Bank Accounting Guidelines for Rural Banks (SEOJK No. 21/SEOJK.03/2024)

To:
Directors of Rural Banks (BPR)
At your office.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 21/SEOJK.03/2024

CONCERNING

BANKING ACCOUNTING GUIDELINES FOR RURAL BANKS

In connection with the issuance of the Indonesian Financial Accounting Standards for Private Entities and Financial Services Authority Regulation Number 23 of 2024 concerning Reporting through the Financial Services Authority Reporting System and Transparency of Financial Conditions for Rural Banks and Sharia Rural Banks (State Gazette of the Republic of Indonesia Year 2024 Number 33/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 101/OJK), it is necessary to regulate implementation provisions regarding the guidelines for the use of financial accounting standards for Rural Banks in a Circular Letter of the Financial Services Authority as follows:

I. GENERAL PROVISIONS

Rural Banks (BPR) hereinafter abbreviated as BPR are conventional banks that do not provide services in giro circulation directly in their activities.
In order to improve the transparency of BPR's financial conditions and the preparation of relevant, comprehensive, reliable, and comparable financial reports, BPR prepares and presents financial reports based on the financial accounting standards applicable to BPR.
The financial reports that must be prepared by BPR are financial reports in accordance with Financial Services Authority Regulation Number 23 of 2024 concerning Reporting through the Financial Services Authority Reporting System and Transparency of Financial Conditions for Rural Banks and Sharia Rural Banks.

II. DETERMINATION OF THE IMPLEMENTATION OF INDONESIAN FINANCIAL ACCOUNTING STANDARDS FOR PRIVATE ENTITIES FOR RURAL BANKS

The Institute of Certified Public Accountants of Indonesia has approved the Indonesian Financial Accounting Standards for Private Entities, which are effective as of the financial statement position of January 1, 2025.
Considering alignment with the operational characteristics of BPR, the financial accounting standards currently used by BPR are the Financial Accounting Standards for Entities Without Public Accountability (SAK ETAP).
With the non-implementation of SAK ETAP on January 1, 2025, BPR is determined to use the Indonesian Financial Accounting Standards for Private Entities as the financial accounting standard in the preparation of BPR financial reports. The Indonesian Financial Accounting Standards for Private Entities may be used by entities with public accountability, as long as the competent authority regulates the use of the Indonesian Financial Accounting Standards for Private Entities in the preparation of financial reports.
Based on the above, the financial accounting standards for BPR use the Indonesian Financial Accounting Standards for Private Entities.
With the implementation of the Indonesian Financial Accounting Standards for Private Entities as the financial accounting standard applicable to BPR, the accounting guidelines for BPR financial transactions use the Banking Accounting Guidelines for Rural Banks as contained in the annex which is an inseparable part of this Circular Letter of the Financial Services Authority.

III. BANKING ACCOUNTING GUIDELINES FOR RURAL BANKS

The Banking Accounting Guidelines for Rural Banks hereinafter abbreviated as PA BPR contain further elaboration of the relevant financial accounting standards for the BPR industry, namely the Indonesian Financial Accounting Standards for Private Entities.
PA BPR contains explanations, accounting treatments, and transaction examples that include considerations (judgment) according to the context and conditions in the examples. Therefore, the accounting treatment for a transaction occurring in BPR must be carried out in accordance with the principles regulated in the Indonesian Financial Accounting Standards for Private Entities.
PA BPR is a reference or guideline in the general preparation of financial reports applied by BPR. Matters not elaborated in PA BPR follow the Indonesian Financial Accounting Standards for Private Entities.
In the event of changes to financial accounting standards after the implementation of this Circular Letter of the Financial Services Authority, the preparation of BPR financial reports must follow the Indonesian Financial Accounting Standards for Private Entities, unless otherwise stated by the Financial Services Authority.

This copy is consistent with the original
Director of Legal Development
Legal Department
Aat Windradi

PA BPR as contained in the annex which is an inseparable part of this Circular Letter of the Financial Services Authority.

IV. CLOSING

At the time this Circular Letter of the Financial Services Authority comes into force:
a. Bank Indonesia Circular Letter Number 12/14/DKBU concerning the Implementation of Accounting Guidelines for Rural Banks; and b. Financial Services Authority Circular Letter Number 40/SEOJK.03/2017 concerning the Determination of the Use of Financial Accounting Standards for Rural Banks, are repealed and declared invalid.
The provisions in this Circular Letter of the Financial Services Authority come into force on January 1, 2025.

Established in Jakarta on December 24, 2024

EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
DIAN EDIANA RAE

s/s s/s

ANNEX
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 21/SEOJK.03/2024 CONCERNING BANKING ACCOUNTING GUIDELINES FOR RURAL BANKS

TABLE OF CONTENTS

CHAPTER I INTRODUCTION .............................................................................. - 7 -
1.1. INTRODUCTION ...................................................................... - 7 -
1.1.1. BACKGROUND .................................................................. - 7 -
1.1.2. OBJECTIVES AND SCOPE .............................................. - 7 -
1.1.3. REFERENCES FOR PREPARATION..................................... - 8 -
1.1.4. POSITION .......................................................................... - 8 -
1.1.5. OTHER PROVISIONS .......................................................... - 9 -
1.1.6. RELATIONSHIP BETWEEN ASSET QUALITY IMPAIRMENT PROVISION (PPKA) AND LOSS ALLOWANCE PROVISION (CKPN)………………………………………………………………………………… - 9 -
1.2. ACCOUNTING POLICY CHOICES ........................................... - 9 -
1.3. PROCEDURE FOR ADJUSTMENT OF FINANCIAL STATEMENT POSITIONS…………………………………………………………………………- 10 -
1.4. FINANCIAL STATEMENTS........................................................... - 10 -
1.4.1. GENERAL PROVISIONS.............................................................. - 10 -
1.4.2. COMPONENTS OF FINANCIAL STATEMENTS....................................... - 14 -
1.4.3. LIMITATIONS OF FINANCIAL STATEMENTS................................ - 16 -
1.5. BASIC PRINCIPLES OF ACCOUNTING TREATMENT ............................ - 17 -
1.5.1. GENERAL PRINCIPLES ..................................................................... - 17 -
1.5.2. RECOGNITION AND MEASUREMENT ......................................... - 20 -
1.5.3. PRESENTATION ........................................................................... - 23 -
1.5.4. DISCLOSURE .................................................................. - 24 -
1.5.5. OFFSETTING ..................................................................... - 24 -

CHAPTER II CASH.............................................................................................. - 25 -
2.1. CASH IN RUPIAH CURRENCY......................................... - 25 -
2.1.1. DEFINITION............................................................................... - 25 -
2.1.2. EXPLANATION ........................................................................ - 25 -
2.1.3. ACCOUNTING TREATMENT ...................................................... - 25 -
2.1.4. JOURNAL ILLUSTRATION............................................................... - 25 -
2.1.5. CASE EXAMPLE ................................................................... - 25 -
2.2. CASH IN FOREIGN CURRENCY.................................................. - 26 -
2.2.1. DEFINITION............................................................................... - 26 -
2.2.2. REGULATORY BASIS ........................................................... - 26 -
2.2.3. EXPLANATION ........................................................................ - 26 -
2.2.4. ACCOUNTING TREATMENT ...................................................... - 26 -
2.2.5. JOURNAL ILLUSTRATION............................................................... - 26 -
2.2.6. CASE EXAMPLE ................................................................... - 27 -

CHAPTER III SECURITIES ................................................................... - 28 -
3.1. DEFINITION............................................................................... - 28 -
3.2. EXPLANATION ........................................................................ - 28 -
3.3. ACCOUNTING TREATMENT ...................................................... - 28 -
3.4. JOURNAL ILLUSTRATION............................................................... - 28 -
3.5. CASE EXAMPLE ................................................................... - 30 -

CHAPTER IV PLACEMENT IN OTHER BANKS.............................................. - 33 -
4.1. DEFINITION............................................................................... - 33 -
4.2. EXPLANATION ........................................................................ - 33 -
4.3. ACCOUNTING TREATMENT ...................................................... - 33 -
4.4. JOURNAL ILLUSTRATION............................................................... - 34 -
4.5. CASE EXAMPLE ................................................................... - 35 -

CHAPTER V LOANS GRANTED ........................................................ - 40 -
5.1. GRANTING LOANS............................................................. - 40 -
5.1.1. DEFINITION............................................................................... - 40 -
5.1.2. EXPLANATION ........................................................................ - 41 -
5.1.3. ACCOUNTING TREATMENT ...................................................... - 43 -
5.1.4. JOURNAL ILLUSTRATION............................................................... - 45 -
5.1.5. CASE EXAMPLE ................................................................... - 49 -
5.2. LOAN RESTRUCTURING.................................................. - 60 -
5.2.1. DEFINITION............................................................................... - 60 -
5.2.2. EXPLANATION ........................................................................ - 60 -
5.2.3. ACCOUNTING TREATMENT ...................................................... - 60 -
5.2.4. JOURNAL ILLUSTRATION............................................................... - 60 -
5.2.5. CASE EXAMPLE ................................................................... - 61 -
5.3. LOAN WRITE-OFF........................................................... - 64 -
5.3.1. DEFINITION............................................................................... - 64 -
5.3.2. EXPLANATION ........................................................................ - 64 -
5.3.3. ACCOUNTING TREATMENT ...................................................... - 64 -
5.3.4. JOURNAL ILLUSTRATION............................................................... - 65 -
5.3.5. CASE EXAMPLE ................................................................... - 65 -

CHAPTER VI EQUITY PARTICIPATION............................................................... - 66 -
6.1. DEFINITION............................................................................... - 66 -
6.2. REGULATORY BASIS ........................................................... - 66 -
6.3. EXPLANATION ........................................................................ - 66 -
6.4. ACCOUNTING TREATMENT ...................................................... - 66 -
6.5. JOURNAL ILLUSTRATION............................................................... - 67 -
6.6. CASE EXAMPLE ................................................................... - 68 -

CHAPTER VII COLLATERAL ACQUIRED ................................................ - 70 -
7.1. DEFINITION............................................................................... - 70 -
7.2. REGULATORY BASIS ........................................................... - 70 -
7.3. EXPLANATION ........................................................................ - 70 -
7.4. ACCOUNTING TREATMENT ...................................................... - 71 -
7.5. JOURNAL ILLUSTRATION............................................................... - 71 -
7.6. CASE EXAMPLE ................................................................... - 72 -

CHAPTER VIII FIXED ASSETS AND INVENTORY ............................................. - 73 -
8.1 DEFINITION............................................................................... - 73 -
8.2 REGULATORY BASIS ........................................................... - 73 -
8.3 EXPLANATION ........................................................................ - 73 -
8.4 ACCOUNTING TREATMENT ...................................................... - 75 -

8.5 JOURNAL ILLUSTRATION............................................................... - 77 -
8.6 CASE EXAMPLE ................................................................... - 79 -

CHAPTER IX ABANDONED PROPERTY ..................................................... - 84 -
9.1. DEFINITION............................................................................... - 84 -
9.2. REGULATORY BASIS ........................................................... - 84 -
9.3. EXPLANATION ........................................................................ - 84 -
9.4. ACCOUNTING TREATMENT ...................................................... - 84 -
9.5. JOURNAL ILLUSTRATION............................................................... - 85 -
9.6. CASE EXAMPLE ................................................................... - 86 -

CHAPTER X INTANGIBLE ASSETS................................................................ - 88 -
10.1. DEFINITION............................................................................... - 88 -
10.2. EXPLANATION ........................................................................ - 88 -
10.3. ACCOUNTING TREATMENT ...................................................... - 88 -
10.4. JOURNAL ILLUSTRATION............................................................... - 89 -
10.5. CASE EXAMPLE ................................................................... - 89 -

CHAPTER XI OTHER ASSETS .......................................................................... - 90 -
11.1. DEFINITION............................................................................... - 90 -
11.2. EXPLANATION ........................................................................ - 90 -
11.3. ACCOUNTING TREATMENT ...................................................... - 90 -
11.4. JOURNAL ILLUSTRATION............................................................... - 90 -
11.5. CASE EXAMPLE ................................................................... - 91 -

CHAPTER XII LOSS ALLOWANCE PROVISION (CKPN)........................... - 92 -
12.1. DEFINITION............................................................................... - 92 -
12.2. REGULATORY BASIS ........................................................... - 92 -
12.3. CKPN FORMATION FLOW................................................. - 93 -
12.4. EXPLANATION ........................................................................ - 94 -
12.5. ACCOUNTING TREATMENT ...................................................... - 99 -
12.6. PD CALCULATION ................................................................ - 99 -
12.6.1 PD CALCULATION WITH NET FLOW................................ - 99 -
12.6.2 PD CALCULATION WITH MIGRATION ANALYSIS............ - 101 -
12.7. LGD CALCULATION............................................................ - 103 -
12.7.1. LGD CALCULATION WITH EXPECTED RECOVERIES ..... - 103 -
12.7.2. LGD CALCULATION WITH COLLATERAL SHORTFALL.... - 104 -
12.8. CKPN CALCULATION.......................................................... - 105 -
12.9. JOURNAL ILLUSTRATION............................................................. - 106 -
12.10. CASE EXAMPLE ................................................................. - 106 -

CHAPTER XIII DEPOSITS............................................................................. - 109 -
13.1. THIRD-PARTY DEPOSITS OTHER THAN BANKS............................ - 109 -
13.1.1. DEFINITION............................................................................. - 109 -
13.1.2. EXPLANATION ...................................................................... - 109 -
13.1.3. ACCOUNTING TREATMENT .................................................... - 109 -
13.1.4. JOURNAL ILLUSTRATION............................................................. - 110 -
13.1.5. CASE EXAMPLE ................................................................. - 110 -
13.2. DEPOSITS FROM OTHER BANKS ............................................... - 111 -

13.2.1. DEFINITION............................................................................. - 111 -
13.2.2. EXPLANATION ...................................................................... - 111 -
13.2.3. ACCOUNTING TREATMENT .................................................... - 111 -
13.2.4. JOURNAL ILLUSTRATION............................................................. - 112 -
13.2.5. CASE EXAMPLE ................................................................. - 112 -

CHAPTER XIV IMMEDIATE LIABILITIES............................................................. - 113 -
14.1. DEFINITION............................................................................. - 113 -
14.2. EXPLANATION ...................................................................... - 113 -
14.3. ACCOUNTING TREATMENT .................................................... - 113 -
14.4. JOURNAL ILLUSTRATION............................................................. - 113 -
14.5. CASE EXAMPLE ................................................................. - 114 -

CHAPTER XV LIABILITIES..................................................................................... - 115 -
15.1. INTEREST PAYABLE ................................................................... - 115 -
15.1.1. DEFINITION............................................................................. - 115 -
15.1.2. EXPLANATION ...................................................................... - 115 -
15.1.3. ACCOUNTING TREATMENT .................................................... - 115 -
15.1.4. JOURNAL ILLUSTRATION............................................................. - 115 -
15.1.5. CASE EXAMPLE ................................................................. - 115 -
15.2. TAX PAYABLE..................................................................... - 115 -
15.2.1. DEFINITION............................................................................. - 115 -
15.2.2. REGULATORY BASIS ......................................................... - 115 -
15.2.3. EXPLANATION ...................................................................... - 116 -
15.2.4. ACCOUNTING TREATMENT .................................................... - 116 -
15.2.5. JOURNAL ILLUSTRATION............................................................. - 116 -

CHAPTER XVI BORROWINGS ............................................................................. - 117 -
16.1. DEFINITION............................................................................. - 117 -
16.2. REGULATORY BASIS ......................................................... - 117 -
16.3. EXPLANATION ...................................................................... - 117 -
16.4. ACCOUNTING TREATMENT .................................................... - 117 -
16.5. JOURNAL ILLUSTRATION............................................................. - 118 -
16.6. CASE EXAMPLE ................................................................. - 119 -

CHAPTER XVII PAID-IN CAPITAL ..................................................... - 123 -
17.1. DEFINITION............................................................................. - 123 -
17.2. REGULATORY BASIS ......................................................... - 123 -
17.3. EXPLANATION ...................................................................... - 123 -
17.4. ACCOUNTING TREATMENT .................................................... - 123 -
17.5. JOURNAL ILLUSTRATION............................................................. - 123 -
17.6. CASE EXAMPLE ................................................................. - 124 -

CHAPTER XVIII EMPLOYEE BENEFIT LIABILITIES ........................................... - 125 -
18.1. DEFINITION............................................................................. - 125 -
18.2. REGULATORY BASIS ......................................................... - 125 -
18.3. EXPLANATION ...................................................................... - 126 -
18.4. ACCOUNTING TREATMENT .................................................... - 126 -
18.5. JOURNAL ILLUSTRATION............................................................. - 128 -

18.6. CASE EXAMPLE ................................................................. - 128 -
CHAPTER XIX OTHER LIABILITIES ........................................................... - 129 -
19.1 DEFINITION............................................................................. - 129 -
19.2 EXPLANATION ...................................................................... - 129 -
19.3 ACCOUNTING TREATMENT .................................................... - 129 -
19.4 JOURNAL ILLUSTRATION............................................................. - 129 -
19.5 CASE EXAMPLE ................................................................. - 129 -
CHAPTER XX CAPITAL.................................................................................... - 131 -
20.1 DEFINITION............................................................................. - 131 -
20.2 REGULATORY BASIS ......................................................... - 131 -
20.3 EXPLANATION ...................................................................... - 131 -
20.4 ACCOUNTING TREATMENT .................................................... - 132 -
20.5 JOURNAL ILLUSTRATION............................................................. - 133 -
20.6 CASE EXAMPLE ................................................................. - 133 -
CHAPTER XXI RETAINED EARNINGS ......................................................................... - 135 -
21.1 DEFINITION............................................................................. - 135 -
21.2 REGULATORY BASIS AND EXPLANATION ........................... - 135 -
21.3 ACCOUNTING TREATMENT .................................................... - 135 -
21.4 JOURNAL ILLUSTRATION............................................................. - 135 -
CHAPTER XXII OPERATING INCOME AND EXPENSES........................ - 137 -
22.1 OPERATING INCOME.............................................. - 137 -
22.1.1 DEFINITION............................................................................. - 137 -
22.1.2 EXPLANATION ...................................................................... - 137 -
22.1.3 ACCOUNTING TREATMENT .................................................... - 138 -
22.1.4 JOURNAL ILLUSTRATION............................................................. - 138 -
22.1.5 CASE EXAMPLE ................................................................. - 139 -
22.2 OPERATING EXPENSES ........................................................ - 140 -
22.2.1 DEFINITION............................................................................. - 140 -
22.2.2 EXPLANATION ...................................................................... - 140 -
22.2.3 ACCOUNTING TREATMENT .................................................... - 142 -
22.2.4 JOURNAL ILLUSTRATION............................................................. - 143 -
22.2.5 CASE EXAMPLE ................................................................. - 144 -
CHAPTER XXIII NON-OPERATING INCOME AND EXPENSES ............... - 145 -
23.1 NON-OPERATING INCOME....................................... - 145 -
23.1.1 DEFINITION............................................................................. - 145 -
23.1.2 EXPLANATION ...................................................................... - 145 -
23.1.3 ACCOUNTING TREATMENT .................................................... - 145 -
23.1.4 JOURNAL ILLUSTRATION............................................................. - 146 -
23.1.5 CASE EXAMPLE ................................................................. - 146 -
23.2 NON-OPERATING EXPENSES................................................. - 146 -
23.2.1 DEFINITION............................................................................. - 146 -
23.2.2 EXPLANATION ...................................................................... - 146 -
23.2.3 ACCOUNTING TREATMENT .................................................... - 147 -

23.2.4 JOURNAL ILLUSTRATION............................................................. - 148 -
23.2.5 CASE EXAMPLE ................................................................. - 148 -
CHAPTER XXIV INCOME TAX EXPENSE AND DEFERRED TAX - 149 -
24.1 DEFINITION............................................................................. - 149 -
24.2 REGULATORY BASIS ......................................................... - 149 -
24.3 EXPLANATION ...................................................................... - 149 -
24.4 JOURNAL ILLUSTRATION............................................................. - 150 -
24.5 CASE EXAMPLE ................................................................. - 150 -
CHAPTER XXV OTHER COMPREHENSIVE INCOME............................... - 153 -
25.1. DEFINITION............................................................................. - 153 -
25.2. EXPLANATION ...................................................................... - 153 -
CHAPTER XXVI STATEMENT OF CASH FLOWS ......................................... - 154 -
26.1. INTRODUCTION .................................................................. - 154 -
26.2. REGULATORY BASIS ......................................................... - 154 -
26.3. EXPLANATION ...................................................................... - 156 -
26.4. ILLUSTRATION OF CASH FLOW STATEMENT......................................... - 157 -
CHAPTER XXVII STATEMENT OF CHANGES IN EQUITY .................................... - 159 -
27.1. INTRODUCTION .................................................................. - 159 -
27.1. REGULATORY BASIS ......................................................... - 159 -
27.3. EXPLANATION ...................................................................... - 159 -
CHAPTER XXVIII NOTES TO THE FINANCIAL STATEMENTS.......................... - 160 -
28.1. INTRODUCTION .................................................................. - 160 -
28.2. REGULATORY BASIS ......................................................... - 161 -
28.3. EXPLANATION ...................................................................... - 163 -
28.4. ELEMENTS ................................................................... - 165 -
28.5. DISCLOSURE ................................................................ - 167 -
Appendix: Guide to Adjustments to Financial Statement Items
and Comparative Presentation in the Initial Application Year....................... - 175 -

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the PA BPR examples are merely illustrations in accordance with the context of the illustrations.

CHAPTER I
INTRODUCTION
1.1. INTRODUCTION
1.1.1. BACKGROUND
Financial statements of Rural Economic Banks (BPR) aim to provide information about the financial position, performance, and cash flows of BPRs that is useful in economic decision-making by users of financial statements. Financial statements also show the results of management stewardship and management accountability for the management of BPR resources. Financial statements are useful if the information presented can be understood, relevant, reliable, and comparable. Compliance with the preparation of financial statements in accordance with financial accounting standards is part of the implementation of good corporate governance, which can help reduce the risk of misstatement or fraud in the preparation of financial statements. It must be realized that financial statements do not provide all information that may be needed by interested parties because, in general, financial statements only describe the financial impact of past events and are not required to provide non-financial information. However, in some cases, BPRs need and can provide non-financial information that has a financial impact in the future. On June 30, 2021, the Financial Accounting Standards Board of the Indonesian Institute of Accountants approved the Indonesian Financial Accounting Standards for Private Entities (SAK EP), which is effective for financial positions as of January 1, 2025. SAK EP replaces the Indonesian Financial Accounting Standards for Entities without Public Accountability (SAK ETAP), which has hitherto been one of the references for BPRs in preparing financial statements. In line with the implementation of the aforementioned SAK EP, adjustments to the Banking Accounting Guidelines for BPRs are required by referring to SAK EP as one of the guidelines for BPRs in preparing financial statements.

1.1.2. OBJECTIVES AND SCOPE
The objectives of preparing the Banking Accounting Guidelines for BPRs (hereinafter referred to as PA BPR) include:
a. Helping users in preparing financial statements in accordance with the objectives of financial statements, namely:

Economic Decision Making
Financial statements aim to provide information that is useful in making rational decisions. Therefore, the information presented must be understandable by users of financial statements, including:
a) customers; b) investors; c) creditors; d) shareholders; e) the public; f) the Financial Services Authority (OJK); g) Bank Indonesia; h) the Deposit Insurance Agency; and i) the Government.
Assessment of Cash Flow Prospects
Financial statements aim to provide information that can support users of financial statements in estimating future cash receipts. The prospect of cash receipts depends heavily on the BPR's ability to generate cash to meet obligations that have fallen due, operational needs, and dividend payments. The perception of interested users of financial statements regarding the BPR's ability will affect the level of confidence in the BPR. Customers, investors, and creditors will maximize the return on funds they have invested and will make adjustments to the risks they estimate will occur in the relevant BPR.
Provision of Information on Economic Resources
Financial statements aim to provide information about the BPR's economic resources, the BPR's obligations to transfer those resources to other entities or shareholders, and the possibility of transactions and events that can affect changes in those resources. b. Creating uniformity in the application of accounting treatment and financial statement presentation so as to improve comparability among BPR financial statements.
c. Serving as a minimum reference that must be met by BPRs in preparing financial statements. The uniformity of presentation as regulated in this PA BPR does not prevent BPRs from providing additional relevant information for users of financial statements in accordance with the conditions of each BPR.
This PA BPR serves as a reference for all BPRs in preparing their financial statements.

1.1.3. REFERENCES
The references used in preparing this PA BPR are:
a. SAK EP; b. regulations issued by the Financial Services Authority;
c. relevant legislative regulations concerning BPR financial statements; and
d. generally accepted accounting practices and financial accounting standards other than SAK EP.

1.1.4. STATUS
a. BPR financial statements are prepared in accordance with SAK EP. PA BPR is a technical guideline for BPRs in preparing financial statements in accordance with the accounting standards effective at the time of preparation of this guideline. PA BPR is not a replacement for SAK EP as the basis for preparing BPR financial statements. b. If there are regulations in this PA BPR that conflict with the applicable SAK EP, then BPR financial statements refer to the applicable SAK EP.
c. If there are changes to SAK EP in the future, the preparation of BPR financial statements must refer to the applicable SAK EP.

1.1.5. OTHER PROVISIONS
a. Journal illustrations, items, and examples used in PA BPR are not binding and serve to help BPRs in developing recording and bookkeeping methods in accordance with their respective systems. b. The journal illustrations included in this PA BPR describe manual accounting and do not include inter-office or inter-branch transactions.
c. BPR transactions included in this PA BPR prioritize transactions that commonly occur in BPRs.
d. This PA BPR will be periodically evaluated and adjusted in accordance with the development of BPR business and products, financial accounting standards regulations, Financial Services Authority regulations, and other regulations related to BPRs. e. Bank Indonesia Letter Number 13/48/DKBU dated January 19, 2011 regarding the Materiality Limitations of Credit Provision Income and Establishment Costs in the application of SAK ETAP, guidelines, or other regulations stating that the materiality level of credit provision income that can be recognized directly as income in the current period (cash basis) is provisions for credits with a ceiling up to Rp5,000,000 (five million rupiah) is no longer a reference since this SEOJK takes effect.

1.1.6. RELATIONSHIP BETWEEN ASSET QUALITY PROVISION FOR WRITE-OFFS (PPKA) AND PROVISION FOR LOSS ON VALUE DECLINE (CKPN)
BPRs calculate Asset Quality Provision for Write-offs (PPKA) in accordance with Financial Services Authority Regulations (POJK) regarding BPR asset quality. If the PPKA value is greater than the CKPN formed by the BPR in accordance with SAK EP, then the difference between the PPKA value and the CKPN becomes a reducing factor in the calculation of the BPR's core capital.

1.2. ACCOUNTING POLICY CHOICES
a. In the event that financial accounting standards provide choices for accounting treatment and such choices are regulated in this PA BPR or Financial Services Authority regulations, then BPRs follow the choices in accordance with this PA BPR or Financial Services Authority regulations. b. Guidelines for recording financial assets use SAK EP Chapter 11 Basic Financial Instruments and Chapter 12 Issues Related to Other Financial Instruments.
c. Profit or loss presentation is done comprehensively using a single-statement approach so that the information provided is more comprehensive.
d. Cash flow statement presentation uses the direct method.

1.3. PROCEDURE FOR ADJUSTMENT OF FINANCIAL STATEMENT ITEMS
a. At the beginning of implementation, BPRs begin to apply the provisions in this PA BPR with the following provisions:

recognize all assets and liabilities whose recognition is required in SAK EP;
do not recognize items as assets or liabilities if SAK EP does not allow such recognition;
reclassify items recognized as a type of asset, liability, or equity component in the previous SAK ETAP, but are different types of assets, liabilities, or equity components based on SAK EP;
apply SAK EP in the measurement of all recognized assets and liabilities; and
the impact of the above adjustments is recognized directly in the retained earnings balance of the earliest presentation period.
(This refers to SAK EP paragraphs 35.7 and 35.8) b. At the beginning of implementation, BPRs do not retrospectively change the accounting applied based on the previous financial reporting framework for specific transactions (This refers to SAK EP paragraph 35.9) and may use one or more exemptions in preparing the first financial statements in accordance with SAK EP (This refers to SAK EP paragraph 35.10).
c. Specifically for the restatement of basic financial instruments such as loans and securities, if it is impracticable for the BPR to make the aforementioned adjustments or calculations at the beginning of implementation in accordance with SAK EP, then:
the BPR calculates the effective interest rate in accordance with SAK EP in the earliest period as far as it is practical to do so; and
the BPR discloses information regarding the impracticability of such in the financial statements.
(This refers to SAK EP paragraph 35.11)
Additional CKPN that the BPR needs to form due to the change in standards from SAK ETAP to SAK EP becomes an expense in the year of initial application of SAK EP. d. The conditions of practicality or impracticability as stated in letter b are determined by each BPR. The condition of impracticability is when the BPR cannot apply a requirement in SAK EP after making all reasonable efforts to do so. e. Guide to adjustments to financial statement items and comparative financial statement information as per Appendix 1 of PA BPR.

1.4. FINANCIAL STATEMENTS
1.4.1. GENERAL PROVISIONS
a. Components of financial statements
A complete set of financial statements consists of a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows, and notes to the financial statements. b. Language of financial statements Financial statements must be prepared in the Indonesian language.
c. Responsibility for financial statements
The Board of Directors of the BPR is responsible for the preparation and presentation of financial statements. d. Reporting currency

Reporting must be stated in the rupiah currency. If BPR transactions use currencies other than rupiah, then the report must be broken down into rupiah currency using the reporting exchange rate set by Bank Indonesia, namely the Bank Indonesia middle rate on the reporting date. In the event that the foreign currency exchange rate is not available at Bank Indonesia, the BPR uses the exchange rate as regulated in the applicable regulations.
Gains or losses in the current period related to transactions in foreign currency are valued using the reporting exchange rate set by Bank Indonesia.
Transactions in foreign currency must follow the applicable regulations.
e. Going concern
In preparing financial statements, BPR management makes an assessment of the BPR's ability to continue as a going concern. A BPR is considered to have a going concern unless management intends to liquidate the BPR or cease operations.
(This refers to SAK EP paragraph 3.8)
If BPR management is aware of material uncertainties that may cast significant doubt on the BPR's ability to continue as a going concern, then the BPR discloses such uncertainties.
(This refers to SAK EP paragraph 3.9) f. Reporting period Financial statements must be presented annually based on the calendar year. In the event that a BPR is newly established, financial statements may be presented for a period shorter than one calendar year. In addition, for the benefit of other parties, a BPR may prepare two reports by using the calendar year period and the effective period, by stating:
the fact;
the reason for using a reporting period longer or shorter than 1 (one) year; and
the fact that the comparative amounts presented in the financial statements cannot be compared as a whole.
(This refers to SAK EP paragraph 3.10) g. Accounting policies
BPRs prepare financial statements using the accrual accounting basis, except for cash flow information. Under the accrual basis, BPRs recognize assets, liabilities, equity, income, or expenses when the definition and recognition criteria are met. (This refers to SAK EP paragraph 2.36)
BPR accounting policies must reflect the principle of prudence, cover all material matters, and be in accordance with SAK EP.
In the event that SAK EP does not yet regulate the recognition, measurement, presentation, or disclosure of a transaction or event, then management must establish policies to ensure that financial statements present information that:
a) is relevant to the needs of users of financial statements in decision-making; and b) is reliable, in the sense that:
(1) it accurately represents the financial position, financial performance, and cash flows of the BPR; (2) it describes the economic substance of transactions, events, or conditions, and not just their legal form (substance over form); (3) it is neutral, i.e., free from bias; (4) it involves prudent judgment; and (5) it is complete in all material respects. (This refers to SAK EP paragraph 10.4)
In establishing such accounting policies, management must consider:
a) requirements and guidelines in SAK EP regarding similar and related matters; b) definitions, recognition criteria, and concepts of the measurement of assets, liabilities, income, and expenses, as well as pervasive principles (having broad beneficial impact for interested parties) of SAK EP; and c) requirements and guidelines in Indonesian Financial Accounting Standards regarding similar and related matters. (This refers to SAK EP paragraphs 10.5 and 10.6) h. Accounting changes
BPRs choose and apply accounting policies consistently for transactions, events, and other similar conditions, unless SAK EP specifically requires or allows categorization of similar items with different policies. (This refers to SAK EP paragraph 10.7)
Changes in accounting policies
a) A BPR changes an accounting policy only if:
(1) it is required by SAK EP; or
(2) it will result in financial statements that provide more reliable and relevant information.
(This refers to SAK EP paragraph 10.8) b) A BPR records changes in accounting policies resulting from changes in SAK EP requirements in accordance with transitional provisions (if any) and records all other changes retrospectively. (This refers to SAK EP paragraph 10.11)

Accounting treatment for transactions occurring in BPR must be carried out in accordance with the principles regulated in SAK EP. The journals and postings used in the BPR Accounting Guidelines examples are merely illustrations in accordance with the context of the illustration.

c) BPR applies new accounting policies in the previous reporting period (the period becoming comparative information) to the extent that retrospective application is practicable. (This refers to SAK EP paragraph 10.12)

d) If retrospective application is not practicable, BPR applies the new accounting policy to the carrying amounts of assets and liabilities in the period in which the policy can be applied (e.g., the current period) and makes adjustments to the opening balances of the affected components of equity for that period. (This refers to SAK EP paragraph 10.12)

Changes in accounting estimates
a) Changes in accounting estimates are adjustments to the carrying amount of assets or liabilities based on the current assessment and estimates of future benefits and obligations of the said assets and liabilities. (This refers to SAK EP paragraph 10.15)

b) Changes in accounting estimates result from new information or new developments and are not corrections of errors. (This refers to SAK EP paragraph 10.15)

c) Changes in accounting estimates are applied prospectively by including the impact of such changes in profit or loss in:
(1) the period of change, if the change affects only that period; or (2) the period of change and future periods, if the change affects both. (This refers to SAK EP paragraph 10.16)

Prior period errors
a) Prior period errors arise from the failure to use, or misuse of, reliable information. Examples of errors include mathematical mistakes, mistakes in applying accounting policies, misinterpretation of facts, and fraud. (This refers to SAK EP paragraphs 10.19 and 10.20)

b) To the extent practicable, BPR corrects material errors in prior periods retrospectively by:
(1) restating the comparative amounts for the prior reporting period(s) in which the error occurred; or (2) if the error occurred before the prior period, BPR restates the opening balances of assets, liabilities, and equity for the earliest prior reporting period presented. (This refers to SAK EP paragraph 10.21)

c) If it is not practicable to determine the impact of the error on prior periods, BPR restates the opening balances of assets, liabilities, and equity in the reporting period in which the restatement can be applied (which may be the current period). (This refers to SAK EP paragraph 10.22)

i. Comparative information

Annual financial statements must be presented comparatively with the previous period.
Narrative and descriptive comparative information from the financial statements of the previous period is restated if relevant for the understanding of the financial statements of the current period.
(This refers to SAK EP paragraph 3.14)

j. Materiality and aggregation

Financial statement presentation is based on the concept of materiality.
Items that are material in amount are presented separately in the financial statements, while those that are not material may be aggregated provided they have similar nature or function.
Information is considered material if omitting it or misstating it could influence the decisions taken by users of the financial statements.
(This refers to SAK EP paragraphs 3.15 and 3.16)

1.4.2. COMPONENTS OF FINANCIAL STATEMENTS
a. BPR financial statements for general purposes consist of:

statement of financial position;
statement of comprehensive income;
statement of changes in equity;
statement of cash flows; and
notes to the financial statements.

b. BPR prepares financial statements as reports to authorities and other users concerning financial position, performance, and cash flows. Therefore, BPR financial statements are needed to provide such information for decision-making, as reflected in the following reports:

Statement of Financial Position
a) The financial position of BPR is influenced by economic resources controlled, financial structure, liquidity, and solvency, as well as the ability to adapt to environmental changes. This information is useful for predicting BPR's future ability to generate cash and cash equivalents, investment needs, distribution of returns and cash flows, and BPR's ability to meet financial commitments at maturity, both short-term and long-term. BPR's financial position information is depicted in the statement of financial position.

b) The statement of financial position presents BPR's assets, liabilities, and equity at a specific date - the end of the reporting period. (This refers to SAK EP Paragraph 4.1)

Statement of Comprehensive Income
a) BPR's performance is necessary to assess potential changes in economic resources during the reporting period that may be controlled in the future. This information is useful for predicting BPR's capacity to generate cash flows from existing resources. Additionally, this information is useful in formulating views on BPR's effectiveness in utilizing resources. BPR's performance information is depicted in the statement of comprehensive income.

b) The statement of comprehensive income is a financial statement that presents all items of income and expense recognized in a reporting period.

c) The position of profit or loss for the same type of income/expense is presented net.

d) The statement of comprehensive income generally consists of:
(1) operating income and expenses;
(2) operating profit (loss);
(3) non-operating income and expenses;
(4) non-operating profit (loss);
(5) profit (loss) for the current year before tax; (6) estimated income tax; (7) deferred tax income; (8) total profit (loss) for the current year; (9) other comprehensive income; (10) other comprehensive income after tax; and (11) total comprehensive profit (loss) for the current year.

Statement of Changes in Equity
a) Information on changes in BPR's equity describes the increase or decrease in net assets or wealth during the reporting period based on specific measurement principles adopted and must be disclosed in the financial statements. This information is useful for knowing changes in net assets arising from transactions with shareholders and the amount of profit or loss arising from BPR activities. Information on changes in equity is depicted in the statement of changes in equity.

b) The statement of changes in equity presents BPR's profit or loss for the reporting period, other comprehensive income for a period, the impact of changes in accounting policies and corrections of errors recognized in that period, and the amount of investments by owners, and dividends and other distributions to owners in their capacity as owners during that period. (This refers to SAK EP Paragraph 6.2)

Statement of Cash Flows
a) Information on changes in cash and cash equivalents is useful for assessing BPR's ability to generate cash flows and BPR's need to use cash flows in each activity during the reporting period. This information is useful for assessing cash flows arising from operating, investing, and financing activities. Information on changes in cash and cash equivalents is depicted in the statement of cash flows.

b) The statement of cash flows provides information regarding changes in BPR's cash and cash equivalents for the reporting period, showing separately changes from operating activities, investing activities, and financing activities. (This refers to SAK EP paragraph 7.1)

Notes to the Financial Statements
a) To better understand the information contained in the statement of financial position, statement of comprehensive income, statement of changes in equity, and statement of cash flows, relevant explanations are required. These explanations can be disclosed in the notes to the financial statements, which contain additional information on what is presented in the aforementioned reports. Notes to the financial statements provide narrative descriptions or disaggregation of items presented in the financial statements, as well as information about items that do not meet the recognition criteria in the financial statements.

b) Notes to the financial statements present information about the basis of preparation of financial statements and specific accounting policies used, disclose information required by SAK EP that is not presented anywhere in the financial statements, and provide information not presented anywhere in the financial statements but which is relevant for understanding the financial statements. (This refers to SAK EP paragraph 8.2)

1.4.3. LIMITATIONS OF FINANCIAL STATEMENTS
Economic decision-making cannot be based solely on information contained in financial statements. This is because financial statements have limitations, including:
a. being historical, showing transactions and events that have occurred in the past; b. being general, both in terms of information and benefit for users. Usually, specific information needed by certain parties cannot be met directly solely from financial statements;
c. inevitably involving the use of various judgments and estimates;
d. reporting only material information; e. being conservative in the face of uncertainty. If there are several uncertain possibilities regarding the valuation of an item, the alternative resulting in the smallest net profit or asset value is chosen; f. emphasizing the presentation of transactions and events according to economic substance and reality rather than just legal form (formality); and g. the existence of various alternative accounting methods that can be used, causing variations in the measurement of economic resources and performance levels among BPRs.

1.5. BASIC PRINCIPLES OF ACCOUNTING TREATMENT
1.5.1. GENERAL PRINCIPLES
a. Assets

Assets are resources controlled by BPR as a result of past events and future economic benefits expected to be received by BPR. (This refers to SAK EP Appendix B)
Asset items commonly owned by BPR are as follows:
a) cash; b) securities; c) placements with other banks; d) loans granted; e) investments; f) foreclosed collateral; g) fixed assets and inventory; h) abandoned property; i) intangible assets; j) other assets; and k) CKPN (Credit Conversion Program/Other specific asset category).

