The OJK is finalizing a Draft Regulation on the Preparation of Financial Statements by Issuers and Public Companies (“Draft Regulation”). Once enacted, it will repeal Rule No. VIII.G.7, Rule No. IX.L.1 on Quasi-Reorganization, and Circular No. SE-17/BL/2012 on Disclosure Checklists. Requirements apply from the financial year commencing 1 January 2027.

A central reform is alignment with the International Financial Reporting Standards (“IFRS”), replacing PSAK 201 with PSAK 118. The Draft Regulation also revises the consolidation control test: rather than relying on voting rights thresholds, control is now established through a three-limb IFRS framework requiring power over the investee, exposure to variable returns, and the ability to use that power to influence those returns. Qualifying investment entities may be exempt from consolidating certain subsidiaries.

The Draft Regulation mandates directors overseeing accounting or finance, and accounting personnel, hold SAK or SLK certification, including Chartered Accountancy. Non-compliance may attract sanctions ranging from written reprimands to license revocations.

Conclusion

The Draft Regulation marks a meaningful shift toward an internationally aligned financial disclosure framework for Indonesia’s capital markets. Issuers and public companies should begin assessing the impact on consolidated reporting structures, internal governance, and the certification status of accounting personnel. Early preparation for the mandatory transition to PSAK 118 and IFRS alignment will be critical to ensuring compliance ahead of the 1 January 2027 effective date.