INDONESIA

UNOFFICIAL TRANSLATION

ACT OF THE REPUBLIC OF INDONESIA
NUMBER 5 OF THE YEAR 1973
ON
THE SUPREME AUDIT BOARD

BY THE GRACE OF GOD ALMIGHTY
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Whereas:

(a) it is deemed necessary to assign to the Supreme Audit Board a status and a function in accordance with the 1945 Constitution;

(b) Act No. 17 of 1965 (State Gazette 1965 No. 79) on the Promulgation into an Act of Government Regulation in lieu of Act No. 6 of 1964 on the Establishment of the Supreme Audit Board (State Gazette 1964 No. 41) is not in harmony with the spirit of the 1945 Constitution and Decree No. VI/MPR/1973 of the People's Deliberative Assembly;

(c) in connection with the matters referred to in ad (a) and (b) it is deemed necessary to review Act No. 17 of 1965 and to enact a new Act on the Supreme Audit Board.

Pursuant to:

1. Article 5, Article 20 and Article 23 of the 1945 Constitution;

2. Decree No. VI/MPR/1973 of the People's Deliberative Assembly;

3. Act on the Indonesian Exchequer (Indische Comptabiliteitswet, State Gazette 1925 No. 448) as amended and supplemented.

With the concurrence of the Parliament of the Republic of Indonesia.

To revoke:

Act No. 17 of 1965 (State Gazette 1965 No. 79) on the Promulgation into an Act of Government Regulation in lieu of Act No. 6 of 1964 on the establishment of the Supreme Audit Board (State Gazette 1964 NO. 41).

To enact:

An Act on the Supreme Audit Board

CHAPTER I
STATUS

The Supreme, Audit Board is a high state institution which in the implementation of its task is independent from the influence and powers of the Government, yet is not superior to the Government.

CHAPTER II
TASK, OBLIGATION AND AUTHORITY OF THE SUPREME AUDIT BOARD

(1) The Supreme Audit Board has the task of auditing the accountability of the Government concerning the State Finance.

(2) The Supreme Audit Board has the, task of auditing the entire implementations of the State Budget.

(3) The execution of the audits referred to in paragraphs (1) and (2) of this article is to be out in virtue of statutory provisions.

(4) The audit results of the Supreme Audit Board shall be made known to Parliament.

Should an audit disclose matters which give rise to the suspicion that a criminal offence or an act detrimental to the State Finance has been committed, the Supreme Audit Board shall make such matters known to the Government.

In connection with the implementation of its task, the Supreme Audit Board has the authority to request information which must be furnished by any person, any Government entity or agency, or any private entity, as long as it does not conflict with the statutes.

CHAPTER III
DOMICILE, FORM, COMPOSITION AND MEMBERSHIP OF THE SUPREME AUDIT BOARD

The Supreme Audit Board has its domicile in the capital of the Republic of Indonesia.

The Supreme Audit Board has the form of a council which is composed of a Chairman concurrently Member, a Vice-Chairman concurrently Member, and 5 (five) Members.

The Chairman, Vice-Chairman and Members of the Supreme Audit Board are appointed by the President upon their nomination by Parliament.

(1) For each vacancy in the membership of the Supreme Audit Board, 3(three)candidates are to be nominated by Parliament.

(2) To be eligible for nomination as Member of the Supreme Audit Board, a candidate must meet the following qualifications:

(a) An Indonesian national;

(b) Devoted to God Almighty;

(c) At least 35 (thirty-five) years of age;

(d) Loyal to the State and state policy of the Unitary Republic of Indonesia which has been founded on Pancasila and the 1945 Constitution:

(e) Competent and experienced in the field of State Finance and Administration;

(f) Beyond any doubt as to integrity and honesty.

(1) A Member of the Supreme Audit Board is appointed for a term of office of 5 (five) years and can be reappointed each time for a 5 (five) year term of office.

(2) Should due to the termination of the term of office of the Members of the Supreme Audit Board a vacuum occur in its membership, the term of office of the Members of the Supreme Audit Board is to be extended until the appointment of not less than 3; (three) Members of the Supreme Audit Board has been carried out.

(3) To ensure the operational continuity of the Supreme Audit Board and without discounting that need for invigoration. 3 (three) incumbent Members shall as far as possible be reappointed at every changeover of its membership.

