New Rules for Financial Reporting by Issuers and Public Companies

The Financial Services Authority (“OJK”) is finalizing new regulations on the preparation of financial statements for Issuers and Public Companies (“EPP”). This step is being taken to ensure the relevance of reporting standards in Indonesia to international dynamics, following the plan to replace Financial Accounting Standards Statement (“PSAK”) 201 with PSAK 118, which will take effect in 2027.

“Issuers need to present high-quality financial statements to provide accurate information to all stakeholders, particularly investors,” said Hasan Fawzi, Executive Director of Capital Markets, Derivatives, and Carbon Exchange Supervision at the OJK.

OJK is also drafting Regulation of the Board of Commissioners (“PADK”) that will include new provisions on accounting treatment guidelines planned for fiscal years beginning 1 January 2027. Once these rules take effect, several older provisions, such as the Decree of the Head of the Capital Market and Financial Institutions Supervisory Agency (“Bapepam-LK”) No. KEP-347/BL/2012 (“Rule VIII.G.7”) and Decree of Bapepam-LK No. KEP-718/BL/2012 (“Rule IX.L.1”) will be repealed and deemed invalid.