Business
Indonesia — Business: Accounting
Indonesia's accounting regulations are based on International Financial Reporting Standards (IFRS), with some local modifications. The Indonesian Institute of Accountants (ICA) and the Financial Services Authority (OJK) oversee accounting and auditing standards.
Why this matters
Understanding Indonesia's accounting regulations is crucial for businesses looking to expand or invest in the country, as non-compliance can result in penalties and reputational damage.
Key facts
- Accounting and auditing standards are overseen by the Indonesian Institute of Accountants (ICA) and the Financial Services Authority (OJK).
Costs
- Foreigners: IDR 28 million minimum plus paid-up capital for a foreign-owned company, before you commit.
Required documents
- Company registration documents
- Tax identification number (NPWP)
- Business license
Common mistakes
- Incorrectly applying local accounting standards
- Failing to obtain necessary permits and licenses