The above items that are financial assets such as securities, placements with other banks, loans, and investments are accompanied by a contra-asset item of CKPN.

BPR recognizes assets in the statement of financial position when it is probable that future economic benefits will flow to BPR and the asset value can be measured reliably. (This refers to SAK EP paragraph 2.37)

b. Liabilities

Liabilities are present obligations of BPR arising from past events, the settlement of which will result in an outflow of BPR's resources. Settlement of present obligations usually involves payment of cash, transfer of other assets, provision of services, replacement of that obligation with another obligation, or conversion of the obligation into equity. Obligations can also be extinguished in such ways as creditors waiving or canceling their rights. (This refers to SAK EP paragraphs 2.20, 2.21, and Appendix B)
Liability items commonly owned by BPR include:
a) deposits; b) current liabilities; c) payables; d) borrowings; e) paid-in capital funds; f) employee benefit liabilities; and g) other liabilities.
Liabilities are recognized in the statement of financial position when:
a) BPR has an obligation at the end of the reporting period as a result of past events; b) it is probable that BPR will settle the liability by transferring its assets; and c) the value of the liability can be measured reliably. (This refers to SAK EP paragraph 2.39)

c. Equity

Equity is the residual interest in the assets of BPR after deducting all its liabilities. BPR classifies financial instruments as financial liabilities or as equity in accordance with the substance of the contractual arrangement (substance over form). (This refers to SAK EP paragraphs 22.3 and 22.4)
Equity items commonly owned by BPR include:
a) capital; and b) retained earnings.

d. Financial instruments

A financial instrument is a contract that gives rise to a financial asset of BPR and a financial liability or equity instrument of another entity. (This refers to SAK EP paragraph 11.3)
BPR classifies financial instruments as financial liabilities or financial equity in accordance with the substance of the contractual arrangement and not just from their legal form (substance over form). (This refers to SAK EP paragraph 22.3A)
Financial instruments are classified as financial liabilities if BPR must settle its contractual obligation by delivering cash or another asset. (This refers to SAK EP paragraph 22.3A)
Examples of financial instruments that meet the definition of liability but are classified as equity include:
a) Instruments with a put option feature (puttable instrument), which have all the following features:
(1) give the holder of the instrument a right to a pro rata share of BPR's net assets upon liquidation; (2) the instrument is in a class of instruments that is subordinate to the class of other instruments; (3) does not include a contractual obligation to deliver assets to another entity; and (4) the total expected cash flows attributable to the instrument are based on profit or loss, changes in recognized net assets, or changes in the fair value of recognized or unrecognized net assets.

b) Instruments that are subordinate to all other classes of instruments if the instrument requires BPR to deliver a pro rata share of BPR's net assets upon liquidation. (This refers to SAK EP paragraph 22.4)

Examples of instruments classified as liabilities and not equity include:

a) Instruments that have a maximum amount (ceiling) in the distribution of net assets when BPR is liquidated. Example: a pro rata share of net assets of Rp3,000,000,000.00 (three billion rupiah), but the upper limit of distribution is Rp2,000,000,000.00 (two billion rupiah), then the instrument is not classified as equity.

b) Instruments with a put option feature that meet the following criteria:
(1) the holder of the instrument has a right to an amount measured on another basis (for example, there are other regulations besides SAK EP to measure the instrument); or (2) classified as equity in the financial statements of the subsidiary entity. In this case, the instrument is classified as a liability in the consolidated financial statements of the parent entity.

c) Instruments requiring BPR to make payments to the holder of the instrument before liquidation, such as mandatory dividends.

d) Preferred shares that require the issuer to redeem the shares at a fixed amount or determinable amount on a specific date. (This refers to SAK EP paragraph 22.5)

e. Income and expenses

BPR recognizes income in the statement of comprehensive income when there has been an increase in future economic benefits related to an increase in assets or a decrease in liabilities that can be measured reliably. (This refers to SAK EP paragraph 2.41)
BPR recognizes expenses in the statement of comprehensive income when there has been a decrease in future economic benefits related to a decrease in assets or an increase in liabilities that can be measured reliably. (This refers to SAK EP paragraph 2.42)
Transaction costs are additional costs directly attributable to the acquisition, issue, or disposal of a financial asset or financial liability. Additional costs are costs that would not have occurred if BPR had not acquired, issued, or disposed of the financial instrument. BPR may not amortize transaction costs and recognize them immediately as an expense in the current period, if the amount of such transaction costs is not material.

f. The effective interest method is the method of calculating the amortized cost of a financial asset or financial liability and of allocating interest income or interest expense over the relevant period. The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial instrument to the net carrying amount of the financial asset or financial liability. (This refers to SAK EP paragraph 11.16)

g. In the event that BPR conducts activities in the capital market (e.g., conducting a public offering of securities through the capital market), then BPR must follow accounting recording and financial statement preparation in accordance with relevant capital market regulations.

h. In the event that items in the financial statements have specific accounting treatments, then these are explained in the respective chapters related to the said items in this BPR Accounting Guidelines.

1.5.2. RECOGNITION AND MEASUREMENT
a. Recognition is the process of including in the financial statements items that meet the definitions of assets, liabilities, income, or expenses that meet the following criteria:

it is probable (probable) that any future economic benefits associated with the item will flow to or from BPR; and
the item has a cost or value that can be measured reliably.
(This refers to SAK EP paragraph 2.27)

b. At the time of initial recognition of assets, BPR does not need to capitalize income and/or expenses on the acquisition cost of the asset, and can recognize them directly as income or expense in the current period, if:

the income and/or expenses cannot be directly attributed to the placement and are not related to the placement term; or
the income and/or expenses cannot be directly attributed to the placement and are related to the placement term but the amount is not material.

c. Measurement is the process of determining the monetary amount at which BPR measures assets, liabilities, income, and expenses in its financial statements. Measurement involves selecting the measurement basis regulated in this SAK EP. (This refers to SAK EP paragraph 2.33)

d. For placements recorded at amortized cost, the carrying amount may differ from the amount to be received at maturity, namely if BPR:

receives/pays transaction costs that can be directly attributed to the acquisition of the placement;
makes placements at interest rates outside the market interest rate; and/or
makes placements at a discount or premium.

MEASUREMENT OF NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES BPR performs measurement of non-financial assets and non-financial liabilities using the following approach:

Measurement	Initial Measurement	Subsequent Measurement	Presentation
Historical Cost	Non-Financial Assets:<br>1. Cost model (whichever is lower between acquisition cost less accumulated depreciation and accumulated impairment loss with recoverable amount); or<br>2. Revaluation model (whichever is lower between revalued amount and recoverable amount).	Non-Financial Assets:<br>1. Equal to acquisition cost less accumulated depreciation and impairment losses, if using the cost model; or<br>2. Equal to revalued amount less accumulated depreciation and impairment losses, if using the revaluation model.	Non-Financial Liabilities:<br>Estimate/amount required to settle the obligation.
Fair Value	Non-Financial Liabilities:<br>Estimate/amount required to settle the obligation.	Non-Financial Liabilities:<br>Estimate/amount required to settle the obligation.	Fair Value:<br>Equal to fair value with changes in fair value recognized in profit or loss.

a. Measurement at initial recognition
At initial recognition, BPR measures assets and liabilities at historical cost unless SAK EP requires initial measurement on another basis such as fair value. (This refers to SAK EP paragraph 2.46)

b. Subsequent measurement

Non-financial assets
a) Most non-financial assets initially recognized by BPR at historical cost are subsequently measured on other measurement bases. For example:
(1) BPR measures fixed assets with:
(a) cost model: measured at the lower of acquisition cost less accumulated depreciation and accumulated impairment loss with recoverable amount; or (b) revaluation model: measured at the lower of revalued amount and recoverable amount. (2) BPR recognizes impairment losses related to non-financial assets used or held for sale, for example, foreclosed assets. (This refers to SAK EP paragraph 2.49)

b) SAK EP permits or requires measurement at fair value for:

(1) investments in associates and joint ventures measured by BPR at fair value; (2) investment properties measured by BPR at fair value; and (3) fixed assets measured by BPR using the revaluation model. (This refers to SAK EP paragraph 2.50)

Liabilities other than financial liabilities
Most liabilities other than financial liabilities are measured at the best estimate of the amount required to settle the obligation at the reporting date. (This refers to SAK EP paragraph 2.51)

MEASUREMENT OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BPR measures financial assets and financial liabilities using the following approach:

Measurement
Initial
Subsequent
Presentation
Historical Cost Financial Assets and
Financial Liabilities:
Amortized cost.
At amortized cost. a. Measurement at initial recognition At initial recognition, BPR measures financial assets and liabilities at historical cost unless SAK EP requires initial measurement on other bases such as fair value. (This refers to SAK EP paragraph 2.46)

b. Subsequent measurement

BPR measures basic financial assets and basic financial liabilities at amortized cost less impairment. This measurement is excluded for:
a) non-convertible preferred stock investments; and b) ordinary shares or preferred shares without sell options that are publicly traded or whose fair value can be reliably measured without excessive cost or effort. Investments and shares above are measured at fair value with changes in fair value recognized in profit or loss. (This refers to SAK EP paragraph 2.47)
Other financial assets and financial liabilities are measured at fair value with changes in fair value recognized in profit or loss unless otherwise required by SAK EP. (This refers to SAK EP paragraph 2.48)
Amortized cost of financial assets or financial liabilities is the net value of:
a) the amount at initial recognition; b) less any principal repayments; c) plus or minus cumulative amortization using the effective interest method; and d) less impairment (for financial assets). (This refers to SAK EP paragraph 11.15)

1.5.3. PRESENTATION
a. Financial statements must present fairly the financial position, financial performance, and cash flows of BPR accompanied by disclosures required in accordance with applicable regulations. (This refers to SAK EP paragraph 3.2)

b. Assets are presented based on their characteristics in order of liquidity, while liabilities are presented in order of maturity.

c. Transaction balances are presented and disclosed separately between parties with special relationships and parties without special relationships. In this case, parties with special relationships include related parties in accordance with applicable regulations.

d. The income statement and comprehensive income statement describe income and expenses by characteristics grouped in a multi-step manner from BPR's main activities and other activities.

e. Notes to financial statements must be presented systematically in the order of presentation according to their main components, which are an integral part of the financial statements. Information in the notes to financial statements relates to items in the statement of financial position, income statement and comprehensive income, statement of changes in equity, and cash flow statement, which provide explanations, both qualitative and quantitative, including commitments and contingencies, as well as other transactions.

f. In the notes to financial statements, qualitative expressions such as the word "majority" are not permitted to describe a portion of an amount, but must be stated in nominal amount or percentage.

g. On each page of the statement of financial position, income statement and comprehensive income, statement of changes in equity, and cash flow statement, a statement must be included that "Notes to financial statements attached are an integral part of the financial statements as a whole."

h. Presentation consistency

Presentation and classification of items in financial statements between periods must be consistent, except:
a) after a significant change in the nature of BPR's operations (as far as possible by applicable regulations); b) after reviewing the financial statements, it is clearly evident that a different presentation or classification would be more appropriate; or c) as required by SAK EP. (This refers to SAK EP paragraph 3.11)
If the presentation or classification of items in financial statements is changed, BPR reclassifies comparative amounts (information from previous periods) unless such reclassification is impracticable.

a) If BPR performs reclassification, BPR discloses the nature of the reclassification, the amount of each item reclassified, and the reason for reclassification.

b) If reclassification of comparative amounts is impracticable, BPR discloses the reason.
(This refers to SAK EP paragraph 3.12 and 3.13)

i. In addition to meeting the above requirements, the presentation of BPR financial statements follows the regulations of the Financial Services Authority (OJK).

1.5.4. DISCLOSURE
Disclosure of financial items in BPR financial statements refers to Chapter XXVIII regarding Notes to Financial Statements.

1.5.5. OFFSETTING
a. BPR is not permitted to offset assets and liabilities or income and expenses. Offsetting is only permitted for presentation purposes for transactions of the same nature, for example, foreign exchange gain and foreign exchange loss.

b. Net measurement of assets with allowances is not offsetting.

c. If BPR's normal operating activities do not include the purchase or sale of non-current assets, BPR reports gains and losses on the disposal of such assets by reducing the disposal proceeds by the carrying amount of the asset and related selling expenses.
(This refers to SAK EP paragraph 2.52)

CHAPTER II
CASH

2.1. CASH IN RUPIAH CURRENCY

2.1.1. DEFINITION
Cash is paper money or coins in rupiah that are still valid as legal tender.

2.1.2. EXPLANATION
a. The definition of cash includes large cash, petty cash, cash in automated teller machines (ATM), and cash in transit.

b. The definition of cash does not include gold bars, coins issued to commemorate national events (commemorative coins/notes), and gold currency.

2.1.3. ACCOUNTING TREATMENT
Recognition and Measurement
Cash is recognized and measured at nominal value.
Presentation
Cash is presented in a separate item in the statement of financial position at nominal value.

2.1.4. JOURNAL ILLUSTRATION
Upon receipt of deposits
Dr.
Cr.
Cash
Account targeted
Upon withdrawal
Dr.
Cr.
Account withdrawn
Cash
Upon expenditure
Dr.
Cr.
Asset ... /Expense ...
Cash
Upon receipt of income
Dr.
Cr.
Cash
Revenue ...
In the application of core banking systems in BPR, cash mutation journaling is generally done at the end of the day (end of day process).

2.1.5. CASE EXAMPLE
BPR receives savings deposits from Customer A worth Rp1,000,000 and withdrawals from Customer B worth Rp750,000, so BPR records the deposits as follows:
Upon receipt of deposits
Dr. Cash Rp1,000,000
Cr. Savings a.n. Customer A Rp1,000,000
Upon withdrawal of savings
Dr. Savings a.n. Customer B Rp750,000
Cr. Cash Rp750,000
In the application of core banking systems in BPR, cash mutation journaling is generally done at the end of the day (end of day process) where mutations on customer accounts are done per transaction, while cash mutation journals are accumulated per day as incoming or outgoing mutations.

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in General Accounting Principles (SAK EP). The journals and items used in the BPR accounting examples are merely illustrations according to the context of the illustration. BPR pays for the purchase of office inventory assets worth Rp5,000,000, so BPR records the deposits as follows:
Upon purchase of office inventory assets
Dr. Office inventory assets Rp5,000,000
Cr. Cash Rp5,000,000

2.2. CASH IN FOREIGN CURRENCY

2.2.1. DEFINITION
Cash in foreign currency is foreign paper money (banknotes) and traveller’s cheques that are still valid, owned by BPR in exchange activities as a foreign exchange trader as regulated in applicable laws and regulations.

2.2.2. REGULATORY BASIS
SAK EP Chapter 30 on Foreign Currency Translation.

2.2.3. EXPLANATION
BPR may hold cash in foreign currency only to conduct business activities as a foreign exchange trader that has received approval from the Financial Services Authority (OJK).

2.2.4. ACCOUNTING TREATMENT
Recognition and Measurement a. Foreign currency is recognized at the transaction (spot) rate applicable on the date of acquisition/transaction. (This refers to SAK EP paragraph 30.7)

b. At each reporting date, BPR translates foreign currency cash into rupiah using the closing rate. The closing rate referred to is the Bank Indonesia transaction rate applicable on the reporting date using the middle rate, which is the foreign currency buy transaction rate plus the foreign currency sell transaction rate of Bank Indonesia divided by two.

c. The difference between the carrying amount of foreign currency based on the closing rate and the previous carrying amount is recognized as profit or loss (operational) in the income statement for the current period.
Presentation
Cash in foreign currency is presented in a separate item in the statement of financial position at nominal value.

2.2.5. JOURNAL ILLUSTRATION
Journal illustrations for money changer transactions and mark-to-market of foreign currency cash are done at the end of the month. Upon acquisition Dr. Cr. Cash in foreign currency Cash Upon sale of foreign currency cash Dr. Cr. Dr/Cr. Cash Cash in foreign currency Operational income/expense – foreign exchange transaction gain/loss

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in General Accounting Principles (SAK EP). The journals and items used in the BPR accounting examples are merely illustrations according to the context of the illustration. Upon end-of-reporting-period valuation (gain) Dr. Cr. Cash in foreign currency Operational income – foreign exchange rate difference gain Upon end-of-reporting-period valuation (loss) Dr. Cr. Operational expense – foreign exchange rate difference loss Cash in foreign currency

2.2.6. CASE EXAMPLE
On January 1, 2025, BPR purchased foreign currency in the form of USD worth USD1,000 at a spot rate of Rp15,600/USD.
On January 10, 2025, BPR sold USD 200 at a rate of Rp15,800/USD. At the end of the reporting period, namely January 31, 2025, the spot rate became Rp15,700/USD, and it is assumed that BPR still holds USD800. BPR records the transactions as follows:

Table 1. Mark to Market Gain/Loss Calculation
Nominal
(a)
At Purchase
January 1, 2025
End of Reporting Period
January 31, 2025
Gain/Loss
Mark to
Market
(f) = (e) – (c)
Rate
(b)
Value in
Rupiah
(c) = (a) x (b)
Rate
(d)
Value in
Rupiah
(e) = (a) x (d)
USD1,000 Rp15,600 Rp15,600,000
USD800 Rp15,600 Rp12,480,000 Rp15,700 Rp12,560,000 Rp80,000

Upon acquisition
Dr.
Cr.
Cash in foreign currency
Cash
Rp15,600,000
Rp15,600,000
Upon sale
Dr.
Dr.
Cr.
Cash
(USD200xRp15,700)
Cash in foreign currency
(USD200xRp15,600)
Operational income –
Foreign exchange transaction gain
Rp3,140,000
Rp3,120,000
Rp20,000
Upon end-of-reporting-period valuation
Dr.
Cr.
Cash in foreign currency
Operational income – foreign exchange rate difference gain Rp80,000 Rp80,000

CHAPTER III
SECURITIES

3.1. DEFINITION
Securities are securities issued by Bank Indonesia, the Central Government of the Republic of Indonesia, and/or Regional Governments.

3.2. EXPLANATION
a. Examples of securities that BPR can own include Bank Indonesia Certificates, Government Securities, or Regional Government Bonds.

b. Bank Indonesia Certificates, hereinafter abbreviated as SBI, are securities in rupiah currency issued by Bank Indonesia as a recognition of short-term debt, implemented in accordance with applicable laws and regulations.

c. Sharia Bank Indonesia Certificates, hereinafter abbreviated as SBIS, are securities based on Sharia principles in rupiah currency issued by Bank Indonesia with a short-term maturity.

d. Government Securities, hereinafter abbreviated as SBN, are government debt securities and Sharia government securities.

e. Government Debt Securities, hereinafter abbreviated as SUN, are securities in the form of debt recognition in rupiah or foreign currency, guaranteed for payment of interest and principal by the Republic of Indonesia, in accordance with their validity period.

f. Sharia Government Securities, hereinafter abbreviated as SBSN, are SBN issued based on Sharia principles, as evidence of participation in SBSN assets, both in rupiah and foreign currency.

g. Regional Bonds are securities in the form of debt recognition issued by Regional Governments and issued through the domestic capital market. (This refers to Government Regulation Number 1 of 2024 on Fiscal Policy Harmonization).

h. For BPR that hold securities based on Sharia principles, accounting treatment refers to Sharia Accounting Standards Statement.

3.3. ACCOUNTING TREATMENT
Recognition and Measurement a. Securities are measured at acquisition cost plus/minus transaction costs. Examples of transaction costs include brokerage fees.

b. Interest income is measured using the effective interest rate.

c. Subsequent measurement is measured at amortized cost.
Presentation
Securities are presented in a separate item in the statement of financial position at amortized cost.

3.4. JOURNAL ILLUSTRATION
a. Securities with discount system:
Upon purchase
Dr.
Cr.
Securities
Cash/Account
Recording of transaction costs that can be attributed Dr./Cr.
Cr./Dr.
Dr./Cr.
Cr./Dr.
Securities
Cash/Account or
Expense/Interest income – Securities
Cash/Account
(if transaction costs do not need to be amortized) Amortization of discount and transaction costs Dr.
Cr.
Securities
Interest income
Upon maturity
Dr.
Cr.
Cash/Account
Securities b. Securities with interest system (at par):
Upon purchase
Dr.
Cr.
Securities
Cash/Account
Recording of transaction costs that can be attributed Dr./Cr.
Cr./Dr.
Dr./Cr.
Cr./Dr.
Securities
Cash/Account or
Expense/Interest income – Securities
Cash/Account
(if transaction costs do not need to be amortized) Interest calculation and amortization of transaction costs Dr.
Dr./Cr.
Cr.
Interest income to be received (contractual interest) – Securities Securities Securities interest income (amortized interest) Upon realization of interest receipt Dr. Cr. Cash/Account Interest income to be received – Securities Upon maturity Dr. Cr. Cash/Account Securities
c. Securities with interest system (at discount/at premium):
Upon purchase
Dr.
Cr.
Securities
Cash/Account (at purchase price)
Recording of transaction costs that can be attributed Dr./Cr.
Cr./Dr.
Dr./Cr.
Cr./Dr.
Securities
Cash/Account or
Expense/Interest income – Securities
Cash/Account (if transaction costs do not need to be amortized) Upon recognition of interest and amortization of discount (premium) and transaction costs Dr. Dr./Cr. Cr. Interest income to be received (contractual interest) – Securities Securities Interest income – Securities

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in General Accounting Principles (SAK EP). The journals and items used in the BPR accounting examples are merely illustrations according to the context of the illustration. Upon issuer default and if there is a possibility that BPR cannot receive the income back, BPR reverses the journal entry for interest income recognition. Upon realization of interest receipt Dr. Cr. Cash/Account Interest income to be received – Securities Upon maturity Dr. Cr. Cash/Account Securities d. Formation of CKPN in accordance with Chapter XII regarding Provision for Impairment Losses.

3.5. CASE EXAMPLE
a. Securities in Amortized Cost Classification with Interest System (at par) On February 1, 2025, BPR “SLS” purchased bonds worth Rp200,000,000 with an interest coupon of 7% at 100. The bond was purchased to be held until maturity on January 31, 2026. To purchase the bond, BPR “SLS” paid a brokerage fee of Rp2,000,000, which is a transaction cost that can be attributed. The effective interest rate is 0.5%. p = principal, i = contractual interest rate For this transaction, the accounting journal entries are as follows:

Purchase of securities on February 1, 2025, recorded in the journal:
Dr.
Cr.
Securities
Cash/Account
Rp200,000,000
Rp200,000,000
Attributable transaction costs, recorded in the journal:
Dr.
Cr.
Securities
Cash/Account
Rp2,000,000
Rp2,000,000
Recognition of interest and amortization of transaction costs on February 28, 2025, recorded in the journal:
Dr.
Cr.
Cr.
Interest income to be received
– Securities
Securities
Interest income - Securities
Rp1,166,667
Rp162,157
Rp1,004,509
Upon realization of interest receipt, recorded in the journal:
Dr. Cash/Account Rp1,166,667

Date
Payment
Principal and
Interest
Opening Balance
Cash Flow
Interest Expense
According to Effective
Interest Rate
Interest Expense
According to Coupon
Payment
Principal
Amortization with EIR
Closing Balance
Cash Flow a b c d = f x EIR e = p x i f g = d+e f = c + g 01/02/2025 - 202,000,000 - - - - 202,000,000 28/02/2025 1,166,667 202,000,000 1,004,509 - 1,166,667 - - 162,157 201,837,843 31/03/2025 1,166,667 201,837,843 1,003,703 - 1,166,667 - - 162,964 201,674,879 30/04/2025 1,166,667 201,674,879 1,002,893 - 1,166,667 - - 163,774 201,511,105 31/05/2025 1,166,667 201,511,105 1,002,078 - 1,166,667 - - 164,588 201,346,517 30/06/2025 1,166,667 201,346,517 1,001,260 - 1,166,667 - - 165,407 201,181,110 31/07/2025 1,166,667 201,181,110 1,000,437 - 1,166,667 - - 166,229 201,014,880 31/08/2025 1,166,667 201,014,880 999,611 - 1,166,667 - - 167,056 200,847,824 30/09/2025 1,166,667 200,847,824 998,780 - 1,166,667 - - 167,887 200,679,938 31/10/2025 1,166,667 200,679,938 997,945 - 1,166,667 - - 168,722 200,511,216 30/11/2025 1,166,667 200,511,216 997,106 - 1,166,667 - - 169,561 200,341,655 31/12/2025 1,166,667 200,341,655 996,263 - 1,166,667 - - 170,404 200,171,251 31/01/2026 201,166,667 200,171,251 995,415 - 1,166,667 - 200,000,000 - 171,251 0

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in General Accounting Principles (SAK EP). The journals and items used in the BPR accounting examples are merely illustrations according to the context of the illustration. Cr. Interest income to be received – Securities Rp1,166,667 Journal entries for interest recognition, cost amortization, and interest payment are the same as journal entries 3) and 4) above.

Upon maturity on January 31, 2026, recorded in the journal:
Dr.
Cr.
Cash/Account
Securities
Rp200,000,000
Rp200,000,000

b. Securities in Amortized Cost Classification with Interest System (at discount) On February 1, 2025, BPR “SLS” purchased bonds worth Rp100,000,000 with an interest coupon of 8% at 99,425. The bond was purchased to be held until maturity on January 31, 2026. To purchase the bond, BPR “SLS” paid a brokerage fee of Rp500,000, which is directly attributed. Assumption of the number of interest calculation days in one year is actual/360 days. The effective interest rate is 0.67%. p = principal, i = contractual interest rate For this transaction, the accounting journal entries are as follows:

Purchase of Securities on February 1, 2025, recorded in the journal:
Dr.
Cr.
Securities
Cash/Account
Rp99,925,000
Rp99,925,000
Recognition of interest and amortization of discount on February 28, 2025, recorded in the journal:
Recognition of interest and amortization of discount Dr.
Dr.
Cr.
Interest income to be received
– Securities
Securities
Interest income - Securities
Rp666,667
Rp6,022
Rp672,689
Coupon payment
Dr.
Cr.
Cash/Account
Interest income to be received
– Securities
Journal entries for interest recognition, discount amortization and interest payment are the same as the journal above.
Rp666,667
Rp666,667

Date
Payment
Principal and
Interest
Opening Balance
Cash Flow
Interest Expense
According to Effective
Interest Rate
Interest Expense
According to Coupon
Payment
Principal
Discount not yet amortized
Closing Balance
Cash Flow a b c d = f x EIR e = p x i f g = d + e h 01/02/2025 - 99,925,000 - - - - 99,925,000 28/02/2025 666,667 99,925,000 672,689 - 666,667 - 6,022 99,931,022 31/03/2025 666,667 99,931,022 672,729 - 666,667 - 6,062 99,937,084 30/04/2025 666,667 99,937,084 672,770 - 666,667 - 6,103 99,943,188 31/05/2025 666,667 99,943,188 672,811 - 666,667 - 6,144 99,949,332 30/06/2025 666,667 99,949,332 672,852 - 666,667 - 6,186 99,955,518 31/07/2025 666,667 99,955,518 672,894 - 666,667 - 6,227 99,961,745 31/08/2025 666,667 99,961,745 672,936 - 666,667 - 6,269 99,968,015 30/09/2025 666,667 99,968,015 672,978 - 666,667 - 6,312 99,974,326 31/10/2025 666,667 99,974,326 673,021 - 666,667 - 6,354 99,980,680 30/11/2025 666,667 99,980,680 673,063 - 666,667 - 6,397 99,987,077 31/12/2025 666,667 99,987,077 673,107 - 666,667 - 6,440 99,993,517 31/01/2026 100,666,667 99,993,517 673,150 - 666,667 - 100,000,000 6,483 - 0

Accounting treatment for transactions occurring in BPR must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR Accounting Guidelines examples are merely illustrations in accordance with the context of the illustrations.

The journal for the recognition of interest, amortization of costs, and subsequent interest payments is the same as journal item 2) above.

At maturity on January 31, 2026, recorded in the journal:

Db.
Kas/Rekening
Rp100.000.000

Kr.
Surat berharga
Rp100.000.000

c. Zero Coupon Bonds in the Amortized Cost Classification

On February 1, 2025, BPR “LAM” purchased a zero coupon bond with a value of Rp200,000,000 and a maturity of 6 (six) months held until July 31, 2025. The debt instrument was purchased at a price of Rp190,000,000. To purchase the bond, BPR “LAM” paid a brokerage fee of Rp1,000,000 which is an attributable transaction cost.

For this transaction, the bookkeeping journal is as follows:

Purchase of zero coupon bond on February 1, 2025, recorded in the journal:

Purchase of zero coupon bond
Db.
Surat berharga
Rp190.000.000

Kr.
Kas/Rekening
Rp190.000.000

Attributable transaction costs
Db.
Surat berharga
Rp1.000.000

Kr.
Kas/Rekening
Rp1.000.000

Recognition of interest and discount amortization on February 28, 2025, recorded in the journal:

Recognition of interest and discount amortization Db.
Surat berharga
Rp1.471.370

Kr.
Pendapatan bunga - Surat berharga
Rp1.471.370

The journal for the recognition of interest, discount amortization, and subsequent interest payments is the same as the journal above.

At maturity on July 31, 2025, recorded in the journal:

Recognition of interest and discount amortization Db.
Surat berharga
Rp1.528.924

Kr.
Pendapatan bunga - Surat berharga
Rp1.528.924

Matured Securities
Db.
Kas/Rekening BPR
Rp200.000.000

Kr.
Surat berharga
Rp200.000.000

Tanggal	Pembayaran Pokok dan Bunga	Saldo Awal	Arus Kas	Beban Bunga Sesuai Suku Bunga Efektif	Beban Bunga sesuai Kontraktual	Pokok Diskonto yang belum diamortisasi	Saldo Akhir	Arus Kas
a	b	c	d = f x EIR	e = p x i	f	g = d+e	f = c + g
01/02/2025	-	191,000,000	-	-	-	-	191,000,000	-
28/02/2025	-	192,471,370	1,471,370	-	-	1,471,370	192,471,370	-
31/03/2025	-	193,954,076	1,482,705	-	-	1,482,705	193,954,076	-
30/04/2025	-	195,448,203	1,494,127	-	-	1,494,127	195,448,203	-
31/05/2025	-	196,953,840	1,505,637	-	-	1,505,637	196,953,840	-
30/06/2025	-	198,471,076	1,517,236	-	-	1,517,236	198,471,076	-
31/07/2025	200,000,000	-	0	1,528,924	-	-	200,000,000	1,528,924 - 0

CHAPTER IV
PLACEMENTS IN OTHER BANKS

4.1. DEFINITIONS
a. Placements in other banks are deposits/receivables or deposits owned by BPR in other banks, both conventional and Sharia, with the aim of supporting operational activity smoothness, in order to obtain income, and as a secondary reserve. b. The scope of placements in other banks is the placement of BPR funds in other banks in the form of current accounts, savings, deposits, certificates of deposit, and other similar fund placements.

4.2. EXPLANATIONS
a. Current accounts are BPR deposits in commercial banks that can be withdrawn at any time using checks, giro slips, ATM cards (debit cards), other payment instruction media, or by book transfer. b. Savings are BPR deposits in commercial banks and other BPRs that can only be withdrawn according to specific agreed terms, but cannot be withdrawn using checks, giro slips, or other instruments that can be equated with them.
c. Deposits are BPR deposits in commercial banks and other BPRs that can only be withdrawn at a specific time according to an agreement between the BPR and the relevant bank. Deposits consist of time deposits and deposit on call. Deposit on call is a deposit with a relatively short term that can be withdrawn at any time with prior notice.
d. Certificates of deposit are BPR deposits in commercial banks in the form of deposits where the certificate of deposit proof can be transferred (bearer). Interest on certificates of deposit is calculated by discount, which is the difference between the deposit nominal value and the amount of money deposited. e. Placements in Sharia banks are BPR fund placements in Sharia commercial banks, Sharia business units of commercial banks, and Sharia BPRs using Sharia contracts. Accounting treatment refers to Sharia Financial Accounting Standards Statements.

4.3. ACCOUNTING TREATMENT

Recognition and Measurement a. Current accounts, deposits, and savings in other banks are generally recorded at acquisition cost, except for certificate of deposit products with discounts. b. Subsequent measurement is measured at amortized cost.

Presentation a. Placements in other banks are presented in a separate line item in the statement of financial position at amortized acquisition cost. b. The carrying amount of placements in other banks is the net value of placements in other banks on the reporting date after deducting CKPN (Impairment Loss Allowance).
c. CKPN for placements in other banks is presented as an offsetting account against the placement.

d. The carrying amount of placements in other banks must not be offset against the carrying amount of liabilities in other banks, even against the same bank.

4.4. JOURNAL ILLUSTRATIONS
a. General

At the time of placement in other banks
Db.
Penempatan pada bank lain

Kr.
Kas/Rekening BPR

At the time of interest revenue recognition (without discount) Db.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain

Kr.
Pendapatan bunga – Penempatan pada bank lain

At the time of interest revenue recognition (with discount) Db.
Penempatan pada bank lain

Kr.
Pendapatan bunga – Penempatan pada bank lain

Reversal of interest revenue recognition if the other bank defaults or there is a decline in quality Db.
Pendapatan bunga – Penempatan pada bank lain

Kr.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain

Formation of CKPN in accordance with Chapter XII on Impairment Loss Allowance

At the time of receiving interest payment for placements in other banks (without discount) Db.
Kas/Rekening BPR

Kr.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain

At the time of receiving interest payment for placements in other banks (with discount) Db.
Kas/Rekening BPR

Kr.
Penempatan pada bank lain

At the time of withdrawal/cashing of placements in other banks Db.
Kas/Rekening BPR

Kr.
Penempatan pada bank lain

b. When BPR recognizes interest revenue more than realized in the bank statement, BPR reverses the difference with the following journal:

Reversal of interest revenue recognition if BPR receives less than previously estimated, recorded in the journal:
Db.
Pendapatan bunga – Penempatan pada bank lain

Kr.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain

c. When BPR cashes out placements in other banks before maturity, BPR performs a reversal journal and recognizes fines/penalties (if any), recorded in the journal:

Reversal of interest revenue recognition if BPR receives less than previously estimated, recorded in the journal:
Db.
Pendapatan bunga – Penempatan pada bank lain

Kr.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain

Recognition of administrative sanctions in the form of fines/penalties but not yet paid, recorded in the journal:
Db.
Beban nonoperasional – Beban lainnya

Kr.
Liabilitas segera – Denda/penalty

Payment of fines/penalties, recorded in the journal Db.
Liabilitas segera – Denda/penalty

Kr.
Kas/rekening

d. Placements in Certificates of Deposit

Certificate of deposit placement, recorded in the journal:
Db.
Penempatan pada bank lain - Sertifikat deposito

Kr.
Kas/Rekening BPR

Receipt of certificate of deposit interest and recognition of interest and discount amortization, recorded in the journal:

Payment of certificate of deposit interest
Db.
Kas/Rekening

Kr.
Pendapatan bunga yang akan diterima – Sertifikat deposito

Recognition of interest and discount amortization Db.
Pendapatan bunga yang akan diterima – Sertifikat deposito

Db.
Penempatan pada bank lain - Sertifikat deposito

Kr.
Pendapatan bunga - Sertifikat deposito

At maturity, recorded in the journal:
Recognition of interest and discount amortization
Db.
Pendapatan bunga yang akan diterima – Sertifikat deposito

Db.
Penempatan pada bank lain - Sertifikat deposito

Kr.
Pendapatan bunga - sertifikat deposito

Cashing of certificate of deposit
Db.
Kas/Rekening BPR

Kr.
Penempatan pada bank lain - Sertifikat deposito

4.5. CASE EXAMPLES
a. Deposit Placement

On June 1, 2025, BPR “MAS” placed a deposit in Bank “LSA” amounting to Rp100,000,000 with an interest rate of 8%. BPR “MAS” intends to hold the deposit until maturity on July 1, 2026. There are no transaction costs.

Assumptions:

Recording is done on the transaction date.
The number of days for interest calculation in one year is actual/360 days.

For this transaction, the bookkeeping journal is as follows:

Deposit placement on June 1, 2025, recorded in the journal:
Db.
Penempatan pada bank lain – Deposito
Rp100.000.000

Kr.
Kas/Rekening BPR
Rp100.000.000

On June 30, 2025, at the time of interest recognition, recorded in the journal:
Db.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain Rp666.666

Kr.
Pendapatan bunga – Penempatan pada bank lain
(Rp100.000.000 x 8% x 30/360)
Rp666.666

On July 1, 2025, at the time of deposit interest receipt, recorded in the journal:
Db.
Kas/Rekening BPR
Rp666.666

Kr.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain Rp666.666

The journal for monthly interest recognition and deposit interest receipt is recorded as in items 2) and 3).

In the event that BPR withdraws the deposit before maturity and incurs a fine of Rp50,000 on July 31, 2025, recorded in the journal:

Reversal of interest revenue recognition if the bank receives less than previously estimated, recorded in the journal:
Db.
Pendapatan bunga – Penempatan pada bank lain
Rp22.222

Kr.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain (Rp666.666- Rp Rp644.444 (as an example, reduced by one day from expectation)) Rp22.222

Recognition of fine/penalty but not yet paid, recorded in the journal:
Db.
Beban nonoperasional – Beban lainnya
Rp50.000

Kr.
Liabilitas segera – Denda/penalty
Rp50.000

Payment of fine/penalty, recorded in the journal:
Db.
Liabilitas segera – Denda/penalty
Rp50.000

Kr.
Kas/rekening
Rp50.000

Cashing of deposit, recorded in the journal:
Db.
Kas/Rekening BPR
Rp100.000.000

Kr.
Penempatan pada bank lain - Deposito
Rp100.000.000

b. Current Account Placement

On June 1, 2025, BPR “ADM” placed a current account in Bank “ASA” amounting to Rp100,000,000 with an interest rate generally at 1%. There are no transaction costs.

Assumptions:

Recording is done on the transaction date.
The number of days for interest calculation in one year is actual/360 days.

For this transaction, the bookkeeping journal is as follows:

Current account placement on June 1, 2025, recorded in the journal:
Db.
Penempatan pada bank lain – Giro
Rp100.000.000

Kr.
Kas/Rekening BPR
Rp100.000.000

On June 30, 2025, at the time of interest recognition based on bank statement estimates, recorded in the journal:
Db.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain Rp83.333

Kr.
Pendapatan bunga – Penempatan pada bank lain
(Rp100.000.000 x 1% x 30/360)
Rp83.333

According to account mutations, considering there are balance fluctuations, interest revenue should be Rp83,333 becoming Rp75,000 due to a balance change to Rp90,000,000. For this adjustment, BPR makes the following adjustment:
Db.
Pendapatan bunga – Penempatan pada bank lain
Rp8.333

Kr.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain (Rp100.000.000 x 1% x 30/360) - (Rp90.000.000 x 1% x 30/360) Rp8.333

On July 1, 2025, at the time of current account cashing and receipt of current account interest, recorded in the journal:
Db.
Kas/Rekening BPR
Rp100.075.000

Kr.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain (Rp83.334- Rp8.334) Rp75.000

Kr.
Penempatan pada bank lain
Rp100.000.000

c. Certificate of Deposit Placement

On February 1, 2025, BPR “DEF” placed a certificate of deposit in Bank “DTD” amounting to Rp200,000,000 with an interest rate of 8% on Rp198,000,000. BPR “DEF” intends to hold the certificate of deposit until maturity on July 31, 2025. There are no transaction costs.

Assumptions:

Recording is done on the transaction date.
The number of days for interest calculation in one year is actual/360 days.

For this transaction, the bookkeeping journal is as follows:

Certificate of deposit placement on February 1, 2025, recorded in the journal:
Db.
Penempatan pada bank lain - Sertifikat deposito Rp198.000.000

Kr.
Kas/Rekening BPR
Rp198.000.000

Payment of certificate of deposit interest and recognition of interest and discount amortization on February 28, 2025, recorded in the journal:

Recognition of interest and discount amortization Db.
Pendapatan bunga yang akan diterima – Sertifikat deposito Rp1.333.333

Db.
Penempatan pada bank lain - Sertifikat deposito Rp326.416

Kr.
Pendapatan bunga - Sertifikat deposito
Rp1.659.749

Tanggal	Beban Bunga Sesuai Suku Bunga Efektif	Beban Bunga sesuai Kontraktual	Pokok Diskonto yang belum diamortisasi	Saldo Akhir	Arus Kas
a	b = g x EIR	c = p x i	d	e	f = c + d	g
2/1/2025	-	-	-	198,000,000	-	198,000,000
2/28/2025	1,659,749	-	1,333,333	-	1,333,333	326,416	198,326,416
3/31/2025	1,662,485	-	1,333,333	-	1,333,333	329,152	198,655,568
4/30/2025	1,665,245	-	1,333,333	-	1,333,333	331,911	198,987,479
5/31/2025	1,668,027	-	1,333,333	-	1,333,333	334,694	199,322,173
6/30/2025	1,670,832	-	1,333,333	-	1,333,333	337,499	199,659,672
7/31/2025	1,673,662	-	1,333,333	-	200,000,000	201,333,333	340,328 - 0

The journal for the recognition of interest, discount amortization, and interest payments is the same as the journal above.

