Indonesia Implements Comprehensive Financial Reporting Reform

Enhanced Transparency and Standardization

The Indonesian government, through the Ministry of Finance, has introduced Government Regulation (PP) No. 43/2025 to strengthen financial reporting across various sectors. This new regulation aims to create a more transparent and accountable financial reporting ecosystem by establishing standardized mechanisms for financial reporting, submission, and utilization. The regulation covers both the financial services sector and real sector entities with business connections to the financial sector.

Key Features of the New Regulation

The new financial reporting framework is designed to create an interconnected, standardized, and consistent financial reporting ecosystem. This comprehensive approach is expected to significantly improve the quality of national financial data. The regulation mandates the preparation and submission of financial reports in a standardized format, facilitating better data aggregation and analysis at the national level.

Implementation and Expected Outcomes

According to Masyita Crystallin, Director General of Stability and Development of the Financial Sector at the Ministry of Finance, the new regulation is intended to strengthen the foundation of transparent and accountable financial governance. The improved financial reporting is expected to provide reliable reference points for both corporate decision-making and public policy formulation. The regulation represents a significant step towards modernizing Indonesia's financial reporting infrastructure and enhancing the overall quality of financial data available to stakeholders.