Accounting Rules in Indonesia

Published January 21, 2021 · Updated November 1, 2026

Which accounting rules apply to your business in Indonesia, and when do they require an independent audit? The answer depends on your entity, activities and reporting framework.

In this guide, we explain financial reporting standards, audit triggers, bookkeeping currency and filing duties as of 1 November 2026.

Which Accounting Rules Govern Financial Reporting in Indonesia?

The appropriate reporting framework depends on the entity’s public accountability, eligibility and applicable regulatory requirements.

The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia or IAI) sets financial reporting standards. Start by identifying the entity’s legal form, activities and regulatory status; size alone does not determine the framework.

IAI identifies SAK Internasional, SAK Indonesia, SAK Entitas Privat and SAK EMKM as reporting pillars. SAK Entitas Privat replaced SAK ETAP from 1 January 2025. SAK Syariah also addresses applicable Sharia transactions and reporting.

SAK Indonesia and SAK Internasional

SAK Indonesia applies where the standards and relevant regulatory rules require it. SAK Internasional fully adopts IFRS Accounting Standards. Under OJK Regulation No. 26 of 2023, qualifying companies listed in more than one country may choose SAK Internasional, subject to the regulation’s conditions.

SAK Entitas Privat for Private Enterprises

Effective 1 January 2025, SAK Entitas Privat (SAK EP) is available to qualifying entities without public accountability and to publicly accountable entities where the competent regulator permits it. The framework is based on IFRS for SMEs. A private company should confirm eligibility and check sector-specific rules before adopting it.

SAK EMKM for Micro, Small, and Medium Enterprises

SAK EMKM provides a simplified framework for eligible micro, small and medium entities. For example, a qualifying small business may prepare its minimum statements using the framework’s historical-cost principles, provided another rule does not require a different framework.

SAK Syariah for Islamic Business Transactions

Sharia standards address relevant transactions and reporting. An entity with Sharia transactions should check those provisions alongside its applicable reporting framework.

What Are the Mandatory Components of Financial Statements in Indonesia?

Required statements depend on the framework and legal form; a limited company’s annual report includes a balance sheet, income statement, cash-flow statement, changes in equity and notes.

Article 66 of Company Law No. 40 of 2007 sets minimum contents for a limited company’s annual report. Minister of Law Regulation No. 49 of 2025 addresses capital-based company reports and separate electronic filing for individual companies.

SAK EMKM requires at least a statement of financial position, an income statement and notes. That framework minimum does not displace additional legal requirements. Keep supporting records, including invoices and bank statements, for the applicable retention period; company financial documents are generally retained for ten years.

Statement of Financial Position

This statement presents the entity’s assets, liabilities and equity at the reporting date. Assets and liabilities are presented in accordance with the applicable framework, which may permit presentation by liquidity or maturity rather than separate current and non-current classifications.

Statement of Comprehensive Income

The income statement shows income and expenses for the reporting period. If the framework requires comprehensive income, include the additional items and disclosures it specifies.

Statement of Cash Flows

When required, this statement separates cash movements into operating, investing and financing activities. The figures should be reconcilable to the underlying cash records.

Statement of Changes in Equity and Notes

Where required, the equity statement explains changes in capital and retained earnings. The notes describe accounting policies and provide the details required by the framework.

When Is an Independent Statutory Audit Mandatory for Companies in Indonesia?

Article 68 of Company Law No. 40 of 2007 requires an audit for specified limited companies, including those with assets or turnover of at least IDR 50 billion.

Not all commercial entities in Indonesia must undergo an annual statutory audit. However, meeting statutory criteria makes an independent examination legally mandatory. Applying these statutory accounting rules guarantees proper transparency for regulatory bodies and creditors.

Audits must be executed by a licensed public auditor registered with the Ministry of Finance. Sectoral regulations may impose additional audit requirements regardless of company turnover. Operating at a commercial loss does not exempt an entity from audit obligations.

Asset or Turnover Threshold of IDR 50 Billion

The statutory trigger is assets and/or business turnover of at least IDR 50 billion. A PT PMA with IDR 52 billion in assets, for example, meets the trigger even if turnover is lower. Review the figures for each reporting period.

Entities Managing Public Funds

Article 68 covers a company whose business collects or manages public funds. Banks and insurers should also assess their separate sector requirements.

Issuers of Public Debt and Listed Entities

Public companies and companies issuing debt acknowledgements to the public are among those covered by Article 68. Issuers and public companies must also check applicable OJK reporting requirements.

State-Owned Persero Companies and Other Legal Requirements

The law expressly includes state-owned persero companies and companies required to be audited by another law or regulation. Regional ownership alone is not the test: check the company’s activities, figures and applicable sector rules.

What Are the Currency and Language Requirements for Bookkeeping in Indonesia?

Tax bookkeeping generally uses Bahasa Indonesia and Rupiah; eligible taxpayers may use English or US Dollars after following the applicable procedure.

Article 28 of the General Tax Provisions Law establishes Bahasa Indonesia and Rupiah as the general basis for tax bookkeeping. An alternative requires the applicable notification or permission procedure.

