INDONESIA’S GOVERNMENT REGULATION CONCERNING PUBLIC ACCOUNTANTS

7/29/2019 INDONESIAS GOVERNMENT REGULATION CONCERNING PUBLIC ACCOUNTANTS

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INDONESIAS GOVERNMENT

REGULATION CONCERNING PUBLIC

ACCOUNTANTS

SYIFA AULIA

AHMAD KAMIL

State University of Jakarta

2013


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Law No.5 of 2011

Ministryof Finance

DecreeNo.

17/PMK.01/2008

BapepamLK Rule No.

VIII A.1 &A.2


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LAW No. 5 of 2011

This law revokes Article 4 & 5 of

Law No. 34 of 1954 on the use of

Academic Title of Accountant

Consists of 62 Articles which isdevided into 16 Chapters.

LAW NO. 5 OF 2011


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TYPE OF SERVICE(Chapter II)

Assurance ServiceArticle 3, Clause (1)

Audit service on theinformation ofhistorical financial

Review service on the

information ofhistorical financial

Other insurance

service

Other than Assurance

ServiceArticle 3, Clause (3)

Accounting Financial

management

LAW NO. 5 OF 2011


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LICENSING OF THE PUBLIC ACCOUNTANT(Chapter III)

License to be the Public Accountant /

Foreign Public Accountant is provided

by the Minister Article 5, Clause (1) To obtain it, person shall meets 8

requirements Article6,Clause1(10 for Foreign

Public Accountant) Article 7,Clause (2)

It is valid for 5 years and can be

renewed Article 5, Clause 2 LAW NO. 5 OF 2011


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ESTABLISHMENT & MANAGEMENT OF KAP(Chapter IV)

Form ofBusiness of

KAP

Individual- 1 person ICPA

- Ratio of ForeignProfessional Employee toLocal: 1/10 for each levelof position

CivilPartnership /

Firm- 2/3 partners are ICPA

- 1/3 IC Non-PA partners

- Foreign partners 1/5 ofthe overal partners

Other businessforms

- 2/3 partners are ICPA

- 1/3 Non-PA partners- Foreign partner is 1/5 ofthe overal partners

Business License of KAP and the Branch office of KAP are granted by

the Minister Article18, clause 1

It may be revoked and invalid Article21 LAW NO. 5 OF 2011

Article 12-15


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RIGHTS

Achivinghonorarioum

Obtaining legal

protection

Obtaining data,information and

other documentsrelated to service

RIGHTS & PROHIBITIONS FOR PUBLIC

ACCOUNTANT (Chapter V)

PROH

IBITON

S

have/become the partnerof more than 1 KAP

Be concurrently as stateofficer, employee ofgovernment/stateinstitution

Provide service for thesame type of service on thesame period which has

been performed by otherAP

Receive/give commissions

Commit/help to commit

manipulationLAW NO. 5 OF 2011

Article 24&30


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OBLIGATIONS OF PA & KAP(Chapter V, Part 2)

OBIGATIO

NSOFPA

Joining APAPDomicile in theterritory of RI

Maintain competence

through sustainabilityprofessional training

Well-behaved, honest,resposible and having

high integrity

OBLIGA

TIONSOF

KAP&BRANCH

Have 2 professionalaudit employees

Have office/place

implement Quality

Control SystemAssign foreignpartner/employeen toarrange development

program/education forfree

Report businessactvity, financial reportto the Ministry no laterthan AprilLAW NO. 5 OF 2011

Article 25&27


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ASSOCIATION OF THE PROFESSIONAL

PUBLIC ACCOUNTANT (Chapter IX)

PA joined to APAP

The Minister assigns only 1 APAP to

implement the authority in accordance with

the Laws

APAP has authority to:

arrange and enact SPAP

conduct CPA examination

conduct sustainable professional education

conduct quality revew for the membersLAW NO. 5 OF 2011


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PROFESSIONAL PUBLIC ACCOUNTANT

COMMITTEE (Chapter X)

The Minister forms KPAP

KPAP assigns to provide consideration regarding on:

The policy on empowerment, founding, and supervision

to the PA and KAP

The arrangement of accounting standard and SPAP

Others matters related to PA profession

President ofKPAP

Governmentselement

Vice-President

of KPAP APAPs element

LAW NO. 5 OF 2011


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Article 55

PA

Article 56

Associated

Party

Article 57,

clause (2)

