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Every start of the year, the regional Inspectorate faces work with a deadline that cannot be moved: reviewing the draft Regional Government Financial Statements (LKPD) before they are submitted to the Audit Board (BPK). The rules changed in 2026, because Home Affairs Ministerial Regulation 3/2026 replaces the three 2018 Home Affairs Ministerial Regulations on review.
Regulatory changes in 2025 to 2026 that affect this topic are summarized in the article audit and oversight regulation update 2026.
This article covers the legal basis of LKPD review, what a review does and does not achieve, the roles of the parties, the stages, deadlines, report contents and distribution, and follow-up monitoring. References checked as of 23 October 2026. For an overview of public sector oversight in general, read the article public sector internal audit.
What Is an LKPD Review?
Home Affairs Ministerial Regulation 3/2026 defines a review as an examination of a document to provide limited assurance that the document has been prepared in accordance with the established provisions, standards, procedures, plans, or norms. For the LKPD, a review is an examination of the conduct of accounting and the presentation of the LKPD to provide limited assurance that accounting has been carried out based on the Regional Government Accounting System and that the LKPD is presented in accordance with Government Accounting Standards (SAP), in an effort to help the Regional Head produce a quality LKPD.
The key term is limited assurance. A review is not an audit: the opinion on the fairness of the financial statements remains the authority of the BPK. The role of a review is to improve the quality of the statements before they are audited.
What Is the Legal Basis for LKPD Review?
| Regulation | Relevant content |
|---|---|
| Government Regulation 12/2019 on Regional Financial Management, Article 191 paragraph (1) | The financial statements of the Regional Government are reviewed by the APIP in accordance with laws and regulations before being submitted to the BPK for audit |
| Government Regulation 12/2019 Article 190 paragraph (3) | The LKPD is submitted to the Regional Head through the regional secretary no later than 3 months after the fiscal year ends |
| Government Regulation 12/2019 Article 191 paragraphs (2) and (3) | The LKPD is submitted to the BPK no later than 3 months after the fiscal year ends; the BPK completes its audit no later than 2 months after receiving the statements |
| Home Affairs Ministerial Regulation 3/2026 on Review of Regional Development Planning Documents and Regional Financial Documents | Issued 19 January 2026, promulgated 2 February 2026 (Berita Negara 2026 Number 73). Regulates the review of the draft LKPD along with other planning and financial documents |
Article 9 of Home Affairs Ministerial Regulation 3/2026 revokes Home Affairs Ministerial Regulation 4/2018 on the Implementation of Review of Accrual-Based Regional Government Financial Statements, as well as Home Affairs Ministerial Regulations 9/2018 and 10/2018. If your Inspectorate still uses the 2018 guidelines as a reference, replace them with the 2026 provisions.
What Does Home Affairs Ministerial Regulation 3/2026 Cover?
This regulation does not only govern the LKPD. The Regional APIP reviews regional development planning documents and regional financial documents:
| Group | Documents Reviewed |
|---|---|
| Regional development planning | Final draft RPJMD, final draft Regional Apparatus Renstra, final draft RKPD |
| Regional finance | Draft APBD, draft SHS, draft ASB, expenditure that extends beyond the fiscal year, draft LKPD |
The review is carried out in four stages, namely planning, implementation, reporting, and monitoring, set out in the annual oversight work program, and done with working papers. It is carried out through an information system, and review through the information system can be done as long as the information is available in SIPD-RI.
What Is the Purpose of the LKPD Review and What Is Examined?
According to the annex of the regulation, the purpose of the LKPD review is to provide limited assurance that the LKPD has been prepared in accordance with and/or by reference to:
- Government Accounting Standards (SAP);
- regional financial classification, codification, and nomenclature;
- the Regional Head Regulation on Regional Government Accounting Policy;
- the Regional Head Regulation on the Regional Government Accounting System; and
- the APBD Regional Regulation and/or the APBD Amendment Regional Regulation.
The substance of the draft LKPD review covers the conformity of the information presented in the financial statements of the Regional Apparatus and the LKPD with the APBD Regional Regulation or the APBD Amendment Regional Regulation, as well as the conformity of the information with the procedures and rules of regional financial reporting.
Who Plays What Role in the LKPD Review?
| Party | Main roles according to the annex |
|---|---|
| Regional APIP | Plans and carries out the review, determines the timing and methods, determines the types of documents that must be submitted, requests information and data, prepares the review report, monitors follow-up, and responds to follow-up |
| LKPD Preparer | Provides information and documents, coordinates the Regional Apparatus, follows up on recommendations, and reports follow-up to the APIP |
| Regional Apparatus (Perangkat Daerah) | Provides information and documents for the review of the Regional Apparatus financial statements, and follows up on its recommendations |
What Are the Stages of the LKPD Review?
1. Planning
- The Assistant Inspector holds a coordination meeting to form the Review Team according to the scope. The team consists of at least a person in charge (the regional inspector), a technical controller or supervisor, a team leader, and team members.
- The regional inspector issues an assignment order that contains the team composition, scope, division of tasks, and implementation time.
- The team examines general information: the information system used, the scope, and the object of the review, including regional financial documents and the previous year's review results.