Members of the Supreme Audit Board resign/are dismissed by the President:

(a) on account of death;

(b) at the request of the Member concerned;

(c) due to the termination of their term of office,

(d) for having reached the age of 65 (sixty-five) years;

(e) for failing to carry out their duties actively on account of serving a prison term in virtue of an irrevocable conviction by a court of justice due to the commitment of a criminal offence which is punishable by imprisonment for not less than 5 (five) years;

(f) for failing to continue fulfilling the qualifications specified in Article 8, paragraph (2) of this Act as so declared by the Government;

(g) for having violated their oath/pledge according to the consideration of the Supreme Court and that of Parliament;

(h) due to mental illness or physical illness or continuing incapacity which has rendered them incapable of fulfilling their obligations properly;

(i) for patent violation of the prohibitions referred to in Article 11 of this Act.

(1) Members of the Supreme Audit Board shall not, either directly or indirectly, become either the full or part owner of a business enterprise, or become a guarantor thereof, which by agreement aims at obtaining profits or benefits from the State of the Republic of Indonesia.

(2) Members of the Supreme Audit Board shall not concurrently hold a function within the sphere high state institutions, a function with the sphere of the State Administration, or a function within there of the highest state institution.

(3) Members of the Supreme Audit Board shall not engage in commerce and/or have an interest in commercial undertakings of other parties, either directly or indirectly.

(4) Members of the Supreme Audit Board dill not have a claim chargeable to the State Finance except with regard to public debentures.

(1) Before assuming office, Members of the Supreme Audit Board take a solemn oath/pledge in accordance with their respective religion or belief in God Almighty, the aforesaid oath/pledge to be administered by the Chairman of the Supreme Court in the presence of the President.

(2) The oath/pledge referred to in paragraph (1) of this article reads as follows:

"I swear/pledge solemnly that in order to become a Member (the Chairman/Vice-Chairman) of the Supreme Audit Board, I have not given or promised, neither will I give or promise anything to anybody, either directly or indirectly, by any term or pretext.

I swear/pledge solemnly that in order to perform or not to perform anything in the present office, I will not receive, either directly or indirectly, any promise or any gift from anybody.

I swear/pledge solemnly that I shall fulfill the obligation of a Member (Chairman/Vice-Chairman) of the Supreme Audit Board to the best of my abilities and with the fullest sense of responsibility in virtue of the 1945 Constitution and other legislation relating to the aforesaid obligation.

I swear/pledge solemnly that I shall be loyal to the State, the 1945 Constitution and the State Policy".

CHAPTER IV
FINANCIAL / ADMINISTRATIVE RIGHTS AND STATUS ACCORDING TO PROTOCOL

The Financial / Administrative Rights and Status according to Protocol of the Members of that Supreme Audit Board shall be regulated by law.

CHAPTER V
DIVISION OF DUTIES AND OPERATIONAL PROCEDURES OF THE SUPREME AUDIT BOARD

The division of duties, operational and decision-making procedures of the Supreme Audit Board are determined by the Supreme Audit Board.

CHAPTER VI
POLICE ACTIONS AGAINST MEMBERS OF THE SUPREME AUDIT BOARD

(1) No police actions can be undertaken against Members of the Supreme Audit Board for the sake of investigating a case except by order of the Attorney General, after having obtained the prior consent of the President.

(2) Should a Member of the Supreme Audit Board be caught red-handed in the act of committing a criminal offence which is punishable by imprisonment for more than one year, such Member may at that very moment be apprehended and detained for not more than two times twenty-four hours, subject to the condition that such detention shall at that very moment also be reported to the Attorney General, who has the. obligation to notify, the President of such detention.

Further detention may be carried out only by order of the Attorney General after having obtained the prior consent of the President

CHAPTER VII
SECRETARIAT GENERAL OF THE SUPREME AUDIT BOARD

(1) The Supreme, Audit Board has a Secretary General headed by a Secretary General.

(2) The Secretary General is appointed and relieved from office by the President upon the recommendation of the Supreme Audit Board.

(3) The organizational structure and operational procedures of the Secretary General are regulated by the Supreme Audit Board.

The Secretary General and other personnel of the Secretariat General are civil servants.

CHAPTER VIII
PENAL PROVISIONS

(1) Whoever intentionally fails to fulfill the obligation to furnish information and other material for audit as referred to in Article 4 of this Act by refusing or restraining from furnishing information, likewise by preventing, obstructing or frustrating an audit, shall be punished by imprisonment for up to 1 (one) year and 6 (six) months, or by the payment of a fine of up to Rp 1000 000,00 (one million Rupiahs).

(2) Whoever intentionally furnish false information and material for audit within the framework of audit referred to in Article 4 of this Act shall be punished by imprisonment for up to 3 (three) years, or by the payment of a fine of up to Rp 2 000 000,00 (two million Rupiahs).

(3) The acts referred to in paragraphs (1) and (2) of this article are felonies.

(1) Whoever intentionally utilises the information obtained while carrying out an assignment for the Supreme Audit Board by going over and beyond the limits of his authority proper shall be punished by imprisonment for up to 6 (six) years, or by the payment of a fine of up to Rp 4 000 000,00 (four million Rupiahs).

