Home Blog How to File Your Companies Financial Statements in Indonesia? Finance | Financial Operational Resilience | Indonesia How to File Your Companies Financial Statements in Indonesia? InCorp Editorial Team 10 October 2024 6 minutes reading time Table of Contents What are Financial Statements? What are Consolidated Financial Statements? Benefits of the Financial Statements Where Can I Find a Company's Financial Statements? When and Where to Submit Your Annual Financial Statements in Indonesia Strengthen Your Financial Reporting with InCorp Most companies doing business in Indonesia must submit annual financial statements (Laporan Keuangan Tahunan Perusahaan/LKTP). A financial statement in Indonesia generally consists of information about a company’s financial condition in the form of company balance, loss-profit, or other reports describing financial performance organized based on accounting standards and covering 12 consecutive months. Such reports must also be authorized by the Public Accountant and ratified by the General Meeting of Shareholders or other authorities based on the applicable regulations. Submitting the financial statements is to inform outsiders about the company’s condition. What are Financial Statements? A financial statement is any document that reflects your company’s financial condition. However, the specific documents that qualify as financial statements are much more defined, each serving a vital purpose. Standard types of financial statements include the balance sheet, income statement, cash flow statement, and statement of changes in equity. Each report provides different insights into your business’s financial health, with various key elements playing a crucial role. For those looking for an example of a financial statement in Indonesia, these documents typically follow the format required by local regulations. The balance sheet (statement of financial position) highlights your company’s assets, liabilities, and equity at a specific time. The income statement (profit and loss) reflects revenues, expenses, and profitability over a specific period. The cash flow statement tracks cash movement in and out of the business, indicating its liquidity. The statement of equity changes shows owners’ equity changes during a reporting period. Different financial statements often influence one another, meaning a single statement will only provide a partial picture of your company. You must integrate data from multiple statements to comprehensively view your company’s financial health. What are Consolidated Financial Statements? Consolidated financial statements are required when a company has a subsidiary, as they merge the financial statements of both the parent and subsidiary into one. These statements must be prepared in compliance with the Indonesia Financial Accounting Standards (PSAK). However, parent companies are exempt from preparing consolidated financial statements if: The parent company is a wholly-owned subsidiary The parent company is a partially owned-subsidiary No objections are raised against the parent company presenting its financial statements. Benefits of the Financial Statements Producing financial statements is essential for any business, regardless of size or industry. These documents offer detailed insight into a company’s financial health and provide critical information to various stakeholders, including investors, creditors, and management. Below are some of the key advantages of creating and utilizing financial statements: Allows stakeholders to monitor financial performance and address profitability issues Tracks cash flow by showing how the company generates income, where it comes from, and how funds are used Demonstrates the company’s capacity to meet debt obligations Supports informed decision-making and provides valuable insights for annual reports, essential for investors and lenders Identifies areas where the business can improve. Who is Required to File Annual Financial Statements in Indonesia? In Indonesia, not all companies are required to file annual financial statements. Below is a breakdown of the types of businesses that are obligated to submit these reports: Limited Liability Companies (PT) Certain limited liability companies must file annual financial statements if they meet any of the following criteria: Publicly listed companies (Tbk) Companies involved in managing public funds Companies that have issued debt recognition statements Companies with total assets of at least IDR 25 billion Debtors whose financial reports are required by the bank to undergo annual audits Foreign Companies Operating in Indonesia Foreign businesses established and operating in Indonesia must also submit annual financial statements. This includes: Branch offices Representative offices Subsidiaries Agents and company representatives with the authority to conduct agreements Government-Owned Enterprises The obligation to file financial statements also applies to government-owned entities, including: Government-owned companies (Persero) General companies (Perum) Regional companies READ MORE:Why Internal Audit is Necessary for BusinessGuide on Filing Corporate Annual Tax Return (SPT) in Indonesia Where Can I Find a Company’s Financial Statements? In Indonesia, certain companies are required to make their financial statements publicly available. Here are a few key places where you can find these documents: Indonesia Stock Exchange (IDX) Financial statements for publicly listed companies are often accessible through the Indonesia Stock Exchange (IDX) website. For public access, companies listed on the IDX must disclose their financial reports quarterly and annually. The IDX financial statements provide valuable insights into listed companies’ financial health and performance. Company Websites Many giant corporations and publicly listed firms publish their financial statements on their official websites, typically in the “Investor Relations” or “Financial Reports” sections. Ministry of Law and Human Rights The Ministry of Law and Human Rights may provide access to financial statements for non-publicly listed companies registered in Indonesia. However, this access may require formal requests or administrative procedures. Bank Indonesia Certain financial institutions and companies involved in public fund management may also have their financial statements available through Bank Indonesia, mainly if the central bank regulates the business. Public Databases and Auditing Firms Financial data platforms and auditing firms in Indonesia often provide insights into companies’ financial statements. Some may require paid subscriptions or authorized access. These resources are crucial for investors, stakeholders, and regulators in assessing the financial health and performance of companies operating in Indonesia. When and Where to Submit Your Annual Financial Statements in Indonesia The annual financial statements should be submitted a maximum of six months after the end of the yearbook period. They should be forwarded to the Ministry of Trade via its website. After a successful submission, the processing time should take approximately five working days. Consequences for Negligence Failure to satisfy the requirements of the accounting standards and fulfill the obligation will result in several consequences as follows: Written warning Revocation of company business and/or operational permit or commercial permit Recommendation of revocation of company business and/or operational permit or commercial permit The warning shall be sent within 14 days, for up to 3 times. Strengthen Your Financial Reporting with InCorp If your company needs expert assistance preparing annual financial statements, InCorp Indonesia is here to help. Our professional team ensures compliance with Indonesia’s financial reporting standards. We offer comprehensive support in financial and operational resilience, helping you navigate the intricate details of financial reporting while strengthening your company’s overall operational stability. Why Choose InCorp Indonesia? Years of Expertise: We have extensive experience preparing and submitting financial statements to authorities. Customized Solutions: Our services are customized to meet your business’s needs, ensuring accuracy and efficiency. Regulatory Compliance: We stay up-to-date with Indonesia’s latest financial regulations, so your reports always align with current requirements. Fill out the form below to ensure your business stays compliant and resilient. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions Should I submit tax reports if my company has been established but has no business activities? Yes, submitting monthly and annual tax reports is mandatory even if your company does not have any business activities, thus owing zero taxes. Is there any foreign exchange control or limitation in Indonesia? Foreign currency transfers to and from Indonesia are not subject to exchange controls, allowing investors to freely move funds. However, these transactions must be reported to Bank Indonesia. Moreover, there are reporting obligations concerning offshore assets and liabilities to ensure transparency in financial activities. What are the deadlines for the annual tax return? The deadline for an individual tax return is 31 March. A corporate tax return must be lodged within four months after the end of the calendar year or taxable year. More information can be found here: 21 Must-Know Facts about Annual Tax Return in Indonesia. Will having a tax ID but never submitting tax reports cause a problem for my company? Yes, you will receive an administrative penalty for delaying or not correctly and promptly filing the tax report. It is best to hire a local third party to handle your taxation matters in Indonesia, such as InCorp.