Restrengthening the role of supreme audit agency in supervising state-owned enterprises?

Many parties have questioned the existence of the State Audit Agency to supervise State-Owned Enterprises. The Indonesian Constitutional Court decided on verdicts 62/PUU-XI/2013 and 26/PUU-XIX/2021 regarding the position of the Supreme Audit Agency as the external supervisor of State-Owned Enterprises. This study compares how Indonesia and Hungary, two countries that follow the civil law system, place the Supreme Audit Agency (Badan Pemeriksa Keuangan and Állami Számvevőszék) in their legal system. Moreover, this paper explores and confronts the legal doctrines and legislations of the two countries in auditing and strengthening the corporate governance of public companies. In conclusion, this study explains that Indonesia and Hungary regulate Badan Pemeriksa Keuangan and Állami Számvevőszék in their Constitutions as the fundamental law and further regulate it in the Act as a complementary law. Both countries used the Board or Collegiate model of audit institution and assigned the Supreme Audit Agency as a protector of state assets by preventing fraud and strengthening good corporate governance in the management of State-Owned Enterprises.