The Internal Audit Unit (SPI) of Perum Jamkrindo conducted a benchmarking study visit to PT. Krakatau Steel in Cilegon, Banten, on December 23, 2016. Both companies shared knowledge and experiences, inspiring each other, particularly in internal audit practices.
The delegation from Perum Jamkrindo consisted of 23 auditors led by Arry Andru Palapi, Head of Regional Audit Division III at Perum Jamkrindo. However, the Head of SPI, Achmad Sonhadji, was unable to attend due to illness and hospitalization. The team was welcomed by Abdul Haris Suhadak, Head of Internal Audit at PT. Krakatau Steel, along with his team.
"We are working to build a more solid audit team at Perum Jamkrindo. That is why we are visiting several major companies. After PT. Krakatau Steel, we plan to visit Bank Rakyat Indonesia (BRI) and TVS," said Arry Andru Palapi.
He explained that the internal audit team at Perum Jamkrindo faces increasing challenges as the company has experienced rapid growth in recent years. Currently, Perum Jamkrindo operates 55 branch offices and one special branch across Indonesia, along with nine regional offices.
"We are actively engaged in learning, learning, and more learning, including certifying all members of the audit team," he added.
During his presentation, Abdul Haris Suhadak, Head of Internal Audit at PT. Krakatau Steel, explained the three legal foundations for internal audits in the state-owned steel company. The first is Law No. 19/2003 on State-Owned Enterprises (BUMN), particularly Articles 67, 68, and 69. Article 67 mandates that every BUMN must have an internal audit unit reporting directly to the President Director.
"Article 69 serves as the basis for preparing audit reports and requesting follow-ups on our recommendations. Since we are now a publicly listed company (Tbk.), we also adhere to Financial Services Authority (OJK) Regulation No. 56, which requires us to have an internal audit charter. This is mandatory, and we have already established it," he explained.
The third legal foundation is the Internal Auditor Professional Standards (SPAI), which aligns closely with the standards and ethical codes used by Perum Jamkrindo.
In carrying out internal audits, the PT. Krakatau Steel audit team follows the paradigms outlined in SPAI and OJK regulations. Their activities are divided into two main functions: providing assurance through audits and offering consulting services.
"Both of these activities must add value and enhance operational performance in terms of risk management effectiveness," he said.
The core duties and functions of the Krakatau Steel audit team include planning, organizing, coordinating, and controlling internal audit strategic goals and planning.
"The audit is carried out across all business units, as we, as auditors at the parent company, are also responsible for conducting periodic inspections of subsidiaries and even sub-subsidiaries," he added.
Additionally, the team monitors the follow-up actions on audit findings from both internal and external audits.