mid-term development plan of Tambrau District in West Papua (2015) 4. Special-purposed audit (compliance audit) on mid-term development plan of Teluk Bintuni District in West Papua (2015) 5. Performance Audit on Regional Development Plans in 6 local governments (shortcoming)

SDGs – KNI 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th  UN member state declaration, “Transforming Our World: the 2030 Agenda for Sustainable Development”  17 SDGs are incorporated into Indonesian KNIs (Medium Term Development Plan )  Challenges:  Cascading the SDGs programs into regional development plans and annual budgets  Monitoring, evaluating and reporting progress and achievement  Assuring management and accountability

Roles of SAI of Indonesia in KNI 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th Developing SAI’s Plans  Strategic Plan (5-year plan) – Audit Plan Policy  Annual Plan (esp. audit plan & SAI budget)  Consideration of SDGs programs 2.Conducting audits, esp. Performance Audits  Audits on budgetary processes  Audits on government development plans  Audits on SDGs programs and other subject matters 3.Providing SAI advice/recommendations  Assurance of KNI’s achievement, including SDGs  Better/Improvement of KNIs, including SDGs  Improvement of national planning system  Assurance of planning documents

Future Challenges 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th SAI mandates 2. SAI Capacities 3. Audit Methodology 4. Effectiveness of Audit Results: Follow up Actions of Recommendations

THANK YOU 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th The Audit Board of the Republic of Indonesia (BPK) Jl. Gatot Suborot 31 Jakarta Indonesia Website: Telephone: Ext. 1181, 1182 dan 7018 Facsimile: