The Construction of The Authority of The Audit Board of The Republic of Indonesia to Declare State Losses as A Strengthening of The Principle of Checks and Balances in The Indonesian Constitutional System

Abstract

The authority of the Audit Board of the Republic of Indonesia (BPK) to declare state financial losses remains a subject of debate in the enforcement of corruption crimes due to the development of judicial decisions and law enforcement policies that allow other institutions to calculate state financial losses. This situation has led to differing interpretations regarding the scope of BPK's authority as the state's external audit institution, which derives its attributed authority directly from the 1945 Constitution of the Republic of Indonesia. This study aims to analyze the constitutional basis of BPK's authority to declare state financial losses, examine the implications of legal developments on such authority, and formulate a reconstruction of BPK's authority as a means of strengthening the principle of checks and balances. This research employs normative legal research using statutory, conceptual, and case approaches. The analysis is conducted prescriptively based on legislation, Constitutional Court decisions, and the policies of the Supreme Court and the Attorney General's Office. The findings reveal that BPK's authority constitutes an attributed power derived from Article 23E of the 1945 Constitution of the Republic of Indonesia and is further regulated under Law Number 15 of 2004 and Law Number 15 of 2006. Legal developments through Constitutional Court decisions, the implementation of the Criminal Procedure Code (KUHAP), the Criminal Code (KUHP), Supreme Court Circular Letters, and the policies of the Attorney General's Office have influenced the mechanism for proving state financial losses but have not diminished BPK's constitutional authority. This study concludes that the authority to declare state financial losses remains vested in BPK, while the calculation of state financial losses by other institutions constitutes part of the evidentiary process in accordance with statutory provisions. This reconstruction strengthens legal certainty, preserves BPK's independence, and reinforces the implementation of the checks and balances principle within Indonesia's constitutional system.