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Supreme Audit Institution Recommendations and the Legal System: The Case of Indonesia

  • A. P. Edi Atmaja

    A. P. Edi Atmaja is Ph.D. candidate of Faculty of Law, Universitas Indonesia. He received his bachelor of laws and master of laws degrees from Universitas Diponegoro, Semarang, Indonesia.

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    , Anna Erliyana

    Anna Erliyana is Administrative Law Professor of Faculty of Law, Universitas Indonesia. She received her bachelor of laws, master of laws, and doctor of laws degrees from Universitas Indonesia, Jakarta, Indonesia.

    , Dian Puji N. Simatupang

    Dian Puji N. Simatupang is Administrative Law Assistant Professor of Faculty of Law, Universitas Indonesia. He received his bachelor of laws, master of laws, and doctor of laws degrees from Universitas Indonesia, Jakarta, Indonesia.

    and Yu Un Oppusunggu

    Yu Un Oppusunggu is International Law Assistant Professor of Faculty of Law, Universitas Indonesia. He received his bachelor of laws degree from Universitas Indonesia, master of laws degree from Universiteit Leiden, and doctor of laws degree from University of Washington.

Published/Copyright: December 13, 2023

Abstract

The audit recommendations of the Indonesian supreme audit institution (Badan Pemeriksa Keuangan, BPK) acquired new significance after the collapse of the authoritarian state in 1998 and constitutional amendments in 1999–2002 that reformed the regulation and institutional governance of public sector audit in Indonesia. However, while the reform of public sector audit regulation was carried out through a strong adoption of private sector audit standards and the Westminster SAI model, the BPK retained some of its Napoleonic legacy. This syncretic organisation led to confusion about the BPK’s role and position in the Indonesian legal system. Using a historical and case study approach, this paper analyses the relationship between the BPK’s audit recommendations and the Indonesian legal system. It argues that it is important for the BPK to develop auditing standards that take full account of higher rules, administrative law, and national interests, or at least not to adopt and abolish auditing standards that are counterproductive to its judicial function – not merely to accommodate private international law instruments developed by private non-state actors operating outside the legal framework of a sovereign state.

JEL Classification: K; K23; M4

Corresponding author: A. P. Edi Atmaja, Faculty of Law, Universitas Indonesia, Jakarta, Indonesia, E-mail:

Funding source: Faculty of Law, Universitas Indonesia

Award Identifier / Grant number: 413/UN2.F5.D/HKP.00.00.00/2022

About the authors

A. P. Edi Atmaja

A. P. Edi Atmaja is Ph.D. candidate of Faculty of Law, Universitas Indonesia. He received his bachelor of laws and master of laws degrees from Universitas Diponegoro, Semarang, Indonesia.

Anna Erliyana

Anna Erliyana is Administrative Law Professor of Faculty of Law, Universitas Indonesia. She received her bachelor of laws, master of laws, and doctor of laws degrees from Universitas Indonesia, Jakarta, Indonesia.

Dian Puji N. Simatupang

Dian Puji N. Simatupang is Administrative Law Assistant Professor of Faculty of Law, Universitas Indonesia. He received his bachelor of laws, master of laws, and doctor of laws degrees from Universitas Indonesia, Jakarta, Indonesia.

Yu Un Oppusunggu

Yu Un Oppusunggu is International Law Assistant Professor of Faculty of Law, Universitas Indonesia. He received his bachelor of laws degree from Universitas Indonesia, master of laws degree from Universiteit Leiden, and doctor of laws degree from University of Washington.

Acknowledgements

The authors would like to thank Professor Yuri Biondi and three anonymous reviewers for their insightful comments and support during the revision process.

  1. Research funding: This work was supported by Faculty of Law, Universitas Indonesia, under Grant Number 413/UN2.F5.D/HKP.00.00.00/2022.

  2. Competing interests: The authors have no competing interests to declare.

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Received: 2022-10-05
Accepted: 2023-11-21
Published Online: 2023-12-13

© 2023 CONVIVIUM, association loi de 1901

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