Government Regulation No. 43 of 2025 introduces a fundamental transformation in Indonesia’s financial reporting system, emphasizing standardization, integration, and stronger accountability. The regulation establishes a centralized reporting platform (PBPK), ensuring a single, consistent version of financial data for all regulators. It also shifts the authority of accounting standard-setting from professional bodies to a state-controlled committee, reflecting a more policy-driven approach. Additionally, the regulation imposes direct personal responsibility on top management through mandatory statements of accountability. Audit practices are also integrated into a digital ecosystem, requiring formal registration to ensure validity. These changes demand companies to enhance internal readiness, governance, and reporting systems
Financial Reporting Regulation 2025: New Standardization, New Responsibilities
The government officially issued Government Regulation (PP – Peraturan Pemerintah) No. 43 of Year 2025 on September 19, 2025. At first glance, this regulation may appear to be merely an administrative update. However, upon closer examination, this regulation fundamentally reshapes the landscape of financial reporting in Indonesia—starting from how reports are submitted, how the authorities are involved, to who bears the responsibilities.
The key questions are simple, yet crucial: Who is required to report? How does the mechanism work? Where will the reports be submitted? And what are the implications for audit? As French philosopher Michel Foucault once noted, “Power is exercised through systems of control.” In this context, the financial reporting system serves as one of the government’s control instruments to ensure transparency and accountability in the business world.
Three Major Changes Reshaping the Landscape
First: One Portal, One Version of the Truth
This regulation introduces the Shared Financial Reporting Platform (PBPK – Platform Pelaporan Keuangan Bersama) as the single gateway for national financial reporting. Through this electronic system, companies no longer need to submit reports separately to various regulators. A single upload is sufficient, and the system will distribute the reports to relevant authorities—starting from the Financial Services Authority (OJK – Otoritas Jasa Keuangan), Bank Indonesia, then to the Ministry of Finance.
The implications are significant. There will no longer be “different versions” of reports for different regulators. Reports submitted to the PBPK become the sole official, valid, and binding documents. The principle of a “single source of truth” is now fully implemented. For issuers and public companies, this obligation will take effect no later than 2027. This means financial statements for the fiscal year 2026 must already be submitted through this system. The time remaining for preparing is relatively short—starting from accounting systems, IT integration, and data quality.
Second: Standards No Longer Fully in the Hands of the Profession
For more than five decades, Financial Accounting Standards (SAK Standar Akutansi Keuangan) have been developed by the Financial Accounting Standards Board (DSAK – Dewan Standar Akutansi Keuangan) under the Indonesian Institute of Accountants (IAI – Ikatan Akuntan Indonesia). This model positioned the profession as the prime driver of standards, oriented toward market needs and financial statement users.
This direction is now shifting. The authority to set standards is transferred to the Financial Reporting Standards Committee (KSLK – Komite Standar Pelaporan Keuangan), which reports directly to the President. This structure reflects a shift from a profession-based towards a more integrated approach with state policy.
Professional associations have successfully “elevated” accounting to a matter of national importance under the President. The IAI has led the conversion of Indonesia’s accounting standards with the International Financial Reporting Standards (IFRS), while still providing flexibility for private companies and micro, small, and medium entities.
The composition of the KSLK reflects this shift. Regulators and policy stakeholders will hold dominant roles, although professional associations remain involved to ensure technical continuity. In other words, financial reporting standards are no longer solely about best practices but are now part of the national policy architecture.
Third: Personal Responsibility at the Highest Level
The most significant change lies in accountability. This regulation emphasizes that financial statements are no longer merely technical documents. They are formal declarations carrying personal legal responsibility for the highest-ranking officials of an entity.
Article 6 requires every financial statement to be accompanied by a Statement of Responsibility. By signing the report, company leaders declare that the submitted report is accurate and reliable. Furthermore, Article 7 states that this responsibility cannot be delegated—even if the report is prepared by external consultants or public accountants. At this point, there is no longer room to rely on third parties as a shield.
Audit: From Procedure to Digital Ecosystem
This regulatory change also directly impacts audit practices. Audits no longer stand alone as verification processes but become part of an integrated digital reporting ecosystem. Independent Auditor Reports (LAI – Laporan Independen Auditor) must be registered within the Ministry of Finance system. Otherwise, the reports are considered invalid, and the financial statements are deemed administratively incomplete.
Companies are also encouraged to actively review the Public Accounting Firms (KAP – Kantor Akuntan Publik) they engage. This includes reviewing transparency reports of KAP—covering governance, quality control systems, and independence. For the financial services sector, this is not entirely new. However, under this regulation, this principle is expanded and strengthened as common practice across sectors.
What Should Companies Do?
Considering these changes, companies have limited time to adapt.
The first step is to assess internal readiness. This includes processes, human resources, and reporting systems. The competency of the financial reporting preparation team must be ensured, along with the completeness of supporting documents. The second step is to strengthen the role of the Audit Committee. The Audit Committee Charter should be revised to include new responsibilities, such as evaluating KAP transparency reports, overseeing the auditor’s independence, and verifying reporting compliance.
SW Business Advisory’s accounting services division has extensive experience in helping clients build internal team readiness. Some clients have also outsourced their financial statement preparation function to our team.
Towards a New Era of Transparency
This regulation marks a new chapter in financial reporting in Indonesia. The government no longer merely regulates but also builds an integrated, standardized, and technology-based system. For businesses, this is not just about compliance—it is about readiness to face an era where transparency is the norm, not an option.
As Nobel winner economist Joseph Stiglitz stated, “Transparency is the most important element of a well-functioning market.” In today’s Indonesia, that transparency now has a new face—an integrated national financial reporting system.
