Public Financial Governance and the Speed of Audit Recommendation Follow-Up: Evidence from Indonesian Ministries and Agencies, 2020–2023

Abstract

This study investigates the temporal dimension of audit recommendation follow-up by Indonesian government ministries and agencies (Kementerian/Lembaga, K/L) within the framework of public financial governance. Using a comprehensive dataset of 12,466 recommendations extracted from the Supreme Audit Board (Badan Pemeriksa Keuangan, BPK) Semester Audit Summary Reports (Ikhtisar Hasil Pemeriksaan Semester, IHPS) for the period 2020–2023, covering 81 entities across 19 audit units, we apply descriptive statistics, Kruskal-Wallis tests, chi-square analysis, and Pearson/Spearman correlation to examine responsiveness patterns. Our findings reveal that the national median follow-up duration is 224 days (mean = 334.4 days, SD = 267.2), substantially exceeding the 60-day statutory deadline stipulated in Law No. 15/2004. A statistically significant improvement in follow-up speed is observed across years (Kruskal-Wallis H = 1,423.80, p < 0.001), with the median declining from 349 days (2020) to 209 days (2023). However, a paradox emerges: as speed improves, compliance rates deteriorate sharply from 80.1% to 59.3%, suggesting a speed–quality trade-off consistent with symbolic compliance behavior. Chi-square tests confirm a significant association between speed category and compliance outcome (χ² = 276.78, df = 4, p < 0.001). A speed-quality matrix classifies audit units into four strategic quadrants, revealing that five units require priority intervention. The outstanding value of unresolved recommendations amounts to IDR 5.10 trillion. These findings contribute to the literature on supreme audit institution effectiveness and provide actionable evidence for governance reform in emerging economies.