State-owned enterprises and government agencies in Indonesia are required to implement the Government Internal Control System (SPIP), while SOEs are also subject to the Internal Supervisory Unit (SPI) provisions from the Ministry of SOEs. Large organizational structures, scattered work units, and governance demands make managing internal audit manually a challenge of its own.
Audithink is trusted by several SOEs, including PT Timah Tbk, PT Antam Tbk (a member of the MIND ID mining holding), and PT Perkebunan Nusantara III, to support their internal audit processes. Among government institutions, the National Counter Terrorism Agency (BNPT) is also an Audithink client, although its case study has not been published. The final part of this article discusses the Audithink features relevant to the SPIP framework in general.
What Are the Internal Audit Challenges at SOEs and Government Agencies?
- A broad oversight scope with limited SPI/APIP resources, making it hard to reach every unit efficiently.
- Oversight blind spots between subsidiaries and the holding company, when audit results at the operational level aren't fully visible to holding management.
- Audit data that isn't real-time, so monitoring the status and follow-up of findings becomes slower than it should be.
- Governance (GCG) and compliance reporting demands to various stakeholders, from management and the Ministry of SOEs to oversight bodies.
What Audit Regulations and Standards Are Relevant to SOEs and Government Agencies?
The main umbrella for internal control in the government sector is PP No. 60 of 2008 on government Internal Control System (SPIP), which covers five elements: control environment, risk assessment, control activities, information and communication, and monitoring. The Government Internal Supervisory Apparatus (APIP) carries out its oversight function based on this framework.
For SOEs, the SPI function is further regulated through Minister of SOEs Regulation No. PER-2/MBU/03/2023. A more complete regulatory mapping is available in Regulations Internal Audit Software Must Meet in Indonesia, while a risk-based implementation guide is discussed in A Guide to Implementing Risk-Based Audit in State-Owned and Regionally Owned Enterprises and Internal Audit Application for State-Owned Enterprises: A Guide for SPI & APIP.
Which Audithink Features Are Relevant for SOEs and Government Agencies?
- Risk-based audit planning to prioritize the units with the highest exposure, which helps carry out the risk assessment element of SPIP.
- Program templates and digital working papers that can be arranged to follow the control framework that applies in the organization.
- Findings recording, Notice, and follow-up monitoring in real time until recommendations are fully resolved, which helps document the monitoring element of SPIP.
- Dashboard showing audit plan realization, the distribution of findings, and overdue follow-ups. Consolidating audit data to the holding or ministry level can be discussed as customization with a Product Expert, such as the AiMIND integration developed for PT Antam Tbk.
- Mobile app development for field audits at geographically dispersed units is available as a customization option, as developed for PTPN III.
Real Case Studies: SOEs That Have Used Audithink
PT Timah Tbk faced a broad oversight scope with a limited SPI team, making efficient oversight difficult with an old system that was not flexible enough for conditions in the field. Audithink developed an audit application with integrated report generation, audit program templating, a centralized database, and integrated communication between stakeholders. Read more in the the PT Timah Tbk case study.
PT Antam Tbk, a member of the MIND ID mining holding, faced the risk of an oversight blind spot because its internal audit application wasn't yet integrated with AiMIND, the holding's own application. Audithink built that integration so that field audit data flows to the holding level in real time, while also making risk assessment the basis for audit planning. More details are in the PT Antam Tbk case study.
PT Perkebunan Nusantara III faced the challenge of audit reports not matching its needs and data that wasn't real-time, making monitoring difficult. Audithink built an integrated web and mobile application that lets review and approval happen anytime, anywhere, complete with an automatic report generator and a management dashboard. More details are in the PT Perkebunan Nusantara III case study.
These three SOEs run their SPI functions with audit flows tailored to each company. For government agencies that carry out APIP functions, the same features can be customized to follow the applicable oversight methodology and format.
FAQ About Audithink for SOEs and Government Agencies
Does Audithink have real SOE clients?
Yes. Audithink has been used by PT Timah Tbk, PT Antam Tbk (a member of the MIND ID holding), and PT Perkebunan Nusantara III, with case studies published at the respective links in this article.
Has Audithink been used by non-SOE government agencies, such as ministries or regional governments?
Yes. The National Counter Terrorism Agency (BNPT) is an Audithink client, although its case study has not been published. For other ministries, agencies, or local governments, Audithink features can be customized to follow each APIP's oversight methodology and format.
How does Audithink help within the SPIP framework?
Audithink directly supports two SPIP elements: risk assessment (through risk-based audit planning) and monitoring (through follow-up monitoring of findings). Other elements, such as the control environment, remain the organization's responsibility, while additional documentation needs can be discussed as customization with a Product Expert.
Can Audithink integrate subsidiary audits into an SOE holding company?
Yes, through customization. One example is the AiMIND integration developed for PT Antam Tbk, which lets audit data from subsidiaries flow to the holding level in real time. Integration needs at other organizations are assessed per project.
How do we start implementing Audithink at our organization?
The most practical step is to schedule a demo with the Audithink team to discuss your SOE's or agency's organizational structure and specific oversight needs.
See also:
- Regulations Internal Audit Software Must Meet in Indonesia
- Internal Audit Application for State-Owned Enterprises: A Guide for SPI & APIP
- A Guide to Implementing Risk-Based Audit in State-Owned and Regionally Owned Enterprises
- Internal Audit Application for GCG: Implementation Guide for State-Owned Enterprises and Government Agencies
Conclusion
A documented, monitored, and easily consolidated audit process helps organizations practice good governance, especially in holding structures or dispersed work units. Audithink has been used by PT Timah Tbk, PT Antam Tbk, and PT Perkebunan Nusantara III to manage their internal audit processes.
Want to see how Audithink can be adapted to your SOE's or government agency's oversight needs? Schedule an Audithink demo and discuss it directly with our team.
