Indonesia

Indonesia’s statutory framework for accounting, auditing, and corporate reporting is established through Law No. 34 of 1954 on the Use of the Title “Accountant,” the Capital Market Act No. 8 of 1995, the Limited Liability Company Law No. 40 of 2007, the Public Accountants Act No. 5 of 2011, and the Financial Sector Development and Strengthening Law (Law No. 4 of 2023, commonly referred to as the P2SK Law). Together, these laws define the institutional and regulatory framework governing financial reporting, auditing, and the accountancy profession in Indonesia.

The P2SK Law was enacted to modernize and strengthen Indonesia’s financial sector framework by consolidating and enhancing the regulation of banking, capital markets, insurance, pension funds, and other financial institutions. The law reinforces requirements for financial sector entities and related parties to prepare and submit financial statements in accordance with prevailing laws and regulations and emphasizes transparency, accountability, governance, and financial system stability. The law also recognizes the role of accountants and public accountants in supporting the integrity and reliability of financial reporting and assurance services.

The financial reporting framework in Indonesia is primarily established under the Limited Liability Company Law, the Capital Market Act, the Public Accountants Act, and the P2SK Law. Companies are generally required to prepare annual financial statements in accordance with Indonesian Financial Accounting Standards (Standar Akuntansi Keuangan, SAK) issued by the Indonesian Financial Accounting Standards Board (Dewan Standar Akuntansi Keuangan, DSAK-IAI), operating under the Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI). DSAK-IAI serves as the national accounting standard-setter and develops SAK based on IFRS Accounting Standards with modifications primarily relating to effective dates and certain local legal and economic considerations.

Mandatory audits apply to companies meeting specified public interest or size thresholds, including publicly listed companies, state-owned enterprises, companies involved in the mobilization or use of public funds, companies issuing promissory notes to the public, and companies exceeding prescribed asset or turnover thresholds.

Indonesia applies a differential financial reporting framework. Full SAK is mandatory for listed entities and other entities with significant public accountability. For entities without public accountability, DSAK-IAI previously issued SAK ETAP, which is being replaced by SAK EP effective January 1, 2025. SAK EP is substantially aligned with the 2015 IFRS for SMEs. For micro, small, and medium-sized entities, DSAK-IAI has issued SAK EMKM, a simplified financial reporting framework designed to support financial reporting accessibility and financial inclusion.

In January 2023, DSAK-IAI introduced SAK Internasional (SAK-I), a word-for-word Indonesian translation of IFRS Accounting Standards intended for use by entities meeting eligibility requirements established by the Indonesia Financial Services Authority (Otoritas Jasa Keuangan, OJK). The implementation timeline and transition arrangements continue to be developed in coordination between OJK and IAI.

Under the Capital Market Act, Banking Law, and P2SK Law, OJK is responsible for regulating and overseeing financial reporting requirements for regulated financial institutions, including banks, listed companies, insurance companies, and other supervised entities. OJK requires the application of accounting standards issued by DSAK-IAI.

Indonesia has also established an institutional framework for sustainability-related reporting. In 2023, IAI established the Indonesian Sustainability Oversight Board (Dewan Pemantau Standar Keberlanjutan, DPSK) and the Indonesian Sustainability Standards Board (Dewan Standar Keberlanjutan, DSK) to oversee and develop sustainability disclosure standards. Referencing IFRS S1 and IFRS S2 issued by the International Sustainability Standards Board, DSK issued PSPK 1 and PSPK 2 in July 2025, with an effective date of January 1, 2027. Early adoption is permitted for entities subject to OJK sustainability reporting requirements.

Statutory audit requirements are established under the Limited Liability Company Law, the Capital Market Act, and the P2SK Law. The Public Accountants Act designates the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia, IAPI) as the national auditing and assurance standard-setter. Through its Audit Standards Committee, IAPI issues the Indonesian Public Accountant Professional Standards (Standar Profesional Akuntan Publik, SPAP), which are substantially converged with the 2018 International Standards on Auditing issued by the International Auditing and Assurance Standards Board.

The accountancy profession in Indonesia operates under a shared regulatory framework involving the Ministry of Finance (MoF), professional accountancy organizations, higher education institutions, and sector regulators. The principal legal framework is established through Law No. 34 of 1954 on the Use of the Title “Accountant,” the Public Accountants Act No. 5 of 2011, and Ministry of Finance Regulation No. 216/PMK.01/2017 on Registered Accountants.

Law No. 34 of 1954 establishes the legal basis for State Registered Accountants in Indonesia. Under this framework, the Ministry of Finance is responsible for maintaining the state register of accountants. Ministry of Finance Regulation No. 216/PMK.01/2017 further establishes the requirements governing registration, professional obligations, continuing professional development, and recognition of professional accountancy organizations.