Payment of certificate of deposit interest
Db.
Kas/Rekening
Rp1.333.333

Kr.
Pendapatan bunga yang akan diterima - Sertifikat deposito Rp1.333.333

At maturity on July 31, 2025, recorded in the journal:

Recognition of interest and discount amortization Db.
Pendapatan bunga yang akan diterima – Sertifikat deposito Rp1.333.333

Db.
Penempatan pada bank lain - Sertifikat deposito Rp340.328

Kr.
Pendapatan bunga - sertifikat deposito
Rp1.673.662

Cashing of certificate of deposit
Db.
Kas/Rekening BPR
Rp200.000.000

Kr.
Penempatan pada bank lain - Sertifikat deposito Rp200.000.000

Payment of certificate of deposit interest
Db.
Kas/Rekening
Rp1.333.333

Kr.
Pendapatan bunga yang akan diterima - Sertifikat deposito Rp1.333.333

d. Deposit Placement with Reward Receipt at the Beginning of the Transaction

On June 1, 2025, BPR “ABS” placed a deposit in Bank “TUR” amounting to Rp1,000,000,000 with a contractual interest rate of 1.2%. In addition, BPR “ABS” received a reward for the deposit placement in the form of a motor vehicle with a fair value of Rp24,000,000 on the transaction date. BPR “ABS” intends to hold the deposit until maturity on July 1, 2026. There are no transaction costs.

Assumptions:

Recording is done on the transaction date.
The number of days for interest calculation in one year is actual/360 days.

For this transaction, the bookkeeping journal is as follows:

Deposit placement on June 1, 2025, recorded in the journal:

Tanggal	Arus Kas	Saldo Awal	Arus Kas	Bunga Efektif	Bunga Kontraktual	Penempatan dengan EIR	Amortisasi	Saldo Akhir	Arus Kas
a	b	c	d = f x EIR	e = p x i	f	g = d+e	f = c + g
01/02/2025	-	976,000,000	-	-	-	-	-	976,000,000	-
28/02/2025	1,000,000	976,000,000	2,966,783	-	1,000,000	-	1,966,783	977,966,783	-
31/03/2025	1,000,000	977,966,783	2,972,761	-	1,000,000	-	1,972,761	979,939,544	-
30/04/2025	1,000,000	979,939,544	2,978,758	-	1,000,000	-	1,978,758	981,918,302	-
31/05/2025	1,000,000	981,918,302	2,984,773	-	1,000,000	-	1,984,773	983,903,075	-
30/06/2025	1,000,000	983,903,075	2,990,806	-	1,000,000	-	1,990,806	985,893,881	-
31/07/2025	1,000,000	985,893,881	2,996,858	-	1,000,000	-	1,996,858	987,890,738	-
31/08/2025	1,000,000	987,890,738	3,002,927	-	1,000,000	-	2,002,927	989,893,666	-
30/09/2025	1,000,000	989,893,666	3,009,016	-	1,000,000	-	2,009,016	991,902,682	-
31/10/2025	1,000,000	991,902,682	3,015,123	-	1,000,000	-	2,015,123	993,917,805	-
30/11/2025	1,000,000	993,917,805	3,021,248	-	1,000,000	-	2,021,248	995,939,053	-
31/12/2025	1,000,000	995,939,053	3,027,392	-	1,000,000	-	2,027,392	997,966,445	-
31/01/2026	1,000,000	997,966,445	3,033,555	-	1,000,000	-	1,000,000,000	2,033,555	0

Db.
Penempatan pada bank lain – Deposito
Rp1.000.000.000

Kr.
Kas/Rekening BPR
Rp1.000.000.000

Receipt of reward for deposit placement on June 1, 2025, recorded in the journal:
Db.
Aset tetap dan inventaris
Rp24.000.000

Kr.
Penempatan pada bank lain
Rp24.000.000

On June 30, 2025, at the time of interest recognition, recorded in the journal:
Db.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain Rp1.000.000

Db.
Penempatan pada bank lain - Deposito
Rp1.966.783

Kr.
Pendapatan bunga – Penempatan pada bank lain
Rp2.966.783

On July 1, 2025, at the time of deposit interest receipt, recorded in the journal:
Db.
Kas/Rekening BPR
Rp1.000.000

Kr.
Pendapatan bunga yang akan diterima – Penempatan pada bank lain Rp1.000.000

CHAPTER V
CREDIT GRANTED

5.1. CREDIT GRANTING

5.1.1. DEFINITIONS
a. Credit is the provision of funds or receivables that can be equated with them, based on a loan agreement or borrowing agreement between the BPR and the borrower, which obligates the borrower to repay their debt after a certain period with the provision of interest, including the transfer of receivables. b. Syndicated Loans are credits granted jointly by 2 (two) or more banks or other financing companies with the division of funds, risks, and income (interest and fees/commissions) according to the participation share of each syndicate member. Syndicated credit is also called credit in the context of joint financing.
c. Channeling Credit (credit channeling):

Channeling Credit is credit where all funds originate from the government or other fund providers and are given to specific business sectors/debtors determined by the fund provider. The BPR does not bear risks for the credit and for this task, the BPR receives service remuneration in the form of fees or a portion of interest.
Channeling Credit is not recognized as credit granted, but is recorded in administrative accounts (off-balance sheet) and disclosed in the notes to the financial statements. This is because in practice, for channeling credit, the BPR does not have the authority to decide on the granting of credit.
d. Executing Credit (credit management) is credit where all or part of the funds originate from the government or other fund providers and the rest originates from the BPR. In this case, the BPR acts as the manager of all such credits. The source of funds and credit risks borne by the BPR are determined based on agreements. e. Secured Credit is the portion of credit where the funds originate from the BPR and the credit risk is guaranteed by the government, credit insurance, or other parties. f. Impairment Loss Allowance (CKPN) is a provision formed for the impairment of financial instruments in accordance with financial accounting standards. g. Ceiling is the maximum amount of Credit received by the debtor as stated in the agreement/Credit letter. h. Drawdown Facility is a Credit facility that can still be drawn by the debtor from the available Ceiling.
i. Credit Principal is the Credit balance that has been used by the debtor and has not been repaid by the debtor (commonly referred to as debit balance).
j. Debtor Obligations are all debtor obligations to the BPR in the form of Credit Principal plus interest charges, fines (penalties), and other costs in accordance with the credit agreement.

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the BPR Accounting examples are merely illustrations according to the context of the illustration.

k. Contractual Interest is the compensation paid by the debtor for the Loan received and is usually stated as a percentage.

l. Loan Provision is the cost that the debtor must pay when the Loan is approved and is usually stated as a percentage.

m. Penalty (denda) is the compensation that must be paid by the debtor for the late payment of principal and/or interest or other obligations that have become due, including compensation for early payment or settlement of the due date.

n. Commitment Fee is the cost that the debtor must pay for the portion of the Loan that has been granted but not yet used.

5.1.2. EXPLANATION

a. Loans, by definition, have elements including:

approval or agreement of a loan;
borrowing activities of money or receivables equal to the agreed Plafond;
a specific time period;
income in the form of interest, compensation, or profit sharing;
risk;
collateral and/or guarantees (if any);
clear purpose of Loan usage that is in accordance with internal BPR regulations and external regulations such as government regulations; and
the magnitude of the Loan value and the time period given in accordance with the borrower's needs.

b. Types of Loans according to their use include investment loans, working capital loans, and consumption loans.

c. The effective interest rate calculated based on contractual cash flows cannot be changed until the entire Debtor's Obligations are paid in full, including when the BPR provides interest relief through Loan restructuring or revises estimates of interest and principal payments. The provisions for determining the effective interest rate are as follows:

Loans with a fixed interest rate have one effective interest rate calculated at the beginning of the Loan issuance.
Loans with a fixed interest rate and phased disbursement (multi-disburse) have 3 (three) possible accounting treatments, namely:
a) multi-disburse accounts with known withdrawal times and amounts, then the BPR can calculate the effective interest rate. b) multi-disburse accounts with unknown withdrawal times and amounts that cannot be reliably estimated, which have separate accounts for each stage of loan withdrawal, then the BPR can calculate the effective interest rate at each stage of loan withdrawal; or c) multi-disburse accounts with unknown withdrawal times and amounts that cannot be reliably estimated, which have 1 account for all stages of loan withdrawal, then the BPR can use the straight-line method in amortization.
If the BPR grants Loans with a known increasing or decreasing interest rate scheme (step up/down) from the beginning (already agreed upon), then this must be taken into account at the initial calculation of cash flows to determine the effective interest rate.
Loans with floating interest rates, the calculation of the effective interest rate is based on cash flows using interest rates estimated at the beginning of the Loan issuance. Subsequently, the effective interest rate will be adjusted at the next interest rate adjustment. The effective interest rate will change each time there is a change in the estimate of future cash flows resulting from changes in interest rates. Amortization of income and/or expenses that can be directly attributed continues using the new effective interest rate.

d. In calculating the effective interest rate, the BPR must carefully consider transaction costs, including income and expenses other than interest (which can be directly attributed to the granting/purchasing of Loans), which must be taken into account in the estimation of future cash flows. Types of such income and expenses include:

fees related to the Loan term, including fees (such as origination fees) and Loan Provisions stated in the Loan agreement, as long as the fee/Loan Provision arises directly at the time of granting/purchasing the Loan (acquisition of assets). If fee/Loan Provision is received in full for Loans with phased withdrawals, the fee/provision is allocated proportionally according to the amount of loan withdrawal at each stage; and
costs incurred by the BPR in the context of granting/purchasing Loans, including fees or compensation paid to developers, stamp duty costs, employees, or other parties for each approved Loan application.

e. The BPR can use the straight-line method for amortization for:

loans with withdrawal schedules (cash flows) that are difficult to predict (examples: loans that are revolving such as working capital loans, and loans with phased disbursement with withdrawal times and amounts that cannot be determined reliably and only have 1 account for all stages of loan withdrawal); and
the magnitude of transaction costs that can be directly attributed to the acquisition of placements and the difference between loan interest rates and market interest rates for similar loans that are material.
Amortization of transaction costs for loans without a fixed term can be based on historical average loan life data.

f. Interest income from loan agreements (contractual interest) is recognized as follows:

Loans included in the performing category are recognized on an accrual basis;
Loans included in the non-performing category are recognized on a cash basis.
Receipt of deposits from debtors for performing loans is used first to settle interest charges. Meanwhile, receipt of deposits from debtors for non-performing loans must be used first to settle overdue principal, and if there is any excess deposit received, it is recognized as settlement of interest arrears.

g. When the loan is classified as a non-performing loan, the BPR cancels loan interest (contractual interest) that has been recognized as income but has not yet been paid by the debtor, and the cancelled interest is recognized as contingent receivables (interest income in progress).

h. The BPR must establish materiality levels and document them in accounting policies.

i. In financial statements, the BPR can cease recognition (derecognition) of Loans if and only if:

The BPR no longer has contractual rights to future cash flows from the Loan; or
The BPR has transferred the Loan where the transfer meets the criteria for derecognition.

5.1.3. ACCOUNTING TREATMENT

Recognition and Measurement

a. Loans granted are measured at acquisition cost plus/minus transaction costs including provisions.

b. Interest income is measured using the effective interest rate.

c. Subsequent measurement is measured at amortized acquisition cost.

d. At the time of signing the Loan agreement with the debtor, the BPR recognizes "commitment liability for Credit facilities granted to the debtor" equal to the agreed Loan Plafond or that can be withdrawn according to the agreed withdrawal/use schedule of the Loan between the BPR and the debtor, except for loan renewals. The amount of the loan facility commitment liability can decrease or increase during the Loan term according to the type of Loan, namely:

Working capital loans will decrease when withdrawals are made and will increase when deposits are received.
Investment loans, Working Capital Loans (KMK) with decreasing Plafond, or Consumption loans will decrease when withdrawals are made and remain (do not increase) when deposits are received.

e. For Loans recorded based on amortized acquisition cost, the carrying amount at initial recognition may differ from the Loan value that will be obtained at maturity, namely if the BPR:

receives income (other than interest) and/or issues transaction costs that can be directly attributed to the granting/purchasing of the Loan;
grants Loans with interest rates outside market interest rates (for example 5% (five percent), while the market interest rate for similar Loans is 8% (eight percent)). In determining the market interest rate, the BPR can use the reference interest rate applicable at the BPR, for example base lending rate plus risk premium and profit margin for similar Loans.

f. The difference between the carrying amount of the Loan (which is amortized acquisition cost) and the Loan value that will be received at the Loan maturity is amortized over the current period using the effective interest rate method.

g. The BPR can simultaneously recognize immaterial provision income and transaction costs.

h. In calculating amortized acquisition cost, BPRs that grant loans with flat interest rate agreements convert the cash flows of principal and interest installments from flat interest rates to annuity interest rates. The numbers used in the amortized acquisition cost calculation table are the cash flow numbers of principal and interest installments of annuity interest rates. Example of effective interest rate calculation table as in section 5.1.5 - Case Examples. Although accounting-wise the BPR must create installment tables with effective interest rates, the BPR system for customers can still use flat interest rates according to business objectives.

Presentation

a. Loans are presented in a separate position in the financial position statement at amortized acquisition cost.

b. Syndicated loans are presented based on the portion of Loans whose risks are borne by the BPR, including transaction costs related to the portion of the Loan concerned.

c. Managed loans are presented in the "Loans Granted" position based on the portion of Loans whose risks are borne by the BPR, including transaction costs related to the portion of the Loan concerned.

d. Interest income from Loans (which is taken into account in the estimation of future cash flows at the time of initial recognition of Loans or at the time of adjusting Loan interest rates) that has been recognized as income but has not yet received payment, is presented as Loan interest receivables or interest income to be received.

e. If the BPR receives provision payment first while the loan has not yet been withdrawn by the customer past the end of the reporting period, the "Loans Granted" balance will be negative. The aforementioned balance can be presented on the other liabilities side.

5.1.4. JOURNAL ILLUSTRATION

a. Direct Granting of Loans by BPR

At the time of signing the loan agreement:
Receive provision from debtor
Dr.
Cr.
Cash/Debtor's Account
Loans Granted
Payment of expenses that can be attributed
Dr.
Cr.
Loans Granted
Cash/Debtor's Account
Record commitment liability for credit facilities in administrative accounts Dr.
Cr.
Counter Account – Unused Credit Facilities
Commitment Liability – Credit Facilities Not Yet Withdrawn
At the time of loan disbursement to the debtor:
Loan Disbursement
Dr.
Cr.
Loans Granted
Cash/Debtor's Account
At the same time, journal entries are made in administrative accounts to reduce the commitment liability for credit facilities not yet withdrawn by the debtor. Dr. Cr. Commitment Liability – Credit Facilities Not Yet Withdrawn Counter Account – Unused Credit Facilities
At the time of recognizing interest income, the BPR performs amortization and charges interest receivables to the debtor:
Recognition of Interest Income
Dr.
Dr/Cr.
Cr.
Interest Income Receivable (Contractual Interest) Loans Granted Interest Income When the debtor defaults and if there is a possibility that the BPR cannot recover the income, the BPR makes journal entries reversing the recognition of interest income.
At the time of receiving deposits from the debtor:
Dr.
Dr/Cr.
Dr/Cr.
Cash/Accounts
Interest Income Receivable
Loans Granted
Formation of CKPN in accordance with Chapter XII on Provisions for Impairment Losses.
If the debtor's condition defaults and the BPR can make claims to insurance companies:
a) Claims to insurance companies and the BPR has no subrogation obligations to collect from customers on behalf of the insurance company:
When submitting a claim, recorded in journal:
Dr.
Cr.
Insurance Claim Receivables
Loans Granted
When provisioning CKPN for insurance claim receivables, recorded in journal:
Dr.
Cr.
Impairment Loss Expense - Insurance Claim Receivables CKPN - Insurance Claim Receivables When the BPR receives the claim, recorded in journal:
Dr.
Cr.
Dr.
Cr.
BPR Cash/Accounts
Insurance Claim Receivables
CKPN - Insurance Claim Receivables
Impairment Loss Expense - Insurance Claim Receivables

b) If the BPR does not reclassify Loans to insurance claim receivables and there are subrogation obligations to insurance companies:
When the BPR sends claim invoices to insurance companies, recorded in journal:
No journal entries recorded.
When the BPR receives insurance claim results, recorded in journal:
Dr.
Cr.
CKPN – Loans Granted
Loans Granted (amount claimed to insurance companies) BPR subrogation liability, recorded in journal:
Dr.
Cr.
Administrative Accounts – Subrogation Liability Administrative Counter Accounts – Subrogation Liability When the debtor makes payment (post-receipt of claim from insurance company):
Payment for BPR portion, recorded in journal:
Dr.
Cr.
Cash/Accounts
Loans Granted
Payment for insurance company portion, recorded in journal:
Dr.
Cr.
Insurance Company Cash/Accounts
Intermediary Accounts
Payment to insurance companies, recorded in journal:
Dr.
Cr.
Intermediary Accounts
Insurance Company Accounts
Reverse subrogation liability, recorded in journal:
Dr.
Cr.
Administrative Counter Accounts – Subrogation Liability Administrative Accounts – Subrogation Liability

b. Granting of Channeling Loans

BPR receives funds from fund providers for disbursement. The BPR acts only as an administrator for Loans granted by third parties, there is no flow of funds in or out through the BPR, so the BPR does not record assets or financial liabilities:
a) At the time of receiving funds from fund providers, recorded in journal:
Dr. Cash/Funds Provider Accounts
Cr. Funds for Loan Disbursement (temporary fund holding accounts) b) At the time of signing loan disbursement agreements with debtors, recorded in journal:

The BPR does not receive loan provisions because the BPR is in a position of not receiving benefits and risks from the loan.
The BPR does not record commitment liabilities for unused credit facilities, but the BPR records as transferred loans with collection management in administrative accounts.
c) At the time of loan withdrawal by the debtor, recorded in journal:
Dr.
Cr.
Funds for Loan Disbursement (temporary fund holding accounts) Cash/Debtor's Accounts At the same time as this journal, the BPR records in administrative accounts, namely transferred loan accounts with collection management. d) At the time of calculating and charging loan interest to debtors, recorded in journal:
The BPR does not make journal entries. e) At the time of settling interest and/or loan principal payments after deducting loan renewal fees to fund providers, recorded in journal:
Dr.
Cr.
Loan Renewal Fee Income
Cash/Funds Provider Accounts f) If fees must be charged to fund providers:
(1) At the time of charging, recorded in journal:
Dr.
Cr.
Loan Renewal Fee Income Receivable (temporary accounts) Loan Renewal Fee Income (2) At the time of receiving channeling loan fees from fund providers, recorded in journal:
Dr.
Cr.
Cash/Funds Provider Accounts
Loan Renewal Fee Income Receivable (temporary accounts)

BPR receives funds from fund providers for disbursement. The BPR acts as an administrator and receives incoming funds (records financial liabilities) and when disbursing loans reduces its financial liabilities (credit risk is borne by third parties)
a) At the time of receiving funds from fund providers, recorded in journal:
Dr.
Cr.
Cash/Funds Provider Accounts
Funds for Loan Disbursement (temporary fund holding accounts) b) At the time of signing loan disbursement agreements with debtors, recorded in journal

The BPR does not receive loan provisions because the BPR is in a position of not receiving benefits and risks from the loan.
The BPR does not record commitment liabilities for unused credit facilities, but the BPR records as transferred loans with collection management in administrative accounts.
c) At the time of loan withdrawal by the debtor, recorded in journal:
Dr.
Cr.
Funds for Loan Disbursement (temporary fund holding accounts) Cash/Debtor's Accounts At the same time as this journal, the BPR records in administrative accounts, namely transferred loan accounts with collection management. d) At the time of calculating and charging loan interest to debtors, recorded in journal:
The BPR does not make journal entries. e) At the time of receiving loan interest payments from debtors, recorded in journal:
Dr.
Cr.
Cash/Debtor's Accounts
Other Liabilities – Channeling Loan Interest Deposits At the same time, journal entries are reversed in administrative accounts, namely transferred loan accounts with collection management. f) At the time of receiving loan principal payments from debtors, recorded in journal:
Dr.
Cr.
Cash/Accounts
Other Liabilities – Channeling Loan Interest Deposits At the same time, journal entries are reversed in administrative accounts, namely transferred loan accounts with collection management. g) At the time of settling interest and/or loan principal payments after deducting loan renewal fees to fund providers, recorded in journal:
Dr.
Dr.
Cr.
Cr.
Other Liabilities – Channeling Loan Interest Deposits Other Liabilities – Channeling Loan Principal Deposits Loan Renewal Fee Income Cash/Funds Provider Accounts h) If fees must be charged to fund providers:
(1) At the time of charging, recorded in journal:
Dr.
Cr.
Loan Renewal Fee Income Receivable (temporary accounts) Loan Renewal Fee Income (2) At the time of receiving channeling loan fees from fund providers, recorded in journal:
Dr.
Cr.
Cash/Funds Provider Accounts
Loan Renewal Fee Income Receivable (temporary accounts)

BPR does not receive funds from fund providers for disbursement.
a) Loan withdrawals have already been made by debtors directly to fund providers, the BPR is only asked to administer them. b) At the time of receiving orders to book loan withdrawal proofs, the BPR records in administrative accounts, namely transferred loan accounts with collection management. c) Other accounting procedures are the same as if the BPR receives funds from fund providers, namely (1) At the time of calculating and charging loan interest to debtors, recorded in journal:
The BPR does not make journal entries.
(2) If fees must be charged to fund providers:
(a) At the time of charging, recorded in journal:
Dr.
Cr.
Loan Renewal Fee Income Receivable (temporary accounts) Loan Renewal Fee Income (b) At the time of receiving channeling loan fees from fund providers, recorded in journal:
Dr.
Cr.
Cash/Funds Provider Accounts
Loan Renewal Fee Income Receivable (temporary accounts)
The BPR only refers to debtors. If fees must be charged to fund providers:
a) At the time of charging, recorded in journal:
Dr.
Cr.
Loan Renewal Fee Income Receivable (temporary accounts) Loan Renewal Fee Income b) At the time of receiving channeling loan fees from fund providers, recorded in journal:
Dr.
Cr.
Cash/Funds Provider Accounts
Loan Renewal Fee Income Receivable (temporary accounts)

5.1.5. CASE EXAMPLES

a. Working Capital Loans with Fixed Interest Rates On January 1, 2025, BPR “RST” granted a Loan to debtor “JKL” with data according to the Loan agreement as follows:
Loan Plafond : Rp145,000,000
Time Period : 1 year or 12 months
Loan Type : Working Capital
Interest : 15%/year or 1.25%/month
Provision : 1.5% or Rp2,175,000
BPR expenses that can be directly attributed amount to Rp2,000,000.
Based on the data above, the total funds disbursed by the BPR amount to Rp144,825,000 = Rp145,000,000 - Rp2,175,000 + Rp2,000,000. Assumptions:

The debtor fulfills all obligations (performing).
Principal and interest payments are made every month. (See Table 1 and Table 2)

Table 1: Bank Account Mutations
Flat principal installment of Rp13,083,333 (Rp145,000,000/12) Interest of Rp1,812,500 (Rp145,000,000*15%/12)

Table 2: Future Cash Flow Estimate for Working Capital Loan
– Amortized Acquisition Cost (Conversion from Flat to Annuity)

Table 3: Future Cash Flow Estimate for Working Capital Loan
– Amortized Acquisition Cost (Conversion from Annuity to Effective)

For the above transactions, the accounting journals are as follows:

On January 1, 2025, at the time of signing the Credit Agreement/Credit Deed, recorded in the journal:
Recording of fees charged to the debtor
Dr.
Cr.
Cash/Debtor's Account
Credit Granted
Rp2,175,000
Rp2,175,000
Recording of transaction costs related to the signing of the credit agreement/credit deed Dr.
Cr.
Credit Granted
Cash/Service Provider's Account
Rp2,000,000
Rp2,000,000
At the time of credit disbursement and accounting of the administrative account for the credit facility provided to the customer, recorded in the journal:
At the time of signing the credit agreement/credit deed Transaction Date Payment Principal Interest Monthly Installment Amortization Provision and Costs Loan Balance Flat Provision Balance 0 1-Sep-23 145,000,000 175,000 1 30-Sep-23 12,083,333 1,812,500 13,895,833 14,583 132,916,667 160,417 2 31-Oct-23 12,083,333 1,812,500 13,895,833 14,583 120,833,333 145,833 3 30-Nov-23 12,083,333 1,812,500 13,895,833 14,583 108,750,000 131,250 4 31-Dec-23 12,083,333 1,812,500 13,895,833 14,583 96,666,667 116,667 5 31-Jan-24 12,083,333 1,812,500 13,895,833 14,583 84,583,333 102,083 6 29-Feb-24 12,083,333 1,812,500 13,895,833 14,583 72,500,000 87,500 7 31-Mar-24 12,083,333 1,812,500 13,895,833 14,583 60,416,667 72,917 8 30-Apr-24 12,083,333 1,812,500 13,895,833 14,583 48,333,333 58,333 9 31-May-24 12,083,333 1,812,500 13,895,833 14,583 36,250,000 43,750 10 30-Jun-24 12,083,333 1,812,500 13,895,833 14,583 24,166,667 29,167 11 31-Jul-24 12,083,333 1,812,500 13,895,833 14,583 12,083,333 14,583 12 31-Aug-24 12,083,333 1,812,500 13,895,833 14,583 0 - 0

Transaction Date Principal Balance Monthly Installment Interest Annuity Installment Principal Annuity Ending Principal Balance 0 1-Sep-23 (145,000,000) 145,000,000 1 30-Sep-23 145,000,000 13,895,833 3,216,893 10,678,941 134,321,059 2 31-Oct-23 134,321,059 13,895,833 2,979,975 10,915,858 123,405,201 3 30-Nov-23 123,405,201 13,895,833 2,737,802 11,158,031 112,247,170 4 31-Dec-23 112,247,170 13,895,833 2,490,256 11,405,578 100,841,592 5 31-Jan-24 100,841,592 13,895,833 2,237,218 11,658,616 89,182,977 6 29-Feb-24 89,182,977 13,895,833 1,978,566 11,917,267 77,265,710 7 31-Mar-24 77,265,710 13,895,833 1,714,176 12,181,658 65,084,052 8 30-Apr-24 65,084,052 13,895,833 1,443,920 12,451,913 52,632,139 9 31-May-24 52,632,139 13,895,833 1,167,669 12,728,165 39,903,974 10 30-Jun-24 39,903,974 13,895,833 885,288 13,010,545 26,893,429 11 31-Jul-24 26,893,429 13,895,833 596,643 13,299,190 13,594,239 12 31-Aug-24 13,594,239 13,895,833 301,595 13,594,239 0

Period Cash Flow Estimate Beginning Balance Cash Flow Credit Effective Interest Rate (EIR) Principal Installment Interest Charge Amortization with EIR Ending Balance Cash Flow Credit 01/01/2025 - 144,825,000 - - - - 144,825,000 31/01/2025 13,895,833 144,825,000 3,241,673.43 - 10,678,941 - 3,216,893 24,781 134,170,840 28/02/2025 13,895,833 134,170,840 3,003,197.29 - 10,915,858 - 2,979,975 23,222 123,278,204 31/03/2025 13,895,833 123,278,204 2,759,383.24 - 11,158,031 - 2,737,802 21,581 112,141,754 30/04/2025 13,895,833 112,141,754 2,510,111.82 - 11,405,578 - 2,490,256 19,856 100,756,032 31/05/2025 13,895,833 100,756,032 2,255,260.85 - 11,658,616 - 2,237,218 18,043 89,115,460 30/06/2025 13,895,833 89,115,460 1,994,705.46 - 11,917,267 - 1,978,566 16,140 77,214,332 31/07/2025 13,895,833 77,214,332 1,728,317.96 - 12,181,658 - 1,714,176 14,142 65,046,817 31/08/2025 13,895,833 65,046,817 1,455,967.81 - 12,451,913 - 1,443,920 12,048 52,606,951 30/09/2025 13,895,833 52,606,951 1,177,521.53 - 12,728,165 - 1,167,669 9,853 39,888,639 31/10/2025 13,895,833 39,888,639 892,842.69 - 13,010,545 - 885,288 7,554 26,885,649 30/11/2025 13,895,833 26,885,649 601,791.77 - 13,299,190 - 596,643 5,149 13,591,607 31/12/2025 13,895,833 13,591,607 304,226.15 - 13,594,239 - 301,595 2,632 0

Dr.
Cr.
Counterparty Account – Unused Credit Facility
Commitment Liability – Undrawn Credit Facility Rp145,000,000 Rp145,000,000

At the time of full credit disbursement to the debtor Dr.
Cr.
Dr.
Cr.
Credit Granted
Cash/Debtor's Account
Commitment Liability – Undrawn Credit Facility Counterparty Account – Unused Credit Facility Rp145,000,000

On January 31, 2025, at the time of charging interest to the debtor and amortization based on the effective interest rate, recorded in the journal:
At the time of charging interest to the debtor Dr.
Dr.
Cr.
Interest receivable – Credit Granted
Credit Granted
Interest Income - Credit Granted
Rp3,216,893
Rp24,781
Rp3,241,673

The journal for charging interest to the debtor and amortization based on the effective interest rate every month is the same as journal number 3) above in accordance with Table 2, assuming the debtor pays their obligations smoothly.

On February 5, 2025, at the time of interest and principal payment by the debtor:
At the time of receiving interest deposit from the debtor Dr.
Cr.
Cash/Debtor's Account
Interest receivable - Credit Granted
Rp13,895,833
Rp3,216,893
Cr. Credit Granted Rp10,678,941

b. Credit Channeling
On January 1, 2025, BPR “ADM” conducted credit channeling to debtor “ASA” with data according to the credit agreement between BUK and the debtor as follows:
Credit Ceiling: Rp145,000,000
Tenor: 1 year or 12 months
Credit Type: Working Capital
Interest: 15%/year or 1.25%/month
Provision: 1.5% or Rp2,175,000
Directly attributable BPR expenses amount to Rp2,000,000. Credit repayment is done at the end of the Credit period.
Based on the data above, the total funds disbursed by BPR amount to Rp144,825,000 = Rp145,000,000 + Rp2,000,000 - Rp2,175,000. The debtor fulfills all obligations (smooth). For the credit channeling, BPR receives a fee of 10% of the credit ceiling (Rp2,900,000).

Table 1: Future Cash Flow Estimate for Working Capital Loan
– Amortized Acquisition Cost
Effective interest rate: 1.26% per month
Note:
p = principal i = contractual interest rate

Table 2: Debtor's Bank Account Mutations

Scheme 1: BPR receives funds from the fund provider for disbursement. BPR acts only as an administrator for the credit granted by a third party, there is no flow of funds in or out through BPR, so BPR does not record assets or financial liabilities.
a) At the time of receiving funds from the fund provider, recorded in the journal:
Dr. Cash/fund provider's account Rp145,000,000 Cr. Funds for credit disbursement (temporary fund holding account) Rp145,000,000

b) At the time of signing the credit disbursement agreement with the debtor, recorded in the journal:

BPR does not receive credit provision because BPR is in a position of not receiving benefits and risks from the credit.
BPR does not record commitment liability for unused credit facilities, but BPR records

Period Cash Flow Estimate Beginning Balance Cash Flow Credit Effective Interest Rate (EIR) Principal Installment Interest Charge Amortization with EIR Ending Balance Cash Flow Credit a b c d=c x EIR e f = p x i g = d - f h 01/01/2025 - 144,825,000 - - - - 144,825,000 31/01/2025 1,812,500 144,825,000 1,826,099 - - 1,812,500 13,599 144,838,599 28/02/2025 1,812,500 144,838,599 1,826,271 - - 1,812,500 13,771 144,852,370 31/03/2025 1,812,500 144,852,370 1,826,445 - - 1,812,500 13,945 144,866,315 30/04/2025 1,812,500 144,866,315 1,826,620 - - 1,812,500 14,120 144,880,435 31/05/2025 1,812,500 144,880,435 1,826,798 - - 1,812,500 14,298 144,894,734 30/06/2025 1,812,500 144,894,734 1,826,979 - - 1,812,500 14,479 144,909,212 31/07/2025 1,812,500 144,909,212 1,827,161 - - 1,812,500 14,661 144,923,874 31/08/2025 1,812,500 144,923,874 1,827,346 - - 1,812,500 14,846 144,938,720 30/09/2025 1,812,500 144,938,720 1,827,533 - - 1,812,500 15,033 144,953,753 31/10/2025 1,812,500 144,953,753 1,827,723 - - 1,812,500 15,223 144,968,976 30/11/2025 1,812,500 144,968,976 1,827,915 - - 1,812,500 15,415 144,984,391 31/12/2025 146,812,500 144,984,391 1,828,109 - 145,000,000 - 1,812,500 15,609 0

Year Beginning Balance Principal Mutation Ending Balance Beginning Balance Accrued Interest Charge Interest Installment Interest Ending Balance Interest Outstanding Debtor j k l m = k+ l n o = p x i p q = n + o + p r = m + q 01/01/2025 - 145,000,000 145,000,000 - - - - 145,000,000 31/01/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 28/02/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 31/03/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 30/04/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 31/05/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 30/06/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 31/07/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 31/08/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 30/09/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 31/10/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 30/11/2025 145,000,000 - 145,000,000 - 1,812,500 - 1,812,500 - 145,000,000 31/12/2025 145,000,000 - 145,000,000 - - 1,812,500 - 1,812,500 - -

c) At the time of credit withdrawal by the debtor, recorded in the journal:
Dr. Funds for credit disbursement (temporary fund holding account) Rp145,000,000 Cr. Cash/Debtor's Account Rp145,000,000

Simultaneously with this journal, BPR records on the administrative account, namely substitute credit with collection management.

d) At the time of calculating and charging credit interest to the debtor and receiving interest and principal payments, recorded in the journal:
BPR does not perform journaling.

e) If fees must be charged to the fund provider:
(1) At the time of billing, recorded in the journal:
Dr. Credit channeling fee income receivable (temporary account) Rp2,900,000 Cr. Credit channeling fee income Rp2,900,000

(2) At the time of receiving credit channeling fees from the fund provider, recorded in the journal:
Dr. Cash/Fund Provider's Account
Rp2,900,000
Cr. Credit channeling fee income receivable (temporary account) Rp2,900,000

Scheme 2: BPR receives funds from the fund provider for disbursement. BPR acts as an administrator and receives incoming funds (records financial liability) and when disbursing credit reduces its financial liability (credit risk is borne by a third party).
a) At the time of receiving funds from the fund provider, recorded in the journal:
Dr. Cash/Fund Provider's Account
Rp145,000,000
Cr. Funds for credit disbursement (temporary fund holding account) Rp145,000,000

b) At the time of signing the credit disbursement agreement with the debtor, recorded in the journal:

BPR does not receive credit provision because BPR is in a position of not receiving benefits and risks from the credit.
BPR does not record commitment liability for unused credit facilities, but BPR records
as substitute credit with collection management on the administrative account.

c) At the time of credit withdrawal by the debtor, recorded in the journal:

Dr. Funds for credit disbursement (temporary fund holding account) Rp145,000,000 Cr. Cash/Debtor's Account Rp145,000,000

Simultaneously with this journal, BPR records on the administrative account, namely substitute credit with collection management.

d) At the time of calculating and charging credit interest to the debtor, recorded in the journal:
BPR does not perform journaling.

e) On January 31, 2025, at the time of receiving credit interest payment from the debtor, recorded in the journal:
Dr. Cash/Debtor's Account
Rp1,812,500
Cr. Other Liabilities – Credit Channeling Interest Deposit Rp1,812,500

Simultaneously, a reversal journal is performed on the administrative account, namely the substitute credit account with collection management.

f) On December 31, 2025, at the time of receiving credit principal payment from the debtor, recorded in the journal:
Dr. Cash/Account
Rp145,000,000
Cr. Other Liabilities – Credit Channeling Interest Deposit Rp145,000,000

Simultaneously, a reversal journal is performed on the administrative account, namely the substitute credit account with collection management.

g) At the time of settling interest and/or principal payments after deduction of credit channeling fees to the fund provider, recorded in the journal:
Dr. Other Liabilities - Credit Channeling Interest Deposit Rp1,812,500 Dr. Other Liabilities - Credit Channeling Principal Deposit Rp145,000,000 Cr. Credit Channeling Fee Income Rp2,900,000 Cr. Cash/Fund Provider's Account Rp143,923,500 (Rp145,000,000+Rp1,812,500- Rp2,900,000)

h) If fees must be charged to the fund provider:
(1) At the time of billing, recorded in the journal:
Dr. Credit channeling fee income receivable (temporary account) Rp2,900,000 Cr. Credit channeling fee income Rp2,900,000

(2) At the time of receiving credit channeling fees from the fund provider, recorded in the journal:
Dr. Cash/Fund Provider's Account
Rp2,900,000

Cr. Credit channeling fee income receivable (temporary account) Rp2,900,000

Scheme 3: BPR does not receive funds from the fund provider for disbursement.
a) At the time of calculating and charging credit interest to the debtor and receiving interest and principal payments, recorded in the journal:
BPR does not perform journaling.

b) If fees must be charged to the fund provider:
(1) At the time of billing, recorded in the journal:
Dr. Credit channeling fee income receivable (temporary account) Rp2,900,000 Cr. Credit channeling fee income Rp2,900,000

Scheme 4: BPR only refers to the debtor.
a) At the time of billing, recorded in the journal:
Dr. Credit channeling fee income receivable (temporary account) Rp2,900,000 Cr. Credit channeling fee income Rp2,900,000

b) At the time of receiving credit channeling fees from the fund provider, recorded in the journal:
Dr. Cash/Fund Provider's Account
Rp2,900,000
Cr. Credit channeling fee income receivable (temporary account) Rp2,900,000

c. Credit with Contractual Flat Interest Rate and Conversion to EIR Calculation
On September 1, 2025, BPR granted credit to a customer with a ceiling of Rp60,000,000, interest rate 6%, provision fee Rp600,000 with a tenor of 30 months. The customer pays principal and interest installments monthly. (See Table 1, Table 2, and Table 3)

Table 1: Contractual Installments
Table 2: Conversion of Flat Calculation to Annuity

Transaction Date Payment Principal Interest Monthly Installment Amortization Provision Loan Balance Flat Provision Balance 0 1-Sep-25 60,000,000 600,000 1 30-Sep-25 2,000,000 300,000 2,300,000 20,000 58,000,000 580,000 2 29-Oct-25 2,000,000 300,000 2,300,000 20,000 56,000,000 560,000 3 27-Nov-25 2,000,000 300,000 2,300,000 20,000 54,000,000 540,000 4 26-Dec-25 2,000,000 300,000 2,300,000 20,000 52,000,000 520,000 5 24-Jan-26 2,000,000 300,000 2,300,000 20,000 50,000,000 500,000 6 22-Feb-26 2,000,000 300,000 2,300,000 20,000 48,000,000 480,000 7 23-Mar-26 2,000,000 300,000 2,300,000 20,000 46,000,000 460,000 8 21-Apr-26 2,000,000 300,000 2,300,000 20,000 44,000,000 440,000 9 20-May-26 2,000,000 300,000 2,300,000 20,000 42,000,000 420,000 10 18-Jun-26 2,000,000 300,000 2,300,000 20,000 40,000,000 400,000 11 17-Jul-26 2,000,000 300,000 2,300,000 20,000 38,000,000 380,000 12 15-Aug-26 2,000,000 300,000 2,300,000 20,000 36,000,000 360,000 13 13-Sep-26 2,000,000 300,000 2,300,000 20,000 34,000,000 340,000 14 12-Oct-26 2,000,000 300,000 2,300,000 20,000 32,000,000 320,000 15 10-Nov-26 2,000,000 300,000 2,300,000 20,000 30,000,000 300,000 16 9-Dec-26 2,000,000 300,000 2,300,000 20,000 28,000,000 280,000 17 7-Jan-27 2,000,000 300,000 2,300,000 20,000 26,000,000 260,000 18 5-Feb-27 2,000,000 300,000 2,300,000 20,000 24,000,000 240,000 19 6-Mar-27 2,000,000 300,000 2,300,000 20,000 22,000,000 220,000 20 4-Apr-27 2,000,000 300,000 2,300,000 20,000 20,000,000 200,000 21 3-May-27 2,000,000 300,000 2,300,000 20,000 18,000,000 180,000 22 1-Jun-27 2,000,000 300,000 2,300,000 20,000 16,000,000 160,000 23 30-Jun-27 2,000,000 300,000 2,300,000 20,000 14,000,000 140,000 24 29-Jul-27 2,000,000 300,000 2,300,000 20,000 12,000,000 120,000 25 27-Aug-27 2,000,000 300,000 2,300,000 20,000 10,000,000 100,000 26 25-Sep-27 2,000,000 300,000 2,300,000 20,000 8,000,000 80,000 27 24-Oct-27 2,000,000 300,000 2,300,000 20,000 6,000,000 60,000 28 22-Nov-27 2,000,000 300,000 2,300,000 20,000 4,000,000 40,000 29 21-Dec-27 2,000,000 300,000 2,300,000 20,000 2,000,000 20,000 30 19-Jan-28 2,000,000 300,000 2,300,000 20,000 - -

Loan Principal 60,000,000 Credit Tenor 30 months Flat Interest 6% 0.50% Principal Installment 2,000,000 Provision 1% 600,000 Interest Installment 300,000 Monthly Installment 2,300,000 Annuity Interest Rate 0.93%

Transaction Date Principal Balance Monthly Installment Interest Annuity Installment Principal Annuity Ending Principal Balance 0 1-Sep-25 (60,000,000) 60,000,000 1 30-Sep-25 60,000,000 2,300,000 555,898 1,744,102 58,255,898 2 29-Oct-25 58,255,898 2,300,000 539,739 1,760,261 56,495,637 3 27-Nov-25 56,495,637 2,300,000 523,430 1,776,570 54,719,067 4 26-Dec-25 54,719,067 2,300,000 506,970 1,793,030 52,926,037 5 24-Jan-26 52,926,037 2,300,000 490,358 1,809,642 51,116,395 6 22-Feb-26 51,116,395 2,300,000 473,592 1,826,408 49,289,987 7 23-Mar-26 49,289,987 2,300,000 456,670 1,843,330 47,446,656 8 21-Apr-26 47,446,656 2,300,000 439,592 1,860,408 45,586,248 9 20-May-26 45,586,248 2,300,000 422,355 1,877,645 43,708,603 10 18-Jun-26 43,708,603 2,300,000 404,959 1,895,041 41,813,562 11 17-Jul-26 41,813,562 2,300,000 387,401 1,912,599 39,900,963 12 15-Aug-26 39,900,963 2,300,000 369,681 1,930,319 37,970,644 13 13-Sep-26 37,970,644 2,300,000 351,797 1,948,203 36,022,441 14 12-Oct-26 36,022,441 2,300,000 333,747 1,966,253 34,056,187 15 10-Nov-26 34,056,187 2,300,000 315,529 1,984,471 32,071,717 16 9-Dec-26 32,071,717 2,300,000 297,143 2,002,857 30,068,860 17 7-Jan-27 30,068,860 2,300,000 278,587 2,021,413 28,047,447 18 5-Feb-27 28,047,447 2,300,000 259,859 2,040,141 26,007,305 19 6-Mar-27 26,007,305 2,300,000 240,957 2,059,043 23,948,262 20 4-Apr-27 23,948,262 2,300,000 221,880 2,078,120 21,870,142 21 3-May-27 21,870,142 2,300,000 202,626 2,097,374 19,772,768 22 1-Jun-27 19,772,768 2,300,000 183,194 2,116,806 17,655,962 23 30-Jun-27 17,655,962 2,300,000 163,582 2,136,418 15,519,544 24 29-Jul-27 15,519,544 2,300,000 143,788 2,156,212 13,363,332 25 27-Aug-27 13,363,332 2,300,000 123,811 2,176,189 11,187,143 26 25-Sep-27 11,187,143 2,300,000 103,648 2,196,352 8,990,791 27 24-Oct-27 8,990,791 2,300,000 83,299 2,216,701 6,774,091 28 22-Nov-27 6,774,091 2,300,000 62,762 2,237,238 4,536,852 29 21-Dec-27 4,536,852 2,300,000 42,034 2,257,966 2,278,886 30 19-Jan-28 2,278,886 2,300,000 21,114 2,278,886 0

CONVERSION TO ANNUITY TABLE

Accounting treatment for transactions occurring in BPR must be carried out in accordance with the principles regulated in SAK EP. The journals and postings used in the BPR accounting examples are merely illustrations in accordance with the context of the illustration.

