BPK Invited to Describe Audit Experience at the INTOSAI WGFMRR Meeting

9:11:00 am

Indonesia.RumahNews.com- BPK Public Relations - The Supreme Audit Agency of the Republic of Indonesia (BPK) was again invited to give a presentation about the audit experience at a meeting of the working group on financial modernization and regulatory reform (International Organization of Supreme Audit).  Institution) or INTOSAI WGFMRR, on Friday (22/01/2021).  The meeting, which was held virtually, was attended by 44 participants from 18 audit institutions (Supreme Audit Institutions / SAI).

 Unlike the previous meeting, SAI America as the chairman of INTOSAI WGFMRR gave the opportunity to SAI of the People's Republic of China (PRC) to host this meeting which was opened by Wan Zhincheng, Director General, Department of Financial System Audit.

 Aiming at increasing SAIs' knowledge of government policies related to financial regulations, changes to these regulations, as well as the role of the central bank during the Covid-19 pandemic, this meeting invited sources including Tobias Adrian, Financial Counselor and Director of Monetary and Capital Markets Department of International Monetary Fund.  (IMF), Pan Wensheng, Chief Economist and Head of Research Department of China International Capital Corporation (CICC), and Chen Weidong, General Manager of Research Institute of Bank of China (BOC).

 Tobias provided recommendations for realizing a strong and equitable economy after the Covid-19 pandemic for developed and developing countries.  For developed countries, this can be done by continuing fiscal and monetary policies and avoiding risks that threaten financial stability.  Meanwhile, for developing countries, it is advisable to maintain fiscal and monetary policies that do not interfere with debt sustainability and reduce inflation.

 Pen Wensheng explained the differences in economic policies pursued by the United States and China in 2020. America tends to support demand with the impact of accelerating demand recovery, deepening recession and trade deficit, while China supports supply which has the impact of accelerating supply recovery, reducing economic contraction, and increasing  trade surplus.

 Although the policies adopted are different, in 2021 the two countries are predicted to be able to achieve the same goal of synchronizing global recovery.  Meanwhile, Chen Weidong explained the experience of BOC, namely that at the beginning of the Covid-19 pandemic, BOC experienced credist risk accumulated and the banking sector was faced with capital pressure, so BOC implemented profit surrendering and IFRS 9.

 Main Auditor for State Finance II, Laode Nusriadi, led the BPK delegation consisting of the Head of Auditorate II.D, Thomas Ipoeng Andjar Wasita, Head of the Public Relations and International Cooperation Bureau, Selvia Vivi Devianti, Head of Subauditorate II.C.1, Hartono Ari Susetyo,  Head of International Cooperation, Kusuma Ayu Rusnasanti, and the International Cooperation Team.

 Laode described BPK's experience in bank supervision audits that began with the BPK mandate and reforms the financial system in Indonesia.  Laode explained the audit methodology carried out by conducting a review, including the implementation of Basel III, Bank Supervision Methodology, Bank Suprevision Report, Supervision Working Paper, and Bank Regulations stipulated by the FSA.  There are challenges in conducting this audit that can become lessons for other SAIs, among others, is communicating the audit results with stakeholders, bank secrecy, and integrated audit strategy.  Furthermore, Laode explained that the BPK is currently conducting an audit on the handling of the Covid-19 pandemic with audit coverage on the financial system in Indonesia including monetary policy, fiscal policy, bank supervision policy, and deposit supervision policy.

 Other SAIs who also shared their audit experiences in this meeting included SAI Canada, China, Italy, and America.  SAI Canada describes the audit experience in the government program the Canada Emergency Wage Subsidy (CEWS) which was launched in the context of handling the Covid-19 pandemic, SAI PRC shares its experience on performance audits at commercial banks by utilizing big data, SAI Italia tells about plans and priorities in 2021  for economic recovery, and SAI America presents the methodology and findings in an audit of the Benefits and Costs of Anti-Money Laundering Regulations.

 BPK has shown a strong commitment by taking an active role in INTOSAI WGFMRR.  In addition to gaining experience, knowledge and learning to use in conducting audits, this working group can be a means of introducing and externalizing the role of BPK to the international community.