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🇮🇩 Indonesia /Economy & Trade

Indonesian Audit Agency Encourages Ministry to Adopt ESG and Government 5.0

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • The Supreme Audit Agency (BPK) supports the Ministry of Law and Human Rights' (Kemenkum) institutional governance reforms.
  • BPK encourages the adoption of Environmental, Social, and Governance (ESG) principles and Government 5.0, including AI, for sustainable development.
  • Challenges remain, including digital maturity gaps and data fragmentation, requiring integrated cross-government approaches.

Indonesia's Supreme Audit Agency (BPK) has voiced strong support for the Ministry of Law and Human Rights' (Kemenkum) ongoing transformation efforts aimed at strengthening institutional governance. BPK recognizes the ministry's progress in bureaucratic reform, public service innovation, information transparency, and international cooperation as crucial foundations for building a more accountable government.

Audits should not only produce opinions but also contribute to the achievement of Indonesia Emas 2045 by strengthening government governance and promoting sustainable development.

— Nyoman Adhi SuryadnyanaBPK Member Nyoman Adhi Suryadnyana on the broader impact of financial audits.

Nyoman Adhi Suryadnyana, a member of BPK, emphasized that institutional transformation should extend beyond mere compliance assessments. He urged that financial audits contribute tangibly to improving governance and delivering real benefits to the public, aligning with the vision of "Indonesia Emas 2045" (Golden Indonesia 2045). Suryadnyana highlighted the increasing digitalization of the government landscape, stressing the importance of integrating Environmental, Social, and Governance (ESG) principles and embracing Government 5.0. This includes leveraging Artificial Intelligence (AI) for data analysis and fostering cross-sector collaboration.

"Government 5.0 demands a whole-of-government approach. The key to achieving the vision of Indonesia Emas 2045 lies in combining Government 5.0 with resource management that prioritizes sustainability through ESG principles," Suryadnyana stated. Despite acknowledging the advancements, BPK identified persistent challenges. These include uneven digital maturity across agencies, fragmented government data, a shortage of AI talent, integrity issues in governance, limited human resource capacity, and cybersecurity concerns. Addressing these requires a cohesive, integrated strategy across government bodies.

Government 5.0 demands a whole-of-government approach. The key to achieving the vision of Indonesia Emas 2045 lies in combining Government 5.0 with resource management that prioritizes sustainability through ESG principles.

— Nyoman Adhi SuryadnyanaNyoman Adhi Suryadnyana on the integration of Government 5.0 and ESG for national development.

In its 2025 audit results, BPK recommended several improvements for Kemenkum. These include strengthening internal control systems, optimizing state asset management, enhancing revenue collection, refining procurement processes for goods and services, and ensuring greater compliance with existing laws and regulations. These recommendations aim to further bolster the ministry's operational efficiency and accountability.

Therefore, strengthening governance requires an integrated approach across government.

— Nyoman Adhi SuryadnyanaNyoman Adhi Suryadnyana on the need for cross-governmental collaboration to improve governance.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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