Jakarta. The Supreme Audit Board (BPK) commended state defense company PT Pindad for achieving a 94.25 percent completion rate on 87 recommendations, exceeding BPK’s 75 percent target.

On Oct. 21, BPK delivered its audit report (LHP) to Pindad, presented by BPK member Slamet Edy Purnomo. The event was attended by State Financial Auditor Bernardus Dwita Pradana, Pindad CEO Abraham Mose, and Chairman Maruli Simanjuntak. Alongside the report, BPK commended Pindad for its responsiveness to previous recommendations.

During the report handover, BPK advised Pindad to strengthen its corporate performance, particularly in financial management, which has faced challenges from high economic costs and financial distress. Pindad’s specialized operations require unique cash flow management and carry significant financial burdens distinct from standard manufacturing industries. Contributing factors include a rigid production process, specialized materials required for military specifications, and long production timelines, all of which impact Pindad’s annual financial performance and lead to high funding costs.

In recent years, Pindad has proactively implemented improvements across several areas, including cost control, optimizing receivables management, and restructuring asset and pension fund management. The company has also strengthened risk management to minimize financial risks, demonstrating its commitment to ongoing improvements.

“We welcome BPK's recommendations to strengthen transparency and accountability at Pindad. We have taken steps to improve our performance ahead of this audit and will continue to align with best governance practices,” Abraham Mose said in a statement.

Regarding pension funds, Pindad expressed appreciation for BPK’s attention to the post-COVID-19 decline in investment value. Acknowledging the fluctuating nature of investments, Pindad’s management has taken strategic measures to address findings based on BPK’s recommendations. The company has coordinated closely with the Pension Fund Supervisory Board to ensure careful management of investments and recently withdrew from stocks showing declining trends.

With support from the Board of Commissioners, Pindad plans to continue enhancing its financial oversight, aiming for higher standards of governance and transparency to ensure operational efficiency and competitiveness. These steps are expected to help PT Pindad meet its goals of sound governance, transparency, and optimal contributions to national interests.