Sunday 10 May 2009

System of Overseas Debts Control Still Ineffective

Investigative outcome of the Board of Financial Examination [BPK] of Semester II 2008 unveiled that the control system over overseas debts were still inferior “The control system of foreign debts as related to realization of loans, monitoring of specific accounts, and inventory of state-owned properties are still ineffective” this was disclosed by Head of the Board of Financial Examination [BPK] Anwar Nasution Tuesday [21/4].

On semester II 2008 the Board Examination examined various cases including examination with certain purpose [PDTT] on the management of overseas loans. The examination was exercised on the managing institution of foreign loan, i.e. the Ministry of Finance, Ministry of PPN/National Planning Board [BAPPENAS]. And users of foreign loans consisting of 9 K/L and 8 state-owned companies [BUMN] encompassing 66 credit documents worth IDR 45.29 trillion. According to BPK the procedure of planning and liquidating of planned loan did not run effectively.

The clause on insurance cost, commitment expenses, and banking expenses for the required administration in the agreement text was an extra financial burden for the state i.e. IDR 36 billion. The weakness in planning, coordination, and monitoring resulted in the fact that some projects financed by foreign loan worth IDR 438 billions could not be realized to the maximum, and there was an extra cost of IDR 2 trillion caused by suspended project operations.Result of BPK examination which needed special attention of the related entity was the system of loan recording which had not resulted information on the foreign loan appropriately. As a result there were no information resources on the position and loan withdrawal which might be used by the Government of Indonesia in assured decision making.

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