Table 3: Conversion of Annuity Calculation to Effective
BPR calculates the effective interest rate based on contractual cash flows and creates an amortization table for provision costs and transaction costs in accordance with the effective interest rate.

At the time of signing the credit agreement/credit deed:
Recording provisions charged to the debtor
Dr. Cash/Debtor Account Rp600,000
Cr. Loans Given Rp600,000
At the time of credit disbursement and booking of administrative accounts for credit facilities provided to customers:
At the time of signing the credit agreement/credit deed Dr. Counter Account – Unused Credit Facilities Rp60,000,000 Cr. Commitment Liability – Unused Credit Facilities Rp60,000,000

At the time of full credit disbursement to the debtor Dr. Loans Given Rp60,000,000 Cr. Cash/Debtor Account Rp60,000,000 Dr. Commitment Liability – Unused Credit Facilities Rp60,000,000 Cr. Counter Account – Unused Credit Facilities Rp60,000,000

No	Year	Estimated Cash Flow	Opening Balance	Credit Cash Flow	Effective Interest Rate (EIR)	Principal Installment	Interest Charge	Amortization with EIR
A	B	C	D=(In-1)	E=(Dn-1)xEIR	F	G=p x i	H=E-G	I=D-F+H
0	1-Sep-25	(59,500,000)	59,500,000
1	30-Sep-25	2,300,000	59,500,000	585,255	1,744,102	555,898	29,357	57,785,255
2	29-Oct-25	2,300,000	57,785,255	568,388	1,760,261	539,739	28,649	56,053,643
3	27-Nov-25	2,300,000	56,053,643	551,356	1,776,570	523,430	27,926	54,304,999
4	26-Dec-25	2,300,000	54,304,999	534,156	1,793,030	506,970	27,186	52,539,155
5	24-Jan-26	2,300,000	52,539,155	516,787	1,809,642	490,358	26,429	50,755,941
6	22-Feb-26	2,300,000	50,755,941	499,246	1,826,408	473,592	25,655	48,955,188
7	23-Mar-26	2,300,000	48,955,188	481,534	1,843,330	456,670	24,864	47,136,722
8	21-Apr-26	2,300,000	47,136,722	463,647	1,860,408	439,592	24,055	45,300,369
9	20-May-26	2,300,000	45,300,369	445,584	1,877,645	422,355	23,229	43,445,953
10	18-Jun-26	2,300,000	43,445,953	427,344	1,895,041	404,959	22,385	41,573,297
11	17-Jul-26	2,300,000	41,573,297	408,924	1,912,599	387,401	21,523	39,682,221
12	15-Aug-26	2,300,000	39,682,221	390,323	1,930,319	369,681	20,642	37,772,544
13	13-Sep-26	2,300,000	37,772,544	371,539	1,948,203	351,797	19,742	35,844,082
14	12-Oct-26	2,300,000	35,844,082	352,570	1,966,253	333,747	18,824	33,896,653
15	10-Nov-26	2,300,000	33,896,653	333,415	1,984,471	315,529	17,885	31,930,067
16	9-Dec-26	2,300,000	31,930,067	314,071	2,002,857	297,143	16,928	29,944,139
17	7-Jan-27	2,300,000	29,944,139	294,537	2,021,413	278,587	15,950	27,938,676
18	5-Feb-27	2,300,000	27,938,676	274,811	2,040,141	259,859	14,952	25,913,486
19	6-Mar-27	2,300,000	25,913,486	254,891	2,059,043	240,957	13,934	23,868,377
20	4-Apr-27	2,300,000	23,868,377	234,775	2,078,120	221,880	12,895	21,803,152
21	3-May-27	2,300,000	21,803,152	214,461	2,097,374	202,626	11,834	19,717,612
22	1-Jun-27	2,300,000	19,717,612	193,947	2,116,806	183,194	10,753	17,611,559
23	30-Jun-27	2,300,000	17,611,559	173,231	2,136,418	163,582	9,649	15,484,790
24	29-Jul-27	2,300,000	15,484,790	152,312	2,156,212	143,788	8,524	13,337,102
25	27-Aug-27	2,300,000	13,337,102	131,187	2,176,189	123,811	7,376	11,168,288
26	25-Sep-27	2,300,000	11,168,288	109,854	2,196,352	103,648	6,205	8,978,142
27	24-Oct-27	2,300,000	8,978,142	88,311	2,216,701	83,299	5,012	6,766,453
28	22-Nov-27	2,300,000	6,766,453	66,556	2,237,238	62,762	3,795	4,533,009
29	21-Dec-27	2,300,000	4,533,009	44,588	2,257,966	42,034	2,554	2,277,597
30	19-Jan-28	2,300,000	2,277,597	22,403	2,278,886	21,114	1,289	0

At the time of charging interest to the debtor and amortization based on the effective interest rate, recorded in the journal:
At the time of charging interest bills to the debtor Dr. Interest Income Receivable – Loans Given Rp555,898 Dr. Loans Given Rp29,357 Cr. Interest Income – Loans Given Rp585,255

The journal for charging interest to the debtor and amortization based on the effective interest rate every month is the same as journal item 3) above in accordance with Table 2, assuming the debtor pays their obligations smoothly.

At the time of interest and principal payment by the debtor:
At the time of receiving interest deposits from the debtor Dr. Cash/Debtor Account Rp2,300,000 Cr. Interest Income Receivable – Loans Given Rp555,898 Cr. Loans Given Rp1,744,102
If in the 9th month the debtor makes early repayment, then BPR recognizes the early repayment loss expense in profit or loss, recorded in the journal:
At the time of early repayment in the 9th month Dr. Cash/Debtor Account (Table 1) Rp42,000,000 Dr. Early Repayment Loss Expense / Interest Income Rp1,445,953 Cr. Loans Given (Table 3) Rp43,445,953

d. Loans with Withdrawal and Deposit Schemes at Any Time (Unscheduled) On January 1, 2025, BPR provided a loan to a customer with a ceiling of Rp100,000,000, with a withdrawal and deposit scheme at any time (unscheduled) with an interest rate of 15% per year, a provision fee of Rp1,000,000, a transaction fee of Rp250,000, due on December 31, 2025. Based on the credit agreement, the customer pays interest monthly on a flat basis.

At the time of signing the Credit Agreement, recorded in the journal:
Recording of provisions charged to the debtor on January 1, 2025 Dr. Cash Rp1,000,000 Cr. Loans Given – Costs Amortized Rp1,000,000

Recording of transaction costs related to the signing of the Credit Agreement/Deed on January 1, 2025 Dr. Loans Given Rp250,000 Cr. Cash Rp250,000

At the time of signing the Credit Agreement/Deed on January 1, 2025 Dr. Counter Account – Unused Credit Facilities Rp100,000,000

At the time of a withdrawal of Rp10,000,000 by the debtor on January 16, 2025, recorded in the journal:
Recording of credit facility withdrawal on January 16 Dr. Loans Given Rp10,000,000 Cr. Cash Rp10,000,000
At the time of recognizing interest income and amortization of provisions and transaction costs:
a. Recording of interest income recognition on January 31, 2025 Dr. Interest Income Receivable – Loans (15%15/360Rp10,000,000)=Rp62.5 Rp62,500 Cr. Interest Income Rp62,500

b. Recording of provision recognition on January 31, 2025 Dr. Loans Given (Rp1,000,000/12-Rp250,000/12)=Rp62,500 Rp62,500 Cr. Interest Income Rp62,500 *Provisions and transaction costs are recognized on a straight-line basis because the credit scheme is unscheduled

At the time of receiving interest payment from the debtor:
Recording of interest payment from debtor on January 31, 2025 Dr. Cash Rp62,500 Cr. Interest Income Receivable – Loans Rp62,500
At the time of a withdrawal of Rp10,000,000 by the debtor on February 1, 2025, recorded in the journal:
Recording of credit facility withdrawal on February 1 Dr. Loans Given Rp10,000,000 Cr. Cash Rp10,000,000

Journal entries for recognizing interest income and amortization of provisions and transaction costs are carried out the same as item (3) until the credit maturity date.

At the time the debtor settles the loan on the credit maturity date:
Recording of loan settlement on December 31
Dr. Cash Rp20,129,167
Cr. Loans Given Rp20,000,000
Cr. Interest Income Receivable – Loans (15%31/360Rp20,000,000=Rp129,167) Rp129,167

5.2. CREDIT RESTRUCTURING
5.2.1. DEFINITION
a. Credit Restructuring is an improvement effort carried out by BPR in lending activities towards debtors who experience difficulties in meeting their obligations. b. Credit Restructuring:

rescheduling, among others carried out through changes in the debtor's obligation payment schedule or changes in the duration;
renegotiation, among others carried out through:
a) changes in the amount of payment or installments; b) changes in the duration; c) reduction of the Credit interest rate; d) removal of part of the obligation; or
reorganization, among others carried out through the addition of BPR Credit facilities or conversion of all or part of the interest installment arrears into new Credit principal, which can be accompanied by rescheduling or renegotiation.

5.2.2. EXPLANATION
a. Generally, Credit Restructuring will change or modify the initial contractual cash flows of the credit provided. b. If BPR revises its payment or receipt estimates, BPR adjusts the carrying amount of financial assets or financial liabilities (or groups of financial instruments) to reflect actual cash flows and revised cash flow estimates. BPR recalculates the carrying amount by calculating the present value of estimated future cash flows based on the original effective interest rate of the financial instrument. BPR recognizes these adjustments as income or expense in profit or loss on the date of revision. (This refers to SAK EP paragraph 11.20)
c. In the present value calculation of cash flows based on the new terms, BPR is required to use the effective interest rate of the initial loan (original interest rate) before restructuring as the discount rate. If the financial asset has a variable interest rate, the discount rate for measuring impairment loss is the current effective interest rate determined based on the contract. (This refers to SAK EP paragraph 11.20)

5.2.3. ACCOUNTING TREATMENT
Recognition and Measurement
The shortfall difference between the change in cash flow estimates for Credit Restructuring compared to the carrying amount is calculated as a credit loss.

Presentation
Restructured Credit is presented as part of Credit.

5.2.4. JOURNAL ILLUSTRATION
Credit Restructuring with Modification of Credit Terms At the time of recognizing modification loss Dr. Impairment Loss Expense Cr. Loans Given

At the time of amortization and recognition of accrued interest Dr. Interest Income Receivable Dr/Cr. Loans Given Cr. Interest Income

At the time the debtor defaults and if there is a possibility that BPR cannot receive the income, then BPR performs a reversal journal entry for interest income recognition.

At the time of receiving installments from the debtor Dr. Cash/Debtor Account Cr. Interest Income Receivable Cr. Loans Given

5.2.5. CASE EXAMPLE
a. Credit Restructuring with Modification of Credit Terms BPR “ABC” disburses credit as follows:
Ceiling: Rp100,000,000
Duration: 01/01/2026 – 31/12/2027 (24 months)
Interest Rate: 20%
Provision: 1% or Rp1,000,000
Transaction Cost: Rp500,000
Principal Installment: Rp4,166,667 per month

On January 31, 2027, the Credit was restructured with a reduction in the contractual interest rate from 20% to 15%. This restructuring does not change the purpose of the loan and does not change the loan tenure of 3 years. The payment of principal and interest installments is done every month as in Table 1. This restructuring is determined not to cause the cessation of Credit recognition.

Based on the calculation from the table (see Table 1 and Table 2), the modification loss is Rp1,252,517 (Rp49,861,345 – Rp48,608,829) which will be amortized over the remaining credit tenure.

For this transaction, the accounting journal entries made on January 31, 2027, are as follows:
At the time of recognizing the modification credit loss Dr. Impairment Loss Expense Rp1,252,517 Cr. Loans Given Rp1,252,517

At the time of amortization and recognition of accrued interest Dr. Interest Income Receivable – Loans Given Rp625,000 Dr. Loans Given Rp207,568 Cr. Interest Income Rp832,568

At the time the debtor defaults and if there is a possibility that BPR cannot receive the income, then BPR performs a reversal journal entry for interest income recognition

At the time of receiving payment from the debtor Dr. Cash/Debtor Account Rp4,791,667

Table 1. Estimated Cash Flows before Restructuring
Initial EIR: 1.713% per month

Table 2. Estimated Cash Flows after Restructuring

b. Credit Restructuring with Modification of Credit Term BPR “ASL” disburses credit as follows:
Ceiling: Rp60,000,000
Duration: 01/01/2026 – 30/06/2028 (30 months)
Interest Rate: 6%
Provision: 0.1% or Rp600,000
Transaction Cost: Rp100,000
Installment: Rp2,300,000 per month

On December 31, 2026, it was known that the debtor made the last payment before being declared in default. On July 31, 2027, the credit was restructured as follows:

change of principal installment to Rp1,500,000 per month;

No	Year	Estimated Cash Flow	Opening Balance	Credit Cash Flow	Effective Interest Rate (EIR)	Principal Installment	Interest Charge	Amortization with EIR
A	B	C	D=(In-1)	E=(Dn-1)xEIR	F	G=p x i	H=E-G	I=D+E+F+G
0	01-Jan-26	(99,500,000)	99,500,000
1	31-Jan-26	5,833,333	99,500,000	1,704,228	4,166,667	1,666,667	37,561	95,370,895
2	28-Feb-26	5,763,889	95,370,895	1,633,505	4,166,667	1,597,222	36,283	91,240,511
3	31-Mar-26	5,694,444	91,240,511	1,562,760	4,166,667	1,527,778	34,982	87,108,827
4	30-Apr-26	5,625,000	87,108,827	1,491,993	4,166,667	1,458,333	33,660	82,975,820
5	31-May-26	5,555,556	82,975,820	1,421,203	4,166,667	1,388,889	32,314	78,841,468
6	30-Jun-26	5,486,111	78,841,468	1,350,390	4,166,667	1,319,444	30,946	74,705,747
7	31-Jul-26	5,416,667	74,705,747	1,279,554	4,166,667	1,250,000	29,554	70,568,634
8	31-Aug-26	5,347,222	70,568,634	1,208,694	4,166,667	1,180,556	28,138	66,430,106
9	30-Sep-26	5,277,778	66,430,106	1,137,810	4,166,667	1,111,111	26,698	62,290,138
10	31-Oct-26	5,208,333	62,290,138	1,066,901	4,166,667	1,041,667	25,234	58,148,705
11	30-Nov-26	5,138,889	58,148,705	995,966	4,166,667	972,222	23,744	54,005,783
12	31-Dec-26	5,069,444	54,005,783	925,007	4,166,667	902,778	22,229	49,861,345
13	31-Jan-27	5,000,000	49,861,345	854,021	4,166,667	833,333	20,688	45,715,366
14	28-Feb-27	4,930,556	45,715,366	783,009	4,166,667	763,889	19,120	41,567,820
15	31-Mar-27	4,861,111	41,567,820	711,970	4,166,667	694,444	17,526	37,418,679
16	30-Apr-27	4,791,667	37,418,679	640,904	4,166,667	625,000	15,904	33,267,917
17	31-May-27	4,722,222	33,267,917	569,810	4,166,667	555,556	14,255	29,115,505
18	30-Jun-27	4,652,778	29,115,505	498,688	4,166,667	486,111	12,577	24,961,415
19	31-Jul-27	4,583,333	24,961,415	427,537	4,166,667	416,667	10,870	20,805,619
20	31-Aug-27	4,513,889	20,805,619	356,357	4,166,667	347,222	9,135	16,648,087
21	30-Sep-27	4,444,444	16,648,087	285,147	4,166,667	277,778	7,369	12,488,790
22	31-Oct-27	4,375,000	12,488,790	213,907	4,166,667	208,333	5,574	8,327,697
23	30-Nov-27	4,305,556	8,327,697	142,636	4,166,667	138,889	3,747	4,164,777
24	31-Dec-27	4,236,111	4,164,777	71,334	4,166,667	69,444	1,890	(0)

No	Year	Estimated Cash Flow	Opening Balance	Credit Cash Flow	Effective Interest Rate (EIR)	Principal Installment	Interest Charge	Amortization with EIR	Closing Balance
0	01-Jan-26	(99,500,000)	99,500,000
1	31-Jan-26	5,833,333	99,500,000	1,704,228	4,166,667	1,666,667	37,561	95,370,895
2	28-Feb-26	5,763,889	95,370,895	1,633,505	4,166,667	1,597,222	36,283	91,240,511
3	31-Mar-26	5,694,444	91,240,511	1,562,760	4,166,667	1,527,778	34,982	87,108,827
4	30-Apr-26	5,625,000	87,108,827	1,491,993	4,166,667	1,458,333	33,660	82,975,820
5	31-May-26	5,555,556	82,975,820	1,421,203	4,166,667	1,388,889	32,314	78,841,468
6	30-Jun-26	5,486,111	78,841,468	1,350,390	4,166,667	1,319,444	30,946	74,705,747
7	31-Jul-26	5,416,667	74,705,747	1,279,554	4,166,667	1,250,000	29,554	70,568,634
8	31-Aug-26	5,347,222	70,568,634	1,208,694	4,166,667	1,180,556	28,138	66,430,106
9	30-Sep-26	5,277,778	66,430,106	1,137,810	4,166,667	1,111,111	26,698	62,290,138
10	31-Oct-26	5,208,333	62,290,138	1,066,901	4,166,667	1,041,667	25,234	58,148,705
11	30-Nov-26	5,138,889	58,148,705	995,966	4,166,667	972,222	23,744	54,005,783
12	31-Dec-26	5,069,444	54,005,783	925,007	4,166,667	902,778	22,229	49,861,345
								Total PV 48,608,829
13	31-Jan-27	4,791,667	48,608,829	832,568	4,166,667	625,000	207,568	44,649,730	4,710,977
14	28-Feb-27	4,739,583	44,649,730	764,757	4,166,667	572,917	191,840	40,674,904	4,581,303
15	31-Mar-27	4,687,500	40,674,904	696,677	4,166,667	520,833	175,843	36,684,080	4,454,660
16	30-Apr-27	4,635,417	36,684,080	628,322	4,166,667	468,750	159,572	32,676,986	4,330,983
17	31-May-27	4,583,333	32,676,986	559,689	4,166,667	416,667	143,022	28,653,341	4,210,208
18	30-Jun-27	4,531,250	28,653,341	490,772	4,166,667	364,583	126,189	24,612,863	4,092,273
19	31-Jul-27	4,479,167	24,612,863	421,567	4,166,667	312,500	109,067	20,555,264	3,977,115
20	31-Aug-27	4,427,083	20,555,264	352,069	4,166,667	260,417	91,652	16,480,249	3,864,676
21	30-Sep-27	4,375,000	16,480,249	282,272	4,166,667	208,333	73,939	12,387,522	3,754,896
22	31-Oct-27	4,322,917	12,387,522	212,172	4,166,667	156,250	55,922	8,276,778	3,647,717
23	30-Nov-27	4,270,833	8,276,778	141,764	4,166,667	104,167	37,597	4,147,708	3,543,083
24	31-Dec-27	4,218,750	4,147,708	71,042	4,166,667	52,083	18,958	(0)	3,440,938

credit duration extended by 6 (six) months until December 31, 2028;
loan settlement at the end of the period; and
restructuring is determined not to cause the cessation of Credit recognition.
The payment of principal and interest installments is done every month as in Table 1. Based on the calculation from the table (see Table 1 and Table 2), the modification loss is Rp3,158,178 (Rp37,772,544 – Rp34,614,366) which will be amortized over the remaining credit tenure.

At the time of recognizing accrued interest during the grace period Dr. Loans Given Rp340,474 Cr. Interest Income Rp340,474

At the time the debtor defaults and if there is a possibility that BPR cannot receive the income, then BPR performs a reversal journal entry for interest income recognition

At the time of receiving payment from the debtor Dr. Cash/Debtor Account Rp1,500,000 Cr. Loans Given Rp1,500,000

Table 1. Estimated Cash Flows before Restructuring
Initial EIR: 0.984% per month

No	Year	Estimated Cash Flow	Opening Balance	Credit Cash Flow	Effective Interest Rate (EIR)	Principal Installment	Interest Charge	Amortization with EIR
0	1-Jan-26	(59,500,000)	59,500,000
1	31-Jan-26	2,300,000	59,500,000	585,255	1,744,102	555,898	29,357	57,785,255
2	28-Feb-26	2,300,000	57,785,255	568,388	1,760,261	539,739	28,649	56,053,643
3	31-Mar-26	2,300,000	56,053,643	551,356	1,776,570	523,430	27,926	54,304,999
4	30-Apr-26	2,300,000	54,304,999	534,156	1,793,030	506,970	27,186	52,539,155
5	31-May-26	2,300,000	52,539,155	516,787	1,809,642	490,358	26,429	50,755,941
6	30-Jun-26	2,300,000	50,755,941	499,246	1,826,408	473,592	25,655	48,955,188
7	31-Jul-26	2,300,000	48,955,188	481,534	1,843,330	456,670	24,864	47,136,722
8	31-Aug-26	2,300,000	47,136,722	463,647	1,860,408	439,592	24,055	45,300,369
9	30-Sep-26	2,300,000	45,300,369	445,584	1,877,645	422,355	23,229	43,445,953
10	31-Oct-26	2,300,000	43,445,953	427,344	1,895,041	404,959	22,385	41,573,297
11	30-Nov-26	2,300,000	41,573,297	408,924	1,912,599	387,401	21,523	39,682,221
12	31-Dec-26	2,300,000	39,682,221	390,323	1,930,319	369,681	20,642	37,772,544
13	31-Jan-27	2,300,000	37,772,544	371,539	1,948,203	351,797	19,742	35,844,082
14	28-Feb-27	2,300,000	35,844,082	352,570	1,966,253	333,747	18,824	33,896,653
15	31-Mar-27	2,300,000	33,896,653	333,415	1,984,471	315,529	17,885	31,930,067
16	30-Apr-27	2,300,000	31,930,067	314,071	2,002,857	297,143	16,928	29,944,139
17	31-May-27	2,300,000	29,944,139	294,537	2,021,413	278,587	15,950	27,938,676
18	30-Jun-27	2,300,000	27,938,676	274,811	2,040,141	259,859	14,952	25,913,486
19	31-Jul-27	2,300,000	25,913,486	254,891	2,059,043	240,957	13,934	23,868,377
20	31-Aug-27	2,300,000	23,868,377	234,775	2,078,120	221,880	12,895	21,803,152
21	30-Sep-27	2,300,000	21,803,152	214,461	2,097,374	202,626	11,834	19,717,612
22	31-Oct-27	2,300,000	19,717,612	193,947	2,116,806	183,194	10,753	17,611,559
23	30-Nov-27	2,300,000	17,611,559	173,231	2,136,418	163,582	9,649	15,484,790
24	31-Dec-27	2,300,000	15,484,790	152,312	2,156,212	143,788	8,524	13,337,102
25	31-Jan-28	2,300,000	13,337,102	131,187	2,176,189	123,811	7,376	11,168,288
26	29-Feb-28	2,300,000	11,168,288	109,854	2,196,352	103,648	6,205	8,978,142
27	31-Mar-28	2,300,000	8,978,142	88,311	2,216,701	83,299	5,012	6,766,453
28	30-Apr-28	2,300,000	6,766,453	66,556	2,237,238	62,762	3,795	4,533,009
29	31-May-28	2,300,000	4,533,009	44,588	2,257,966	42,034	2,554	2,277,597
30	30-Jun-28	2,300,000	2,277,597	22,403	2,278,886	21,114	1,289	0

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR Accounting Guidelines examples are merely illustrations according to the context of the illustration.

Table 2. Estimated Cash Flows after Restructuring

No	Year	Estimated Cash Flow	Initial Balance	Cash Flow	Effective Interest Rate (EIR)	Installment Principal	Interest Receivable	Amortization with EIR
0	1-Jan-26	(59,500,000)	59,500,000
1	31-Jan-26	2,300,000	59,500,000	585,255	1,744,102	555,898	29,357	57,785,255
2	28-Feb-26	2,300,000	57,785,255	568,388	1,760,261	539,739	28,649	56,053,643
3	31-Mar-26	2,300,000	56,053,643	551,356	1,776,570	523,430	27,926	54,304,999
4	30-Apr-26	2,300,000	54,304,999	534,156	1,793,030	506,970	27,186	52,539,155
5	31-May-26	2,300,000	52,539,155	516,787	1,809,642	490,358	26,429	50,755,941
6	30-Jun-26	2,300,000	50,755,941	499,246	1,826,408	473,592	25,655	48,955,188
7	31-Jul-26	2,300,000	48,955,188	481,534	1,843,330	456,670	24,864	47,136,722
8	31-Aug-26	2,300,000	47,136,722	463,647	1,860,408	439,592	24,055	45,300,369
9	30-Sep-26	2,300,000	45,300,369	445,584	1,877,645	422,355	23,229	43,445,953
10	31-Oct-26	2,300,000	43,445,953	427,344	1,895,041	404,959	22,385	41,573,297
11	30-Nov-26	2,300,000	41,573,297	408,924	1,912,599	387,401	21,523	39,682,221
12	31-Dec-26	2,300,000	39,682,221	390,323	1,930,319	369,681	20,642	37,772,544
			34,614,366	Total PV
13	31-Jan-27	34,614,366	340,474	340,474	34,954,840
14	28-Feb-27	34,954,840	343,823	343,823	35,298,664
15	31-Mar-27	35,298,664	347,205	347,205	35,645,869	-
16	30-Apr-27	35,645,869	350,621	350,621	35,996,489	-
17	31-May-27	35,996,489	354,069	354,069	36,350,559	-
18	30-Jun-27	36,350,559	357,552	357,552	36,708,111	-
19	31-Jul-27	36,708,111	361,069	1,500,000	361,069	35,569,180	1,400,666
20	31-Aug-27	35,569,180	349,866	1,500,000	349,866	34,419,046	1,387,023
21	30-Sep-27	34,419,046	338,553	1,500,000	338,553	33,257,599	1,373,513
22	31-Oct-27	33,257,599	327,129	1,500,000	327,129	32,084,728	1,360,134
23	30-Nov-27	32,084,728	315,592	1,500,000	315,592	30,900,320	1,346,886
24	31-Dec-27	30,900,320	303,942	1,500,000	303,942	29,704,263	1,333,767
25	31-Jan-28	29,704,263	292,178	1,500,000	292,178	28,496,440	1,320,776
26	29-Feb-28	28,496,440	280,297	1,500,000	280,297	27,276,737	1,307,911
27	31-Mar-28	27,276,737	268,300	1,500,000	268,300	26,045,037	1,295,171
28	30-Apr-28	26,045,037	256,185	1,500,000	256,185	24,801,222	1,282,556
29	31-May-28	24,801,222	243,950	1,500,000	243,950	23,545,172	1,270,063
30	30-Jun-28	23,545,172	231,595	1,500,000	231,595	22,276,768	1,257,692
31	31-Jul-28	22,276,768	219,119	1,500,000	219,119	20,995,887	1,245,442
32	31-Aug-28	20,995,887	206,520	1,500,000	206,520	19,702,407	1,233,310
33	30-Sep-28	19,702,407	193,797	1,500,000	193,797	18,396,204	1,221,298
34	31-Oct-28	18,396,204	180,949	1,500,000	180,949	17,077,153	1,209,402
35	30-Nov-28	17,077,153	167,975	1,500,000	167,975	15,745,128	1,197,622
36	31-Dec-28	15,745,128	154,872	15,900,000	154,872	(0)	12,571,136

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR Accounting Guidelines examples are merely illustrations according to the context of the illustration.

Presentation a. Loans that are written off are presented in Administrative Accounts. b. The Carrying Amount of the Loan is the net loan value on the reporting date after deducting credit loss provisions (amortized cost).

5.3.4. JOURNAL ILLUSTRATION
When writing off a loan
Dr. Credit Loss Provision - Given Loans
Cr. Given Loans
Recording the written-off loan in the administrative account Dr. Administrative Account – Written-off Loans Cr. Counter Account – Written-off Loans (Interest receivable is recorded in the administrative account) When receiving payment for a written-off loan Dr. Cash/BPR Account Cr. Write-off Income (Other Operating Income) Recording the receipt of the written-off loan in the administrative account Dr. Counter Account – Written-off Loans Cr. Administrative Account – Written-off Loans

5.3.5. CASE EXAMPLE
Loan write-off with 100% formed Credit Loss Provision (CKPN).
On January 1, 2025, the BPR management decided to write off a loan with a value of Rp55,000,000, with the CKPN already formed at 100%. On June 1, 2023, the debtor made a payment of Rp5,000,000. For this transaction, the following bookkeeping journal entries are made:
When writing off the loan with 100% formed CKPN Dr. Credit Loss Provision - Given Loans Rp55,000,000 Cr. Given Loans Rp55,000,000 Recording the written-off loan in the administrative account Dr. Administrative Account – Written-off Loans Rp55,000,000 Cr. Counter Account – Written-off Loans Rp55,000,000 When the BPR receives cash deposits from the written-off debtor in the current year Dr. Cash/BPR Account Rp5,000,000 Cr. Write-off Income (Other Operating Income) Rp5,000,000 Recording the receipt of the written-off loan in the administrative account Dr. Counter Account – Written-off Loans Rp5,000,000 Cr. Administrative Account – Written-off Loans Rp5,000,000

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR Accounting Guidelines examples are merely illustrations according to the context of the illustration.

CHAPTER VI
EQUITY PARTICIPATION

6.1. DEFINITION
Equity Participation is the investment of BPR funds in the form of shares in supporting institutions with requirements in accordance with applicable legislation.

6.2. REGULATORY BASIS
a. SAK EP Chapter 11 on Basic Financial Instruments. b. SAK EP Chapter 14 on Investments in Associate Entities.

6.3. EXPLANATION
a. An associate entity is an entity where the investor has significant influence and is not a subsidiary nor part of joint venture ownership, including unincorporated entities such as partnerships. (This refers to SAK EP paragraph 14.2) b. Significant influence is the power to participate in the decision-making on financial and operating policy decisions of the associate entity but not control or jointly control those policies:

if the investor has, directly or indirectly (for example, through subsidiaries), 20% or more of the voting power of the associate entity, it is concluded that the investor has significant influence, unless it can be clearly proven that the entity does not have significant influence;
conversely, if the investor has, directly or indirectly (for example, through subsidiaries), less than 20% of the voting power of the associate entity, it is concluded that the investor does not have significant influence, unless significant influence can be clearly proven; and
substantial or majority ownership by other investors does not prevent the investor from having significant influence.
(This refers to SAK EP paragraph 14.3)
c. BPRs that make equity participation without significant influence measure and record such equity participation in accordance with SAK EP Chapter 11 Basic Financial Instruments.

6.4. ACCOUNTING TREATMENT
Recognition and Measurement a. BPR records all investments in associate entities using one of the following methods:

Cost Model
a) BPR measures investments in associate entities, other than those with published price quotations, at cost less accumulated impairment losses recognized in accordance with SAK EP Chapter 27 Impairment of Assets or Chapter XII on Provisions for Credit Loss Impairment. (This refers to SAK EP paragraph 14.5) b) BPR recognizes dividends and other distributions received from investments as income without regard to whether the distribution is from the accumulated profits of the associate entity arising before or after the date of acquisition. (This refers to SAK EP paragraph 14.6)

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR Accounting Guidelines examples are merely illustrations according to the context of the illustration.

Equity Method
Equity investments are initially recognized at transaction price (including transaction costs) and subsequently adjusted to reflect the investor's share of the profit or loss and other comprehensive income of the associate entity from:
a) Distributions and other adjustments to the carrying amount. Receipt of distributions from the associate entity reduces the carrying amount of the investment. Adjustments to the carrying amount may also be required as a consequence of changes in the equity of the associate entity arising from items of other comprehensive income. b) Potential voting rights. c) Implicit goodwill and fair value adjustments. d) Impairment. e) Transactions between the investor and the associate. f) Date of the associate entity's financial statements. g) Accounting policies of the associate entity. h) Losses exceeding the investment. i) Discontinuation of the equity method. (This refers to SAK EP paragraph 14.8) b. Dividend income from investments in associate entities is recognized when the group's right to receive payment has been established. Dividend income is included in other income.

Presentation a. Equity participation is presented in a separate line item in the statement of financial position at cost or fair value. b. BPR classifies investments in associate entities as non-current assets. (This refers to SAK EP paragraph 14.11)

6.5. JOURNAL ILLUSTRATION
a. Equity participation measured under the cost model When making equity participation Dr. Equity Participation Cr. Cash/BPR Account When dividend distribution is announced Dr. Dividend Receivable Cr. Dividend Income When dividend is paid Dr. Cash/BPR Account Cr. Dividend Receivable Formation of CKPN in accordance with Chapter XII on Provisions for Credit Loss Impairment When disposing of equity participation Dr. Cash/BPR Account Cr. Equity Participation

b. Equity participation measured through the equity method When making equity participation Dr. Equity Participation Cr. Cash/BPR Account When recognizing profit/loss of the subsidiary entity reflecting the investor's share Dr./Cr. Equity Participation Cr./Dr. Profit/Loss from investment in subsidiary entity When dividend distribution is announced Dr. Dividend Receivable Cr. Equity Participation

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR Accounting Guidelines examples are merely illustrations according to the context of the illustration.

When dividend is paid
Dr. Cash/BPR Account
Cr. Dividend Receivable
When disposing of equity participation
Dr. Cash/BPR Account
Cr. Equity Participation

6.6. CASE EXAMPLE
a. Equity Participation with Significant Influence Measured at Cost On August 16, 2026, BPR "MAS" made an equity participation in Supporting Institution "QRS" for Rp100,000,000. The equity participation in Supporting Institution "QRS" has significant influence. BPR "MAS" records the investment in Supporting Institution "QRS" using the cost model. On March 5, 2027, based on the results of the General Meeting of Shareholders of Supporting Institution "QRS", the portion of dividends to be distributed to shareholders for 2027 is 20% of the net profit of 2026, and the dividend distribution portion for BPR "MAS" is Rp5,000,000. The dividend is paid on March 10, 2027. For this transaction, the following bookkeeping journal entries are made:
When making equity participation on August 16, 2026 Dr. Equity Participation Rp100,000,000 Cr. Cash/BPR Account Rp100,000,000 When dividend distribution is announced on March 5, 2027 Dr. Dividend Receivable Rp5,000,000 Cr. Dividend Income Rp5,000,000 When dividend is paid on March 10, 2027 Dr. Cash/BPR Account Rp5,000,000 Cr. Dividend Receivable Rp5,000,000 On March 31, 2027, based on the results of the General Meeting of Shareholders of Supporting Institution "QRS", it was determined that Supporting Institution "QRS" incurred a loss. BPR "MAS" classifies the equity participation as substandard quality. For this transaction, the following bookkeeping journal entries are made:
When making equity participation on August 16, 2026 Dr. Equity Participation Rp100,000,000 Cr. Cash/BPR Account Rp100,000,000 When equity participation is classified as substandard quality on March 31, 2027 Dr. Impairment Loss Expense Cr. CKPN – Equity Participation (10% * Rp100,000,000 = Rp10,000,000) Rp10,000,000 Rp10,000,000

b. Equity Participation Measured through the Equity Method On August 1, 2026, BPR "MAS" made an equity participation in Supporting Institution "QRS" for Rp7,000,000,000. The equity participation in Supporting Institution "QRS" has significant influence. BPR "MAS" records the investment in Supporting Institution "QRS" using the equity model. The ownership portion of BPR "MAS" in Supporting Institution "QRS" is 30%. Based on the audit results of the financial statements of Supporting Institution "QRS", the net profit for 2026 was Rp3,250,000,000. On March 5, 2027, based on the results of the General Meeting of Shareholders of Supporting Institution "QRS", the portion of dividends to be distributed to shareholders for 2027 is 20% of the net profit of 2026. For this transaction, the following bookkeeping journal entries are made:
When making equity participation on August 1, 2026 Dr. Equity Participation Rp7,000,000,000 Cr. Cash/BPR Account "MAS" Rp7,000,000,000 When recognizing the profit of Supporting Institution "QRS" reflecting BPR "MAS"'s share Dr. Equity Participation Rp975,000,000 Cr. Profit/Loss from investment in subsidiary entity (Rp3,250,000,000 * 30%) = Rp975,000,000 Rp975,000,000 When dividend distribution is announced on March 5, 2027 Dr. Dividend Receivable Rp195,000,000 Cr. Equity Participation ((Rp3,250,000,000 * 20%) * 30% = Rp650,000,000 * 30% = 195,000,000) Rp195,000,000 When dividend is paid Dr. Cash/BPR Account "MAS" Rp195,000,000 Cr. Dividend Receivable Rp195,000,000

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR Accounting Guidelines examples are merely illustrations according to the context of the illustration.

