OJK Set to Overhaul Financial Reporting Framework for Issuers and Public Companies: IFRS Alignment and Mandatory Professional Competency for Preparers Introduced

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently completing work on a new Draft Regulation on the Preparation of Financial Statements by Issuers and Public Companies (“Draft Regulation”). If this new Draft Regulation ultimately comes into force, then it will ultimately repeal and replace several existing frameworks, including the following:[1]

1. Rule No. VIII.G.7 (“Rule VIII.G.7”) on the Presentation and Disclosure of Financial Statements by Issuers and Public Companies, as the Appendix to Decree of the Head of the Capital Market and Financial Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan - “Bapepam-LK”) No. KEP-347/BL/2012;
2. Rule No. IX.L.1 on Quasi-Reorganization, as the Appendix to Decree of the Head of Bapepam-LK No. KEP-718/BL/2012; and
3. Circular of the Head of Bapepam-LK No. SE-17/BL/2012 on the Use of Financial Statement Disclosure Checklists by All Industries Operating Within the Indonesian Capital Market.