Indonesia Implements Unified Financial Reporting System for Enhanced Transparency

New Regulatory Framework

The Indonesian government has introduced a comprehensive financial reporting reform through Government Regulation (PP) No. 43/2025, mandating all companies including banking institutions to submit their financial reports to the Ministry of Finance starting in 2027. This regulatory change aims to significantly enhance financial transparency and reporting consistency across the corporate sector.

Industry Response

Bankers have responded positively to the new regulation. Ganda Raharja Rusli, Director of Risk, Compliance, and Legal at Allo Bank, noted that the unified reporting system has a good objective for improving reporting efficiency and ensuring data consistency. However, he emphasized that banks are currently awaiting more detailed guidelines before assessing whether the new policy will effectively reduce their administrative and compliance burdens.

Implications for Financial Reporting

The implementation of this regulation is expected to create a more streamlined and transparent financial reporting landscape in Indonesia. By centralizing financial reporting under the Ministry of Finance, the government aims to achieve greater oversight and better monitoring of corporate financial health. This move is particularly significant for Indonesia's financial sector as it moves towards greater digitalization and regulatory compliance.