The regulatory framework requires professional accountants to obtain appropriate professional qualifications, complete relevant practical experience, maintain continuing professional development, remain members in good standing of a recognized professional accountancy organization, and comply with applicable professional standards and ethical requirements.

Public accountants are separately regulated under the Public Accountants Act No. 5 of 2011. The Act establishes the legal framework for the licensing, registration, supervision, and oversight of public accountants and public accounting firms. The Ministry of Finance, through the Finance Professions Supervisory Center (Pusat Pembinaan Profesi Keuangan, PPPK), is responsible for licensing and oversight activities, including inspection, investigation, and disciplinary functions relating to public accountants and firms.

The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI) serves as the principal professional accountancy organization for Chartered Accountants in Indonesia. IAI is recognized by the Ministry of Finance and is responsible for administering the Chartered Accountant Indonesia qualification program, establishing continuing professional development requirements for its members, issuing ethical requirements for professional accountants, and supporting the development of national accounting standards through the Indonesian Financial Accounting Standards Board.

The Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia, IAPI) serves as the professional accountancy organization for public accountants and auditors. Under the Public Accountants Act, IAPI is responsible for establishing auditing and assurance standards, implementing continuing professional development requirements for its members, issuing ethical requirements, operating an investigation and disciplinary system for members, and supporting quality assurance review activities in coordination with the Ministry of Finance and PPPK.

This framework reflects a shared regulatory model in which statutory oversight responsibilities are exercised by the Ministry of Finance and PPPK, while professional accountancy organizations play significant roles in professional education, ethical requirements, standard-setting, quality assurance support, and professional discipline.

Public audit oversight in Indonesia is established under the Public Accountants Act No. 5 of 2011, which authorizes the Minister of Finance to license, supervise, inspect, and impose administrative sanctions on public accountants and public accounting firms. The Act requires public accountants to be licensed by the Minister, comply with the Indonesian Public Accountant Professional Standards, and be subject to supervision for compliance with the Act, its implementing regulations, and applicable professional standards.

Institute of Indonesia Chartered Accountants

The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI) is the principal professional accountancy organization for Chartered Accountants in Indonesia. Established in 1957, IAI is recognized by the Ministry of Finance under Ministry of Finance Decree No. 263/KMK.01/2014 as a professional accountancy organization authorized to support the regulation and development of the accountancy profession in Indonesia.

IAI operates under a mixed regulatory framework in cooperation with the Ministry of Finance and higher education authorities. Its responsibilities include administering the Chartered Accountant Indonesia qualification program, establishing continuing professional development requirements for members, issuing ethical requirements, supporting professional discipline processes, maintaining member registries, and contributing to the development of national accounting and sustainability disclosure standards through the Indonesian Financial Accounting Standards Board and the Indonesian Sustainability Standards Board.

IAI administers the Chartered Accountant Indonesia qualification through multiple pathways recognized under Ministry of Finance Regulation No. 216/PMK.01/2017 and Ministry of Higher Education Decree No. 153 of 2014. The qualification framework incorporates professional examinations, practical experience requirements, and continuing professional development obligations.

IAI reports that the Chartered Accountant Indonesia qualification is aligned with the International Education Standards issued by the International Accounting Education Standards Board. IAI is a member of Chartered Accountants Worldwide and maintains cooperation and mutual recognition arrangements with several international professional accountancy organizations, including CPA Australia, the Institute of Chartered Accountants in England and Wales, the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, and the Institute of Singapore Chartered Accountants.

IAI is a member of the International Federation of Accountants, the ASEAN Federation of Accountants, and Chartered Accountants Worldwide.

Indonesian Institute of Certified Public Accountants

The Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia, IAPI) is the professional accountancy organization representing public accountants and auditors in Indonesia. Established in 2007, IAPI is recognized under the Public Accountants Act No. 5 of 2011 as the national auditing and assurance standard-setter.

IAPI operates within a shared regulatory framework involving the Ministry of Finance, the Finance Professions Supervisory Center, and the Indonesia Financial Services Authority. Its responsibilities include administering the Certified Public Accountant qualification examinations, establishing continuing professional development requirements, issuing auditing and assurance standards, issuing ethical requirements for members, operating investigation and disciplinary processes, and supporting quality assurance review activities.

The Certified Public Accountant qualification framework requires candidates to complete prescribed academic qualifications, professional examinations, practical experience requirements, and registration procedures with the Ministry of Finance.

IAPI issues the Indonesian Public Accountant Professional Standards, which are substantially converged with the 2018 International Standards on Auditing issued by the International Auditing and Assurance Standards Board.

IAPI is a member of the International Federation of Accountants and the ASEAN Federation of Accountants.

There is no information on ongoing projects.