CHAPTER VII
TAKEN-OVER COLLATERAL

7.1. DEFINITION
a. Taken-over Collateral, hereinafter abbreviated as AYDA, is an asset obtained by BPR either partially or wholly through purchase via auction or outside auction based on voluntary surrender by the collateral owner or based on the power to sell outside the auction from the collateral owner, in the event that the debtor does not meet obligations to the BPR, with the provision that the purchased collateral is to be liquidated as soon as possible. (in accordance with POJK regarding BPR asset quality) b. Costs to sell are additional costs that can be directly attributed to the disposal of the asset or disposal group.
c. Fair Value is the amount at which an asset is exchanged or a liability is settled, between knowledgeable and willing parties in a fair transaction.
d. Carrying Amount is the value presented in the statement of financial position after deducting impairment loss provisions.

7.2. REGULATORY BASIS
a. Law Number 7 of 1992 on Banking as last amended by Law Number 4 of 2023 on Development and Strengthening of the Financial Sector. b. PSAK 105 Non-Current Assets Held for Sale and Discontinued Operations.

7.3. EXPLANATION
a. Credit collateral surrendered by the debtor to the BPR can be divided into:

Credit Settlement (AYDA)
a) The credit agreement between the BPR and the debtor is completed; b) The BPR has no right to additional payment if the value of the AYDA is lower than the value of the credit settled; c) The BPR has no obligation to make payment to the debtor if the value of the AYDA is higher than the value of the credit settled.
Credit Settlement Process
a) The credit agreement between the BPR and the debtor does not end when the collateral is taken over by the BPR; b) The BPR has the right to additional payment if the value of the collateral is lower than the value of the credit settled; c) The BPR has the obligation to make payment to the debtor if the value of the collateral is higher than the value of the credit settled. b. AYDA recorded in the statement of financial position are only those resulting from credit settlement through auction or outside auction based on voluntary surrender by the collateral owner or based on the power to sell outside the auction from the collateral owner.
c. BPR makes efforts to settle the AYDA owned, namely by attempting immediate sale and documenting such settlement efforts.
d. BPR calculates AYDA recorded in the statement of financial position as a factor reducing BPR's core capital in the calculation of KPMM in accordance with POJK regarding BPR asset quality.

7.4. ACCOUNTING TREATMENT
Recognition and Measurement a. Credit Settlement

Upon initial recognition, AYDA is recorded at fair value less costs to sell, i.e., maximum equal to the debtor's obligation. BPR must not recognize profit upon takeover of the asset.
After initial recognition, AYDA is recorded at the lower of carrying amount and fair value less costs to sell.
If AYDA suffers impairment, BPR recognizes the impairment loss.
If AYDA suffers impairment recovery, BPR recognizes the impairment recovery maximum equal to the impairment loss previously recognized.
AYDA is not depreciated.
Upon sale, the difference between the carrying amount of AYDA and the sale proceeds is recognized as operating profit or loss.
b. Credit Settlement Process
Proceeds from the sale of collateral held are recognized as a reduction of the receivable related to the credit.
c. Transaction costs in the processing of AYDA can be capitalized as long as the value of AYDA is greater than the carrying amount of the credit after adding the capitalization of transaction costs.

Presentation
AYDA is presented in a separate line item in the statement of financial position at the lower of:
a. the carrying amount of the credit; or b. fair value less estimated costs to sell.

7.5. JOURNAL ILLUSTRATION
When BPR obtains AYDA (credit settlement)
If the value of AYDA is greater than the carrying amount of the credit given, the value of AYDA is recognized maximum equal to the carrying amount of the credit given Dr. AYDA Cr. Given Loans When BPR obtains AYDA (credit settlement) If the value of AYDA is smaller than the carrying amount of the credit given, BPR recognizes a loss in the current period Dr. AYDA Dr. Loss on credit settlement Cr. Given Loans

Simultaneously with the recognition of AYDA, a reversal journal is made for contingent receivables (interest income on credit in settlement).
Provisions and unamortized transaction costs (if any) are recognized in full.
When correcting credit loss provisions
Dr. CKPN – Given Loans
Cr. Other Operating Income – CKPN Recovery
When AYDA suffers impairment
Dr. Impairment Loss Expense – AYDA
Cr. AYDA
When AYDA suffers value recovery after experiencing impairment, it is recognized as income maximum equal to the impairment loss previously recognized Dr. AYDA Cr. Value Increase Profit – AYDA When selling AYDA Dr. Cash/BPR Account Cr. AYDA Dr/Cr. Operating Profit/Loss

7.6. CASE EXAMPLE
In order to settle non-performing loans with an outstanding balance of Rp180,000,000, on August 1, 2026, BPR "AMR" took over credit collateral in the form of land and buildings secured by APHT for Rp200,000,000. In forming CKPN, the Bank considered that the collateral could be realized at 80% or Rp160,000,000 (80% * Rp200,000,000) in less than 1 year (no present value calculation) so that the CKPN formed is Rp20,000,000 (Rp180,000,000 - Rp160,000,000). On December 1, 2026, the aforementioned AYDA was successfully sold for Rp170,000,000 with transaction costs of Rp30,000,000, resulting in a net realization value of the AYDA sale of Rp140,000,000. For the aforementioned transaction, the following bookkeeping journal entries are made:
When BPR obtains AYDA on August 1, 2026
Dr. AYDA Rp180,000,000
Cr. Given Loans Rp180,000,000
The BPR also makes a reversal journal for contingent receivables (interest income on credit in settlement), and recognizes in full any provisions and unamortized transaction costs (if any). When correcting credit loss provisions Dr. CKPN – Given Loans Rp20,000,000 Cr. Other Operating Income – CKPN Recovery Rp20,000,000 When selling AYDA Dr. Cash/BPR Account Rp140,000,000 Dr. Operating Loss Rp40,000,000 Cr. AYDA Rp180,000,000

CHAPTER VIII
FIXED ASSETS AND INVENTORY

8.1 DEFINITION
Fixed assets and inventory are tangible assets that:
a. are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and b. are expected to be used for more than one period. (This refers to SAK EP paragraph 17.2)

8.2 REGULATORY BASIS
a. SAK EP Chapter 17 on Fixed Assets. b. SAK EP Chapter 20 on Leases.
c. SAK EP Chapter 27 on Impairment of Assets.

8.3 EXPLANATION
a. A class of fixed assets and inventory is a grouping of assets that have similar nature and use in BPR operations. The following are examples of classes of fixed assets and inventory:

land;
land and buildings;
machinery;
motor vehicles;
furniture; and
office equipment.
b. In the event that fixed assets and inventory are acquired through non-cash purchases, the acquisition cost of fixed assets and inventory is equivalent to the cash value at the date of recognition.
c. Fixed assets and inventory obtained from donations are recognized as non-operating income.
d. Fixed assets and inventory obtained from gifts due to deposits in other banks that can be attributed to one of the deposit conditions in the aforementioned other banks, which cannot be withdrawn or liquidated within a certain period, are recognized as fixed assets at fair value when the BPR receives the asset, while for the interest income of deposits in other banks that are deferred and recognized according to Chapter IV Deposits in Other Banks. e. Asset Exchange Fixed assets and inventory obtained in exchange for non-monetary assets, or a combination of monetary and non-monetary assets, are measured at the acquisition cost of the asset at fair value except:
the exchange transaction does not have commercial substance; or
the fair value of the asset received or the asset given up cannot be measured reliably. In such cases, the cost of the asset is measured at the carrying amount of the asset given up.
(This refers to SAK EP paragraph 17.14) f. Depreciation
Depreciation expense for each period is recognized in profit or loss.
(This refers to SAK EP paragraph 17.17)
Fixed assets and inventory are depreciated systematically over their useful life. (This refers to SAK EP paragraph 17.18)

Accounting treatment for transactions occurring in Rural Banks (BPRs) must be carried out in accordance with the principles regulated in SAK EP. The journals and postings used in the BPR Accounting Examples are merely illustrations according to the context in the illustrations.
3) Depreciation of an asset begins when the asset is available for use, i.e., when the asset is in the location and condition necessary for it to be capable of operating in a manner intended by management. Depreciation of an asset ceases when the asset is derecognized. (This refers to SAK EP paragraph 17.20)
4) BPR chooses a depreciation method that reflects the future economic benefits of the asset. Methods that can be used include the straight-line method, the declining balance method, and the usage-based method such as the units of production method. (This refers to SAK EP paragraph 17.22)
5) Land fixed assets are not depreciated, unless the conditions for depreciation are met. Land and buildings are different assets and must be treated as separate assets, even if acquired simultaneously. Buildings have a limited useful life, therefore depreciation must be performed. The increase in the value of land on which a building is erected does not affect the determination of the amount that can be depreciated from the building.
g. Acquisition through financial leasing

Fixed assets and inventory obtained through leasing (lease) if the lease is a finance lease. A lease is classified as a finance lease if the lease transfers substantially all the risks and benefits incidental to ownership of the asset. A lease is classified as an operating lease if the lease does not transfer substantially all the risks and benefits incidental to ownership of the asset. (This refers to SAK EP paragraph 20.4)
Criteria for classifying finance leases:
a) the lease transfers ownership of the asset to the lessee by the end of the lease term; b) the lessee has the option to purchase the asset at a price that is expected to be sufficiently low compared to fair value at the date the option first becomes exercisable, such that at the inception of the lease it can be reasonably certain that the option will be exercised; c) the lease term is for the major part of the economic life of the asset even if title is not transferred; d) at the inception of the lease, the present value of the minimum lease payments amounts to substantially all of the fair value of the leased asset; and e) the leased asset is of such a specialized nature that only the lessee can use it without major modifications. h. Impairment
Impairment of fixed assets and inventory occurs if and only if the recoverable amount of the asset is less than its carrying amount. (This refers to SAK EP paragraph 27.5)
BPR immediately recognizes impairment losses in profit or loss, except if the asset is carried at a revalued amount in accordance with the revaluation model. For the revaluation model:
a) BPR treats impairment losses on revalued assets as a revaluation decrease recognized in profit or loss.

8.4 ACCOUNTING TREATMENT
Recognition and Measurement a. Parts of some items of fixed assets and inventory may require regular replacement. BPR adds to the carrying amount of the item of fixed assets and inventory if the cost of replacing the part of the item of fixed assets and inventory is expected to provide additional future economic benefits for the BPR. (This refers to SAK EP paragraph 17.6) b. At initial recognition, BPR measures fixed assets and inventory at acquisition cost. (This refers to SAK EP paragraph 17.9)
c. The acquisition cost of fixed assets and inventory consists of all of the following:

purchase price, including legal and broker fees, import duties and non-creditable purchase taxes, after deducting trade discounts and rebates;
any costs that can be directly attributed to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. This includes costs of preparing the site for the plant, costs of initial delivery and handling, installation and assembly costs, and costs of functional testing;
initial estimate of the costs of dismantling and removing the fixed assets and restoring the site of the fixed assets, such obligations arise when the fixed assets are acquired or as a consequence of the use of the fixed assets during a specific period for purposes other than producing inventories during that period.
(This refers to SAK EP paragraph 17.10) d. The following costs are not acquisition costs of fixed assets and inventory, and BPR recognizes them as expenses when incurred:
costs of opening new facilities;
costs of introducing new products or services;
costs of conducting business in a new location or with a new class of customers (including staff training costs);
administrative costs and other general overhead costs;
borrowing costs.
(This refers to SAK EP paragraph 17.11)

e. Measurement after initial recognition
BPR chooses the cost model or the revaluation model as an accounting policy and applies that policy to all classes of fixed assets and inventory. BPR recognizes daily maintenance costs of items of fixed assets and inventory in profit or loss in the period in which the costs are incurred. (This refers to SAK EP paragraph 17.15)

Cost Model
BPR measures fixed assets and inventory after initial recognition at acquisition cost less accumulated depreciation and accumulated impairment losses. Costs after acquisition:
a) Costs that add to the future economic benefits of fixed assets and inventory are capitalized. b) Costs that do not add to the future economic benefits of fixed assets and inventory are recorded as expenses.
Revaluation Model
a) BPR measures items of fixed assets and inventory whose fair value can be measured reliably at the revalued amount, i.e., fair value at the date of revaluation less accumulated depreciation and accumulated impairment losses after the date of revaluation. Revaluation is carried out with sufficient regularity to ensure that the carrying amount does not differ materially from the amount determined using fair value at the end of the reporting period. b) If a fixed asset and inventory is revalued, then the entire class of fixed assets and inventory in the same class is revalued. c) If the carrying amount of an asset increases as a result of revaluation, then the increase is recognized in other comprehensive income and accumulated in equity in the revaluation surplus section. However, the increase is recognized in profit or loss to the extent of any impairment loss on the same asset previously recognized in profit or loss. d) If the carrying amount of an asset decreases as a result of revaluation, then the decrease is recognized in profit or loss. However, the impairment loss is recognized in other comprehensive income to the extent that it does not exceed the balance of the revaluation surplus for that asset. The impairment loss recognized in other comprehensive income reduces the accumulated amount in equity in the revaluation surplus section. e) Revaluation surplus in equity can:
(1) be transferred to the profit balance through the statement of changes in equity when fixed assets and inventory are derecognized; or (2) be transferred to the profit balance through the statement of changes in equity as fixed assets and inventory are depreciated. f. Depreciation for each period is recognized as an expense for the relevant period. g. Impairment is recognized as a loss in the period in which the impairment occurs equal to the difference between the carrying amount and fair value less costs to sell. Whereas impairment recovery is recognized as a gain. h. BPR derecognizes fixed assets and inventory upon disposal or when no future economic benefits are expected from their use or disposal. (This refers to SAK EP paragraph 17.27)

Presentation a. Fixed assets and inventory are presented in the statement of financial position at:

acquisition cost less accumulated depreciation and impairment losses, if using the cost model; or
revalued amount less accumulated depreciation and impairment losses, if using the revaluation model.
b. Accumulated depreciation at the date of revaluation is treated in one of the following ways:
restated proportionally with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation is equal to the revalued amount (gross method); or
eliminated against the gross carrying amount of the asset, and the net carrying amount after elimination is restated at the revalued amount of the asset (net-amount method).

8.5 JOURNAL ILLUSTRATIONS
a. Cost Model

At the time of acquisition
At the time of acquisition of fixed assets and inventory by purchase Dr.
Cr.
Fixed assets and inventory
Cash/BPR account
Assets obtained from asset exchange
Dr.
Dr.
Cr.
Cr/Dr.
Fixed assets and inventory (new)
Accumulated depreciation (old)
Fixed assets and inventory (old)
Profit/Loss
Assets obtained from finance lease
Dr.
Cr.
Fixed assets and inventory – finance lease
Loans received – finance lease
Assets obtained from donations
Dr.
Cr.
Fixed assets and inventory
Donation capital/non-operating income
Assets obtained from lotteries
Dr.
Cr.
Fixed assets and inventory
Non-operating income
Assets obtained from depositing funds for a certain period Dr. Fixed assets and inventory Cr. Accrued income (amortized during the contract period as interest income)
Measurement after initial recognition
Recognition of depreciation expense
Dr. Depreciation expense

b. Revaluation Model

At the time of acquisition
At the time of acquisition of fixed assets and inventory by purchase Dr.
Cr.
Fixed assets and inventory
Cash/BPR account
Assets obtained from asset exchange
Dr.
Dr.
Cr.
Cr/Dr.
Fixed assets and inventory (new)
Accumulated depreciation (old)
Fixed assets and inventory (old)
Profit/Loss
Assets obtained from finance lease
Dr.
Cr.
Fixed assets and inventory – finance lease
Loans received – finance lease
Assets obtained from donations
Dr.
Cr.
Fixed assets and inventory
Non-operating income
Assets obtained from lotteries
Dr.
Cr.
Fixed assets and inventory
Non-operating income
Assets obtained from depositing funds for a certain period Dr.
Cr.
Fixed assets and inventory
Accrued income
(amortized during the contract period as interest income)
Measurement after initial recognition – Revaluation Model with increase in fair value
Recognition of depreciation expense
Dr.
Cr.
Depreciation expense
Accumulated depreciation
Increase in fair value
Dr. Fixed assets and inventory
Cr. Other comprehensive income – Revaluation surplus of fixed assets and inventory – Fair value difference If there was previously an impairment loss due to revaluation Dr. Cr. Cr. Fixed assets and inventory Other comprehensive income – Revaluation surplus of fixed assets and inventory – Fair value difference Impairment loss recovery due to revaluation of fixed assets and inventory (profit or loss)
Measurement after initial recognition – Revaluation Model with decrease in fair value
Recognition of depreciation expense
Dr.
Cr.
Depreciation expense
Accumulated depreciation
Decrease in fair value
Dr.
Cr.
Impairment loss expense due to revaluation (profit or loss) Fixed assets and inventory If there was previously an increase in value due to revaluation Dr. Dr. Cr. Other comprehensive income – Revaluation surplus of fixed assets – Fair value difference Impairment loss expense due to revaluation (profit or loss) Fixed assets and inventory
Derecognition
a) Write-off of fixed assets and inventory
Write-off of fixed assets and inventory
Dr.
Cr.
Accumulated depreciation
Fixed assets and inventory
If there is a revaluation surplus
Dr.
Cr.
Other comprehensive income – Revaluation surplus of fixed assets and inventory – Fair value difference Retained earnings b) Sale of fixed assets and inventory Sale Dr. Accumulated depreciation Dr. Cash/BPR account Dr/Cr. Loss/profit on sale of fixed assets and inventory Cr. Fixed assets and inventory If there is a revaluation surplus Dr. Cr. Other comprehensive income – Revaluation surplus of fixed assets and inventory – Fair value difference Retained earnings

8.6 CASE EXAMPLE
BPR “GHI” has fixed assets and inventory at the beginning of 2027 as follows:
(in thousands of Rp)
Type Acquisition Cost Economic Life * Acquisition Time Accumulated Depreciation Measurement Method Fair Value Land Rp1,500,000 - Early 2025 - Building Rp2,000,000 20 years Early 2025 Rp200,000 Revaluation Model Rp1,510,000 Vehicle Rp500,000 5 years Early 2026 Rp100,000 Revaluation Model Rp430,000 Machine Rp300,000 5 years Early 2025 Rp120,000 Cost Model - *no residual value at the end of the depreciation period

Based on the information above, the bookkeeping journal entries are as follows:
a. Cost Model

Year 2027
a) Calculation of depreciation per year:
(1) Land is not depreciated.
(2) Machine depreciation expense per year = Rp300,000,000/5 = Rp60,000,000. b) Bookkeeping journal:
Calculation of depreciation per year
Dr.
Cr.
Depreciation expense for fixed assets and inventory - Machine Accumulated depreciation for fixed assets and inventory – Machine Rp60,000,000 Rp60,000,000 c) Presentation at the end of 2027 Type Acquisition Cost Accumulated Depreciation Book Value Land Rp1,500,000,000 - Rp1,500,000,000 Machine Rp300,000,000 Rp180,000,000 Rp120,000,000
Year 2028
Calculation and bookkeeping journal are the same as in 2027, but the end-of-year presentation for 2028 becomes:
Type Acquisition Cost Accumulated Depreciation Book Value Land Rp1,500,000,000 - Rp1,500,000,000 Machine Rp300,000,000 Rp240,000,000 Rp60,000,000

b. Revaluation Model

Building
a) 2027 adjustment journal
Calculation of accumulated depreciation is done using the net-amount method:
At book value adjustment
Dr.
Cr.
Accumulated depreciation for fixed assets and inventory – Building Fixed assets and inventory – Building Rp200,000,000 Rp200,000,000 Recording impairment loss expense due to revaluation Dr. Impairment loss expense due to revaluation Rp90,000,000 Cr. Fixed assets and inventory Calculation method:
(a) Book value of building in 2027 is Rp2,000,000,000 – Rp400,000,000 = Rp1,600,000,000 (b) Fair value of building in 2027 = Rp1,510,000,000 (c) Decrease in building value = Rp1,600,000,000 – Rp1,510,000,000 = Rp90,000,000 Depreciation in 2027 Dr. Depreciation expense for fixed assets and inventory – Building Rp83,888,889 Cr. Accumulated depreciation for fixed assets and inventory – Building Calculation method (a) Remaining economic life = 20 years – 2 years = 18 years (b) Depreciation per year = Rp1,510,000,000/18 = Rp83,888,889 Rp83,888,889 b) 2028 adjustment journal Calculation of accumulated depreciation is done using the net-amount method:
At book value adjustment
Dr.
Cr.
Accumulated depreciation for fixed assets and inventory – Building Fixed assets and inventory – Building Rp83,888,889 Rp83,888,889 At the time of revaluation Dr. Fixed assets and inventory – Building Rp107,888,889 Cr. Impairment loss recovery due to revaluation Rp90,000,000 Cr. Other comprehensive income – Revaluation surplus – fair value difference Calculation method:
(a) Fair value of building in 2027 = Rp1,510,000,000 – Rp83,888,889 = Rp1,426,111,111 (b) Fair value of building in 2028 = Rp1,534,000,000 (c) Increase in building value = Rp1,534,000,000 – Rp1,426,111,111 = Rp107,888,889 (d) Remaining economic life = 18 years – 1 year = 17 years (e) Depreciation per year = Rp1,534,000,000/17 = Rp90,235,294 (f) Revaluation surplus = Rp107,888,889 – Rp90,000,000 = Rp17,888,889 Rp17,888,889 Depreciation in 2028 Dr. Depreciation expense for fixed assets and inventory – Building Rp90,235,294 Cr. Accumulated depreciation for fixed assets and inventory – Building Calculation method Rp90,235,294

Accounting treatment for transactions occurring in Rural Banks (BPRs) must be carried out in accordance with the principles regulated in SAK EP. The journals and postings used in the BPR Accounting Examples are merely illustrations according to the context in the illustrations. (a) Remaining economic life = 18 years – 1 year = 17 years (b) Depreciation per year = Rp1,534,000,000/17 = Rp90,235,294 c) Presentation of building Year Fair Value Accumulated Depreciation Net Fair Value 2027 Rp1,510,000,000 Rp83,888,889 Rp1,426,111,111 2028 Rp1,534,000,000 Rp90,235,294 Rp1,443,764,706
2) Vehicle
a) 2027 adjustment journal
Calculation of accumulated depreciation is done using the net-amount method:
At book value adjustment
Dr.
Cr.
Accumulated depreciation for fixed assets and inventory – Vehicle Fixed assets and inventory – Vehicle Rp100,000,000 Rp100,000,000 At the time of revaluation Dr. Fixed assets and inventory – Vehicle Rp30,000,000 Cr. Other comprehensive income – Revaluation surplus – fair value difference Calculation method:
(a) Book value of vehicle in 2027 is Rp500,000,000 – Rp100,000,000 = Rp400,000,000 (b) Revalued amount of vehicle in 2027 = Rp430,000,000 (c) Revaluation surplus = Rp430,000,000 – Rp400,000,000 = Rp30,000,000 Rp30,000,000 Depreciation in 2027 Dr. Depreciation expense for fixed assets and inventory – Vehicle Rp107,500,000 Cr. Accumulated depreciation for fixed assets and inventory – Vehicle Calculation method (a) Revalued amount of vehicle in 2027 = Rp430,000,000 (b) Revaluation surplus = Rp430,000,000 – Rp400,000,000 = Rp30,000,000 (c) Remaining economic life = 5 years – 1 year = 4 years. (d) Depreciation per year = Rp430,000,000/ 4 years = Rp107,500,000. Rp107,500,000 b) 2028 adjustment journal Calculation of accumulated depreciation is done using the net-amount method:

Accounting treatment for any transaction occurring in a Rural Bank (BPR) must be carried out in accordance with the principles regulated in the Indonesian Financial Accounting Standards (SAK EP). The journals and positions used in the BPR Accounting examples are merely illustrations in accordance with the context of the illustration.

On book value adjustment
Db.
Kr.
Accumulated depreciation of fixed assets and inventory – Vehicles Fixed assets and inventory – Vehicles Rp107,500,000 Rp107,500,000

At the time of revaluation
Db.
Db.
Kr.
Expense for impairment loss due to revaluation Other comprehensive income – Revaluation surplus – fair value difference Fixed assets and inventory – Vehicles Rp7,500,000 Rp30,000,000 Rp37,500,000

Calculation method:
(a) Book value of vehicles in 2027 = Rp430,000,000 – Rp107,500,000 = Rp322,500,000 (b) Revaluation value in 2028 = Rp285,000,000 (c) Decrease in vehicle value = Rp322,500,000 – Rp285,000,000 = Rp37,500,000 (d) Impairment loss due to revaluation = Rp37,500,000 – Rp30,000,000 = Rp7,500,000

Depreciation for 2028
Db.
Kr.
Depreciation expense for fixed assets and inventory – Vehicles Accumulated depreciation of fixed assets and inventory – Vehicles

Calculation method
(a) Revaluation value in 2028 =
Rp285,000,000
(b) Remaining economic life = 4 years –
1 year = 3 years
(c) Depreciation per year =
Rp285,000,000/3 =
Rp95,000,000

c) Presentation of vehicles
Year Fair Value Accumulated
Depreciation Fair Value
Net
2027 Rp430,000,000 Rp107,500,000 Rp322,500,000 2028 Rp285,000,000 Rp95,000,000 Rp190,000,000

CHAPTER IX
ABANDONED PROPERTY
9.1. DEFINITION
Abandoned Property is fixed assets in the form of property owned by the BPR but not used for BPR business activities related to BPR operations. (in accordance with POJK regarding BPR asset quality)

9.2. Regulatory Basis
SAK EP Chapter 16 on Investment Property.

9.3. EXPLANATION
a. BPR identifies and designates Abandoned Property owned. b. Abandoned Property is property and/or part of property that has been unused for business activities related to BPR operations for 3 (three) years since the property was acquired.
c. The designation of Abandoned Property is approved by the Board of Directors and documented.
d. BPR calculates Abandoned Property recorded in the statement of financial position as a factor reducing core capital in the KPMM calculation in accordance with POJK regarding BPR asset quality.

9.4. ACCOUNTING TREATMENT
Recognition and Measurement a. BPR reclassifies fixed assets into abandoned property if the fixed assets in question meet the definition of abandoned property. b. Immediately before the recognition of abandoned property, the carrying amount of abandoned property is measured in accordance with the relevant financial accounting standards.
c. At initial recognition of abandoned property, BPR measures abandoned property at acquisition cost. (This refers to SAK EP Paragraph 16.5)
d. Subsequent measurement of abandoned property whose fair value can be measured reliably without excessive cost or effort is measured at fair value at each reporting date with changes in fair value recognized in profit or loss. (This refers to SAK EP Paragraph 16.7) e. BPR applies the cost model to abandoned property whose fair value cannot be measured reliably without excessive cost or effort (This refers to SAK EP Chapter 17.15). Subsequently, BPR records abandoned property referring to the recording method in Chapter VIII on Fixed Assets and Inventory, including asset depreciation and impairment for abandoned property recorded using the cost model. f. If BPR has classified abandoned property, but subsequently the asset no longer meets the criteria for abandoned property, then BPR can stop classifying the abandoned property. In the event that BPR reuses abandoned property for BPR operational activities and meets the definition of fixed assets, then the measurement and recognition of the asset refers to Chapter VIII on Fixed Assets and Inventory.

Presentation
Abandoned property is presented in a separate position and separate from other assets in the statement of financial position at acquisition cost or fair value.

9.5. JOURNAL ILLUSTRATION
a. Abandoned Property measured with the cost model At the time of initial recognition of abandoned property originating from fixed assets, fixed assets are reclassified to abandoned property Db. Db. Kr. Kr. Abandoned property Accumulated depreciation - Fixed assets Fixed assets Accumulated depreciation - Abandoned property Depreciation of abandoned property (only applied to abandoned property recorded with the cost model) Db. Kr. Depreciation expense - Abandoned property Accumulated depreciation - Abandoned property If there is an impairment loss of abandoned property Db. Kr. Impairment loss expense - Abandoned property Abandoned property At the time of sale of abandoned property Db. Db. Kr. Db/Kr. Cash/BPR Account Accumulated depreciation - Abandoned property Abandoned property Non-operating Profit/Loss At the time abandoned property is reused, BPR classifies it as fixed assets Db. Db. Kr. Kr. Fixed Assets Accumulated depreciation - Abandoned property Abandoned property Accumulated depreciation - Fixed assets b. Abandoned Property measured at fair value At the time of initial recognition of abandoned property originating from fixed assets, fixed assets are reclassified to abandoned property Db. Db. Kr. Abandoned property Accumulated depreciation - Fixed assets Fixed assets No recording of depreciation If there is an impairment loss of abandoned property Db. Kr. Impairment loss expense - Abandoned property Abandoned property At the time abandoned property experiences an increase in fair value Db. Kr. Abandoned property Recovery of impairment loss expense - Abandoned property At the time of sale of abandoned property Db. Kr. Db/Kr. Cash/BPR Account Abandoned property Non-operating Profit/Loss

At the time abandoned property is reused, BPR classifies it as fixed assets Db.
Kr.
Kr.
Fixed Assets
Abandoned property
Accumulated depreciation - Fixed assets

9.6. CASE EXAMPLE
a. Abandoned Property with Cost Model that is Sold BPR “TUV” has an office building previously used as a branch office building, but no longer used in BPR operational activities. The office building was purchased on August 1, 2013 for Rp850,000,000 with the assumption of economic benefits received for 20 (twenty) years so that depreciation per year is Rp42,500,000 or per month is Rp3,541,667. BPR records abandoned property using the cost model. On August 1, 2026, the Board of Directors of BPR “TUV” designated the office building as Abandoned Property and marketed the office building for sale. The recorded value of fixed assets is Rp850,000,000 with accumulated fixed asset depreciation for 13 (thirteen) years totaling Rp552,500,000. On August 1, 2027, the office building was successfully sold for Rp900,000,000 with transaction costs of Rp30,000,000. Regarding this condition, the bookkeeping journal is as follows:
On August 1, 2026:
Recognition Type Initial Accumulated
Depreciation Book Value
Building Rp850,000,000 Rp552,500,000 Rp297,500,000 Depreciation since transfer from fixed assets to abandoned property (August 1, 2026) until the building is sold (August 1 2027): Rp42,500,000 At the time of initial recognition on August 1, 2026 Db. Db. Kr. Kr. Abandoned property Accumulated depreciation - Fixed assets Fixed assets Accumulated depreciation - Abandoned property Rp850,000,000 Rp552,500,000 Rp850,000,000 Rp552,500,000 At the time of depreciation of abandoned property every month since September 1 2026 until August 1, 2027 Db. Kr. Depreciation expense - Abandoned property Accumulated depreciation - Abandoned property Rp3,541,667 Rp3,541,667 At the time of sale of abandoned property on August 1, 2027 Db. Db. Kr. Kr. Cash/BPR Account Accumulated depreciation - Abandoned property Abandoned property Non-operating profit Rp870,000,000 Rp595,000,000 Rp850,000,000 Rp615,000,000

b. Abandoned Property with Cost Model Reused as Fixed Assets BPR “TUV” has an office building previously used as a branch office building. The office building was purchased on August 1, 2025 with an acquisition value of Rp500,000,000 with the assumption of economic benefits received for 20 (twenty) years so that depreciation per year is Rp25,000,000 and depreciation per month is Rp2,083,333. BPR records Abandoned Property using the cost model. On August 1, 2030, the Board of Directors of BPR “TUV” designated the office building as Abandoned Property because the building is not used in BPR operational activities. The recorded value of fixed assets is Rp500,000,000 with accumulated fixed asset depreciation for 5 (five) years amounting to Rp125,000,000. On August 1, 2031, the office building is used as an office building and meets the requirements for stopping recognition as abandoned property. BPR records the office building as BPR fixed assets. Regarding this condition, the bookkeeping journal is as follows:
On August 1, 2030:
Recognition Type Initial Accumulated
Depreciation Book Value
Building Rp500,000,000 Rp125,000,000 Rp375,000,000 Depreciation since transfer from fixed assets to abandoned property (August 1, 2030) until the building is sold (August 1 2031): Rp25,000,000. At the time of initial recognition on August 1, 2030 Db. Db. Kr. Kr. Abandoned property Accumulated depreciation - Fixed assets Fixed assets Accumulated depreciation - Abandoned property Rp500,000,000 Rp125,000,000 Rp500,000,000 Rp125,000,000 At the time of depreciation of abandoned property every month since August 1, 2030 until August 1, 2031 Db. Kr. Depreciation expense - Abandoned property Accumulated depreciation - Abandoned property Rp2,083,333 Rp2,083,333 At the time abandoned property is reused as an office building on August 1, 2031 Db. Db. Kr. Kr. Fixed Assets Accumulated depreciation - Abandoned property Abandoned property Accumulated depreciation - Fixed assets Rp500,000,000 Rp150,000,000 Rp500,000,000 Rp150,000,000

CHAPTER X
INTANGIBLE ASSETS
10.1. DEFINITION
Intangible Assets are non-monetary assets that are identifiable and do not have a physical form. (This refers to SAK EP paragraph 18.2)

10.2. EXPLANATION
a. This chapter is only applied to accounting for all intangible assets other than goodwill. b. An asset can be identified if:

separable, namely its ability to be separated or divided from the BPR and sold, transferred,
licensed, leased, or exchanged through a contract related to assets or liabilities individually or collectively; or
arises from contractual rights or other legal rights, regardless
whether such rights can be transferred or separated from the BPR or from other rights and obligations.

10.3. ACCOUNTING TREATMENT
Recognition and Measurement a. Initial recognition of intangible assets is recognized at acquisition cost. b. Acquisition cost

Separate acquisition
Acquisition cost consists of the purchase price, including import duties and non-creditable purchase taxes, after deducting cash discounts and rebates; and costs that can be attributed directly to preparing the asset for use in accordance with its intent.
Acquisition as part of a business combination
Acquisition cost is the fair value at the date of acquisition.
Acquisition through government grants
Acquisition cost is the fair value at the date the grant is received or can be received in accordance with grant regulations.
Asset exchange
Acquisition cost is fair value unless the exchange transaction does not have commercial substance or the fair value of the asset received or the asset given up cannot be measured reliably. In such cases, acquisition cost is measured at the carrying amount of the asset given up.
c. Subsequent measurement
BPR measures intangible assets at acquisition cost less accumulated amortization and accumulated impairment losses. d. Intangible assets are amortized systematically over their useful life and recognized as an expense every period. e. Impairment of intangible assets is recognized as a loss in the period it occurs. Presentation Intangible assets are presented in a separate position in the statement of financial position at acquisition cost less accumulated amortization and impairment losses (if any).

10.4. JOURNAL ILLUSTRATION
At the time of acquisition
Db.
Kr.
Intangible assets
Cash/BPR Account
Asset exchange
Db.
Kr.
Db/Kr.
Intangible assets
Related asset (old)
Accumulated depreciation/amortization – Intangible assets At the time of recognition of costs that are not part of the acquisition cost of intangible assets – operational costs, Db. Kr. Operational expenses Cash/BPR Account At the time of amortization of intangible assets Db. Kr. Amortization expense – Intangible assets Accumulated amortization – Intangible assets At the time of impairment of intangible assets Db. Kr. Impairment loss expense – Intangible assets Accumulated impairment – Intangible assets

10.5. CASE EXAMPLE
On January 1, 2025, BPR purchased software from a third party worth Rp120,000,000 with a useful life of 60 months, so BPR records the transaction as follows:
At the time of purchasing software on January 1, 2025 Db.
Kr.
Intangible assets-software
Cash/BPR Account
Rp120,000,000
Rp120,000,000
At the time of recognition of straight-line amortization) on January 31, 2025 ( 𝑥𝑅𝑝120,000,000) = 𝑅𝑝2,000,000 Db.
Kr.
Amortization expense – Intangible assets
Accumulated amortization – Intangible assets
Rp2,000,000
Rp2,000,000

CHAPTER XI
OTHER ASSETS
11.1. DEFINITION
Other Assets are asset positions that cannot be reasonably classified into existing asset groups and are not material enough to be presented separately.

11.2. EXPLANATION
Components of other assets, including:
a. Prepaid taxes. b. Prepaid expenses, for example, deposit insurance premiums.
c. Paper money and coins withdrawn from circulation and cannot
be used as legal tender but are still within the exchange grace period. d. Receivables from insurance companies. e. Deferred tax assets. f. Other financial assets, are positions that include BPR financial assets that cannot be classified into any of the existing financial asset positions and are not material enough to be presented in a separate position. Example: fraud claims supported by supporting documents. g. Interest income to be received. h. Others, for example, stamp supplies, promotional items/souvenirs, printed items such as deposit slips, savings books and the like.

11.3. ACCOUNTING TREATMENT
Recognition and Measurement
Basically, Other Assets are recognized at the time of occurrence at acquisition cost.
Presentation
Other assets are presented collectively, except for components that have material value, then such components are presented separately in the statement of financial position.

11.4. JOURNAL ILLUSTRATION
a. Prepaid expenses
At the time of initial recognition
Db.
Kr.
Other assets - Prepaid expenses
Cash/BPR Account
At the time of amortization
Db.
Kr.
Related expenses
Other assets - Prepaid expenses b. Claims for recovery of losses due to fraud involving cash theft supported by a compensation decision letter that has permanent legal force At the time the fraud is discovered Db. Kr. Operational expenses - Losses due to fraud Cash/BPR Account At the time there is a compensation decision Db. Kr. Other assets – Fraud claims Operational expenses - Losses due to fraud At the time of forming impairment loss expenses (because fraud claims are financial assets) Db. Kr. Impairment loss expenses CKPN - Other assets – Fraud claims At the time the fraud perpetrator makes compensation payments Db. Db. Kr. Kr. Cash/BPR Account CKPN - Other assets – Fraud claims Other assets – Fraud claims Impairment loss expenses

11.5. CASE EXAMPLE
a. Prepaid expenses
On January 1, 2025, BPR made a payment for vehicle rental for office operations to a third party worth Rp120,000,000 with a rental period of 12 months, so BPR records the transaction as follows:
At the time of prepayment of rent on January 1, 2025 Db.
Kr.
Prepaid rent
Cash/BPR Account
Rp120,000,000
Rp120,000,000
At the time of recognizing rental expenses on January 31, 2025 ( 𝑥𝑅𝑝120,000,000) = 𝑅𝑝10,000,000 Db.
Kr.
Rental expenses
Prepaid rent
Rp10,000,000
Rp10,000,000 b. Claims for recovery of losses due to fraud On February 15, 2025, it was discovered that employee “A” committed fraud involving BPR cash theft with total losses of Rp58,000,000. BPR filed a legal lawsuit regarding the fraud incident, and on December 8, 2025, a legal decision letter was obtained stating that employee “A” must compensate for the losses. Subsequently, on December 25, 2025, employee “A” provided collateral in the form of vehicle ownership proof in the form of a car with a value of Rp60,000,000. BPR considers the collateral in the fraud claim reserve calculation at 80% (80%*Rp60,000,000 = 48,000,000), so BPR forms a reserve of Rp10,000,000 (Rp58,000,000 – Rp48,000,000). At the time the fraud is discovered on February 15, 2025 Db. Kr. Operational expenses - Losses due to fraud Cash/BPR Account Rp58,000,000 Rp58,000,000 At the time there is a compensation decision Db. Kr. Other assets – Fraud claims Operational expenses - Losses due to fraud Rp58,000,000 Rp58,000,000 At the time of forming impairment loss expenses (because fraud claims are financial assets) Db. Kr. Impairment loss expenses CKPN - Other assets – Fraud claims Rp10,000,000 Rp10,000,000 At the time the fraud perpetrator makes compensation payments Db. Db. Kr. Kr. Cash/BPR Account CKPN - Other assets – Fraud claims Other assets – Fraud claims Impairment loss expenses Rp58,000,000 Rp10,000,000 Rp58,000,000 Rp10,000,000

CHAPTER XII
PROVISION FOR IMPAIRMENT LOSSES
12.1. DEFINITION
a. Impairment is a condition where there is objective evidence of the occurrence of adverse events as a result of one or more events occurring after the initial recognition of the credit, and the adverse events impact the estimation of future cash flows over financial assets or groups of financial assets that can be estimated reliably. b. CKPN is a provision formed if the carrying amount after impairment is less than the initial carrying amount.

