|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||Indonesia has not adopted IFRS Standards for reporting by domestic companies. Indonesia has been converging its national standards toward IFRS Standards, but without a plan for full adoption of IFRS Standards.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||No. All foreign companies whose securities trade in a public market are required to use Indonesian national accounting standards.|
|The IFRS for SMEs Standard is required or permitted||No.|
|The IFRS for SMEs Standard is under consideration||No.|
Role of the organisation
The DSAK IAI as part of The Indonesian Institute of Accountants (Ikatan Akuntan Indonesia – IAI) is the independent national accounting standard‐setting body in Indonesia. It is tasked by the IAI National Council to establish the Indonesian Financial Accounting Standards (Standar Akuntansi Keuangan – SAK).
SAK as issued by the DSAK IAI is recognised by the Government of the Republic of Indonesia through, among other things, the Indonesian Law No. 40/2007 on Limited Liability Company and Law No. 8/1995 on Capital Market.
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
Indonesia’s commitment is to support IFRS Standards as the globally accepted accounting standard and to continue with the IFRS Standards convergence process, further minimising the gap between SAK and IFRS. Indonesia is yet to announce its plan for the full adoption of IFRS Standards in Indonesia.
The decision to elect the convergence approach instead of full adoption was based on the consideration of the potential interpretation and implementation issues.
Since making the public commitment to support IFRS Standards in 8 December 2008, the DSAK IAI has been converging the SAK towards IFRS Standards. As a result of the first phase of the IFRS convergence process, SAK as at 1 January 2012 is substantially in line with IFRS Standards as at 1 January 2009, but there are a number of differences and several IFRS Standards and IFRIC Interpretations do not have SAK equivalents.
The DSAK IAI is currently progressing with the second phase of the IFRS convergence process. The objective of this phase is to further minimise the gap between SAK and IFRS Standards, from three years to one year. This would take SAK as at 1 January 2015 to be substantially in line with IFRS Standards as at 1 January 2014, again with some exceptions.
Currently there are two tiers of GAAP that are established in Indonesia:
- Tier 1 –SAK, for listed companies and other entities with significant public accountability; and
- Tier 2 – SAK ETAP, for entities with no significant public accountability.
The DSAK IAI also issued PSAK 45 as part of the SAK for not‐for-profit entities. The Board is currently deliberating on whether a more robust set of standards is necessary to meet the reporting requirements of not‐for‐profit entities Indonesia.
2016 Joint Statement
On 25 May 2016, the Trustees of the IFRS® Foundation, the Indonesia Financial Services Authority (OJK) and the Institute of Indonesia Chartered Accountants (IAI) announced their intention to deepen cooperation as Indonesia develops its plans to achieve full convergence with IFRS Standards. The plans were set out in a Joint Statement.
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
Indonesia’s commitment is to support IFRS Standards as the globally accepted accounting standard and to continue with the IFRS convergence process, further minimising the gap between SAK and IFRS Standards. Indonesia is yet to announce its plan for the full adoption of IFRS Standards in Indonesia.
Any plan to permit or require the use of IFRS Standards for domestic companies whose securities trade in public market will depend on the progress of the convergence process, and the commitment of both the standard setter and relevant regulators.
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
Based on the mandate that has been given by the IAI National Council, the due process procedure for the DSAK IAI in converging the SAK with IFRS Standards is as follows:
- Identification of the SAK that is going to be converged with IFRS Standards.
- Research and analysis of the concepts and issues.
- Limited consultations with relevant stakeholders, among others, regulators, associations and entities.
- Public consultation through the issuance of exposure draft and public hearings.
- Board deliberations on public comments.
- Issuance of SAK.
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
Other comments regarding use of the IFRS for SMEs Standard?
General requirements for companies for-profit entities
State owned and non-listed companies that:
- provide services related to public fund-raising;
- have issued bonds;
- have assets or net worth of at least Rp25 billion;
- are debtors whose annual financial statement must be audited by a Bank;
- are foreign entities operating in Indonesia; or
- are state-owned enterprises (PERSERO, PERUM and BUMD)
are required to submit the audited annual report to the Directorate of Business Development and Corporate Registration (Direktorat Bina Usaha dan Pendaftaran Perusahaan). The public accounting firm should conduct the audits; for state-owned enterprises, the BPK-RI also should audit the annual reports. Both physical paper format and PDF files should be submitted within six months of the end of fiscal year.
Submit daily and monthly (LBUS) sharia reports to the Bank Indonesia. Currently, the reports are submitted using XBRL.
Tax Purposes:Entities that submit tax self-assessment reports should attach either unaudited or audited (for those required) annual financial statements.
The Indonesia Stock Exchange (IDX) and the Indonesian Financial Services Authority (OJK) require the release of audited annual reports (financial reports included) within three months of the fiscal year-end.
Audited interim financial reports are due within three months of the end of interim period; limited-review interim financial reports are due within two months of the end of interim period; and unaudited interim financial reports are due within a month of the end of interim period.Both physical paper format and PDF formats are submitted and made publicly available. Audited annual and half-year financial statement releases should be announced in an Indonesian daily newspaper with national coverage.
General requirement for companies
Listed companies are required to file financial reports in PDF format simultaneously with physical report filings in paper format.
Electronic filing of all financial reports is mandatory (Q1, Half Year, Q3, Full Year Audited Financial Statement)
What type or format of structured electronic filing is required or permitted?
What is the purpose of the electronic filing?
- timely disclosure for investors and analysts in capital markets; and
- internal analysis by stock exchange.
What documents are required to be filed to the electronic filing system?
IDX is currently still using dynamic PDF, but on the XBRL standard reporting platform, 3 options are given to listed companies to submit their XBRL financial report filing:
- XBRL Instance
listed companies must attach scanned printed version in PDF format.
IDX XBRL engine will convert Listed Companies submission from XBRL standard reporting platform into 4 available formats (XBRL Instance, Inline XBRL, Excel, and PDF) for investors.