Indonesia has established a mandatory quality assurance (QA) review system for public accountants and public accounting firms under the Public Accountants Act No. 5 of 2011. The Directorate of Financial Profession Development and Supervision (Direktorat Pembinaan dan Pengawasan Profesi Keuangan, DPPPK), under the Ministry of Finance, is responsible for public oversight, including licensing, supervision, inspections, and disciplinary actions, while the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia, IAPI) also conducts QA reviews for its members. The Indonesia Financial Services Authority also supervises public accountants and firms providing services to financial sector entities under its authority.

IAPI’s professional standards include Standar Pengendalian Mutu No. 1, effective January 1, 2013, which corresponds to International Standard on Quality Control 1. IAPI has also issued Standar Manajemen Mutu 1 and Standar Manajemen Mutu 2, which address firm-level quality management and engagement quality reviews and correspond to International Standard on Quality Management 1 and International Standard on Quality Management 2.

The jurisdiction-level QA framework is operational and covers public accountants and public accounting firms, but the system remains multi-layered, with oversight responsibilities shared across DPPPK, IAPI, the Indonesia Financial Services Authority, and, for certain public sector engagements, the Audit Board of the Republic of Indonesia. Alignment with the relevant requirements of SMO 1 is evident for the DPPPK and IAPI systems, while full alignment across all responsible authorities is not clearly demonstrated. Accordingly, under the 2026 adoption definitions, QA remains Partially Adopted.

Current Status: Partially Adopted

In Indonesia, responsibility for implementing initial professional development and continuing professional development requirements is shared among the Ministry of Finance, the Ministry of Higher Education, the Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI), and the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia, IAPI). The framework is established through Law No. 34 of 1954 on the Use of the Title “Accountant,” the Public Accountants Act No. 5 of 2011, Ministry of Higher Education Decree No. 153 of 2014 on the Professional Accountancy Education Program, and Ministry of Finance Regulation No. 216/PMK.01/2017 on Registered Accountants.

IAI administers the Chartered Accountant Indonesia qualification program, including professional examinations, practical experience requirements, and continuing professional development obligations. The qualification structure incorporates foundation, professional, and advanced levels and is supported by the Indonesian Accounting Education Standards developed by IAI. IAPI administers the Certified Public Accountant qualification program and related professional education requirements for public accountants.

IAI and IAPI report that the 2021 International Education Standards issued by the International Accounting Education Standards Board have been incorporated into the professional education framework for accountants and auditors in Indonesia, including requirements relating to technical competence, professional skills, ethics, practical experience, assessment, and continuing professional development. The jurisdiction-level framework is generally aligned with the requirements of SMO 2.

Current Status: Adopted

Under the Public Accountants Act No. 5 of 2011, the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia, IAPI) has direct responsibility for establishing auditing and assurance standards in Indonesia. Through its Audit Standards Committee, IAPI issues the Indonesian Public Accountant Professional Standards (Standar Profesional Akuntan Publik, SPAP), which are based on the International Standards on Auditing issued by the International Auditing and Assurance Standards Board and translated into Bahasa Indonesia.

IAPI has adopted ISA based on the 2020 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. Accordingly, Indonesia has adopted a 2020 version of ISA, including ISA 315 (Revised 2019), International Standard on Quality Management 1, International Standard on Quality Management 2, ISA 220 (Revised), and related conforming amendments. However, more recent standards and revisions issued by the International Auditing and Assurance Standards Board, including ISA 600 (Revised) and subsequent updates, have not yet been fully adopted and implemented.

Indonesia is also participating in regional and international discussions regarding implementation of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), and IAPI has participated in the International Auditing and Assurance Standards Board consultation process related to the standard. However, formal adoption and implementation of ISA for LCE in Indonesia had not been confirmed at the time of the assessment.

Current Status: Partially Adopted

In Indonesia, the Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI), the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia, IAPI), and the Indonesian Institute of Management Accountants (Ikatan Akuntan Manajemen Indonesia, IAMI) jointly issue the national ethics requirements for professional accountants. The Code of Ethics for Indonesian Accountants was updated in 2025 and refers to the 2024 Handbook of the International Code of Ethics for Professional Accountants, including International Independence Standards, issued by the International Ethics Standards Board for Accountants.

IAPI has also issued related revisions to the public accountant ethics code addressing fees, non-assurance services, quality management-related conforming amendments, public interest entity definitions, technology-related revisions, and tax planning and related services, with references to the relevant IESBA final pronouncements.

Current Status: Adopted

The Government Accounting Standards Committee (Komite Standar Akuntansi Pemerintahan, KSAP) is responsible for developing Indonesia’s Government Accounting Standards (Standar Akuntansi Pemerintahan, SAP). SAP are established under Government Regulation No. 71 of 2010 and are issued as Government Accounting Standard Statements supported by a conceptual framework.