(2) The act referred to in paragraph (1) of this article is a felony.

CHAPTER IX
TRANSITIONAL PROVISIONS

(1) As long as the composition of the Supreme Audit Board has yet to satisfy the provisions of this Act, the composition of the Supreme Audit Board as it exists at the time this Act becomes effective shall have the status of the Supreme Audit Board referred to in this Act.

(2) The adjustment of the composition of the membership of the Supreme Audit Board to the provisions of this Act shall be carried out within the period of 6 (six) months from the time this Act becomes effective.

As long as the provisions which regulate the implementation of audits specified in Article 2, paragraphs (1) and (2) of this Act have not become available, audits by the Supreme Audit Board shall be executed on the grounds of statutory provisions currently in force.

This Act becomes effective on the day of its promulgation.

So that every body shall be notified thereof, it is hereby ordered that the promulgation of this act shall be posted in the State Gazette of the Republic of Indonesia.

Authenticated in Jakarta
on July 16, 1973

THE PRESIDENT OF THE
REPUBLIC OF INDONESIA

sgd.
SOEHARTO

General TNI

Promulgated in Jakarta
on July 16, 1973

MINISTER/STATE SECRETARY
OF THE REPUBLIC OF INDONESIA

sgd.
SUDHARMONO, S.H.

Major General TNI

STATE GAZETTE OF THE REPUBLIC
OF INDONESIA
OF 1973 NO. 39

ELUCIDATION

CONCERNING
ACT OF THE REPUBLIC OF INDONESIA
NUMBER S OF THE YEAR 1973
ON
THE SUPREME AUDIT BOARD

General Elucidation

1. In Article 10 of Decree No. VI/MPR/1973 of the people’s Deliberative Assembly concerning-the Status and Operational Relationship of the Highest State Institution with/or between the high state institutions, the status of inter alia the Supreme Audit Board and its operational relationship with other high state institutions have been regulated; all this has been provided for the sake of the comprehension and on of the constitutionally democratic life of the State based on Pancasila and the 1945 Constitution.

2. In connection with the matters referred to, it has now been considered necessary to review Act No. 17 of 1965 and to assign the aforesaid high state institution a status and function which are in accordance with the 1945 Constitution.

3. The Supreme Audit Board which has the task of auditing the accountability of the Government concerning the State Finance is a body which is independent from the influence and powers of the Government, and conducts audits from outside the Government on the custody and management of the State Finance within the framework of the Government's accountability vis-a-vis the highest state institution, i.e. the People's Deliberative Assembly.

4. Audits with respect to the accountability of the Government concerning the entire implementations in the field of State Finance are conducted by the Supreme Audit Board after the implementations ,whether in part or as a whole have been accounted for by the Government.

5. In conducting its audits, the Supreme Audit Board observes and utilizes the findings of the internal control apparatus of the Government. To this end, the Government's internal control apparatus is obliged to submit a report on each of its audit findings to the Supreme Audit Board, provided that such is not in conflict with the statutes.

ARTICLE BY ARTICLE ELUCIDATION

Sufficiently clear.

Paragraphs (1), (2) and (3)

Audits conducted with respect to the accountability concerning the State Finance including inter-alia the implementation of the State Budget for Revenue and Expenditure (Routine as well as Development Budget), the Regional Budget for Revenue and Expenditure, and the budgets of the State-owned enterprises, in essence, the entire wealth of the State, constitute audits on matters which have already been put or have already taken place and been accounted for (post-audit), either in part or in that entirety.

Audits also include the task of examining whether the spending of public moneys has taken place in accordance with the provisions governing the custody and management of the State Finance and evaluating whether implementations of the State Finance have been carried out in accountable ways commensurate with their objectives.

Paragraph (4)

in accordance with the wording of Article 23, paragraph (5) of the 1945 Constitution, the Supreme Audit Board shall make its audit results known to Parliament. Concurrently, as it is standard operating procedure for auditors to make reports on audit results known to the audited party as well as, the Supreme Audit Board shall also inform the Government of its audit results.

The term "Government" means the President in his capacity of Chief Executive in conjunction with his assistants. Particularly with respect to criminal matters, such notification shall be addressed to the Police authorities and/or the office of the Public Prosecutor.

In the implementation of its task, the authority vested in the Supreme Audit Board to request information and the obligation of every person, Government entity/agency, or private entity to comply with the call for information issued by the Board may essentially comprise the entire field of State Finance, except where the statutes have determined otherwise.

Since activities concerning the State Finance and the Government are concentrated in the capital of the Republic of Indonesia, the Supreme Audit Board shall for the sake of efficiency in the execution of its task be domiciled in the capital.

