Transformation of SOE Ministry Annual Report 2020 slide image

Transformation of SOE Ministry Annual Report 2020

CHAPTER 1 234 5 6 7 SOE MINISTRY FINANCIAL & OPERATIONS PERFORMANCE MINISTRY OF STATE-OWNED ENTERPRISES ANNUAL REPORT 2020 APIP Capabilities and IACM Assessment IACM (Internal Audit Capacity Model) assessment is a tool to assess the level of Inspectorate General/ Inspectorate in their capacity as Ministries/Institutions' APIP (government internal auditor). According to PP No. 60 of 2008 on Government Internal Control System (SPIP), IACM is mandatory. BPKP, as the governing body of SPIP, carries out the assessment. IACM is conducted to provide confidence that APIP has reached a certain level in order to drive improvement of Ministries/ Institutions' accountability and governance. LHKPN & LHKASN Reporting It is mandatory for State Civil Apparatus to disclose their assets annually or when their job positions change. LHKPN (State Officials' Asset Disclosure) obligation refers to Corruption Eradication Commission (KPK) Regulation No. 2 of 2020 on Amendment to KPK Regulation No.7 of 2016 concerning Procedures for the Registration, Announcement, and Examination of State Officials' Assets. Meanwhile, LHKASN (State Civil Apparatus Asset Disclosure) refers to PAN-RB Minister Circular Letter No.1 of 2015 concerning Obligation to Submit LHKASN. Based on BPKP's assessment, the Inspectorate of the Ministry of SOE has reached level 3. And currently, the Inspectorate is following up on areas of improvement suggested by BPKP to move towards the next level, including HR, budget, and raising the structural level to echelon 1. For information, the Inspectorate General of the Ministry of Finance is the only APIP with a level 4 IACM, and no APIP has reached level 5. LHKPN is mandatory for high-ranking officials in government ministries/ institutions, including Ministers, Deputy Ministers, Echelon 1, Special Staff, Echelon 2, and certain officers such as auditors, treasurers, and commitment-making officials (PPK). Those not obligated to prepare LHKPN must prepare LHKASN. The LHKPN obligation is constantly monitored by KPK every year, while the Ministry of PAN-RB monitors LHKASN. BUREAUCRACY REFORM Scores of Bureaucracy Reform of SOE Ministry 90 80 70 60 50 40 30 20 10 0 65 65.6 2015 The Inspectorate acts as a supervisory unit responsible for monitoring Ministry of SOE employees' compliance to submit LHKPN and LHKASN and reporting the result to the SOE Minister, KPK, and the Ministry of PAN-RB. The Ministry of SOE fulfilled the 100% submission target for the 2020 reporting period, both for LHKPN and LHKASN. 85 82 75.1 76 76.8 80 77.7 76.8 77.0 Description 2015 2016 2017 2018 2019 2020 70 Target Realization 65 65.6 70 75.1 76 76.8 82 85 80 76.8 77.0 77.7 2016 2017 2018 2019 2020 Target Realization Bureaucracy Reform is necessary to ensure governance improvements are realized. Good governance is a prerequisite to national development. The quality of governance will greatly affect the implementation of national development programs. As a country's governance improves, so will its national development. Within the Ministry of SOE, this reform is aimed to create a good and clean bureaucracy, and is expected to lead to a clean, accountable, and capable Ministry that serves the public swiftly, effectively, and professionally with zero corruption, collusion, and nepotism practices. It is in line with the three main objectives of the reform program and the President's statement about the speed of service and that an accountable, effective, and efficient bureaucracy are keys to realizing this reform. The implementation of bureaucracy reforms in the SOE Ministry is evaluated by the Ministry of PAN-RB. The evaluation employs a method that combines the enabler component score (Work Unit Reform score) and Institutional-level Bureaucracy Reform score. The previous enabler component's maximum total score of 60% is now broken down into three components: Compliance (20%), Intermediate Outcome of the Areas of Change (10%), and Reform (40%). For the Ministry of SOE, the assessment score of its bureaucracy reform was 77.7, an increase of 0.7 points from the previous year of 77.0. The total score consisted of enabler component score of 44.8 or 74.7% out of 60. The Enabler Component score is a sum of Compliance Score of 15.9, Intermediate Outcome of the Areas of Change Score of 6.9, and Reform Score of 22.0. Meanwhile, Result Component total score was 32.9 or 82.2% out of 40. MINISTERIAL REGULATIONS IN 2020 In 2020, 10 Ministerial Regulations were promulgated, such as regulations concerning the governance of the Ministry and guidelines on the Ministry's Apparatus and the Board of Commissioners/Supervisory Board of SOES. 1. 2. 3. 4. 5. 6. 7. The Ministry of PAN-RB formally announced the Ministry of SOEs' reform implementation score through the PAN-RB Minister Letter No. B/39/M.RB.06/2021 dated 31 March 2021. 8. 9. No. PER-01/MBU/03/2020 on Organization and Working Procedures of the Ministry of State- Owned Enterprises No. PER-02/MBU/04/2020 on Third Amendment to the Regulation of the Minister of State-Owned Enterprises Number PER-09/ MBU/07/2015 concerning Partnership Program and Community Development Program of State-Owned Enterprises No. PER-03/MBU/06/2020 on Ministry of State- Owned Enterprises Logo No. PER-04/MBU/06/2020 on Amendment to the Regulation of the Minister of State- Owned Enterprises Number PER-03/MBU/2012 concerning Guidelines on Appointment of Members of the Board of Directors and Members of the Board of Commissioners of Subsidiaries of State-Owned Enterprises No. PER-05/MBU/07/2020 on Revocation of the Regulation of the Minister of State- Owned Enterprises Number PER-04/MBU/2012 concerning the Code of Ethics of the Ministry of State-Owned Enterprises Apparatus No. PER-06/MBU/07/2020 on Code of Ethics and Code of Conduct of State Civil Apparatus of the Ministry of State-Owned Enterprises No. PER-07/MBU/07/2020 on Procedures for Settlement of State Loss within the Ministry of State-Owned Enterprises No. PER-10/MBU/10/2020 on Amendment to the Regulation of the Minister of State-Owned Enterprises Number PER-02/MBU/02/2015 concerning the Requirements and Procedures on the Appointment and Dismissal of Members of the Board of Commissioners and the Supervisory Board of State-Owned Enterprises No. PER-11/MBU/11/2020 on Management Contract and Annual Management Contract of the Board of Directors of State-Owned Enterprises 10. No. PER-12/MBU/11/2020 on Fifth Amendment to Regulation of the Minister of State-Owned Enterprises Number PER-04/MBU/2014 concerning Guidelines for Determining the Income of the Board of Directors, the Board of Commissioners, and the Supervisory Board of State-Owned Enterprises 84 =4 RESILIENCE AMIDST UNCERTAINTY RESILIENCE AMIDST UNCERTAINTY 85
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