In fulfilling the accountability of the State Budget (APBN) implementation, the government, through the Directorate General of Treasury (DJPb), prepares the Central Government Financial Report (LKPP), which consolidates 84 Financial Statements of Ministries/Agencies (LKKL) and the State General Treasurer's Financial Report (LK BUN). As a decision-making tool and a material for the preparation of the Consolidated Government Financial Report (LKPK), the quality of the LKPP must be maintained to avoid "garbage in, garbage out," which could affect the quality of the LKPK and policy decisions. With the achievement of eight consecutive unqualified opinions (2016-2023), it is hoped that the quality of the LKPP will continue to improve.
Generally, the scope of the consolidated reports prepared by DJPb includes the LKPP, which consists of 84 LKKL and 1 LKBUN, as well as the LKPK, which consists of 1 LKPP and 546 Local Government Financial Reports (LKPD). The LKPK is a managerial report designed to meet the need for fiscal information at both the national and regional levels. The LKPK is reviewed by the Audit Board of the Republic of Indonesia (BPK) based on the Fiscal Transparency Code as a form of fiscal transparency by the government, conducted concurrently with the LKPP audit.
Despite the challenges in preparing the LKPK, the Ministry of Finance addresses them by developing the Indonesian Financial Information System (SIKRI) and the National Chart of Accounts, which bridge the differences in information systems and accounts between the regional and central governments.
The utilization of the LKPK is considered crucial because it provides comprehensive information on the financial position and performance of the government by consolidating financial reports from both central and regional government entities.
"Consolidated Financial Reports play a significant role in improving public financial management, as they link stocks (assets and liabilities) with flows (revenues and expenses/expenditures), allowing the government to project its ability to finance liabilities from existing assets and potential revenue sources," said Fahma Sari Fatma, Director of Accounting and Financial Reporting of DJPb, during a Thematic Focus Group Discussion (FGD) as part of the Launch and First Meeting of the ASEAN Treasury Forum 2024, on Friday (September 6).
Echoing this, Director of Treasury Systems DJPb, Sulaimansyah, in his opening remarks, stated that the involvement of the Heads of Regional DJPb Offices in this series of events is a follow-up to the directive from the Director General of Treasury to build awareness and increase exposure of DJPb leaders to international-scale activities.
"Therefore, you have been divided into four groups for technical-level discussions, considering your expertise and previous assignments, with the expectation that you can optimally follow the issues that will be discussed with other ASEAN treasury delegations," he explained.
The thematic FGD on "Government Accounting and Reporting" was attended online by the Heads of Regional DJPb Offices from the Provinces of Bangka Belitung, North Sumatra, West Sumatra, South Sumatra, DKI Jakarta, Lampung, West Kalimantan, Gorontalo, and East Nusa Tenggara. [BS]