- The team prepares the review work program (personnel, schedule, objects and focus, and work steps) in the format set in the Ministerial Decree, then submits it to the regional inspector through an official memo.
- The team checks the availability and completeness of data in the information system before the review begins.
2. Implementation
- The team meets the review object to explain the intent and purpose.
- The team requests supporting documents that are not available in the information system, and the review object submits them.
- The review is done in the information system, with working papers provided automatically according to the selected scope and focus.
- Review result notes are prepared automatically in the information system, then discussed with the review object. They contain a conclusion in the form of notes and strategic recommendations.
- The final meeting delivers the review result notes to the head of the review object, who is asked to respond in writing.
3. Reporting
- The review report is prepared no later than one week after the review is completed.
- The team leader submits the draft to the assistant inspector through the technical controller, then to the regional inspector for signature.
- The report discloses the purpose and reasons for the review, the procedures performed, the weaknesses found, the corrective steps that are recommended and those already taken, and the suggestions not yet implemented.
- The report is distributed to the Minister, the Regional Head, the chair of the TAPD, the heads of the Regional Apparatus for planning and finance, the heads of the relevant Regional Apparatus, and the Inspectorate archive.
4. Follow-up monitoring
The review object must follow up on the notes and recommendations as a condition for continuing the process of enacting the document. The follow-up is submitted back to the Regional APIP for examination, and the result of that examination becomes a condition for continuing the process in SIPD-RI (Article 7). The APIP verifies the follow-up that has been carried out. The concept of follow-up is discussed in the article follow-up on internal audit findings.
What Is the Deadline for the LKPD Review?
| Matter | Provision |
|---|---|
| Review duration | 7 working days after the LKPD Preparer submits the draft LKPD, or after the document is received according to the schedule in the regulation, and/or no later than the fourth week of February after the fiscal year ends |
| Preparation of the review report | No later than 1 week after the review is completed |
| LKPD to the Regional Head | No later than 3 months after the fiscal year ends (Government Regulation 12/2019 Article 190 paragraph 3) |
| LKPD to the BPK | No later than 3 months after the fiscal year ends (Government Regulation 12/2019 Article 191 paragraph 2) |
Note that the deadline for submission to the BPK is three months, not two months. The two-month figure applies to the SKPD financial statements submitted to the Regional Head through the PPKD (Article 189 paragraph 3).
What Are Common Mistakes?
- Using old guidelines. Home Affairs Ministerial Regulation 4/2018 has been revoked, so the work program and its format must follow the 2026 provisions.
- Waiting for complete documents. If documents are not available in the information system, the team needs to request them in writing from the start so as not to chase the fourth-week-of-February deadline.
- Equating a review with an audit. A review gives limited assurance, so its procedural coverage differs from a BPK audit.
- Not monitoring follow-up. Follow-up is a condition for continuing the process, so the status of recommendations must be monitored until completion.
- Working papers not documented. The regulation requires the team to document all review working papers and supporting documents. See also audit working papers.
How Does Internal Audit Software Help?
Audithink does not replace SIPD-RI and does not prepare review results. The review itself and the review result notes are done in the information system provided by the government. Audithink is internal audit management software with six main features: risk assessment, audit planning, work program templates, notifications, follow-up monitoring, and automated reports. For an Inspectorate, the benefit lies in the management around the review: scheduling engagements in the annual plan, using uniform work program templates, reminding of deadlines through notifications, and monitoring the follow-up status of recommendations. Annual planning is discussed in the article Inspectorate PKPT.
FAQ on LKPD Review
What is an LKPD review?
An LKPD review is a review by the Regional APIP of the conduct of accounting and the presentation of the LKPD to provide limited assurance that the statements are prepared in accordance with the SAP and related provisions, before they are submitted to the BPK.
Which regulation is now used for LKPD review?
Home Affairs Ministerial Regulation 3/2026 on Review of Regional Development Planning Documents and Regional Financial Documents, which replaces Home Affairs Ministerial Regulations 4/2018, 9/2018, and 10/2018. The basis for the review obligation is Government Regulation 12/2019 Article 191 paragraph (1).
How many days does the LKPD review take?
The review period is 7 working days after the LKPD Preparer submits the draft LKPD to the Regional APIP, and no later than the fourth week of February after the fiscal year ends.
When must the LKPD be submitted to the BPK?
No later than 3 months after the fiscal year ends, according to Government Regulation 12/2019 Article 191 paragraph (2). The BPK completes its audit no later than 2 months after receiving the statements.
Is a review the same as an audit or examination?
No. A review provides limited assurance, whereas the opinion on the financial statements is given by the BPK through its examination.
Who signs the review report?
According to the annex of Home Affairs Ministerial Regulation 3/2026, the draft report is submitted through the assistant inspector to the regional inspector for signature.
Conclusion
The LKPD review takes place within a narrow time window, so preparation is decisive. Neat team planning, work programs, document requests, and follow-up monitoring keep the Inspectorate from chasing the deadline in the last week of February.
If your Inspectorate wants to tidy up scheduling and follow-up monitoring, schedule an Audithink demo.
