Reconstruction of the Regulation of the Quasi-Judicial Authority of the Supreme Audit Agency over the Treasurer in Fulfilling the Element of Legal Certainty
Keywords:
Audit Board of the Republic of Indonesia (BPK), Quasi-Judicial Authority, State Financial Losses, Treasury Claim CasesAbstract
The Audit Board of Indonesia (Financial Audit Agency—BPK), through its Summary of Semester Audit Results (Ihtisar Semester Audit Results—IHPS), reports that state financial losses attribute to treasurers (treasury claim cases) remain significant despite advances in modern public financial management. As a constitutional body endowed with quasi-judicial authority to assess and determine state financial losses attributable to treasurers, BPK has established an administrative mechanism for resolving such losses through BPK Regulation No. 3 of 2007 on the Procedures for the Settlement of State Financial Losses Involving Treasurers. The authority and regulatory framework are intended to enable BPK to process treasury claims in a manner that upholds the principle of legal certainty. This normative legal study, employing statutory and conceptual approaches alongside ontological and ratio legal analyzes of BPK’s quasi-judicial authority, demonstrates that asymmetric information in the management of state finances provides the ratio legal underpinning BPK’s authority to assess and determine state losses involving treasurers. Nevertheless, several fundamental procedural safeguards remain inadequately incorporated into BPK’s quasi-judicial proceedings. To enhance legal certainty, the mechanism for resolving state financial losses involving treasurers through BPK decisions should be reconstructed through the revision of BPK Regulation No. 3 of 2007. Such reform should incorporate fundamental principles of due process, particularly the audi alteram partem principle by ensuring the treasurer’s direct and meaningful participation in the evidentiary and decision-making process. Furthermore, administrative efficiency and clarity of authority can be strengthened by reducing the existing span of control and enhancing the procedural and evidentiary role of BPK’s Regional Offices across provinces, as expressly provided for in the revised BPK Regulation.
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