12.2. REGULATORY BASIS
SAK EP Chapter 11 on Basic Financial Instruments. a. At each reporting period end, BPR assesses whether there is objective evidence of impairment of financial assets measured at acquisition cost or amortized cost. If there is objective evidence of impairment, BPR directly recognizes impairment losses in profit or loss. (This refers to SAK EP paragraph 11.21) b. Objective evidence that financial assets or groups of assets have impaired includes observable data, which are the attention of asset holders, regarding the following loss events:

significant financial difficulties of the issuer or obligor;
contract violations, such as default or delay
in payment of interest or principal;
creditors granting concessions to debtors, which would not be
considered by creditors if not for reasons economic or legal related to the financial difficulties of the debtor;
there is a high probability that the debtor will experience
bankruptcy or undergo other financial reorganization; or
observable data indicates a measurable decrease in
the estimation of future cash flows from groups of financial assets since the initial recognition of the asset, although the decrease has not yet been identified with individual financial assets in the group, such as national or local economic conditions worsening or changes that worsen industry conditions. (This refers to SAK EP paragraph 11.22)
c. Other factors can also be evidence of impairment, including
significant changes with adverse effects occurring in technology, markets, economic or legal environments where the issuer operates. (This refers to SAK EP paragraph 11.23) d. BPR assesses the following financial assets individually for impairment:
all equity instruments regardless of
significance; and
other financial assets that are individually significant.
BPR assesses other assets for financial assets either individually or collectively based on similar credit risk characteristics. (This refers to SAK EP paragraph 11.24)

e. BPR measures impairment losses on financial assets measured at amortized cost or cost less impairment as follows:

For financial assets measured at amortized cost, impairment loss is the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring impairment loss is the current effective interest rate determined based on the contract;
For financial assets measured at cost less impairment, impairment loss is the difference between the asset's carrying amount and the best estimate (which should be an approximation) of the amount (which may be zero) that the BPR will receive for the asset if the asset is sold on the reporting date. (This refers to SAK EP paragraph 11.25)

f. If, in a subsequent period, the amount of impairment loss decreases and the decrease can be objectively related to an event occurring after the impairment loss was recognized (such as an improvement in the debtor's credit rating), the BPR reverses the previously recognized impairment loss either directly or by adjusting the provision account. The reversal does not result in the carrying amount of the financial asset (less the provision account) exceeding the carrying amount had the impairment not been recognized previously. The BPR recognizes the reversal amount in profit or loss in the current period. (This refers to SAK EP paragraph 11.26)

12.3. PROCESS OF FORMING CKPN
The process of forming Collective Credit Provision (CKPN) is as follows:

a. Step One: Assessment of Good Asset Criteria Fulfillment

BPR conducts an assessment of whether financial assets meet the good asset criteria. Good asset criteria are as follows:
a) financial assets issued by the Central Government of the Republic of Indonesia; b) financial assets guaranteed by LPS; and/or c) financial assets have no arrears exceeding 7 (seven) days and have never been restructured.

If:
a) financial assets meet the good asset criteria, BPR may not form CKPN for such financial assets; b) financial assets do not meet the good asset criteria, BPR conducts a significance assessment of the financial assets (Step Two).

b. Step Two: Significance Assessment
BPR conducts a significance assessment of financial assets that do not meet the good asset criteria. If:

financial assets are significant, BPR conducts an individual assessment of the financial assets (Step Three);
financial assets are not significant, BPR forms CKPN collectively.

c. Step Three: Individual Assessment Objective Evidence of Impairment

BPR conducts an individual assessment of financial assets that do not meet the good asset criteria and are significant.
The assessment is conducted by analyzing whether there is objective evidence of impairment on the financial assets. If:
a) there is objective evidence of impairment, BPR forms individual CKPN; b) there is no objective evidence of impairment, BPR forms collective CKPN.

12.4. EXPLANATION
a. Impairment according to this chapter applies to all types of financial assets owned by BPR, including securities, placements in other banks, credit, and equity investments. b. Impairment evaluation is conducted on financial assets measured at amortized cost or cost less impairment.
c. In conducting impairment evaluation, BPR must pay attention to the following:

Systematic and consistent over time
Evaluation must be conducted periodically and consistently in accordance with the policies and procedures established by BPR, which among others include:
a) evaluation period of financial assets; b) identification of objective evidence of impairment; c) method of estimating credit impairment individually and collectively; d) assessment of collateral/guarantees; e) formation of reserves; and f) documentation process.
Aligned with objective criteria
a) Evaluation, including recognition and measurement of impairment, must be aligned with established criteria. The criteria mentioned are not only based on rules and formulas, but also include a combination of regulations/policies and management judgment/discretion.

Supported by adequate documentation
a) Evaluation must be accompanied by documentation aimed at encouraging discipline in the estimation process and facilitating the review and validation process. b) BPR must have documentation standards for all analyses, assumptions, estimates, decisions, and evaluation processes. Some types of documentation related to impairment evaluation may include the following:
(a) internal rating or credit classification used; (b) basis for identifying individual credits to conduct impairment evaluation; (c) methodology used in the impairment evaluation of individual credits; (d) basis for grouping a credit into credit categories; and (e) methodology used to apply loss estimates to credit groups.

d. Identification of objective evidence

BPR must establish events that meet the criteria as objective evidence of credit impairment occurrence based on experience and historical trends (experienced credit judgment), available information, accompanied by basic calculation analysis and documented in BPR policy.
Impairment is essentially caused by the impact of a combination of several events, except for future events that are estimated to cause losses, regardless of how likely they are to occur.
Other factors that BPR must consider in determining whether there is objective evidence that impairment losses have occurred include information regarding liquidity, solvency, and exposure to business and financial risks of the debtor or issuer, the rate or trend of arrears (delinquencies) for similar financial assets, national and local economic trends and conditions, and the fair value of collateral and guarantees. These factors and other factors, individually or collectively, can be sufficient objective evidence that impairment losses have occurred in credit or groups of credit.

e. Impairment evaluation criteria

Individually
(1) BPR determines the significance level of credit to be evaluated individually, accompanied by adequate documentation that must be reviewed periodically. Generally, financial assets evaluated individually are calculated for large exposures. BPR determines large exposure values in accordance with the complexity of its business.

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in the Indonesian Financial Accounting Standards (SAK EP). The journals and accounts used in the BPR Accounting Examples are merely illustrations in accordance with the context of the illustration. (2) The estimated amount of financial asset impairment is based on all available information and experienced credit judgment, and considers various factors such as:
(a) debtor performance;
(b) debtor's financial strength and ability to repay obligations (repayment capacity), including the debtor's ability to generate sufficient cash flow during the credit tenure; (c) type and amount of collateral, including legal aspects; (d) availability of guarantees or sureties; (e) debtor's business prospects in the future. (3) Credit rollover frequency can be an indicator of objective evidence of impairment.

Collectively
a) BPR groups credits to be evaluated collectively based on common credit risk characteristics indicating the debtor's ability to pay all obligations due in accordance with contract terms. For example, credits can be grouped based on one or more of the following characteristics:
(1) estimated probability of default or credit risk rating; (2) type (whether working capital or consumption); (3) geographical location; (4) type of collateral; (5) arrears status and/or maturity; or (6) economic sector. b) Grouping credits based on common characteristics must be accompanied by adequate documentation that is reviewed periodically.

f. Impairment evaluation period

At the end of each month or at the latest at the end of each quarter, BPR evaluates whether there is objective evidence that credit or groups of credit have experienced impairment.
In the event that BPR conducts evaluation at the end of each quarter, but there is objective evidence of impairment occurrence before the next evaluation date, then BPR re-estimates future cash flows and CKPN for such credit.

g. Impairment evaluation techniques
BPR can use various techniques to evaluate impairment, both individually and collectively. In selecting and using impairment evaluation techniques, BPR needs to consider cost-benefit analysis and the availability of information and historical data. Evaluation of impairment is not only based on a standard approach (prescriptive rules/formula) but also based on experienced credit judgment by competent and authorized parties, given that historical loss experience and observable data are limited or may not be fully relevant to current conditions.

Individually
BPR can use several impairment evaluation techniques and measure impairment losses, including:

a) Discounted cash flow
Credits that have experienced impairment are recorded based on the discounted amount and not based on book value, because BPR will not be able to recover the entire amount of credit given to the debtor. The discounted amount is obtained by estimating future cash flows (including principal and interest payments) discounted using the initial effective interest rate of the credit. For fixed-rate credits, the contractual interest rate does not change during the credit period. Therefore, the effective interest rate can be identified after considering all costs (including acquisition fees) that can be directly attributed to the credit. The effective interest rate does not change and is used to evaluate credit impairment losses. For floating-rate credits, where the contractual interest rate changes over time depending on the reference interest rate, the effective interest rate can also change. BPR can use the current effective interest rate when there is objective evidence of impairment occurrence. The effective interest rate can be used in evaluating subsequent impairment.

b) Estimate of recoverable value of collateral (1) Credits that have experienced impairment can also be recorded based on the recoverable amount. (2) In determining the recoverable credit amount, BPR can consider future cash flows from collateral takeover, i.e., if it meets one of the following conditions:
(a) the credit is collateral-dependent, i.e., if credit repayment is only sourced from collateral; (b) it is difficult to reliably determine the amount and timing of future cash flows originating from credit principal and/or interest; and/or (c) collateral takeover is likely to occur and is supported by legal aspects of collateral binding. (3) Evidence of the estimated recoverable value refers to the net proceeds of collateral disposal after deducting disposal costs.

c) In the event that BPR has calculated individual CKPN using the discounted cash flow approach, and subsequently obtains facts that the debtor has no repayment ability, then BPR calculates individual CKPN using the collateral approach. CKPN formed with the collateral approach must be at least equal to the CKPN formed previously.

Collectively
a) Impairment evaluation of credit groups is conducted based on estimates of future contractual cash flows and historical loss rates (historical loss rate or historical net charge-off rate) of the credit group. b) Data on historical losses is the starting point in conducting impairment evaluation of credit groups. Based on historical loss data from a credit group after considering the recovery rate, BPR can estimate future cash flows and the current loss rate of the credit group. c) BPR can determine its own observation period for historical loss data. However, in establishing this period, it should be noted that in stable economic conditions, a longer observation period is recommended, while in fluctuating economic conditions, a shorter observation period is recommended. Whatever observation period is used, BPR must have historical loss data for at least 3 (three) years so that it can generate more reliable and meaningful loss estimates. d) In establishing the loss rate for credit groups, BPR needs to pay attention to the following:
(1) impairment analysis of credit groups;
(2) age of credits in the credit group (aging of balance); (3) cash flows from the entire remaining life of credits (not just the next year); (4) current conditions, both internal and external; (5) influence of the time value of money; and (6) does not result in a historical loss rate that requires recognition of losses at the initial recognition of credit. e) BPR can use statistical method approaches in establishing the loss rate of credit groups, namely:
(1) Probability of Default (PD)
Probability of Default, which is the level of possibility of debtor failure to meet obligations that can be measured based on several approaches, including Migration Analysis, Roll Rates, or other methods. (2) Loss Given Default Loss Given Default is the magnitude of the loss level caused by debtor failure to meet obligations, which can be measured based on several approaches, including Expected Recoveries, Collateral Shortfall, or other methods.

h. In the event that the following conditions exist:

BPR conducts consolidation with the same ownership;
BPR conducts business acquisition and/or merger; and/or
BPR replaces core banking applications or transaction recording systems,
which causes BPR to be unable to provide data for collective CKPN calculation, then the formation of collective CKPN can use peer group data until BPR has historical data for collective CKPN calculation for at least 2 (two) years of normal business periods.

12.5. ACCOUNTING TREATMENT
Recognition and Measurement a. BPR recognizes impairment loss provisions measured at amortized cost as "impairment loss expense" in profit or loss and as "CKPN" in the statement of financial position. b. If based on periodic evaluation it is known that the amount of impairment decreases due to the occurrence of a specific event after the recognition of impairment, then BPR recovers the previously recognized impairment loss by journaling back "impairment loss expense" in profit or loss and "CKPN" in the statement of financial position, namely at most equal to the CKPN that has been formed.

Presentation a. Credit CKPN is presented as a deduction from the Credit item by the difference between the carrying amount of credit and the present value of estimated future cash flows discounted using the initial effective interest rate of the credit. b. Credit impairment losses are presented as operating expenses in the "credit impairment loss expense" item.

12.6. PD CALCULATION
One of the components formed in the CKPN calculation is probability of default (PD). To help understand the PD calculation mechanism, the PD formation excel is available on the official OJK website under the Banking section – Banking Accounting Guidelines.

12.6.1 PD CALCULATION WITH NET FLOW
a. This approach describes the level of possibility of debtor failure to meet obligations as seen from the movement of credits to worse buckets from month to month over a certain period of time. b. Calculation steps are carried out in stages as follows:

BPR must first group credits based on similar credit risks, for example, credits based on type of use, economic sector, MSME scale, credit scheme, or others.
If BPR establishes credit grouping based on type of use, for example, working capital, consumptive, and investment groups, then BPR must calculate PD according to those credit groups so as to produce 3 (three) PDs.
The data used is monthly outstanding credit data based on principal and/or interest arrears days and monthly write-off credit data. The example displayed in this guide is 12 months for display simplification.
Group credits based on principal and/or interest arrears buckets for each month. Buckets are established

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the BPR accounting examples are merely illustrations according to the context of the illustration.

based on the range of principal and/or interest arrears for example, buckets with 0 days of arrears, 1-30 days of arrears, 31-60 days of arrears, and so on until the worst bucket in the credit portfolio.

Example Illustration Data
5) BPR also needs to map credit migration up to the point where the credit is written off (worst bucket) to observe the behavior of each category based on risk or similar credit characteristics.
6) Calculate the proportion (%) of outstanding credit migration from each bucket per month by comparing outstanding credit in a better bucket in month t period with outstanding credit in a worse bucket in month t+1 period.
This migration indicates an increase in credit risk.

Example Illustration Data
As an example, the value 40.30% in the Jan-25 column in the table above was obtained from the division of the value in table number 4), namely 19,100,000 in bucket 2 in Feb-25 divided by 47,400,000 in bucket 1 in Jan-25.
7) Calculate PD using compound flow to loss for each bucket and period, then average the results for each bucket to obtain the final PD.
(a) Formation of compound flow to loss
The compound flow to loss value is obtained by the bank using the bucket migration percentage values calculated in item 6) above. The calculation is performed for all buckets.

No.	Bucket	Jan-25	Feb-25	Mar-25	Apr-25	May-25	Jun-25	Jul-25	Aug-25	Sep-25	Oct-25	Nov-25	Dec-25	Jan-26
0	0 - 7 days	937,800,000	996,500,000	1,000,860,000	1,025,080,000	1,064,600,000	1,111,800,000	1,151,400,000	1,184,900,000	1,226,000,000	1,244,000,000	1,268,000,000	992,000,000	994,000,000
1	8 - 30 days	47,400,000	38,400,000	39,300,000	43,800,000	36,300,000	35,700,000	34,700,000	33,900,000	35,100,000	27,800,000	35,500,000	30,000,000	24,150,000
2	31 - 60 days	16,700,000	19,100,000	163,000,000	16,210,000	16,500,000	14,900,000	14,400,000	13,000,000	14,170,000	14,880,000	13,370,000	13,100,000	11,800,000
3	61 - 90 days	12,300,000	13,700,000	15,600,000	13,100,000	12,500,000	12,900,000	11,700,000	12,100,000	11,000,000	11,500,000	12,700,000	8,000,000	9,700,000
4	91 - 120 days	8,300,000	10,800,000	11,900,000	14,200,000	11,700,000	10,700,000	11,200,000	10,300,000	11,100,000	10,200,000	10,800,000	9,100,000	7,000,000
5	121 - 150 days	8,500,000	6,600,000	9,600,000	10,500,000	12,500,000	10,000,000	9,700,000	10,000,000	8,900,000	9,700,000	8,800,000	8,600,000	8,800,000
6	151 - 180 days	8,000,000	8,400,000	6,500,000	9,500,000	10,350,000	12,100,000	9,750,000	9,500,000	9,900,000	8,850,000	9,600,000	7,800,000	8,300,000
7	181-210 days	7,000,000	7,600,000	8,000,000	6,000,000	9,000,000	10,000,000	12,000,000	9,000,000	9,200,000	9,500,000	8,500,000	9,000,000	7,500,000
8	211-240 days	6,500,000	6,900,000	7,500,000	7,900,000	5,900,000	8,800,000	9,000,000	10,000,000	8,900,000	9,000,000	9,300,000	8,300,000	8,500,000
9	241-270 days	6,400,000	6,300,000	6,500,000	7,400,000	7,800,000	5,500,000	8,500,000	8,500,000	9,500,000	8,500,000	8,500,000	9,000,000	8,000,000
10	271-300 days	6,000,000	6,000,000	6,200,000	6,400,000	7,300,000	7,500,000	5,000,000	8,000,000	8,000,000	9,000,000	8,000,000	8,000,000	8,500,000
11	301-330 days	5,800,000	5,700,000	5,800,000	6,000,000	6,300,000	7,200,000	7,000,000	4,000,000	7,500,000	7,500,000	8,500,000	7,500,000	8,500,000
12	331-360 days	5,600,000	5,700,000	5,600,000	5,700,000	5,900,000	6,200,000	7,000,000	6,000,000	3,500,000	7,400,000	7,000,000	8,000,000	6,500,000
13	>360+WO	5,500,000	5,600,000	5,500,000	5,500,000	5,400,000	5,600,000	5,500,000	6,500,000	5,500,000	3,000,000	2,800,000	6,600,000	7,500,000 WO

Recovery >360 Recovery write off
Migration

Bucket	Jan-25	Feb-25	Mar-25	Apr-25	May-25	Jun-25	Jul-25	Aug-25	Sep-25	Oct-25	Nov-25	Dec-25
1 to 2	40,30%	424,48%	41,25%	37,67%	41,05%	40,34%	37,46%	41,80%	42,39%	48,09%	36,90%	39,33%
2 to 3	82,04%	81,68%	8,04%	77,11%	78,18%	78,52%	84,03%	84,62%	81,16%	85,35%	59,84%	74,05%
3 to 4	87,80%	86,86%	91,03%	89,31%	85,60%	86,82%	88,03%	91,74%	92,73%	93,91%	71,65%	87,50%
4 to 5	79,52%	88,89%	88,24%	88,03%	85,47%	90,65%	89,29%	86,41%	87,39%	86,27%	79,63%	96,70%
5 to 6	98,82%	98,48%	98,96%	98,57%	96,80%	97,50%	97,94%	99,00%	99,44%	98,97%	88,64%	96,51%
6 to 7	95,00%	95,24%	92,31%	94,74%	96,62%	99,17%	92,31%	96,84%	95,96%	96,05%	93,75%	96,15%
7 to 8	98,57%	98,68%	98,75%	98,33%	97,78%	90,00%	83,33%	98,89%	97,83%	97,89%	97,65%	94,44%
8 to 9	96,92%	94,20%	98,67%	98,73%	93,22%	96,59%	94,44%	95,00%	95,51%	94,44%	96,77%	96,39%
9 to 10	93,75%	98,41%	98,46%	98,65%	96,15%	90,91%	94,12%	94,12%	94,74%	94,12%	94,12%	94,44%
10 to 11	95,00%	96,67%	96,77%	98,44%	98,63%	93,33%	80,00%	93,75%	93,75%	94,44%	93,75%	106,25%
11 to 12	98,28%	98,25%	98,28%	98,33%	98,41%	97,22%	85,71%	87,50%	98,67%	93,33%	94,12%	86,67%
12 to 13	100,00%	96,49%	98,21%	94,74%	94,92%	88,71%	92,86%	91,67%	85,71%	37,84%	94,29%	93,75%

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the BPR accounting examples are merely illustrations according to the context of the illustration.

Example Illustration Data bucket 1 to 2
Example Illustration Data calculation of compound flow to loss for each bucket up to the Dec-25 position (b) Formation of final PD value After obtaining the compound flow to loss values for all buckets, the bank averages the values from Jan-25 to Dec-25 to obtain the final PD value. The maximum PD value is 100%.

Example illustration data
The PD value for Bucket 1 to 2 is 14.2%, obtained from the average value from Jan-25 to Dec-25 for bucket 1 to 2.

Bucket	Jan-25	Feb-25	Mar-25	Apr-25	May-25	Jun-25	Jul-25	Aug-25	Sep-25	Oct-25	Nov-25	Dec-25
1 to 2	15,82%	14,00%	15,94%	13,23%	14,42%	16,03%	13,62%	14,65%	14,71%	12,73%	12,05%	13,52%
2 to 3	39,52%	39,27%	3,30%	38,65%	35,11%	35,13%	39,75%	36,35%	35,06%	34,70%	26,47%	32,66%

Bucket	Jan-25	Feb-25	Mar-25	Apr-25	May-25	Jun-25	Jul-25	Aug-25	Sep-25	Oct-25	Nov-25	Dec-25
1 to 2	15,82%	14,00%	15,94%	13,23%	14,42%	16,03%	13,62%	14,65%	14,71%	12,73%	12,05%	13,52%
2 to 3	39,52%	39,27%	3,30%	38,65%	35,11%	35,13%	39,75%	36,35%	35,06%	34,70%	26,47%	32,66%
3 to 4	22,76%	48,18%	48,08%	41,03%	50,12%	44,91%	44,74%	47,31%	42,96%	43,20%	40,66%	44,24%
4 to 5	36,14%	25,93%	55,46%	52,82%	45,94%	58,55%	51,73%	50,83%	51,57%	46,32%	46,00%	56,74%
5 to 6	64,71%	45,45%	29,17%	62,86%	60,00%	53,75%	64,58%	57,94%	58,82%	59,01%	53,69%	57,76%
6 to 7	81,25%	65,48%	46,15%	29,47%	63,77%	61,98%	55,12%	65,94%	58,52%	59,15%	59,63%	60,58%
7 to 8	78,57%	85,53%	68,75%	50,00%	31,11%	66,00%	62,50%	59,72%	68,09%	60,99%	61,59%	63,60%
8 to 9	86,15%	79,71%	86,67%	69,62%	50,85%	31,82%	73,33%	75,00%	60,39%	69,61%	62,30%	63,07%
9 to 10	84,38%	88,89%	84,62%	87,84%	70,51%	54,55%	32,94%	77,65%	78,95%	63,23%	73,70%	64,38%
10 to 11	91,67%	90,00%	90,32%	85,94%	89,04%	73,33%	60,00%	35,00%	82,50%	83,33%	67,18%	78,31%
11 to 12	94,83%	96,49%	93,10%	93,33%	87,30%	90,28%	78,57%	75,00%	37,33%	88,00%	88,24%	71,66%
12 to 13	100,00%	96,49%	98,21%	94,74%	94,92%	88,71%	92,86%	91,67%	85,71%	37,84%	94,29%	93,75%

Bucket	Jan-25	Feb-25	Mar-25	Apr-25	May-25	Jun-25	Jul-25	Aug-25	Sep-25	Oct-25	Nov-25	Dec-25	PD
1 to 2	15,82%	14,00%	15,94%	13,23%	14,42%	16,03%	13,62%	14,65%	14,71%	12,73%	12,05%	13,52%	14,2%
2 to 3	39,52%	39,27%	3,30%	38,65%	35,11%	35,13%	39,75%	36,35%	35,06%	34,70%	26,47%	32,66%	33,0%
3 to 4	22,76%	48,18%	48,08%	41,03%	50,12%	44,91%	44,74%	47,31%	42,96%	43,20%	40,66%	44,24%	43,2%
4 to 5	36,14%	25,93%	55,46%	52,82%	45,94%	58,55%	51,73%	50,83%	51,57%	46,32%	46,00%	56,74%	48,2%
5 to 6	64,71%	45,45%	29,17%	62,86%	60,00%	53,75%	64,58%	57,94%	58,82%	59,01%	53,69%	57,76%	55,6%
6 to 7	81,25%	65,48%	46,15%	29,47%	63,77%	61,98%	55,12%	65,94%	58,52%	59,15%	59,63%	60,58%	58,9%
7 to 8	78,57%	85,53%	68,75%	50,00%	31,11%	66,00%	62,50%	59,72%	68,09%	60,99%	61,59%	63,60%	63,0%
8 to 9	86,15%	79,71%	86,67%	69,62%	50,85%	31,82%	73,33%	75,00%	60,39%	69,61%	62,30%	63,07%	67,4%
9 to 10	84,38%	88,89%	84,62%	87,84%	70,51%	54,55%	32,94%	77,65%	78,95%	63,23%	73,70%	64,38%	71,8%
10 to 11	91,67%	90,00%	90,32%	85,94%	89,04%	73,33%	60,00%	35,00%	82,50%	83,33%	67,18%	78,31%	77,2%
11 to 12	94,83%	96,49%	93,10%	93,33%	87,30%	90,28%	78,57%	75,00%	37,33%	88,00%	88,24%	71,66%	82,8%
12 to 13	100,00%	96,49%	98,21%	94,74%	94,92%	88,71%	92,86%	91,67%	85,71%	37,84%	94,29%	93,75%	89,1%

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the BPR accounting examples are merely illustrations according to the context of the illustration.

based on the type of use, economic sector, SME scale, credit scheme, or others.
2) If the BPR determines credit grouping based on the type of use, for example, working capital, consumer, and investment groups, then the BPR must calculate PD according to those credit groups, resulting in 3 (three) PDs.
3) The data used is outstanding credit data from a specific period (month “n” year “t”) based on credit quality and outstanding credit data from the period (month “n” year “t+1”), written-off credit data, and credit payment data.
As an example, the data used is credit data for the years 2023 and 2024.
4) Group credit based on credit quality (quality bucket) in month “n” year “t” (as a basis or opening balance). Map credit migration based on quality from month “n” year “t” to month “n” year “t+1”, including migration to written-off credits and paid credits.
5) Calculate the proportion (%) of outstanding credit migration from each quality bucket by comparing outstanding credit in each quality bucket with the opening balance position in month “n” year “t”. This proportion indicates the migration of credit from 1 quality bucket to another quality bucket.

Example illustration data
6) The PD calculation mechanism uses joint probability multiplication starting from the worst quality bucket.
7) If the BPR uses several month positions, PD can be generated by calculating the weighted average PD for each position. The maximum PD value is 100%.

Account Number	Quality	Debit Balance
A0246	5	8,800,000
A1357	1	22,000,000
A2468	2	2,000,000
A3579	1	7,000,000
A4680	1	28,000,000
A5791	2	4,500,000
A6802	1	2,000,000
A7913	4	5,600,000
A8024	1	1,000,000
A9135	3	5,300,000

March 2023

Account Number	Quality	Debit Balance
A0246	5	8,800,000
A1357	Paid	Paid
A2468	2	2,000,000
A3579	3	5,000,000
A4680	1	20,000,000
A5791	Paid	Paid
A6802	1	2,000,000
A7913	5	5,600,000
A8024	1	600,000
A9135	4	5,300,000

March 2024 Position March 2020

1	2	3	4	5	Write Off	Payment
1	64,556,976,812	5,544,533,966	5,284,097,492	230,675,588	258,669,401	92,436,631	53,146,563,734	64,556,976,812
2	31,665,605,230	274,348,538	3,112,296,246	120,768,017	279,326,818	549,692,577	27,329,173,034	31,665,605,230
3	4,211,132,481	85,092,279	12,055,279	22,142,410	36,869,435	2,116,424,613	1,938,548,465	4,211,132,481
4	2,363,302,378	-	22,219,886	1,500,000	97,091,648	1,278,816,304	963,674,540	2,363,302,378
5	6,003,786,354	14,608,323	-	-	-	3,989,488,616	61,073,061	1,938,616,354	6,003,786,354
	108,800,803,255	108,800,803,255

1	2	3	4	5	Write Off	Payment
1	64,556,976,812	8,6%	8,2%	0,4%	0,4%	0,1%	0,0%	82,3%	0,5%
2	31,665,605,230	0,9%	9,8%	0,4%	0,9%	1,7%	0,0%	86,3%	1,6%
3	4,211,132,481	2,0%	0,3%	0,5%	0,9%	50,3%	0,0%	46,0%	34,2%
4	2,363,302,378	0,0%	0,9%	0,1%	4,1%	54,1%	0,0%	40,8%	36,51%
5	6,003,786,354	0,2%	0,0%	0,0%	0,0%	66,4%	1,0%	32,3%	67,5%
	108,800,803,255

Position March 31, 2024
Opening Balance (March 31, 2023) Quality TOTAL Quality Opening Balance (March 31, 2023) Position March 31, 2024 TOTAL

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the BPR accounting examples are merely illustrations according to the context of the illustration.

Example Illustration Data
12.7. CALCULATION OF LGD
a. In the calculation of impairment based on collective, the BPR first groups credit based on similar credit risk (for example, credit based on type of use, economic sector, SME scale, or credit scheme). If the BPR determines credit grouping based on the type of use of working capital, consumer, and investment, then the BPR forms LGD according to those credit groups, namely 3 types of LGD. If the data does not support, the BPR can create LGD all account. b. This guideline introduces two ways to calculate LGD, namely the calculation of LGD using expected recovery and the calculation of LGD using collateral shortfall.

12.7.1. CALCULATION OF LGD WITH EXPECTED RECOVERIES
The calculation of LGD with the Expected Recoveries method uses the results of credit recovery, i.e., non-performing loans that have met the default criteria and/or write-off of credits that have been written off. The example in this guide uses recovery from credits that have been written off. Step 1: The BPR collects credit data based on the category of written-off credits per year and the amount of repayment of written-off credits (including effective interest rate data when written off).

Example Illustration Step 1
As an example, the BPR has five customers who were written off in 2019 with balance write-off data, the amount of recovery received each year, and the effective interest rate value when written off as shown in the table above.

Step 2: The BPR calculates the present value of repayments exceeding 1 year from the written-off credit by discounting the repayment value using the effective interest rate of the credit. Average PD based on Quarterly PD

Quality	Weighted Average	Average
1	0,9%	0,9%
2	2,8%	2,7%
3	27,1%	22,5%
4	37,3%	40,7%
5	80,2%	79,4%

Write-off Year	2019	2020	2021	2022	2023	2024
Customer Name	Balance Write-off	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Effective Interest Rate
A	79,487,179,20	79,487,179,20	78,037,179,20	recovery -	1,450,000,00	-	-	-	-	19,82%
B	102,067,926,00	100,628,226,00	99,861,797,00	99,711,785,00	recovery 1,439,700,00	766,429,00	150,012,00	-	-	-	18,03%
C	172,121,860,96	171,121,860,96	171,121,860,96	171,058,480,24	recovery 1,000,000,00	-	63,380,72	-	-	-	18,06%
D	156,186,979,50	156,186,979,50	151,686,979,50	recovery -	4,500,000,00	-	-	-	-	18,07%
E	90,267,217,87	14,267,217,87	recovery 76,000,000,00	-	-	-	-	19,04%

Write-off Year 2019

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the BPR accounting examples are merely illustrations according to the context of the illustration.

Example Illustration Step 2
Step 3: The BPR calculates the recovery rate, i.e., the percentage of repayment against the amount of written-off credit for each position.

Example Illustration Step 3
The recovery rate value for customer A is 1.52%, obtained from the total recovery divided by the write-off balance, i.e., 1,210,104,32/79,487,179,20.

Step 4: After the BPR calculates Steps 2 and 3 up to the current year position, the BPR calculates the average return (expected recoveries). As an example, if the data owned by the BPR starts from the write-off year 2019, then the BPR averages the recovery rate from the write-off year 2019 to 2024 (position of this guideline was prepared), or up to the current position where the BPR performs the LGD calculation. Step 5: LGD Value = 1 – average recovery rate.

12.7.2. CALCULATION OF LGD WITH COLLATERAL SHORTFALL
The LGD Calculation Method using Collateral Shortfall uses data on receipts from the sale/execution of collateral that has been controlled by the BPR. Step 1: The BPR collects data on the sales value of credit collateral (for those not yet executed, using the estimated collateral value).

Example Illustration Step 1

Credit Account Number	Debit Balance/Outstanding Credit Not Paid	Value of Collateral Pledged	Year Collateral Submitted to Bank/Write-off Year	Year of Execution	Effective Interest Rate at Time of Write-off	Value of Collateral Resulting from Execution After Deducting Costs
Account 1	100,000,000	90,000,000	2018	2020	15%	80,000,000
Account 2	500,000,000	500,000,000	2017	2020	18%	550,000,000
Account 3	200,000,000	10,000,000	2020	2020	18%	9,000,000
Account 4	300,000	300,000	2019	2021	15%	300,000
Account 5	13,666,654,00	45,000,000,00	2020	-	25,59%	25,000,000,00
Total	800,300,000	664,300,000

Write-off Year	2019	2020	2021	2022	2023	2024
Customer Name	Balance Write-off	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Effective Interest Rate	NPV of Recovery	Total Recovery
A	79,487,179,20	79,487,179,20	78,037,179,20	recovery -	1,450,000,00	-	-	-	-	19,82%	1,210,104,32	1,210,104,32
B	102,067,926,00	100,628,226,00	99,861,797,00	99,711,785,00	recovery 1,439,700,00	766,429,00	150,012,00	-	-	-	18,03%	757,032,53	2,196,732,53
C	172,121,860,96	171,121,860,96	171,121,860,96	171,058,480,24	recovery 1,000,000,00	-	63,380,72	-	-	-	18,06%	45,474,87	1,045,474,87
D	156,186,979,50	156,186,979,50	151,686,979,50	recovery -	4,500,000,00	-	-	-	-	18,07%	3,811,255,53	3,811,255,53
E	90,267,217,87	14,267,217,87	recovery 76,000,000,00	-	-	-	-	19,04%	-	76,000,000,00

Write-off Year 2019

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the BPR accounting examples are merely illustrations according to the context of the illustration.

Step 2: The BPR calculates the present value of the collateral value resulting from execution.

Example Illustration Step 2

Credit Account Number	Debit Balance/Outstanding Credit Not Paid	Value of Collateral Pledged	Year Collateral Submitted to Bank/Write-off Year	Year of Execution	Effective Interest Rate at Time of Write-off	Value of Collateral Resulting from Execution After Deducting Costs	NPV
Account 1	100,000,000	90,000,000	2018	2020	15%	80,000,000	78,036,884,62
Account 2	500,000,000	500,000,000	2017	2020	18%	550,000,000	525,974,346,56
Account 3	200,000,000	10,000,000	2020	2020	18%	9,000,000	9,000,000,00
Account 4	300,000	300,000	2019	2021	15%	300,000	292,638,32
Account 5	13,666,654,00	45,000,000,00	2020	-	25,59%	25,000,000,00	25,000,000,00
Total	800,300,000	664,300,000

Step 3: The BPR calculates the loss/shortfall, which is the difference between the debit balance of the unpaid credit and the sales value of the collateral. The final LGD value is the division of the loss value by the unpaid debit balance.

Example Illustration Step 3
The loss value for account 1 is Rp21,963,115, obtained from Rp100,000,000-Rp78,036,884,62. Account 2 has no loss because the present value of the collateral value resulting from execution is greater than the unpaid debit balance. Similarly, account 5 has no loss because the collateral for account 5 has not yet been executed. LGD 26.6% is obtained from the total loss/total debit balance value, i.e., Rp212,970,477/Rp800,300,00.

12.8. CALCULATION OF CKPN
The CKPN value is obtained from the multiplication of the PD value, LGD, and outstanding credit (exposure at default/EAD).

Example illustration (using PD and LGD examples from 12.6 and 12.7) a. CKPN with PD Calculation using netflow method The total reserve to be formed is Rp43,903,658, originating from the sum of impairment from bucket 1 to bucket 13.

Credit Account Number	Debit Balance/Outstanding Credit Not Paid	Value of Collateral Pledged	Year Collateral Submitted to Bank/Write-off Year	Year of Execution	Effective Interest Rate at Time of Write-off	Value of Collateral Resulting from Execution After Deducting Costs	NPV
Account 1	100,000,000	90,000,000	2018	2020	15%	80,000,000	78,036,884,62
Account 2	500,000,000	500,000,000	2017	2020	18%	550,000,000	525,974,346,56
Account 3	200,000,000	10,000,000	2020	2020	18%	9,000,000	9,000,000,00
Account 4	300,000	300,000	2019	2021	15%	300,000	292,638,32
Account 5	13,666,654,00	45,000,000,00	2020	-	25,59%	25,000,000,00	25,000,000,00
Total	800,300,000	664,300,000

Credit Account Number	Debit Balance/Outstanding Credit Not Paid	Value of Collateral Pledged	Year Collateral Submitted to Bank/Write-off Year	Year of Execution	Effective Interest Rate at Time of Write-off	Value of Collateral Resulting from Execution After Deducting Costs	NPV	Value of Collateral Resulting from Execution in Column H
Account 1	100,000,000	90,000,000	2018	2020	15%	80,000,000	78,036,884,62	21,963,115
Account 2	500,000,000	500,000,000	2017	2020	18%	550,000,000	525,974,346,56	-
Account 3	200,000,000	10,000,000	2020	2020	18%	9,000,000	9,000,000,00	191,000,000
Account 4	300,000	300,000	2019	2021	15%	300,000	292,638,32	7,362
Account 5	13,666,654,00	45,000,000,00	2020	-	25,59%	25,000,000,00	25,000,000,00	-
Total	800,300,000	664,300,000					212,970,477

LGD = 26,6%
Impairment = PD X LGD X EAD

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the BPR accounting examples are merely illustrations according to the context of the illustration.

b. CKPN with PD Calculation using migration method

12.9. JOURNAL ILLUSTRATION
At the time of impairment occurrence
Db.
Kr.
Impairment loss expense – Financial assets
CKPN – Financial assets

At the time of impairment recovery
Db.
Kr.
CKPN – Financial assets
Operating Income – Recovery of CKPN – Financial assets

12.10. CASE EXAMPLE
Individual CKPN Calculation
On January 1, 2026, BPR “XYZ” granted credit to debtor “ABC” with data as per the credit agreement as follows:
Plafond = Rp1,000,000,000
Tenor = 2 years or 24 months
Credit Type = Investment for machine purchase
Interest = 15%/year or 1.25%/month
Provision = 0.10% or Rp1,000,000
Transaction Costs = Rp500,000

Principal Repayment Schedule
Semester 1 2026 = Rp250,000,000
Semester 2 2026 = Rp250,000,000
Semester 1 2027 = Rp250,000,000
Semester 2 2027 = Rp250,000,000

Bucket	Days of Arrears	Debit Balance Position Dec 2025 (EAD)	PD	LGD	Impairment
0	0 days to 7 days	992,000,000	0%	66,75%	0
1	8- 30 days	30,000,000	14,23%	66,75%	2,849,068
2	31 - 60 days	13,100,000	33,00%	66,75%	2,885,369
3	61 - 90 days	8,000,000	43,18%	66,75%	2,305,892
4	91 - 120 days	9,100,000	48,17%	66,75%	2,925,914
5	121 - 150 days	8,600,000	55,65%	66,75%	3,194,341
6	151 - 180 days	7,800,000	58,92%	66,75%	3,067,752
7	181-210 days	9,000,000	63,04%	66,75%	3,786,995
8	211-240 days	8,300,000	67,38%	66,75%	3,732,837
9	241-270 days	9,000,000	71,80%	66,75%	4,313,494
10	271-300 days	8,000,000	77,22%	66,75%	4,123,493
11	301 - 330 days	7,500,000	82,84%	66,75%	4,147,429
12	331-360 days	8,000,000	89,10%	66,75%	4,757,868
13	> 360 days	6,600,000	100,00%	66,75%	4,405,521
Total reserve to be formed/total impairment = 46,495,972

Quality	Debit Balance Position Dec 2021 (EAD)	PD	LGD	Impairment
1	1,018,150,000	0,92%	66,75%	6,260,559
2	21,500,000	2,72%	66,75%	390,158
3	24,100,000	22,46%	66,75%	3,613,561
4	41,000,000	40,72%	66,75%	11,143,859
5	5,500,000	79,42%	66,75%	2,915,870
Total reserve to be formed/total impairment = 24,324,007

Accounting treatment for any transaction occurring in a BPR must be carried out in accordance with the principles regulated in SAK EP. The journals and postings used in the BPR Accounting Practice examples are merely illustrations according to the context in the illustration.

