Agriculture in Indonesia is one of the key sectors within the Indonesian economy. Currently, approximately 30% (thirty percent) of Indonesia’s land area is used for agriculture. The agricultural sector of Indonesia consists of large plantations, either owned by state or private companies, and small-holder production modes, mostly family owned and run by traditional agricultural households. … Read more
PLANTATION Investment, Reporting, Auditing and Taxation in Agriculture Industry 01. AGRICULTURAL ACCOUNTING PSAK 69 stipulates that biological assets or agricultural products are recognized when they meet several of the same criteria as the criteria for asset recognition. 02. AUDIT OF AGRICULTURE COMPANIES When conducting audit of agricultural companies, auditors are expected to exercise a high … Read more
In order to increase Indonesia’s sustainable economic growth and support the acceleration of economic recovery, and optimizing state revenues to finance national development independently towards fair Indonesian society, affluent and prosperous, it takes various efforts from the Government to make adjustments to fiscal policy. The ratification of the Law on the Harmonization of Tax Regulations … Read more
The taxation of companies listed on the Indonesia Stock Exchange (IDX) is generally the same as that of private companies. Companies registered on the IDX are Domestic Corporate Taxpayers (WPDN Badan). Tax compliances attached to Domestic Corporate Taxpayers are Income Tax (PPh) and Value Added Tax (VAT). There are 3 (three) types of tax collection … Read more
Derivatives has been in existence for thousands of years, dating as early as the ancient trading in Mesopotamia to the Middle Ages in Europe where merchants negotiate for land and sea ventures. In the current digital era, derivatives have evolved into complex instruments, indexing not only through commodities, but also involve financial instruments and cryptocurrencies. … Read more
Increasing in the number and use of complex derivative instruments and securities, coupled with the sometimes equally complex accounting guidance, have resulted in changes in the approaches to auditing the financial statements of many entities. For example, evaluating derivative instruments audit evidence related to assertions, frequently requires the use of considerable judgment, particularly for valuation … Read more
On September 19, 2022, the first Structured Warrants (SW) in Indonesia were officially issued on the Indonesia Stock Exchange (IDX). SW is an investment instrument issued by a financial institution that entitles warrant holders to buy or sell underlying securities at a predetermined price and date. The context of underlying securities in structured warrants is … Read more
DERIVATIVE The Perspective of the Financial Profession as a Response to Derivative Funding Instruments 01. ACCOUNTING FOR DERIVATIVES Derivatives are recorded at a fair value so a hedge accounting application is needed for the potential gain or loss that will occur. 02. AUDITING DERIVATIVE INSTRUMENTS Derivative instruments with characteristics such as underlying, initial net investment … Read more
Indonesia is an investment destination country with competitive advantages such as abundant natural resources, a well-trained young workforce, and a large and growing domestic market. Competitive advantages are increasingly easily enjoyed by investors after the issuance of Law No. 11 of 2020 on Job Creation, which is intended to create a better investment climate and … Read more
In modern business era, intangible assets such as knowledge, skills, relationships, processes, brands, or culture are vital strategic resources. Governments have started highlighting the importance of intangibles as drivers for economic growth and encouraging firms to pay high attention to their intangible assets. Investment in intangible aspect of business is essential for the companies to … Read more
