Indonesian Banking Sector Awaits Clarification on New Financial Reporting Regulations

Industry Response to FRSW Implementation

The Indonesian banking industry is adopting a cautious approach to the recently announced Financial Reporting Single Window (FRSW) regulations, which will require all capital market entities to submit their financial reports through a unified platform by 2027. Major banks including Allo Bank, Bank Central Asia (BCA), and Bank Danamon are carefully evaluating the potential impact on their current reporting processes.

Key Considerations for Banking Institutions

1. Administrative Burden: Banks are concerned about how this new single-window reporting system will affect their existing compliance and administrative processes.
2. Data Standardization: The regulation aims to create a more standardized and transparent financial reporting ecosystem.
3. Regulatory Compliance: Banks must align their reporting mechanisms with the new requirements set forth by the Ministry of Finance.

Bank Perspectives on the New Regulation

Allo Bank's Viewpoint

Ganda Raharja Rusli, Director of Risk, Compliance, and Legal at Allo Bank, noted that while the intention behind the single financial reporting platform is positive, the bank is still waiting for more detailed guidelines before assessing its full impact.

BCA's Stance

Hera F. Haryn, EVP of Corporate Communication & Social Responsibility at BCA, mentioned that the bank is monitoring the implementation closely and coordinating with relevant stakeholders.

Danamon's Outlook

Hosianna Evalita Situmorang from Bank Danamon views the new regulation as potentially beneficial for investors, as it could enhance transparency and make financial data more accessible.

Regulatory Background

The FRSW regulation is part of the Government Regulation No. 43/2025 on Financial Reporting, which is designed to create a more transparent and accountable financial reporting ecosystem. Masyita Crystallin, Director General of Stability and Development of the Financial Sector at the Ministry of Finance, emphasized that this regulation will improve the quality of national financial data.

Implications for Financial Reporting

The implementation of FRSW is expected to:

• Enhance data consistency across different financial institutions
• Improve accessibility of financial information for investors and regulators
• Streamline reporting processes through standardization

As the implementation date approaches, banks continue to monitor developments and prepare for compliance with the new financial reporting framework.