Based on the data above, the total funds disbursed by the BPR amount to Rp999,500,000 (Rp1,000,000,000 – Rp1,000,000 + Rp500,000).

Estimates of future cash flows as shown in Table 1.

Table 1. Estimates of Future Cash Flows for Investment Credit – Amortized Cost
Effective Interest Rate: 1.2537% p = principal i = contractual interest rate

Based on periodic evaluations conducted by the BPR, at the end of September 2026 there was objective evidence of a decline in the value of the credit, namely the debtor's failure to pay interest obligations on September 30, 2026. Based on this objective evidence, the BPR re-estimates the future cash flows that may be obtained, which are subsequently discounted using the initial effective interest rate to obtain the present value of those cash flows (Table 2).

The aforementioned cash flow estimates are determined based on the professional judgment of the BPR. The shortfall between the carrying amount of the credit before objective evidence of impairment and the present value of the estimated future cash flows constitutes the Credit Loss Provision (CKPN) that must be formed.

No.	Year	Estimated Cash Flow	Beginning Balance	Credit Cash Flow	Effective Interest Rate (EIR)	Principal Installment	Interest Charge	Amortization with EIR
A	B	C	D=(In-1)	E=(Dn-1)xEIR	F	G=p x i	H=E-G	I=D+E+F+G
1	01-Jan-26	(999,500,000)	999,500,000
2	31-Jan-26	12,500,000	999,500,000	12,531,142	(12,500,000)	31,142		999,531,142
3	28-Feb-26	12,500,000	999,531,142	12,531,532	(12,500,000)	31,532		999,562,674
4	31-Mar-26	12,500,000	999,562,674	12,531,927	(12,500,000)	31,927		999,594,601
5	30-Apr-26	12,500,000	999,594,601	12,532,328	(12,500,000)	32,328		999,626,928
6	31-May-26	12,500,000	999,626,928	12,532,733	(12,500,000)	32,733		999,659,661
7	30-Jun-26	262,500,000	999,659,661	12,533,143	(250,000,000)	(12,500,000)	33,143	749,692,805
8	31-Jul-26	9,375,000	749,692,805	9,399,206	(9,375,000)	24,206		749,717,011
9	31-Aug-26	9,375,000	749,717,011	9,399,510	(9,375,000)	24,510		749,741,521
10	30-Sep-26	9,375,000	749,741,521	9,399,817	(9,375,000)	24,817		749,766,338
11	31-Oct-26	9,375,000	749,766,338	9,400,128	(9,375,000)	25,128		749,791,466
12	30-Nov-26	9,375,000	749,791,466	9,400,443	(9,375,000)	25,443		749,816,909
13	31-Dec-26	259,375,000	749,816,909	9,400,762	(250,000,000)	(9,375,000)	25,762	499,842,671
14	31-Jan-27	6,250,000	499,842,671	6,266,733	(6,250,000)	16,733		499,859,404
15	28-Feb-27	6,250,000	499,859,404	6,266,942	(6,250,000)	16,942		499,876,346
16	31-Mar-27	6,250,000	499,876,346	6,267,155	(6,250,000)	17,155		499,893,501
17	30-Apr-27	6,250,000	499,893,501	6,267,370	(6,250,000)	17,370		499,910,871
18	31-May-27	6,250,000	499,910,871	6,267,588	(6,250,000)	17,588		499,928,459
19	30-Jun-27	256,250,000	499,928,459	6,267,808	(250,000,000)	(6,250,000)	17,808	249,946,267
20	31-Jul-27	3,125,000	249,946,267	3,133,679	(3,125,000)	8,679		249,954,946
21	31-Aug-27	3,125,000	249,954,946	3,133,788	(3,125,000)	8,788		249,963,734
22	30-Sep-27	3,125,000	249,963,734	3,133,898	(3,125,000)	8,898		249,972,631
23	31-Oct-27	3,125,000	249,972,631	3,134,009	(3,125,000)	9,009		249,981,641
24	30-Nov-27	3,125,000	249,981,641	3,134,122	(3,125,000)	9,122		249,990,763
25	31-Dec-27	253,125,000	249,990,763	3,134,237	(250,000,000)	(3,125,000)	9,237	0
		1,187,500,000	188,000,000	(187,500,000)	500,000

Table 2. Estimates of Future Cash Flows for Investment Credit – Amortized Cost After Objective Evidence of Impairment Exists

Based on Table 2, the calculation of the CKPN for the credit as of September 30, 2026 is:
Carrying amount before impairment: Rp749,741,521 Present value of estimated future cash flows: Rp725,872,152 CKPN: Rp 23,869,368

For this transaction, the bookkeeping journal entries are made as follows:
Recognition of CKPN on September 30, 2026
Dr.
Cr.
Impairment loss expense – Credit
CKPN – Credit
Rp23,869,368
Rp23,869,368

No.	Year	Estimated Cash Flow	Present Value of Cash Flow	Beginning Balance	Credit Cash Flow	Effective Interest Rate (EIR)	Principal Installment	Interest Charge	Amortization with EIR
A	B	C	D=(In-1)	E=DxEIR	F	G=p x i	H=E-G	I=D+E+F+G
1	01-Jan-26	-	999,500,000	999,500,000
2	31-Jan-26	12,500,000	999,500,000	12,531,142	##########	31,142		999,531,142
3	28-Feb-26	12,500,000	999,531,142	12,531,532	##########	31,532		999,562,674
4	31-Mar-26	12,500,000	999,562,674	12,531,927	##########	31,927		999,594,601
5	30-Apr-26	12,500,000	999,594,601	12,532,328	##########	32,328		999,626,928
6	31-May-26	12,500,000	999,626,928	12,532,733	##########	32,733		999,659,661
7	30-Jun-26	262,500,000	999,659,661	12,533,143	-	250,000,000	##########	33,143	749,692,805
8	31-Jul-26	9,375,000	749,692,805	9,399,206	-	9,375,000	24,206	749,717,011
9	31-Aug-26	9,375,000	749,717,011	9,399,510	-	9,375,000	24,510	749,741,521
There is Objective Evidence of Impairment
10	30-Sep-26
11	31-Oct-26
12	30-Nov-26
13	31-Dec-26	287,500,000	276,952,070
14	31-Jan-27
15	28-Feb-27
16	31-Mar-27	5,000,000	4,639,846
17	30-Apr-27
18	31-May-27
19	30-Jun-27	5,000,000	4,469,617
20	31-Jul-27
21	31-Aug-27
22	30-Sep-27	5,000,000	4,305,634
23	31-Oct-27
24	30-Nov-27
25	31-Dec-27	525,000,000	435,504,987
		725,872,152

CHAPTER XIII
DEPOSITS

13.1. THIRD-PARTY NON-BANK DEPOSITS

13.1.1. DEFINITION
A deposit is funds entrusted by the public (excluding commercial banks or other BPRs) to a BPR based on a fund storage agreement.

13.1.2. EXPLANATION
a. In public fund collection activities, BPRs sell their deposit products to customers in the form of savings accounts, time deposits, or other forms equivalent thereto. b. Forms of deposits include:

Savings accounts are third-party funds held at a BPR where withdrawals can only be made under certain agreed-upon terms, but cannot be withdrawn using checks, giro orders, or other instruments equivalent thereto.
Time deposits are third-party funds held at a BPR where withdrawals can only be made at specific times according to an agreement between the depositor and the BPR. The time deposits referred to are those with a fixed term.
Other forms equivalent thereto.
c. Deposit interest expenses include contractual interest on deposits and transaction costs that can be directly attributed to those deposits. For example: gifts and cash backs that can be directly attributed, and deposit guarantee premiums. Gifts and cash backs generally can only be attributed to deposits with a specific term.
d. Examples of transaction costs that can be directly attributed include giving gifts to customers who open time deposits with a certain placement nominal or gifts to customers who open savings accounts with a certain deposit value.

13.1.3. ACCOUNTING TREATMENT
Recognition and Measurement
Deposits are financial liabilities. Initial recognition is at the present value of cash delivered to the BPR minus transaction costs. Subsequent measurement uses amortized cost. If there are no transaction costs, the value is generally equal to the amount of cash to be paid and is not discounted. a. Savings Accounts

Savings transactions are recognized at the nominal amount of the deposit or withdrawal made by the saver.
Savings deposits are recognized when the money is received.
Interest given on savings is recognized as an increase in the savings nominal.
In the case of amortization of transaction costs that can be directly attributed to savings, it is recognized as interest expense. The calculation of interest expense uses the effective interest rate.

b. Time Deposits

Time deposit transactions are recognized at the nominal value stated on the deposit slip.
Time deposit placements are recognized when the money is received.
Interest added to the time deposit nominal is recognized as an increase in the time deposit.
Amortization of transaction costs that can be directly attributed to time deposits is recognized as interest expense.
Presentation a. Savings Accounts
Savings balances are presented in a separate line item on the statement of financial position equal to the BPR's obligation to savings account owners. b. Time Deposits
Time deposits are presented in a separate line item on the statement of financial position equal to the estimate/amount required to settle the obligation.
Unmatured time deposit interest obligations are presented in the interest payable line item.

13.1.4. JOURNAL ILLUSTRATION
a. Upon receipt of deposits, recorded in the journal:
Dr.
Cr.
Cash/Bank Account
Savings/Time Deposit – Amortized Cost b. Payment of transaction costs that can be attributed:
a) If the value is material for amortization, recorded in the journal:
Dr.
Cr.
Savings/Time Deposit – Amortized Cost
Cash/Bank Account b) If the value is immaterial for amortization, recorded in the journal:
Dr.
Cr.
Interest Expense
Cash/Bank Account
c. Upon withdrawal of savings/time deposits, recorded in the journal:
Dr.
Cr.
Savings/Time Deposit – Amortized Cost
Cash/Bank Account d. Recognition of savings/time deposit interest expense, recorded in the journal:
Dr.
Cr.
Interest Expense – Savings/Time Deposit
Interest Payable – Savings/Time Deposit e. Amortization of attributed transaction costs (if amortization is performed), recorded in the journal:
Dr.
Cr.
Interest Expense
Savings/Time Deposit – Amortized Cost f. Payment of savings/time deposit interest, recorded in the journal:
Dr.
Cr.
Cr.
Interest Payable – Savings/Time Deposit
Customer Account
Immediate Liability – Customer Tax

13.1.5. CASE EXAMPLE
On November 19, 2024, a customer opened a time deposit account worth Rp10,000,000 deposited in cash at BPR “XYZ” for a period of 1 month with an interest rate of 6% per year.

For this transaction, the bookkeeping journal entries are made as follows:
a. When the customer opens the time deposit account on November 19, 2024, recorded with the journal:
Dr.
Cr.
Cash/Bank Account
Time Deposit – Amortized Cost
Assumption: No attributed costs exist.
Rp10,000,000
Rp10,000,000 b. Recognition of interest expense (daily), recorded with the journal:
Dr.
Cr.
Interest Expense – Time Deposit
Interest Payable – Time Deposit
Daily interest =
Rp10,000,000 x 1/365 x 6% = Rp1,644
Total interest days from November 19, 2024 to December 19, 2024 is 30 days, so the total time deposit interest expense is Rp49,320 (30 x Rp1,644) Rp1,644 Rp1,644
c. When the time deposit matures on December 19, 2024

Payment of time deposit interest, recorded with the journal:
Dr.
Cr.
Cr.
Interest Payable – Time Deposit
Customer Account
Immediate Liability – Customer Tax
(Tax = 20% x Rp49,320 = Rp9,864, tax rate follows applicable regulations) Rp49,320 Rp39,456 Rp9,864
Payment of time deposit nominal, recorded with the journal:
Dr.
Cr.
Time Deposit – Amortized Cost
Customer Account
Rp10,000,000
Rp10,000,000

13.2. DEPOSITS FROM OTHER BANKS

13.2.1. DEFINITION
Deposits from other banks are BPR liabilities in the form of savings and time deposits from other banks in Indonesia.

13.2.2. EXPLANATION
a. Deposits from other banks consist of savings and time deposits. b. Deposits from other banks do not include loans from other banks, which will be recorded in the borrowed loans line item.

13.2.3. ACCOUNTING TREATMENT
Recognition and Measurement a. Savings from other banks

Savings transactions are recognized at the nominal amount of the deposit or withdrawal made by the other bank.
Savings deposits are recognized when the money is received.
Interest given on savings is recognized as an increase in the savings nominal.
b. Time Deposits from other banks
Time deposit transactions are recognized at the nominal value stated on the deposit slip.

Time deposit placements are recognized when the money is received.
Interest added to the time deposit nominal is recognized as an increase in the time deposit.
Presentation a. Savings from other banks
Savings are presented in a separate line item on the statement of financial position equal to the BPR's obligation to the other bank owning the savings. b. Time Deposits from other banks
Time deposits are presented in a separate line item on the statement of financial position equal to the estimate/amount required to settle the obligation.
Matured or unmatured time deposit interest obligations are presented in the Interest Payable line item.

13.2.4. JOURNAL ILLUSTRATION
a. Upon receipt of deposits, recorded in the journal:
Dr.
Cr.
Cash/Bank Account
Deposits from other banks – Savings/Time Deposit b. Payment of transaction costs that can be attributed:
If the value is material for amortization, recorded in the journal:
Dr.
Cr.
Savings/Time Deposit – Amortized Cost
Cash/Bank Account c) If the value is immaterial for amortization, recorded in the journal:
Dr.
Cr.
Interest Expense
Cash/Bank Account
c. Upon charging administrative fees (if any), recorded in the journal:
Dr.
Cr.
Cash/Bank Account
Other operating income (administrative fees) d. Upon withdrawal of savings/time deposits, recorded in the journal:
Dr.
Cr.
Deposits from other banks – Savings/Time Deposit Cash/Bank Account e. Recognition (payment) of savings interest, recorded in the journal:
Dr.
Cr.
Interest Expense – Savings
Deposits from other banks – Savings f. Upon recognition of time deposit interest, recorded in the journal:
Dr.
Cr.
Interest Expense – Savings/Time Deposit
Interest Payable – Savings/Time Deposit g. Payment of savings/time deposit interest, recorded in the journal:
Dr.
Cr.
Cr.
Interest Payable – Savings/Time Deposit
Cash/Bank/Deposit from other banks
Immediate Liability – Customer Tax

13.2.5. CASE EXAMPLE
The Case Example for Deposits from Other Banks refers to the case example in Chapter XIII regarding Deposits, subsection Third-Party Non-Bank Deposits.

CHAPTER XIV
IMMEDIATE LIABILITIES

14.1. DEFINITION
Immediate liabilities are BPR liabilities that have matured and/or are immediately callable by their owners and must be paid immediately.

14.2. EXPLANATION
a. Immediate liabilities arise from support activities for BPR operational activities, both towards the public and towards other banks. b. Interest payables are not included in immediate liabilities.
c. Types of immediate liabilities include:

closure of matured time deposit accounts;
customer consignments;
surplus from the sale of customer-owned collateral;
unpaid dividends;
liabilities to the government that must be paid;
penalty liabilities to authorities that have not yet been paid;
salaries/honorariums/wages that have matured but have not yet been paid.
d. The above components, if material in amount, are grouped into a separate line item.

14.3. ACCOUNTING TREATMENT
Recognition and Measurement
Immediate liability transactions are recognized when:
a. the liability has matured; or b. the liability becomes immediately callable by its owner, either with or without instructions from the principal. Presentation Immediate liabilities in a separate line item on the statement of financial position are presented at the amount to be settled.

14.4. JOURNAL ILLUSTRATION
a. Closure of matured savings or time deposit accounts

Upon closure, recorded in the journal:
Dr.
Dr.
Cr.
Time Deposit
Time Deposit Interest Expense
Immediate Liability – Deposits (account closure)
Upon settlement, recorded in the journal:
Dr.
Cr.
Immediate Liability – Deposits (account closure) Cash/Account b. Customer Consignments
Upon receipt of remitted money, recorded in the journal:
Dr.
Cr.
Cash/Account
Immediate Liability – Remitted Money
Upon payment, recorded in the journal:
Dr.
Cr.
Immediate Liability – Remitted Money
Cash/Account
c. Surplus from the sale of customer-owned collateral
Upon sale of collateral, recorded in the journal:

Dr.
Cr.
Cr.
Cr.
Cash/Account
Loans Granted
Interest Income (if any)
Immediate Liability – Surplus from the sale of customer-owned collateral
2) Upon settlement, recorded in the journal:
Dr.
Cr.
Immediate Liability – Surplus from the sale of customer-owned collateral Cash/Account d. Unpaid Dividends

Upon determination, recorded in the journal:
Dr.
Cr.
Retained Earnings
Immediate Liability – Dividend Payable
Upon payment, recorded in the journal:
Dr.
Cr.
Immediate Liability – Dividend Payable
Cash/Account e. Tax Deductions
Upon tax deduction, recorded in the journal:
Dr.
Cr.
Specific Item
Immediate Liability – Tax Deduction
Upon deposit, recorded in the journal:
Dr.
Cr.
Immediate Liability – Tax Deduction
Cash/Account f. Administrative sanctions in the form of fines to relevant authorities but not yet paid
Upon incurrence of obligation, recorded in the journal:
Dr.
Cr.
Non-operating Expense
Immediate Liability – Administrative Sanctions in the form of fines
Upon deposit, recorded in the journal:
Dr.
Cr.
Immediate Liability – Administrative Sanctions in the form of fines Cash/Account

14.5. CASE EXAMPLE
On March 31, 2025, BPR “ABC” determined a dividend distribution worth Rp10,000,000,000. This dividend will be paid to the shareholders of BPR “ABC” on April 24, 2025, recorded in the journal:
Dr.
Cr.
Dr.
Cr.
Upon determination of dividends on March 31
2025:
Retained Earnings
Immediate Liability – Dividend Payable
Upon payment of dividends to shareholders on April 24, 2025:
Immediate Liability – Dividend Payable
Cash
Rp10,000,000,000

CHAPTER XV
LIABILITIES

15.1. INTEREST PAYABLES

15.1.1. DEFINITION
Interest payables constitute all BPR liabilities in the form of interest liabilities to customers that have not yet been paid from deposits in the form of savings and time deposits from third parties who are not banks and from other banks, loans received from banks, and other interest payables.

15.1.2. EXPLANATION
a. Included in the definition of interest payables are interest payables arising from other transactions, such as received loans and subordinated loans. b. Interest payables include among others:

Interest liabilities that have become an expense for the BPR but have not yet been paid (accrued interest).
Time deposit interest that has matured but has not yet been withdrawn by customers.
Interest from other transactions that has matured but has not yet been withdrawn.

15.1.3. ACCOUNTING TREATMENT
Recognition and Measurement
Interest payables are recognized at the amount of contractual interest, both for accrued interest and for matured interest.
Presentation
Interest payables are presented at the amount to be settled.

15.1.4. JOURNAL ILLUSTRATION

Upon recognition of accrued/matured interest, recorded in the journal:
Dr.
Cr.
Interest Expense – Savings/Time Deposits/Received Loans/Related Items Interest Payable
Upon payment of interest, recorded in the journal:
Dr.
Cr.
Interest Payable
Cash/Account

15.1.5. CASE EXAMPLE
The case example for recognition and payment of interest payables refers to the case example in the chapter on liabilities generating interest such as Chapter XIII regarding Deposits and Chapter XVI regarding Loans.

15.2. TAX PAYABLES

15.2.1. DEFINITION
Tax payables are corporate income tax liabilities owed on BPR income.

15.2.2. REGULATORY BASIS
SAK EP Chapter 29 regarding Corporate Income Tax and also PA BPR Chapter XXIV regarding Corporate Income Tax Expense and Deferred Tax.

15.2.3. EXPLANATION
Tax payables include:
a. tax payables on Article 29 Income Tax (Corporate Income Tax) calculated after the end of the annual tax period, namely the shortfall in BPR income tax obligations after considering Article 25 Income Tax (tax installments or pre-paid taxes); and/or b. tax payables that have been determined by the tax office.

15.2.4. ACCOUNTING TREATMENT
Recognition and Measurement
Tax Payables are recognized at the amount to be deposited into state treasury.
Presentation
Tax Payables are presented at the amount to be settled.

15.2.5. JOURNAL ILLUSTRATION
a. Upon payment of Corporate Income Tax installments, recorded in the journal:
Dr.
Cr.
Prepaid Taxes
Cash/Account b. At year-end, recorded in the journal:
Dr.
Cr.
Cr.
Income Tax Expense
Prepaid Taxes
Tax Payable
c. Upon payment, recorded in the journal:
Dr.
Cr.
Tax Payable
Cash/Account

Accounting treatment for transactions occurring in BPR must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the PA BPR examples are merely illustrations according to the context of the illustration.

CHAPTER XVI
LOANS

16.1. DEFINITIONS a. Borrowed loans are loans received from banks, Bank Indonesia, and/or third parties that are not banks, with repayment obligations based on the terms of the debt agreement. b. Subordinated loans are loans that meet subordination criteria, including being junior and having a position almost equivalent to capital.

16.2. REGULATORY BASIS a. Initial measurement, i.e., loans are recognized at the present value of cash payable (for example, including interest payments and principal repayment). (This refers to SAK EP Paragraph 11.13). b. Subsequent measurement of loans is measured at amortized cost.

16.3. EXPLANATIONS a. Borrowed loans can come from commercial banks, other BPRs, Bank Indonesia, or other parties. b. Borrowed loans from Bank Indonesia are in the form of short-term financing facilities to overcome short-term financing difficulties experienced by BPRs.
c. Types of borrowed loans include:

bilateral loans;
syndicated loans;
subordinated loans; and
special loans received from supervisory institutions or loans in the context of linkage.
d. In capital regulations, subordinated loans are included as loans with specific requirements as per POJK regarding minimum capital provision obligations and minimum core capital fulfillment for BPRs. e. Borrowed loans do not include:
participation deposits from other banks (participant banks) in syndicated loans (co-financing); or
funds received in the context of credit channeling (channeling).

16.4. ACCOUNTING TREATMENT

Recognition and Measurement a. Borrowed loans are recognized at the principal amount of the loan plus transaction costs directly attributable to the acquisition of the loan, minus prepaid interest (discount) if any. b. Transaction costs directly attributable to the acquisition of the loan and discounts are amortized using the effective interest rate method and recognized as interest expense.
c. Accrued interest on borrowed loans is recognized as interest payable.

Presentation a. Borrowed loans are presented in a separate position in the financial position report at the outstanding loan balance on the reporting date, as well as transaction costs and discounts not yet amortized. b. Interest still payable is presented in the interest payable position.

c. Loan facilities not yet drawn by the BPR are presented as commitment receivables in the position of undrawn loan facilities.
d. BPR placements in the form of current accounts at commercial banks with credit balances (overdrafts) are presented in the financial position report as borrowed loans.

16.5. JOURNAL ILLUSTRATIONS a. Borrowed loans measured at amortized cost

Upon realization of the borrowed loan:
Dr.
Cr.
Cash/Bank Account (at acquisition cost)
Borrowed Loans
Recording transaction costs
a) if transaction costs meet the criteria for attribution, recorded in the journal:
Dr.
Cr.
Borrowed Loans
Cash/Bank Account
(at the amount of transaction costs) b) if transaction costs do not meet the criteria for attribution, recorded in the journal:
Dr.
Cr.
Service Expense
Cash/Bank Account
(at the amount of transaction costs)
Upon recognition of interest expense, recorded in the journal:
Dr.
Cr.
Cr.
Interest Expense
Borrowed Loans
Interest Payable - Borrowed Loans
Upon realization of interest expense, recorded in the journal:
Dr.
Cr.
Interest Payable - Borrowed Loans
Cash/Bank Account
Cessation of recognition – upon repayment, recorded in the journal:
Dr.
Dr.
Cr.
Borrowed Loans
Interest Payable - Borrowed Loans
Cash/Bank Account

b. Subordinated Loans with a discount system (prepaid interest)

Upon issuance, recorded in the journal:
Dr.
Cr.
Cash
Borrowed Loans – Subordinated Loans
(at the nominal value of issuance minus prepaid interest)
Recording transaction costs
a) if transaction costs meet the criteria for attribution, recorded in the journal:
Dr.
Cr.
Borrowed Loans – Subordinated Loans
Cash/Counterparty Account b) if transaction costs do not meet the criteria for attribution, recorded in the journal:
Dr.
Cr.
Service Expense
Cash/Counterparty Account
Upon amortization of discount (interest) and transaction costs, recorded in the journal:
Dr.
Cr.
Interest Expense
Borrowed Loans – Subordinated Loans
Upon maturity, recorded in the journal:
Dr.
Cr.
Borrowed Loans – Subordinated Loans
Cash

c. Subordinated Loans with an interest system (at par)

Upon issuance, recorded in the journal:
Dr.
Cr.
Cash
Borrowed Loans – Subordinated Loans
(at the nominal value of issuance)
Recording transaction costs
a) if transaction costs meet the criteria for attribution, recorded in the journal:
Dr.
Cr.
Borrowed Loans – Subordinated Loans
Cash/Counterparty Account b) if transaction costs do not meet the criteria for attribution, recorded in the journal:
Dr.
Cr.
Service Expense
Cash/Counterparty Account
Upon recognition of interest expense, recorded in the journal:
Dr.
Cr.
Interest Expense
Interest Payable
(at the contractual interest amount)
Upon realization of interest payment, recorded in the journal:
Dr.
Cr.
Interest Payable
Cash/Counterparty Account
Upon maturity, recorded in the journal:
Dr.
Cr.
Borrowed Loans – Subordinated Loans
Cash/Counterparty Account

16.6. CASE EXAMPLES a. Borrowed Loans Measured at Amortized Cost On January 1, 2025, BPR “ABC” received a loan of Rp200,000,000 at an interest rate of 7% per year. The loan matures on December 31, 2034. Interest is paid at the end of each year (December 31). In connection with this loan, BPR “ABC” incurred transaction costs attributable to Rp5,000,000.

Initial Measurement
Upon receipt of the loan (January 1, 2025), recorded in the journal:
Dr.
Cr.
Cash/Bank Account
Borrowed Loans – Amortized Cost
Rp195,000,000
Rp195,000,000
Subsequent Measurement
a) Upon recognition of interest expense, amortization of transaction costs (December 31, 2025), recorded in the journal:
Dr.
Cr.
Cr.
Interest Expense
Borrowed Loans – Amortized Cost
Interest Payable – Borrowed Loans
Rp14,355,748
Rp355,748
Rp14,000,000 b) Upon realization of interest payment (December 31, 2025), recorded in the journal:
Dr.
Cr.
Interest Payable – Borrowed Loans
Cash/Bank Account
Rp14,000,000
Rp14,000,000
Cessation of Recognition
Upon repayment, recorded in the journal:
Dr.
Dr.
Cr.
Borrowed Loans – Amortized Cost
Interest Payable – Borrowed Loans
Cash/Bank Account
Rp200,000,000
Rp14,674,209
Rp214,674,209

b. Subordinated Loans
On January 1, 2025, BPR “ABC” had Subordinated Loans of Rp100,000,000 at an interest rate of 7%.
The Subordinated Loans mature on December 31, 2030. Interest is paid on December 31 every year.
Upon issuance of the Subordinated Loans, BPR “ABC” paid support and consultancy fees of Rp1,250,000 (1.25% of the nominal issuance). Settlement was carried out on January 1, 2025. BPR “ABC” recorded the issuance transaction of Subordinated Loans using the settlement date approach.

Assumptions:

Number of interest calculation days in one actual year/365 days.

Table 1: Cash Flows

Date	Cash Flow	Description
January 1, 2025	100,000,000	Receipt of issuance proceeds
January 1, 2025	-1,250,000	Payment of transaction costs
December 31, 2025	-7,000,000	Payment of contractual interest
December 31, 2026	-7,000,000	Payment of contractual interest
December 31, 2027	-7,000,000	Payment of contractual interest
December 31, 2028	-7,000,000	Payment of contractual interest
December 31, 2029	-7,000,000	Payment of contractual interest
December 31, 2030	-7,000,000	Payment of contractual interest
December 31, 2030	-100,000,000	Repayment
Total	-43,250,000
Effective Interest Rate	7.26%

Table 2: Amortization

Year	Acquisition/Opening Balance	Interest Expense	Amortization of Transaction Costs	Cash Flow	Closing Balance
2025	98,750,000	7,173,584	173,584	-7,000,000	98,923,584
2026	98,923,584	7,186,194	186,194	-7,000,000	99,109,778
2027	99,109,778	7,199,720	199,720	-7,000,000	99,309,498
2028	99,309,498	7,214,228	214,228	-7,000,000	99,523,726
2029	99,523,726	7,229,791	229,791	-7,000,000	99,753,517
2030	99,753,517	7,246,483	246,483	-107,000,000	0
Total		43,250,000	1,250,000

Recording transaction cost payment on January 1, 2025, recorded in the journal:
Dr.
Cr.
Borrowed Loans – Subordinated Loans
Cash/Counterparty Account
Rp1,250,000
Rp1,250,000
Recording upon issuance on January 1, 2025, recorded in the journal:
Dr.
Cr.
Cash
Borrowed Loans – Subordinated Loans
Rp100,000,000
Rp100,000,000
Interest recognition, amortization of transaction costs on December 31, 2025, recorded in the journal:
Dr.
Cr.
Cr.
Interest Expense – Subordinated Loans
Borrowed Loans – Subordinated Loans
Interest Payable
Rp7,173,584
Rp173,584
Rp7,000,000
Interest payment on December 31, 2025, recorded in the journal:
Dr.
Cr.
Interest Payable
Cash/Counterparty Account
Rp7,000,000
Rp7,000,000
Interest recognition, amortization of transaction costs on December 31, 2026, recorded in the journal:
Dr.
Cr.
Cr.
Interest Expense – Subordinated Loans
Borrowed Loans – Subordinated Loans
Interest Payable
Rp7,186,194
Rp186,194
Rp7,000,000
Interest payment on December 31, 2026, recorded in the journal:
Dr.
Cr.
Interest Payable
Cash/Counterparty Account
Rp7,000,000
Rp7,000,000
(Journals for interest recognition and payment and subsequent amortization are the same as journal numbers 3) through 6) above)
Recording repayment of Subordinated Loans upon maturity on December 31, 2030, recorded in the journal:
Dr.
Dr.
Cr.
Borrowed Loans – Subordinated Loans
Interest Payable
Cash/Counterparty Account
Rp100,000,000
Rp7,000,000
Rp107,000,000

CHAPTER XVII
CAPITAL CONTRIBUTION FUNDS

17.1. DEFINITIONS a. Capital Contribution Funds (DSM) – Liabilities are funds that have been fully deposited by shareholders or prospective shareholders and are blocked for capital addition, but do not yet meet capital requirements according to statutory regulations. b. Capital Contribution Funds – Equity (DSM – Equity) refers to funds that have been deposited in reality for the purpose of capital addition but are not yet supported by complete requirements to be classified as paid-in capital, such as the General Meeting of Shareholders or Members Meeting, or approval of the articles of association by the competent authority.

17.2. REGULATORY BASIS
POJK regarding minimum capital provision obligations and minimum core capital fulfillment for Rural Banks.

17.3. EXPLANATIONS a. DSM – Liabilities do not meet the criteria for equity instruments because there is still an element of uncertainty where the BPR still has contractual liabilities to return the funds if they do not meet the requirements to be recognized as paid-in capital according to POJK regarding minimum capital provision obligations and minimum core capital fulfillment for Rural Banks. b. Capital contribution funds that do not meet the applicable capital requirements constitute the BPR's obligation to the depositor.
c. Capital contribution funds that have been declared to meet the applicable capital requirements are part of the BPR's equity.

17.4. ACCOUNTING TREATMENT

Recognition and Measurement a. Capital contribution funds received are recognized as DSM - Liabilities. b. DSM - Liabilities that have been declared to meet the applicable capital requirements are recognized as DSM - Equity.

Presentation
DSM – Liabilities are presented in a separate position in the financial position report.

17.5. JOURNAL ILLUSTRATIONS

Upon receiving capital contribution funds and placing them in an escrow account, recorded in the journal:
Dr.
Cr.
Placements in Other Banks/Cash/BPR Account
DSM – Liabilities
Upon capital contribution funds being approved and meeting the applicable capital requirements, recorded in the journal:
Dr.
Cr.
DSM – Liabilities
DSM – Equity

17.6. CASE EXAMPLE
On January 1, 2026, BPR “ABC” made a capital contribution addition of Rp1,000,000,000 in the form of an escrow account.
The capital addition is recorded in the journal:
Dr.
Cr.
Placements in Other Banks
DSM – Liabilities
Rp1,000,000,000

In the event that the capital contribution funds meet the capital requirements according to POJK regarding minimum capital provision obligations and minimum core capital fulfillment for Rural Banks, recorded in the journal:
Dr.
Cr.
DSM - Liabilities
DSM - Equity

CHAPTER XVIII
EMPLOYEE BENEFIT LIABILITIES

18.1. DEFINITIONS a. Employee benefits are all forms of compensation provided by the BPR for services provided by employees, including directors and management. (This refers to SAK EP paragraph 28.1) b. Employee benefit liabilities are liabilities arising from employee benefits.

18.2. REGULATORY BASIS a. Employee benefit liabilities consist of:

short-term employee benefits;
post-employment benefits;
other long-term employee benefits; and
termination benefits.
(This refers to SAK EP paragraph 28.1) b. Short-term employee benefit liabilities
Short-term employee benefit liabilities are employee benefit liabilities (other than termination benefits) that are due entirely within a maximum of 12 (twelve) months after the end of the period in which the employee provides their services. (This refers to SAK EP paragraph 28.1).
Examples of short-term employee benefits include:
a) wages, salaries, and social security contributions; b) short-term paid leave, such as annual leave and sick leave, if the leave is expected to occur within 12 (twelve) months after the end of the reporting period; c) profit sharing and accrued bonuses; d) non-monetary benefits, such as health services, housing, cars, as well as goods or services provided free of charge or through subsidies. (This refers to SAK EP paragraph 28.4)
c. Post-employment benefit liabilities
Post-employment benefit liabilities are employee benefit liabilities (other than termination benefits) that are due after the employment contract ends. (This refers to SAK EP paragraph 28.1)
Examples of post-employment benefits:
a) retirement benefits or pensions; b) other post-employment benefits, such as pension life insurance and pension health services; c) agreements or arrangements where the BPR provides post-employment benefits. (This refers to SAK EP paragraph 28.9)
Post-employment benefit programs can be classified as defined contribution programs or defined benefit programs, depending on their terms and conditions. (This refers to SAK EP paragraph 28.10)
In defined contribution programs:
a) The BPR's obligation is limited to the amount agreed upon as contributions to the BPR (fund) separately. The amount of post-employment benefits received by employees is determined by the amount of contributions paid by the BPR (and possibly by employees) plus the return on those contributions. b) The BPR has no legal obligation to pay further contributions or make benefit payments directly to employees if the separate BPR (fund) intended does not have sufficient assets to pay all employee benefits. (This refers to SAK EP paragraph 28.10)
In defined benefit programs:
a) The BPR's obligation is to provide the agreed benefits to employees or former employees. b) Actuarial risks (that the benefits will be larger or smaller than estimated) and investment risks (that the return on assets set aside to fund the benefits will differ from estimates) are borne, in substance, by the BPR. (This refers to SAK EP paragraph 28.10) d. Other long-term employee benefit liabilities
Other long-term employee benefit liabilities are employee benefit liabilities (other than post-employment benefits and termination benefits) that are not entirely due within 12 (twelve) months after the end of the period in which the employee provides their services. (This refers to SAK EP paragraph 28.1)
Examples of other long-term employee benefits:
a) long-term compensated leave such as long leave; b) service benefits; c) permanent disability benefits; d) profit sharing and bonuses due 12 (twelve) months or more; e) deferred compensation paid 12 (twelve) months or more. (This refers to SAK EP paragraph 28.29) e. Termination Benefits Termination benefits are employee benefits due as a result of one of the following:
the BPR's decision to terminate the employee's employment contract before the normal retirement date; or
the employee's decision to voluntarily accept a reduction in employment contract in exchange for termination benefits.
(This refers to SAK EP paragraph 28.1)

18.3. EXPLANATIONS
The short-term portion of employee benefit liabilities is included in short-term liabilities, while long-term employee benefit liabilities are included in long-term liabilities.

18.4. ACCOUNTING TREATMENT

Recognition and Measurement a. Employee benefit liabilities are recognized when employees have provided their services to the BPR in a specific period. b. Employee benefit liabilities are recognized at the cost of all employee benefits earned by employees, minus amounts paid either directly to employees or as contributions to employee benefit funds. (This refers to SAK EP paragraph 28.3)

Accounting treatment for transactions occurring in a Rural Bank (BPR) must be carried out in accordance with the principles regulated in the Enhanced Financial Accounting Standards (SAK EP). The journals and postings used in the BPR Accounting Examples are merely illustrations in accordance with the context of the illustration.

c. If the amount of work benefits paid exceeds the liability arising from services before the reporting date, the BPR recognizes the excess as an asset to the extent that prepayments will reduce payments in the future. (This refers to SAK EP paragraph 28.3)

d. Short-term employee benefit liabilities:

Generally recognized at the undiscounted amount. (This refers to SAK EP paragraph 28.5)
For short-term accumulated paid leave, such as unused annual leave in the current year carried forward to the next year, the expected cost is recognized when employees provide services that increase their rights to future paid leave. (This refers to SAK EP paragraph 28.6)
For profit-sharing and bonus programs, the BPR recognizes expected costs only if:
a) The BPR has a present obligation to make such payments; and b) An estimate of the obligation can be made reliably.
(This refers to SAK EP paragraph 28.8)

e. Long-term employee benefit liabilities are recognized at the discounted amount.

f. Specifically for post-employment benefit liabilities under defined benefit plans and other long-term employee benefit liabilities, the BPR measures the liability at the net total of:

the present value of the benefit liability, minus
the fair value of program assets (if any),
at the reporting date. (This refers to SAK EP paragraphs 28.15 and 28.30).

g. If the BPR is able, without undue cost or effort, the BPR uses the projected unit credit (PUC) method to measure defined benefit obligations and related expenses. The BPR may consider using simplifications allowed by SAK EP in using the PUC method. (This refers to SAK EP paragraphs 28.18, 28.19, and 28.24)

h. Specifically for severance pay:

The BPR recognizes severance pay as an expense in profit or loss and other comprehensive income because severance pay does not provide economic benefits to the BPR in the future. Severance pay is recognized as a liability and expense only when the BPR demonstrates its commitment to:
a) terminating employment contracts before the normal retirement date, indicated by a detailed formal plan to dismiss workers and no realistic possibility of canceling the plan; or b) providing severance pay as a result of an offer made to encourage voluntary workforce reduction. (This refers to SAK EP paragraphs 28.34 and 28.35)
The BPR measures severance pay at the best estimate of the expenditure required to settle the obligation. If severance pay is given to encourage voluntary workforce reduction, the measurement of severance pay is based on the number of workers estimated to accept the offer.

If severance pay falls due more than 12 (twelve) months later, severance pay is measured at the discounted present value. (This refers to SAK EP paragraphs 28.36 and 28.37)

Presentation a. Short-term employee benefit liabilities are presented in the Current Liabilities line item in the statement of financial position. b. Long-term employee benefit liabilities are presented in the Other Liabilities line item in the statement of financial position.

18.5. JOURNAL ILLUSTRATIONS
a. At the time the obligation arises, recorded in the journal:
Dr.
Cr.
Labor Expense
Other Liabilities – Employee Benefit Liabilities

b. At the time the obligation is paid, recorded in the journal:
Dr.
Cr.
Other Liabilities – Employee Benefit Liabilities Cash/Account

c. At the time recognizing actuarial gains/losses, recorded in the journal:
Dr/Cr
Dr/Cr
Other Liabilities – Employee Benefit Liabilities Actuarial Gain/Loss

18.6. CASE EXAMPLE
On January 31, 2025, BPR “ABC” recognized employee benefit liabilities in the form of annual service leave allowances of Rp6,000,000. The benefit will be paid by BPR “ABC” on December 31, 2025 to the relevant employees, recorded in the journal:

At the time of recognizing the obligation each month:
Dr.
Cr.
Labor Expense
Other Liabilities – Employee Benefit Liabilities Rp6,000,000/12 = Rp500,000

December 31, 2025 At the time of paying the annual service leave allowance to employees:
Dr.
Cr.
Other Liabilities – Employee Benefit Liabilities Cash (Rp500,000 x 12 months) Rp6,000,000 Rp6,000,000

CHAPTER XIX
OTHER LIABILITIES

19.1 DEFINITION
Other liabilities are items that include BPR liabilities that cannot be classified into any of the existing liability items and are not material enough to be presented in a separate item.