Since it is organized in the form of a council, the Supreme Audit Board is expected to be capable of making decisions based on consultation in order to arrive at a consensus.

The President in his capacity of Head of State appoints the Chairman, the Vice-Chairman and Members of the Supreme Audit Board upon their nomination by Parliament.

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Taking into consideration the heavy task and vast authority of the Supreme Audit Board, hence to ensure that ft members shall be capable of mature contemplation and action, a qualification concerning the minimum age of 35 (thirty five) years and that of having experience/skill in the field of State Finance and Administration have also been included.

"Integrity" includes prestige, personality, proper attitude and acts with respect to public life, sense of responsibility and consistency.

Paragraph (1)

This provision precludes the possibility that the Supreme Audit Board becomes static due to absence of changes in its membership for a protracted period of time.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

The reappointment of Members is conducted in accordance with the provisions of Article 8 of this Act.

Sufficiently clear

Paragraph (1)

The term "agreement" in this paragraph means an agreement in writing or otherwise in accordance with the statutory provisions currently in force.

Paragraph (2)

The phrase "function within the sphere of the highest state institution" means the leadership of the People's Deliberative Assembly.

Paragraph (3)

The phrase "have an indirect interest in commercial undertakings" means inter alia holding the post of Commissioner in a commercial enterprise.

Paragraph (4)

Sufficiently clear

Paragraph (1)

The oath/pledge taken by Members of the Supreme Audit Board before assuming office is to be administered by the Chairman of the Supreme Court in the presence of the President in his capacity of Head of State.

Paragraph (2)

For those of the Islamic faith, the oath referred to is to be preceded by the words "Demi Allah" (By Allah)

Pending the existence of the Act referred to in this article, the financial/administrative rights and status according to protocol of the Members of the Supreme Audit Board shall be governed by statutory provisions currently in force.

Sufficiently clear.

Paragraphs (1) and (2)

In accordance with Article 14 of Decree No I/MPR/1973 of the People's Deliberative Assembly, Article 42 of Act No. 16 of 1969 and Article I of Act No. 13 of 1970, the police actions referred to are as follows:

(a) summons relating to a criminal act;

(b) request for information about a criminal act;

(c) arrest;

(d) detention;

(e) search, and

(f) confiscation.

In virtue of this article, Members of the Supreme Audit Board will be able to perform their duties freely and to the best of their abilities, being provided with the proper legal security as members of a high state institution.

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

The organizational structure of the Secretary General is to be drawn up after having consulted the Government.

The statutory provisions concerning civil servants hold for the Secretary General and other personnel of the Secretariat General.

Paragraphs (1), (2), and (3)

Keeping in mind the important role of the Supreme Audit Board in promoting constitutional life in our country and in making a success of national development, acts which frustrate the Supreme Audit Board in performing its task are punishable by sentences designed to have an effective deterring force. For this reason, the criminal acts specified in this article have been declared as felonies.

Furthermore, the penal provisions contained in this article are more severe than those specified in the Penal Code with regard to acts of similar nature; they are, however, less severe in comparison to those contained in Act No. 11/Pnps. of 1963 on the Eradication of Subversive Activities or Act No. 3 of 1971 on the Eradication of Criminal Acts of Corruption.

Nevertheless this shall not preclude the possibility of the imposing of the severe penalties specified in Act No. 11/Pnps. of 1963 or Act No. 3 of 1971, if in connection with the criminal acts described in this article it is obvious that they contain elements or conditions answering to the provisions of both or of one of the aforesaid acts.

Paragraphs (1) and (2)

The provision in this article holds for all the Members of the Supreme Audit Board, personnel of the Supreme Audit Board and auxiliary personnel engaged in performing the Board's duties.

The words "over and beyond the limits" mean that any of the persons mentioned above has used the information concerned to serve interests which are detrimental to the implementation of the task of the Supreme Audit Board.

In the event that such an act has caused the State Finance or State Economy to suffer a loss, the provisions of Act No.3 of 1971 and those of Act No.11/Pnps. of 1963 shall also be effective.

Sufficiently clear.

The phrase "statutory provisions currently in force" means the present Act and inter alia the Indische Comptabiliteitswet (State Gazette 1925 No.448) as amended and supplemented and the Instruction for the Algemene Rekenkamer (State Gazette 1989 No.164 and its amendments), exclusive of Article 43 through Article 53 of ICW (Indische Comptabiliteitswet) and Article 2 of the Instruction for the Algemene Rekenkamer which had been revoked in virtue of Government Regulation in lieu of Act No. 6 of 1964 juncto Act No. 17 of 1965.

Sufficiently clear.