Bookkeeping currency and payment currency are separate questions. Bank Indonesia Regulation No. 17/3/PBI/2015 requires Rupiah for transactions in Indonesia, subject to exceptions; permission to keep US Dollar books does not itself authorize a domestic payment in dollars.

Eligibility Criteria for Foreign Currency Bookkeeping

Foreign investment companies (PT PMA) and permanent establishments are among the categories that may apply for US Dollar bookkeeping. Qualifying subsidiaries directly affiliated with a foreign parent company may apply for US Dollar bookkeeping. Certain other categories, including production sharing contractors, must follow the notification or permission procedure applicable to them.

Application Deadlines and Digital Notification

Directorate General of Taxes Regulation PER-8/PJ/2025 provides electronic procedures that differ by taxpayer category. An eligible US Dollar applicant generally applies three months before the relevant financial year begins or, if newly established, within three months of establishment. English-language bookkeeping in Rupiah follows a separate notification procedure and deadline.

Tax Returns and Payments

An approval or notification for US Dollar bookkeeping does not make every tax payment payable in dollars. Check the currency for each return and payment under Ministry of Finance Regulation No. 81 of 2024 and applicable implementing rules.

What Auditor Rotation Rules Apply in Indonesia?

Rotation rules depend on the entity and auditor’s role: Government Regulation No. 20 of 2015 and OJK Regulation No. 9 of 2023 cover specified entities and different tenure limits.

The applicable limits depend on the entity, the service and the individual auditor’s role. Check Government Regulation No. 20 of 2015, OJK Regulation No. 9 of 2023 where relevant, professional ethics rules and any transitional provisions before appointment.

Keep a record of each auditor’s service years and role. Where both government and OJK requirements apply, assess both rather than treating the OJK limit as a replacement for the government limit.

Five-Year Limit Under Government Regulation No. 20 of 2015

Article 11 limits an individual public auditor’s historical financial-information audit service for specified entities to five consecutive financial years, followed by a two-year break before reappointment. The listed categories include capital-market entities, commercial banks, pension funds, insurers and state-owned enterprises. Sector-specific provisions may also apply.

Financial Services Authority (OJK) Restrictions

OJK Regulation No. 9 of 2023 imposes a seven-year cumulative limit for commercial banks, issuers and public companies, with a cooling-off period determined by the auditor’s role. Other covered entities have a five-consecutive-year limit and a two-year break. The OJK also requires covered banks, issuers and public companies to observe other applicable rotation and ethics requirements.

Audit Committee Responsibilities

Issuers and public companies must maintain an audit committee, while other entities should check their applicable sector-specific requirements. Under the relevant rules, the committee helps oversee external auditor selection and independence.

What Annual Reporting and Disclosure Requirements Apply to Companies?

Corporate tax returns are generally due within four months of year-end, while limited companies must hold their annual shareholders’ meeting within six months.

Timely statutory reporting avoids severe administrative fines and operational restrictions. Limited liability companies must hold an Annual General Meeting within six months of fiscal year-end. Approved financial statements must be lodged with corporate and trade authorities.

Navigating multi-agency compliance requires seamless operational coordination. Setting up corporate licensing involves knowing how to obtain a company registration number NIB in Indonesia through the OSS platform. Managing reporting schedules also requires accounting for each Indonesia time zone during critical filing windows.

Corporate Income Tax Filing (SPT PPh Badan)

The annual corporate income tax return is generally due within four months after the end of the tax year. The General Tax Provisions Law provides for an IDR 1 million penalty for a late corporate annual return; late payment is separate. An extension may be available if the applicable procedure is followed.

Public Disclosure of Financial Statements

OJK Regulation No. 14/POJK.04/2022 generally requires issuers and public companies to submit and announce annual financial statements by the end of the third month after the statement date, subject to the earlier-authorization rule and special provisions. Separately, Article 68 of Company Law No. 40 of 2007 requires the public-funds, public-debt and public-company categories to publish their shareholder-ratified balance sheet and income statement in a newspaper within seven days of ratification.

Company Registry and Investment Reporting

Under Article 16 of Minister of Law Regulation No. 49 of 2025, directors of a capital-based company submit shareholder approval of the annual report through a notary via SABH within 30 calendar days after the notarial deed is signed. Individual companies have a separate electronic financial-statement filing requirement within six months after the accounting period.

Applicable investment activity reports must be filed through OSS quarterly by medium and large businesses or semi-annually by small businesses; micro businesses and activities funded by the state or regional budget are exempt. Check the entity’s category and exceptions under Minister of Investment and Downstreaming/Head of BKPM Regulation No. 5 of 2025. Government Regulation No. 24 of 1998, as amended, also addresses annual company financial information. Minister of Trade Regulation No. 25 of 2020 on LKTP was revoked by Regulation No. 26 of 2025. Confirm any current duty and procedure rather than relying on the former deadline.

Conclusion

Choosing the right reporting framework is only the first step. Companies also need to check their audit triggers, bookkeeping permissions and separate filing deadlines.

3E Accounting Indonesia is a Corporate Services Provider supporting businesses with bookkeeping, statutory reporting, tax compliance and corporate advisory. Contact our team to discuss your entity’s requirements.

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