Rethinking BPK audits under Law number 16 of 2025: Balancing accountability, autonomy, and public value

Abstract

Law No. 16 of 2025 introduces a significant institutional transformation in the governance of State-Owned Enterprises (SOEs) in Indonesia by separating regulatory functions from investment management through the establishment of the SOE Regulatory Authority and the Daya Anagata Nusantara Investment Management Agency. This study analyzes the legal and operational implications of the law for the audit authority and orientation of the Audit Board of the Republic of Indonesia (BPK) in overseeing SOEs. Using a qualitative descriptive-analytical approach and theoretical triangulation, this study applies three theoretical perspectives: agency, stewardship, and public value theories. The analysis examines the implications of the institutional transformation for BPK oversight. First, the institutional restructuring increases the importance of integrated risk assessment, information access, and coordination among entities within the Danantara structure while creating potential agency risks. Second, the strengthened Business Judgment Rule places greater emphasis on the decision-making process, including good faith, due care, risk assessment, and conflicts of interest, rather than business outcomes alone. Third, integrating the three theoretical perspectives supports a risk-based, process-oriented, and outcome-aware audit orientation that balances accountability, managerial discretion, and public value. Thus, this orientation can strengthen BPK oversight while maintaining its statutory mandate and ensuring financial and compliance accountability.