1. 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

2. Agenda 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 2 1.Background 2.SAI of Indonesia: Strategic Plan Development 3.Indonesian KNIs 2015-2019 4.SAI Indonesia Strategic Plan 2016-2020 5.Audit Policies 2016-2019 6.Audits of Government Development Plans 7.Roles of SAI of Indonesia in KNIs 8.Future Challenges

3. Background 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 3  Indonesian KNIs and New SAI Strategic Plan  KNI and Audit Policies  Auditing Planning Focuses  Audits of Government Development Plans

4. INDONESIAN KNI’s 2015-2019 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 4 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

5. National Development Strategy 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 5 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

6. KNI & SAI Strategic Plan 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 6 KNI as important reference of SAI Strategic Plan Development  Vision of SAI  Strategic objectives of SAI  Audit Policy, especially for planning & budgeting

7. SAI Indonesia 2016-2020 Strategic Plan 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 7  Framework of Development  Vision  Mision  Strategic Objectives  Audit Policies

8. 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 2016-2020 Framework of 2016-2020 Audit Board Strategic Plan Development 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 8

9. The Accountability Organization Maturity Model FORESIGHT INSIGHT OVERSIGHT 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 9

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11. SAI Indonesia Strategic Plan 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 11  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

12. 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 12 Previous Audit Results Government KNIs Stakeholders Views Audit Themes & Focuses For 2016-2020 Audit Plan Policy

13. Audit Themes & Focuses for 2016-2020 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 13 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

14. Audits of Govt Development Plan 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 14 1. 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)

15. SDGs – KNI 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 15  UN member state declaration, “Transforming Our World: the 2030 Agenda for Sustainable Development”  17 SDGs are incorporated into Indonesian KNIs (Medium Term Development Plan 2015-2019)  Challenges:  Cascading the SDGs programs into regional development plans and annual budgets  Monitoring, evaluating and reporting progress and achievement  Assuring management and accountability

16. Roles of SAI of Indonesia in KNI 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 16 1.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

17. Future Challenges 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 17 1. SAI mandates 2. SAI Capacities 3. Audit Methodology 4. Effectiveness of Audit Results: Follow up Actions of Recommendations

18. THANK YOU 9th INTOSAI WGKNI, TSAGHKADZOR, APRIL 27th 2016 18 The Audit Board of the Republic of Indonesia (BPK) Jl. Gatot Suborot 31 Jakarta Indonesia 10210 Website: www.bpk.go.id www.bpk.go.id Telephone: +62-21-570-4395 Ext. 1181, 1182 dan 7018 Facsimile: +62-21-57953198