Anyone

Article 57,

clause(2), (3),

(4)

Fake PA/KAP

Sentence:

imprisonment

no longer than5yrs, & fine no

more than

Rp300mil

Related to theservice:

Commit/help to

commit

manipulation,

and faking the

information

Working paper (forpurpose):

manipulating/faking

working paper

Ommiting the record of

working paper

Doesnt make workingpaper

fake documents/statements/information related

to the licensing of PA / KAP, including branch

Public Accountant Professions counterfeiter

Sentence:

Person:imprisonment

no longer than

6 yrs & fine no

ore Rp500mil

Corporation:

fine Rp1bil-

Rp3bil

CRIMINAL PROVISION(Chapter XIII)

LAW NO. 5 OF 2011


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Minister ofFinance

Decree17/PMK.01

/2008

Concerning Public AccountantService

Minister of Finance Decree17/PMK.01/2008


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Typ

eofServices

Chapte

r

II

Attestation

Audit service onFS

Review on FS

Supervison onProspectivefinancial

statement

Other attestationservice

Management Taxation

Consulting

Minister of Finance Decree

17/PMK.01/2008


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Minister of Finance represented by

General Secretary authorize public

accountant

Public Accountant provide the

services must have publicaccounting firm

To be authorized PublicAccountant, accountant must meet

several requirementPublicAccountan

t

Chapte

rIII



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Public

AccountingFirm

ChapterIV

Public Accounting

Firm

Proprietory Partnership



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Licensing of Public Accounting

Firm

Minister of Finance represented by

General Secretary authorize public

accounting firm

Public

AccountingFirm

ChapterIV


To establish publicaccounting firm,

leader of PAF proposethe authorization togeneral secretary


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PAF could make agreement with

Foreign Public Accounting Firm

PAF using the name of Foreign

Public Acounting Firm at office

name, document, head of letter

ForeignP

ublicAc

countingFirm

ChapterV


Authorization of using

the name of FPAF is

invalid when the licence

of PAF is out of date.


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Guidanceand

Superv

ision

ChapterVI

Guidance

- PA is member of Association of

Indonesia Public Accounting (IAPI)

- PA must follow Pendidikan Profesional

Berkelanjutan held by IAPI and PPAJP

- PAF reporting annual report to generalsecretary:

1. Business Activity Report

2. Financial Statement of PAF- PAF and branch office lead by PA

- PA is prohibited for being partner at

more than 1 PAFMinister of Finance Decree

17/PMK.01/2008


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General secretary conduct

annualy supervision on PAF

General Secretary could ask

IAPIs opinion

Information gathered bySecretary General must be

concealed

General Secretary reporting

supervision to public

accounting firmGuidan

ce

and

Superv

ision

ChapterVI

Supervision

Minister of Finance Decree

17/PMK.01/2008


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The minister authorized to

impose administrative

penalty PAF due to violation

of administrative provision

Penalty apply since it isapprovedP

ena

lty

ChapterVII



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Application for the license of Public

Accountant, business license of KAP,

and/or establishment license of KAPbranch office of which is still in progress,

should be re-applied in accordance with

the provisions set in this Law

KAPA or OAA whose name has been

included collectively with the KAP should

register within no longer than 1 (one)

year since the enactment date of this

Law.Trans

itional

Provision

Chapter

VIII



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Rule Number VIII.A.1

Registration of AccountantEngaging in Capital MarketActivities

Rule Number VIII.A.2 Independence of

accountant PerformingServices in Capital Market

BAPEPAM-LK


23/24BAPEPAM-LK RULE NO. VIII.A.1

Public Accountant, who engages in

Capital Market activities, shall be

registered with BAPEPAM-LK and fulfillthe requirements

This rule arrangesprocedures and

detailed-requirements

in order to enganges inCapital Market Activities


24/24BAPEPAM LK Rule Number VIII A 2

In performing his/her professional services,

especially in issuing opinion, an Accountant

must maintain his/her independence. Public Accounting Firm must have quality

control system that provides adequate

assurance that the Public Accounting Firm orthe Personnel maintain their independence,

with respect to the size and practical nature

of the Public Accounting Firm.

Documents

INDONESIA’S GOVERNMENT REGULATION CONCERNING PUBLIC ACCOUNTANTS