Audit and Accounting

The five types of limited iability companies (banks and financial institutions, publicly listed companies, companies issuing debt, state-owned companies and companies with assets worth at least IDR 50 billion) must publish audited financial statements that have been approved by their general meeting of shareholders. Annual reports should be prepared in accordance with Indonesia's generally accepted accounting principles (PSAK). Indonesia is in the process of adapting these rules to the international financial reporting standards (IFRS).

The report must contain at least the following:   

  • A balance sheet and profit and loss statement for the preceding financial year with comparable figures from the previous year  
  • A report on the condition and performance of the company.  


A company must maintain a register of shareholders, as well as a special register of members of the board of directors and board of commissioners, detailing the ownership of the company’s shares. Changes in share ownership must be recorded in the register of shareholders and approved in the general meeting. The board of directors must submit an annual report to the general meeting of shareholders within six months of the closing of the company’s books.    


For tax purposes, foreign investment (PMA) companies, permanent establishments, certain entities with foreign affiliations and companies that prepare their financial statements using the US dollar as the functional currency in accordance with PSAK 10, may maintain English language and US dollar book-keeping provided that an approval from the Minister of Finance is obtained. Contractors of oil and gas PSAs and companies operating under Mining Contracts of Work need only to provide notification. A change in the method of bookkeeping is possible but is subject to approval from the DGT (Directorate General of Tax).