Indonesia applies accrual-basis SAP for public sector financial reporting. The 2019 English translation of the accrual-basis SAP indicates that the standards are national public sector accounting standards issued in Bahasa Indonesia, with the English version provided for reference.

KSAP uses International Public Sector Accounting Standards as a reference in developing SAP, with modifications to reflect Indonesia’s legal and regulatory environment.

While accrual-basis national public sector accounting standards have been adopted and are operational, Indonesia has not adopted accrual-basis IPSAS as issued or accrual-basis IPSAS modified for local context. Accordingly, under the 2026 adoption definitions, IPSAS are assessed as Partially Adopted in Indonesia.

Current Status: Partially Adopted

In Indonesia, investigation and discipline (I&D) responsibilities are shared among the Directorate of Financial Profession Development and Supervision, the Indonesia Financial Services Authority (Otoritas Jasa Keuangan, OJK), the Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI), and the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia, IAPI). The Public Accountants Act No. 5 of 2011 authorizes the Minister of Finance to license, supervise, and impose administrative sanctions on public accountants, including license removal.

IAI has established disciplinary mechanisms for its members, including sanctions for ethical and professional violations, while IAPI operates I&D procedures for public accountants under the Public Accountants Act. OJK also has authority over public accountants and firms providing services to financial sector entities and issued OJK Regulation No. 9 of 2023 to strengthen supervision and coordination with the Ministry of Finance.

The jurisdiction has operational I&D arrangements covering Chartered Accountants, public accountants, and auditors serving regulated financial sector entities. However, responsibilities remain distributed across several authorities, and publicly available information does not clearly demonstrate that all I&D systems fully incorporate the relevant requirements of SMO 6, including consistent investigation, discipline, appeal, and public interest safeguards across all segments.

Current Status: Partially Adopted

The Indonesian Financial Accounting Standards Board (Dewan Standar Akuntansi Keuangan, DSAK-IAI), under the Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI), is responsible for developing Indonesian Financial Accounting Standards (Standar Akuntansi Keuangan, SAK). The IFRS Foundation notes that SAK are recognized under Indonesian laws and regulations, including the Limited Liability Company Law No. 40 of 2007 and Capital Market Law No. 8 of 1995.

Indonesia applies a tiered reporting framework. Effective January 1, 2024, SAK Internasional fully adopts IFRS Accounting Standards and is permitted for certain Indonesian-listed entities that meet capital market regulator criteria. Other listed entities and entities with significant public accountability apply SAK Indonesia, which is substantially converged with IFRS Accounting Standards but generally has a one-year effective date gap and includes some local differences.

SAK Internasional is a word-for-word Bahasa Indonesia translation of IFRS Accounting Standards, and the translation process follows the IFRS Foundation’s licensing policy to support ongoing translation of updates. The jurisdiction-level framework is aligned with the relevant requirements of SMO7 because IFRS Accounting Standards are fully adopted through SAK Internasional for eligible entities and substantially converged standards apply more broadly.

SAK EP, effective January 1, 2025, is converged with the 2015 IFRS for SMEs Accounting Standard with few modifications.

Current Status: Adopted

Relevant Organizations

ASEAN Federation of Accountants (AFA)

Audit Board of the Republic of Indonesia (BPK)

Chartered Accountants Worldwide (CAW)

Government Accounting Standards Committee (KSAP)

Indonesia Financial Services Authority (OJK)

Indonesian Institute of Certified Public Accountants (IAPI)

Institute of Indonesia Chartered Accountants (IAI)

International Forum of Independent Audit Regulators (IFIAR)

International Financial Reporting Standards Foundation (IFRS Foundation)

Ministry of Finance of the Republic of Indonesia

Relevant Legislation

Capital Market Act No. 8 of 1995

Government Regulation No. 71 of 2010 concerning Government Accounting Standards

Law No. 34 of 1954 on the Use of the Title “Accountant”

Limited Liability Company Law No. 40 of 2007

Minister of Finance Regulation No. 124 of 2024 on the Organization and Work Procedures of the Ministry of Finance

Minister of Finance Regulation No. 216/PMK.01/2017 on Registered Accountants

OJK Regulation No. 9 of 2023 concerning Public Accountant Services and Public Accounting Firms in Financial Services Activities

Public Accountants Act No. 5 of 2011

State Finance Law No. 17 of 2003

Relevant Publications

IFRS Foundation Jurisdiction Profile: Indonesia

Kode Etik Akuntan Indonesia 2025

SAK Online

Standar Akuntansi Pemerintahan Handbook 2019

Standar Pengendalian Mutu and Standar Manajemen Mutu

Standar Profesi Jasa Akuntan dan Materi Edukasi Edisi 2024