SW NIHAO Newsletter E.9 – January 2023

INFRASTRUCTURE

Investment in Infrastructure Projects and its Compliance

01. INFRASTRUCTURE PROJECT AND ITS ACCOUNTING TREATMENT

Companies engage into infrastructure projects must comply with certain statutory requirement specifically on the applicable accounting standard. Infrastructure projects is covered under the new accounting standard “PSAK 72 Revenue from Contracts with Customers”.

02. AUDIT DEVELOPMENT OF THE FINANCIAL STATEMENT OR INFRASTRUCTURE COMPANIES

The main priority of the auditor is to understand project risks, assess the infrastructure controls that the company has exercised when taking on complex infrastructure projects and ensure that project performance is reflected properly in the financial statements.

03. TAX CASES FOR INFRASTRUCTURE PROJECTS

The government seeks further to increase the financial feasibility of infrastructure development projects and realize available public services through infrastructures at affordable tax rates.

04. INFRASTRUCTURE IKN BECOMES ATTRACTION OF INVESTMENT IN INDONESIA

The infrastructure development for the new capital city, Ibu Kota Nusantara (IKN) is expected to attract foreign investment in Indonesia.