THE IMPLEMENTATION OF INTERNAL CONTROL USING THE THREE LINES OF DEFENSE MODEL IN CONTROLLING CORRUPTION IN THE MINISTRY OF FINANCE OF INDONESIA

Nur Achmad, Haula Rosdiana, Safri Nurmantu

Research output: Contribution to journalArticlepeer-review

Abstract

The Ministry of Finance of the Republic of Indonesia (MoF) plays an important role in the development of Indonesia as it is responsible for collecting 85% more state revenues through the Directorate General of Taxation (DGT) and the Directorate General of Customs and Excise (DGC). MoF is the pioneer of Bureaucracy Reform in Indonesia together with MahkamahAgung (MA, as the Supreme Court) and BadanPemeriksaKeuangan (BPK, as the supreme audit institution). As the government's internal audit apparatus, the Inspectorate General (IG) MoF role in keeping the state management tasks undertaken by the employees of the MoFcarried out prudently, professional, accountable and committed by people who are competent and free of fraud.This paper analyzes the implementation of internal controls in controlling corruption in the MoF. This research uses interview data from internal and external sources of MoF using the internal control framework. Research shows that the MoF has implemented the Three Lines of Defense Model but this model has not been fully effective in controlling corruption in the MoF. The model is potentially developed and reinforced with an integrated corruption control policy and supported by strong leadership and integrity from all levels of MoF leaders.
Original languageEnglish
Pages (from-to)15-21
JournalInternational Journal of Management and Administrative Sciences (IJMAS)
Volume5
Issue number9
Publication statusPublished - 1 Dec 2018

Keywords

  • fraud, corruption, anti-corruption policy, internal audit, internal control, Inspectorate General, Three Lines of Defense Model

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