19.2 EXPLANATION
Included in other liabilities are funds received by the BPR from third parties who are not banks in the context of credit intermediation but have not yet been disbursed to customers, and long-term employee benefit liabilities.

19.3 ACCOUNTING TREATMENT
Recognition and Measurement
Other liabilities are recognized when the BPR becomes a party to the contractual provisions of the instrument and are generally measured at the amount to be settled.

Presentation
Other liabilities are presented in the Other Liabilities line item in the statement of financial position.

19.4 JOURNAL ILLUSTRATIONS
Other Liabilities – Risk-Free Credit Intermediation Risk-free credit intermediation borne by the BPR where the BPR only receives funds from fund providers for disbursement.

a. At the time of receiving funds from the fund provider, recorded in the journal:
Dr.
Cr.
Cash/Fund Provider Account
Other Liabilities – Funds for Credit Disbursement

b. At the time of signing the credit disbursement with the debtor:
The BPR does not receive credit commissions because the BPR is in the position of intermediating credit without risk. The BPR does not record a commitment liability for unused credit facilities, but the BPR records transferred credit with collection management in an administrative account.

c. At the time of credit withdrawal by the debtor, recorded in the journal:
Dr.
Cr.
Other Liabilities – Funds for Credit Disbursement Cash/Debtor Account

Simultaneously, the bank records in the administrative account, namely the transferred credit/financing account with collection management.

19.5 CASE EXAMPLE
BPR “DEF” receives funds from Financing Company “GHI” for disbursement to the debtor (end-user) amounting to Rp500,000,000. The funds that have been received but not yet disbursed to the debtor are recorded in the journal:

a. At the time of receiving funds from the fund provider, recorded in the journal:
Dr.
Cr.
Cash/Fund Provider Account
Other Liabilities – Funds for Credit Disbursement Rp500,000,000 Rp500,000,000

At the time of signing the credit disbursement with the debtor, recorded in the journal:

No journal

b. At the time of credit withdrawal by the debtor, recorded in the journal:
Dr.
Cr.
Other Liabilities – Funds for Credit Disbursement Cash/Fund Provider Account Rp500,000,000 Rp500,000,000

CHAPTER XX
CAPITAL

20.1 DEFINITION
a. Authorized Capital is the total nominal value of shares according to the Articles of Association. b. Paid-in Capital is capital that has been effectively and actually paid and received by the BPR.
c. Share Premium (Agio) is the additional excess capital received by the BPR as a result of the share price exceeding its nominal value.
d. DSM – Equity is funds that have been actually paid for the purpose of increasing capital but are not yet supported by complete requirements to be classified as paid-in capital, such as the General Meeting of Shareholders or Members, or approval of the Articles of Association by the competent authority. e. Donated Capital is capital received by the BPR originating from donations in the form of funds or other assets.

20.2 REGULATORY BASIS
a. The authorized capital of a Company consists of the total nominal value of shares. At least 25% (twenty-five percent) of the authorized capital must be placed and fully paid. (Law No. 40 of 2007 concerning Limited Liability Companies). b. Treatment of capital is carried out in accordance with capital regulations in applicable legislation, including Laws related to limited liability companies, Laws related to cooperatives, OJK Regulations regarding BPRs, and OJK Regulations regarding minimum capital provision and minimum core capital fulfillment for BPRs.

20.3 EXPLANATION
a. Capital is a component forming BPR equity. Capital in this chapter is divided into paid-in capital and additional paid-in capital. b. BPRs in the legal form of a Limited Liability Company (Perseroan Terbatas)

In accordance with Article 33 paragraph (3) of Law No. 40 of 2007 concerning Limited Liability Companies, the issuance of further shares carried out each time to increase placed capital must be fully paid. Thus, installment payments for shares are not permitted.
Issued shares can be preferred shares and ordinary shares.
c. BPRs in the legal form of a Cooperative (Koperasi)
Own capital is capital originating from the cooperative itself and carrying risk. Own capital consists of:
a) principal deposits; b) mandatory deposits; c) other deposits that can be used for the cooperative's business process, such as reserve funds and donations.
Participating capital is a sum of money or capital goods that can be valued in money, invested by investors to increase and strengthen the capital structure in improving cooperative business.
d. Additional paid-in capital consists of various elements adding to capital such as share premium, capital deposit funds recognized as equity, and other additional paid-in capital.

e. DSM – Equity is capital deposit funds previously presented in the liability component in the DSM – Liabilities item.

20.4 ACCOUNTING TREATMENT
a. PAID-IN CAPITAL
Recognition and Measurement

Paid-in capital is recognized when the BPR receives capital deposits, whether in cash or non-cash assets, to be subsequently measured at fair value less transaction costs, if any. (This refers to SAK EP paragraphs 22.7 and 22.8).
Paid-in capital is recorded when it meets capital requirements as per applicable legislation.
Paid-in capital is recorded based on:
a) The amount of money received. b) Share deposits in cash, according to actual transactions. c) The amount of debt converted into capital. d) Share deposits in the form of stock dividends are done at the fair value of the shares, i.e., the fair value agreed upon by the General Meeting of Shareholders for the shares. e) The fair value of non-cash assets received. Share deposits in the form of non-cash assets use the fair value of the non-cash assets handed over, i.e., the appraisal value on the transaction date approved by the Board of Commissioners, or the agreed value between the Board of Commissioners and the non-cash asset depositor.
Share issuance is recorded at the relevant nominal value. If the amount received from the share issuance is greater than its nominal value, the difference is booked into the share premium account.

Presentation

The presentation of capital in the statement of financial position must be carried out in accordance with the provisions of the BPR’s Articles of Association and applicable regulations and must reflect the existing financial relationships.
In the event of capital deposits exceeding the nominal value, resulting in a difference received by the BPR, the difference is presented as a separate item as Premium. (This refers to SAK EP paragraph 22.10).

b. ADDITIONAL PAID-IN CAPITAL
Recognition and Measurement
The BPR measures additional paid-in capital at the fair value of cash or other resources received (in the case of additional paid-in capital in non-cash form) after deducting transaction costs. (This refers to SAK EP paragraphs 22.7 and 22.8).

Presentation
Additional paid-in capital is presented in a separate item after the Capital item in the statement of financial position.

20.5 JOURNAL ILLUSTRATIONS
a. Paid-in Capital

At the time of the initial capital deposit by owners in cash equal to the nominal value, recorded in the journal:
Dr.
Cr.
Dr.
Cr.
Cash/Bank Account
Capital – Capital Deposit Funds*)
Capital – Capital Deposit Funds
Paid-in Capital
At the time of the initial capital deposit by owners in cash above the nominal value, recorded in the journal:
Dr.
Cr.
Cash/Bank Account
Capital – Capital Deposit Funds*)
Dr.
Cr.
Cr.
Capital – Capital Deposit Funds
Paid-in Capital
Share Premium

*) Funds that have been actually paid with the purpose of increasing capital but are not yet supported by requirements to be classified as paid-in capital, i.e., general meeting of shareholders or approval of the articles of association by the competent authority. Capital deposit funds are recorded as capital when they meet capital requirements according to applicable legislation.

At the time of capital deposit in the form of goods (inbreng), recorded in the journal:
Dr.
Cr.
Fixed Assets (fair value)
Paid-in Capital

b. Additional Paid-in Capital
DSM – Equity a) At the time DSM – Liabilities meets the applicable capital provisions, recorded in the journal:
Dr.
Cr.
DSM – Liabilities
DSM – Equity

b) At the time DSM – Equity meets the paid-in capital requirements, recorded in the journal:
Dr.
Cr.
DSM – Equity
Paid-in Capital

20.6 CASE EXAMPLE
a. On January 1, 2025, BPR “XYZ” made a capital deposit of Rp100,000,000,000. The capital was deposited with the delivery of assets (inbreng) with a fair value of Rp25,000,000,000 and the remainder in cash. The transaction is recorded in the journal:
Dr.
Dr.
Cr.
Cash/BPR Account
Fixed Assets
Capital – Capital Deposit Funds
If the capital deposit funds have met the paid-in capital requirements according to legislation, recorded in the journal:
Rp75,000,000,000
Rp25,000,000,000
Rp100,000,000,000

Dr.
Cr.
Capital – Capital Deposit Funds
Paid-in Capital
Rp100,000,000,000
Rp100,000,000,000

b. BPR “ABC” is a newly formed bank with authorized capital of Rp25,000,000,000, consisting of 2,500,000 ordinary shares with a nominal value of Rp10,000. 50% of the authorized capital has already been placed and paid by shareholders. The transaction is recorded in the journal:
Dr.
Cr.
Cash/BPR Account
Capital – Capital Deposit Funds
(2,500,000 x 50% x Rp10,000)
If the capital deposit funds have met the capital requirements according to legislation, recorded in the journal:
Rp12,500,000,000
Rp12,500,000,000

Dr.
Cr.
Capital – Capital Deposit Funds
Paid-in Capital
Rp12,500,000,000
Rp12,500,000,000

After operating for 2 years, the BPR plans to increase capital by releasing the remaining shares (1,250,000 shares) at a price of Rp12,000 per share. The transaction is recorded in the journal:
Dr.
Cr.
Cr.
Cash/BPR Account
(1,250,000 x Rp12,000)
Paid-in Capital*)
Share Premium
*) assumption has met capital requirements
Rp15,000,000,000
Rp12,500,000,000
Rp2,500,000,000

CHAPTER XXI
RETAINED EARNINGS

21.1 DEFINITION
Retained earnings (retained profit) is the accumulation of periodic business results after considering dividend distribution, corrections of prior period profits/losses, and reclassification of fixed asset revaluation surplus (which has entered as part of retained earnings).

21.2 REGULATORY BASIS AND EXPLANATION
a. Retained earnings are generally grouped into:

General reserves, i.e., reserves formed from net profit after tax intended to strengthen capital and have received approval from the General Meeting of Shareholders.
Specific reserves, i.e., reserves formed from net profit after tax whose usage purpose has been determined and have received approval from the General Meeting of Shareholders.
Retained earnings with undetermined purpose, consisting of:
a) prior year profits whose usage has not been determined; and b) current year profits. b. All retained earnings are considered free to be distributed as dividends while still observing dividend distribution provisions according to applicable legislation.
c. Retained earnings that are not available for distribution as dividends due to restrictions are reported in a separate item describing the purpose of the reserve.

21.3 ACCOUNTING TREATMENT
Recognition and Measurement a. Retained earnings cannot be debited or credited with items that should be considered in the current year's profit or loss. b. The obligation to distribute dividends arises at the time of dividend declaration and thus at that time retained earnings will be debited with the amount of the dividend. Dividend distribution in the form of:

cash is recognized at the determined amount.
non-cash assets are recognized at the fair value of the asset.
shares are recognized at the fair value of the shares at the time the dividend is declared, with the difference between the fair value and the nominal value of the shares recognized as premium.
c. Retained earnings with undetermined purpose are reclassified to specific reserves or general reserves when reserves are formed in the determined amount.

Presentation
Retained earnings are presented separately in the equity section in the statement of financial position.

21.4 JOURNAL ILLUSTRATIONS
a. At the time of transferring current year profit to retained earnings, recorded in the journal:
Dr.
Cr.
Profit and Loss Summary
Retained Earnings

b. At the time of transferring current year loss to retained earnings, recorded in the journal:
Dr.
Cr.
Retained Earnings
Profit and Loss Summary

c. Cash dividend distribution
At the time of announcement, recorded in the journal:
Dr.
Cr.
Retained Earnings
Current Liabilities – Dividend Payable

At the time of payment, recorded in the journal:
Dr.
Cr.
Current Liabilities – Dividend Payable
Cash/Account

d. At the time of stock dividend distribution, recorded in the journal:
Dr.
Cr.
Cr.
Retained Earnings
Paid-in Capital
Share Premium

e. At the time of reserve formation, recorded in the journal:
Dr.
Cr.
Cr.
Retained Earnings
Specific Reserve
General Reserve

CHAPTER XXII
OPERATIONAL INCOME AND EXPENSES

22.1 OPERATIONAL INCOME

22.1.1 DEFINITION
Operational income is all income originating from the main activities of the BPR.

22.1.2 EXPLANATION
a. Operational income consists of:

Interest income, i.e., income from the BPR's investment of funds in the form of productive assets; and
Other income, i.e., all operational income obtained by the BPR other than interest income, as regulated in OJK provisions regarding monthly reports of rural economy banks.
b. Interest income as referred to in letter a number 1) originates from securities held, placements in other banks, and credits granted. This income includes among others:
Contractual interest income, i.e., interest income received by the BPR in accordance with agreements with other parties regarding securities, placements in other banks, or credits granted (excluding amortization of commissions or transaction costs);
Credit commissions, i.e., income received by the BPR from credit commissions granted;
Transaction costs, i.e., costs incurred by the BPR directly related to the placement of Bank Indonesia Certificates, placements in other banks, and credits granted. Transaction costs cover all additional costs directly related to the granting of credit borne by the BPR, for example, marketing fees. In the event that transaction costs are charged to customers, such costs are not included in the acquisition cost of granting credit; and
Interest income corrections, i.e., corrections of accrual interest income on productive assets that have experienced a decline in quality or value, as regulated in OJK provisions regarding monthly reports of rural economy banks.
c. Other income as referred to in letter a number 2) originates from service activities supporting BPR operations as regulated in OJK provisions regarding monthly reports of rural economy banks. Forms of other income include among others:
Transaction service income (such as payment points and ATMs);
Gains from the sale of foreign exchange;
Gains from the sale of securities;
Receipt of productive assets written off;
Recovery of NPL assets;
Dividends;
Gains from participation using the equity method;
Gains from the sale of AYDA;
Insurance claim income; and

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR accounting examples are merely illustrations in accordance with the context of the illustration.

Recovery of impairment loss on Other Assets and Other Liabilities (AYDA).

22.1.3 ACCOUNTING TREATMENT

Recognition and Measurement a. Generally, BPR recognizes operating income if it meets the criteria of probable future economic benefits and reliable measurement. b. Interest income from loans granted

BPR measures loans granted at amortized cost. BPR recognizes total interest income using the effective interest rate method.
The effective interest rate calculation method impacts the calculation of provisions and transaction costs: provisions and transaction costs are amortized over the loan period, but not on a straight-line basis.
Provision amortization is carried out over the loan period using the effective interest rate. Amortization of such provisions is recognized as an increase to interest income.
Transaction costs incurred by BPR in granting loans are amortized over the loan period using the effective interest rate. Amortization of such transaction costs is recognized as a reduction to interest income.
Amortization of provisions and transaction costs is done regardless of whether the loan is performing or non-performing. When a loan becomes non-performing, BPR recognizes income from the amortization of provisions and transaction costs.
Interest income from loan agreements is recognized on an accrual basis, meaning the impact of transactions and other events is recognized when they occur (and not when cash or cash equivalents are received or paid) and recorded in accounting notes and reported in financial statements for the relevant period.
c. Other income is recognized when the requirements are met for the amount that is the right of the BPR.

Presentation a. Operating income is divided into 2, namely:

interest income; and
other income.
b. Interest income as referred to in letter a number 1) is presented including contractual interest, provisions, transaction costs, and corrections to interest income.
c. Other operating income is presented separately in the Statement of Profit or Loss and Other Comprehensive Income.

22.1.4 JOURNAL ILLUSTRATION
a. At the time of recognizing interest income, BPR performs amortization and charges interest to the debtor, recorded in the journal:
Dr.
Dr./Cr.
Cr.
Interest income receivable (contractual interest) Loans granted Interest income

Accounting treatment for transactions occurring in BPR must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR accounting examples are merely illustrations in accordance with the context of the illustration. When the debtor defaults and if there is a possibility that the BPR cannot receive the income back, the BPR performs a reversing journal entry for interest income recognition. b. At the time of recognizing interest income from the amortization of transaction costs, recorded in the journal:
Dr.
Cr.
Interest income – transaction costs (Profit and Loss Statement) Loans granted/Securities (Statement of Financial Position)
c. At the time of recognizing interest income from the amortization of provisions, recorded in the journal:
Dr.
Cr.
Loans granted/Securities (Statement of Financial Position) Interest income – Transaction costs (Profit and Loss Statement) d. At the time of receiving deposits from the debtor, recorded in the journal:
Dr.
Dr./Cr.
Dr./Cr.
Cash/Accounts
Interest income receivable
Loans granted

22.1.5 CASE EXAMPLE
On January 1, 2025, BPR ASA granted a loan to debtor "ADM" with data in accordance with the loan agreement as follows:
Loan Ceiling: Rp100,000,000
Tenor: 2 years or 24 months
Loan Type: Investment for machine purchase
Interest: 15% per year or 1.25% per month
Provision: 0.1% or Rp100,000
Installment Schedule: Rp25,000,000 per semester Expenses Attributable to BPR: Rp20,000 Account management fee: Rp20

BPR prepares the following amortization table:
Loan Ceiling: Rp100,000,000
Provision: Rp100,000
Expenses: Rp20,000
Interest Rate: 15% per year / 1.25% per month
Effective Interest Rate (EIR): 15.07% per year / 1.26% per month

No	Trans	Period	Estimated Cash Flow	Loan Balance Start	Effective Interest (EIR)	Installment Principal	Interest Charge	Amortization with EIR	Loan Balance End
	a	b	c = h (-1)	d=c*EIR	e	f = pokok * SBK	g = d - h	h
0	01/01/2025	-	-	-	-	-	-	-	Rp99,920,000
1	31/01/2025	1,250,000	Rp99,920,000	1,254,982	-	1,250,000	4,982	Rp99,924,982
2	28/02/2025	1,250,000	Rp99,924,982	1,255,045	-	1,250,000	5,045	Rp99,930,027
3	31/03/2025	1,250,000	Rp99,930,027	1,255,108	-	1,250,000	5,108	Rp99,935,135
4	30/04/2025	1,250,000	Rp99,935,135	1,255,172	-	1,250,000	5,172	Rp99,940,307
5	31/05/2025	1,250,000	Rp99,940,307	1,255,237	-	1,250,000	5,237	Rp99,945,544
6	30/06/2025	26,250,000	Rp99,945,544	1,255,303	25,000,000	1,250,000	5,303	Rp74,950,847
7	31/07/2025	937,500	Rp74,950,847	941,373	-	937,500	3,873	Rp74,954,720
8	31/08/2025	937,500	Rp74,954,720	941,421	-	937,500	3,921	Rp74,958,641
9	30/09/2025	937,500	Rp74,958,641	941,471	-	937,500	3,971	Rp74,962,612
10	31/10/2025	937,500	Rp74,962,612	941,521	-	937,500	4,021	Rp74,966,632
11	30/11/2025	937,500	Rp74,966,632	941,571	-	937,500	4,071	Rp74,970,703
12	31/12/2025	25,937,500	Rp74,970,703	941,622	25,000,000	937,500	4,122	Rp49,974,825
13	31/01/2026	625,000	Rp49,974,825	627,677	625,000	-	2,677	Rp49,977,503
14	28/02/2026	625,000	Rp49,977,503	627,711	625,000	-	2,711	Rp49,980,213
15	31/03/2026	625,000	Rp49,980,213	627,745	625,000	-	2,745	Rp49,982,958
16	30/04/2026	625,000	Rp49,982,958	627,779	625,000	-	2,779	Rp49,985,738
17	31/05/2026	625,000	Rp49,985,738	627,814	625,000	-	2,814	Rp49,988,552
18	30/06/2026	25,625,000	Rp49,988,552	627,850	25,000,000	625,000	2,850	Rp24,991,402
19	31/07/2026	312,500	Rp24,991,402	313,889	312,500	-	1,389	Rp24,992,790
20	31/08/2026	312,500	Rp24,992,790	313,906	312,500	-	1,406	Rp24,994,197
21	30/09/2026	312,500	Rp24,994,197	313,924	312,500	-	1,424	Rp24,995,620
22	31/10/2026	312,500	Rp24,995,620	313,942	312,500	-	1,442	Rp24,997,062
23	30/11/2026	312,500	Rp24,997,062	313,960	312,500	-	1,460	Rp24,998,522
24	31/12/2026	25,312,500	Rp24,998,522	313,978	25,000,000	312,500	1,478	-Rp0

b. At the time of receiving deposits from the debtor, recorded in the journal:
Based on interest charges in estimated cash flows for data periods Dr.
Cr.
Cash/Accounts
Interest income receivable
Rp1,250,000
Rp1,250,000

At the time of receiving principal repayment from the debtor, recorded in the journal:
Dr.
Cr.
Cash/Accounts
Loans granted
Rp25,000,000
Rp25,000,000

22.2 OPERATING EXPENSES

22.2.1 DEFINITION
Operating expenses are all expenses incurred for the main business activities of the BPR.

22.2.2 EXPLANATION
a. Operating expenses are detailed into:

interest expenses, namely interest expenses on fund gathering activities or BPR loan receipts, such as savings or deposits, loans from Bank Indonesia or other banks. Interest expenses include amortization of transaction costs and loan provisions received as well as amortization of promotion costs that can be directly attributed to savings or deposit accounts. Inter-office interest expenses are not reported in this item but are reported in the non-operating expense item in accordance with OJK regulations regarding monthly reports of rural economy banks;
restructuring credit loss expenses, namely amortization of loss reserves arising from credit impairment due to restructuring after being calculated with the excess of CKPN (Impairment Loss Provision) of financial assets due to credit quality improvement in the context of restructuring;
impairment loss expenses, namely CKPN of productive assets including among others loans granted, held securities, and placements in other banks. Details regarding impairment losses can refer to accounting standards regarding basic instruments. The formation of impairment loss expenses equal to the carrying amount of loans granted is not merely a derecognition because the BPR still has contractual rights to receive future cash flows arising from loans granted;
marketing expenses, namely costs related to the promotion of BPR banking products including among others costs for educating the public about BPR banking products, costs for gifts that cannot be directly attributed to customer accounts, and advertising costs for promotion;
research and development expenses, namely costs related to research and development conducted by the BPR. Included in this item are: (1) travel and accommodation costs related to the organization of research and development conducted by the BPR, (2) research and development costs for the establishment and opening of BPR branch offices, and (3) expenditure expenses occurring internally on an intangible asset item;
administrative and general expenses, including labor expenses, education & training expenses, rental expenses, depreciation/write-off expenses on fixed assets & inventory, amortization expenses on intangible assets, insurance premium expenses, maintenance and repair expenses, goods & services expenses, organizational expenses, information technology expenses, losses related to operational risks, and taxes;
other expenses, namely other operating expenses including foreign currency sales losses, securities sales losses, losses from equity method investments, AYDA sales losses, AYDA impairment losses, and OJK levy costs.
b. Interest expenses consist of:
contractual interest expenses, namely based on agreements between the BPR and other banks or third parties who are not banks in among others savings, deposits, deposits from other banks, and loans received.
transaction costs, namely costs incurred by the BPR to obtain funds from other banks or third parties who are not banks, including among others cash back or gifts that can be directly attributed per customer. Other operating expenses are operational costs that are not included in one of the above operating costs, for example losses due to cash sales in foreign currency, losses from equity method investments, losses due to SBI sales.
Interest expenses are presented separately from interest income to provide a better understanding of the composition and reasons for changes in net interest value. If the BPR amortizes income and transaction costs as a single unit with interest income based on the effective interest rate, then the BPR presents the combined income in contractual interest expenses.
c. Administrative general expenses have the following characteristics:
cannot be directly linked to the services produced;
do not provide benefits in the future;
recognized as expenses in the period they occur.
Administrative expenses consist of labor expenses, education & training expenses, operating lease expenses, depreciation/write-off expenses on fixed assets & inventory, amortization expenses on intangible assets, insurance premium expenses, maintenance & repair expenses, goods & services expenses, organizational expenses, information technology expenses, losses related to operational risks, and taxes.

22.2.3 ACCOUNTING TREATMENT

Recognition and Measurement a. BPR recognizes operating expenses if it is probable that an outflow of cash or economic benefits will occur and their measurement can be reliable. b. Operating expenses are recognized on an accrual basis, meaning the impact of transactions and other events is recognized when they occur (and not when cash or cash equivalents are paid) and recorded in accounting notes and reported in financial statements for the relevant period.
c. Interest expenses:

Interest expenses are incurred among others on contractual interest expenses from savings, deposits, deposits from other banks, and loans received.
BPR recognizes directly as expenses in the current period acquisition costs of liabilities that cannot be directly attributed, for example, lottery prizes and merchandise with immaterial value.
Amortization of liability acquisition costs is carried out over the current period using the effective interest rate method on the difference between the carrying amount of the liability (which is amortized acquisition cost) and the liability amount to be paid at maturity. The amortization period is throughout the contract life.
d. Impairment loss expenses:
at the end of each reporting period, BPR recognizes and measures based on objective evidence.
If in the following period, the amount of impairment loss expenses decreases, then the BPR presents the amount of correction in the recovery of CKPN in other operating income.
e. Other expenses
Other expenses such as marketing expenses, research and development expenses, and administrative and general expenses are recognized when they occur (and not when cash or cash equivalents are paid) and recorded in accounting notes and reported in financial statements for the relevant period.

Presentation a. Operating expenses are presented in a separate item in the Statement of Profit or Loss and Other Comprehensive Income. b. Interest expenses and administrative general expenses are part of the BPR's operating expenses presented in a separate item and detailed by type of expense.

22.2.4 JOURNAL ILLUSTRATION
a. Interest expenses a. Payment of attributable transaction costs, if the value is immaterial to amortize, recorded in the journal:
Dr.
Cr.
Interest expenses – transaction costs
Cash/Bank accounts b. Recognition of interest expenses on savings/deposits/loans received, recorded in the journal:
Dr.
Cr.
Interest expenses – savings/deposits/loans
Interest payable – savings/deposits/loans
c. Amortization of attributable transaction costs (if amortization is performed), recorded in the journal:
Dr.
Cr.
Interest expenses
Savings/Deposits – amortized acquisition costs d. Payment of interest on savings/deposits/loans received, recorded in the journal:
Dr.
Cr.
Cr.
Interest payable – savings/deposits
Cash/Customer accounts
Immediate liabilities – Income tax b. Impairment loss expenses; At the time of impairment, recorded in the journal:
Dr.
Cr.
CKPN Expenses
CKPN
c. Marketing expenses;
When the BPR recognizes marketing expenses, recorded in the journal:
Dr.
Cr.
Marketing expenses
Cash/Accounts d. Research and development expenses;

At the time of research expenditure, recorded in the journal:
Dr.
Cr.
Research and development expenses
Cash/Accounts
Expenditure of research and development activities that can be recognized as expenses includes among others expenditure related to pioneering activities including expenditure in the context of starting new operations or launching new products. e. Administrative and general expenses When the BPR recognizes administrative and general expenses, recorded in the journal:
Dr.
Cr.
Administrative and general expenses
Cash/Accounts f. Other expenses
BPR recognizes deposit guarantee expenses, at the time of payment, recorded in the journal:
Dr.
Cr.
Prepaid deposit guarantee costs
Cash/Bank Accounts
When the BPR recognizes amortization of deposit guarantees, recorded in the journal:
Dr.
Cr.
Interest expenses – Other costs
Prepaid deposit guarantee costs

22.2.5 CASE EXAMPLE
On January 1, 2025, a customer opened a deposit account with a nominal value of Rp20,000,000 (tenor 1 month, interest rate 6% per year) at BPR ASA. The customer bore stamp duty costs of Rp10,000. On February 1, 2025, the deposit matured and the customer cashed the deposit; the interest rate at that time was 5.5% per year. For this transaction, the bookkeeping journals performed are as follows:
a. At the time the customer opened the deposit account, the BPR recognizes interest expenses daily, recorded in the journal:
Dr.
Cr.
Interest expenses
Deposit interest payable
Rp3,288
Rp3,288

b. Payment of deposit interest, recorded in the journal:
Dr.
Cr.
Cr.
Interest expenses
Cash/Customer accounts
Immediate liabilities – income tax
(Tax = 20% x Rp98,640 = Rp19,728, tax rate follows applicable regulations) Rp98,640 Rp78,912 Rp19,728

CHAPTER XXIII
NON-OPERATING INCOME AND EXPENSES

23.1 NON-OPERATING INCOME

23.1.1 DEFINITION
Non-operating income is all income arising from activities that are not the main activities of the BPR as regulated in OJK regulations regarding monthly reports of rural economy banks.

23.1.2 EXPLANATION
Non-operating income consists of:
a. sales profits, namely profits from the sale of fixed assets and inventory owned by the BPR; b. impairment recovery, including fair value impairment on fixed assets and inventory owned by the BPR that had previously experienced impairment;
c. inter-office interest, namely interest income arising from inter-office transactions. Reporting of inter-office interest income for office reports is reported gross (not offset) against inter-office interest expenses, while for consolidated reports it is presented offsetting/net;
d. exchange differences, namely exchange profit consisting of the excess difference between the carrying amount of foreign currency based on the Bank Indonesia middle exchange rate on the reporting date and the previous carrying amount; e. other income, namely all operating income obtained by the BPR other than interest income that cannot be grouped into numbers 1 to 5. Included in this item is income obtained from the recovery of productive assets that have been written off; as regulated in OJK regulations regarding monthly reports of rural economy banks.

23.1.3 ACCOUNTING TREATMENT

Recognition and Measurement a. Non-operating income is recognized at the amount that is the right of the BPR. b. BPR recognizes non-operating income using the accrual accounting basis, namely recognized when it meets the definition and recognition criteria for that account.
c. Impairment recovery of non-financial assets
When the circumstances that previously caused impairment of financial assets no longer exist or when there is clear evidence of an increase in selling price less costs to sell due to changes in economic conditions, then the BPR reverses the amount of impairment (i.e., the reversal is limited to the initial amount before impairment loss) so that the new carrying amount is the lower of cost and selling price less costs to sell. d. Insurance compensation income Recognized if the debtor is in default and the BPR files a claim with the insurance company and obtains certainty that the claim will be paid. e. Inter-office interest is interest income arising from inter-office transactions. Reporting of inter-office interest income for consolidated report needs is presented offsetting/net. f. Exchange differences

At initial recognition, foreign currency transactions are recorded in the functional currency. The amount of foreign currency is converted into functional currency using the spot exchange rate between the functional currency and the foreign currency on the transaction date.
At the end of each reporting period:
a) monetary items in foreign currency must be remeasured using the closing rate; b) non-monetary items recorded at historical cost must be reported using the transaction date rate; and c) non-monetary items recorded at fair value must be remeasured using the exchange rate applicable when the fair value was determined. g. Income obtained from the recovery of productive assets that have been written off

Presentation
Non-operating income is presented as a separate item in the Statement of Profit or Loss and Other Comprehensive Income.

23.1.4 JOURNAL ILLUSTRATION
a. Generally, non-operating income, recorded in the journal:
Dr.
Cr.
Cash/Accounts
Non-operating income related b. Specifically for the case of derecognition of fixed assets and inventory, recorded in the journal:
Dr.
Cr.
Dr./Cr.
Cash/Accounts
Fixed assets and inventory
Non-operating income (expenses) – Sales profit (loss)

23.1.5 CASE EXAMPLE
On January 31, 2025, BPR ASA obtained a sales profit of fixed assets amounting to Rp10,000,000 from the sale of fixed assets that were originally valued at Rp100,000,000. For this transaction, the bookkeeping journals performed are as follows:
Dr.
Cr.
Cr.
Cash/Accounts
Fixed assets
Non-operating income – Sales profit
Rp110,000,000
Rp100,000,000
Rp10,000,000

23.2 NON-OPERATING EXPENSES

23.2.1 DEFINITION
Non-operating expenses are all expenses arising from activities that are not the main activities of the BPR.

23.2.2 EXPLANATION
Non-operating expenses are detailed into:
a. sales losses/losses, namely losses from the sale or loss of fixed assets and inventory owned by the BPR;

Accounting treatment for transactions occurring in BPR must be carried out in accordance with the principles regulated in SAK EP. The journals and postings used in the PA BPR examples are merely illustrations according to the context in the illustrations.

b. impairment losses, namely losses on the fair value decline of fixed assets and inventory owned by BPR;
c. inter-office interest, namely interest expenses on funds arising from inter-office transactions. Reporting of inter-office interest expenses for general purpose financial reporting purposes is presented jointly in an offsetting/net manner;
d. exchange differences, namely exchange loss losses in the form of a shortfall between the recorded value of foreign currency based on the Bank Indonesia mid-rate on the reporting date and the previously recorded value; and e. other expenses, including administrative sanctions in the form of fines for violations and donations given by BPR.

23.2.3 ACCOUNTING TREATMENT
Recognition and Measurement a. BPR recognizes non-operating expenses if they meet the criteria of probable future economic benefits and reliable measurement. b. Non-operating expenses are recognized at the time of occurrence at the amount to be settled.
c. Non-operating income is recognized on an accrual basis, i.e., the impact from transactions and other events is recognized at the time they occur (and not when cash or cash equivalents are received or paid) and recorded in accounting notes and reported in financial statements in the related period.
d. Loss on sale/loss

Gains or losses arising from the derecognition of fixed assets and inventory must be recognized in profit or loss at the time the asset is derecognized. Gains must not be classified as operating income.
Gains or losses arising from the derecognition of a fixed asset and inventory must be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset.
e. Impairment loss on non-financial assets
BPR assesses at each reporting date whether there is an impairment of non-financial assets.
BPR compares the carrying amount of each item of inventory with its selling price less costs to complete and sell.
f. Exchange differences
At initial recognition, foreign currency transactions are recorded in the functional currency. The foreign currency amount is converted into the functional currency using the spot rate between the functional currency and the foreign currency on the transaction date.
At the end of each reporting period:
a) monetary items in foreign currency must be remeasured using the closing rate; b) non-monetary items recorded at historical cost must be reported using the transaction date rate; and

c) non-monetary items recorded at fair value must be remeasured using the rate in effect at the time the fair value was determined. Presentation Non-operating expenses are presented as a separate line item in the profit and loss statement.

23.2.4 JOURNAL ILLUSTRATION
Dr.
Cr.
Non-operating expenses related to
Cash/Account

23.2.5 CASE EXAMPLE
On January 31, 2025, BPR “ASA” incurred a loss on the sale of fixed assets amounting to Rp10,000,000 from the sale of fixed assets originally valued at Rp100,000,000. For this transaction, the bookkeeping journal is as follows:
Dr.
Dr.
Cr.
Cash/Account
Non-operating expenses – Loss on sale of fixed assets Fixed assets Rp90,000,000 Rp10,000,000 Rp100,000,000

CHAPTER XXIV
INCOME TAX EXPENSE AND DEFERRED TAX

24.1 DEFINITIONS
a. Income tax expense is the sum of current tax payable and deferred tax. b. Current tax is the income tax payable (recoverable) related to taxable profit (tax loss) for the current period or other periods. (This refers to SAK EP paragraph 29.1)
c. Deferred tax is income tax payable or recoverable in future periods, generally as a result of BPR recovering or settling assets and liabilities at their current carrying amounts, and the tax impact of accumulated unutilized tax losses and unutilized tax credits. (This refers to SAK EP paragraph 29.1)

24.2 REGULATORY BASIS
a. Income tax includes all domestic and foreign taxes based on taxable profit, including taxes withheld (on distributions to reporting BPR) payable by subsidiary BPR, associated BPR, or joint ventures. b. BPR must recognize the current and future tax consequences of transactions and other events recognized in the financial statements. The amount of tax recognized consists of current tax and deferred tax. (This refers to SAK EP paragraphs 29.1 and 29.2)

24.3 EXPLANATION
Recognition and Measurement a. Income tax expense is recognized in the BPR profit and loss statement as part of operating expenses. This recognition must be carried out in the reporting period consistent with the accrual principle, i.e., tax expense must be recognized when revenue is earned or costs occur, not when payment is made. b. Income tax expense is measured based on the tax rate applicable in the relevant reporting period. The tax rate used may vary depending on the type of income or expenditure, as well as applicable tax regulations.
c. Deferred tax assets are recognized when there are future deductible temporary differences. Temporary differences are the differences between the carrying amount of an asset or liability in the statement of financial position and its tax base. Deferred tax assets are also recognized for accumulated unutilized tax losses and unutilized tax credits to the extent that it is probable that future taxable profit will be available to utilize the unutilized tax losses and unutilized tax credits. (This refers to SAK EP paragraphs 29.12 and 29.21)
d. Deferred tax liabilities are recognized when there are taxable temporary differences. e. Deferred tax liabilities and assets are measured using the tax rate and tax laws that have been enacted or substantively enacted on the reporting date.

Presentation a. Income tax expense is presented in a separate line item in the profit and loss statement. b. Deferred tax assets and liabilities are presented net of each other.

24.4 JOURNAL ILLUSTRATION
a. At the time of tax installment payment:
Dr.
Cr.
Other assets – Prepaid tax
Cash/Account

b. At the end of the reporting date:

If prepaid tax is greater than tax payable
Dr.
Cr.
Tax expense
Other assets – Prepaid tax
If prepaid tax is less than tax payable
Dr.
Cr.
Cr.
Tax expense
Other assets – Prepaid tax
Tax payable

24.5 CASE EXAMPLE
a. PT BPR ABC is a bank taxpayer. Information on accumulated profit (loss) and tax installments based on monthly financial reports for 2023 is as follows:
For this transaction, the bookkeeping journal is as follows:

At the time of recognizing tax expense at the end of each month:
Dr.
Cr.
Tax expense
Tax payable
(Tax rate 25% x profit each month. for February and onwards the journal is the same as the value according to the tax installment) Rp5,000,000 Rp5,000,000
At the time of tax installment payment (for January)
and onwards:
Dr.
Cr.
Other assets – Prepaid Tax
Cash/Account
(for February and onwards the journal is the same as the value according to the tax installment) Rp5,000,000 Rp5,000,000
At the end of the reporting date (assuming June)

Item	Jan	Feb	Mar	Apr	May	Jun
Profit before tax	20,000,000	55,000,000	95,000,000	150,000,000	210,000,000	275,000,000
PPH Payable (25%)	5,000,000	13,750,000	23,750,000	37,500,000	52,500,000	68,750,000
PPH Article 22
(installment) since beginning of year	5,000,000	10,000,000	20,000,000	30,000,000	50,000,000	60,000,000

Dr.
Cr.
Cr.
Tax payable
Other assets – Prepaid Tax
Cash-Account
Rp68,750,000
Rp60,000,000
Rp8,750,000

b. In 2026, BPR “XYZ” purchased one unit of computer worth Rp10,000,000. According to accounting, the computer is depreciated over five years without residual value (depreciation is done using the straight-line method), while for tax purposes, the computer belongs to group 1 which is depreciated over four years. The data on income and expenses for the next five years are as shown in the table below. Illustration of tax and accounting differences as follows (in thousands):

Depreciation according to accounting is Rp10,000/5 = Rp2,000

Year	2026	2027	2028	2029	2030
Revenue	1,000,000	1,200,000	1,440,000	1,728,000	2,073,600
Operating expenses	700,000	770,000	847,000	931,700	1,024,870
Depreciation expense	2,000
Total expenses	702,000	772,000	849,000	933,700	1,026,870
Profit before tax	298,000	428,000	591,000	794,300	1,046,730
Tax expense	74,500	107,000	147,750	198,575	261,683
Profit after tax	223,500	321,000	443,250	595,725	785,048

Depreciation according to tax is Rp10,000/4 = Rp2,500

Year	2026	2027	2028	2029	2030
Revenue	1,000,000	1,200,000	1,440,000	1,728,000	2,073,600
Operating expenses	700,000	770,000	847,000	931,700	1,024,870
Depreciation expense	2,500	0
Total expenses	702,500	772,500	849,500	934,200	1,024,870
Taxable income	297,500	427,500	590,500	793,800	1,048,730
Tax payable	74,375	106,875	147,625	198,450	262,183

Illustration of combined tax expense according to accounting and tax payable according to tax

Year	2026	2027	2028	2029	2030
ACCOUNTING
Profit before tax	298,000	428,000	591,000	794,300	1,046,730
Tax expense	74,500	107,000	147,750	198,575	261,683
---	---	---	---	---	---
TAX
Taxable income	297,500	427,500	590,500	793,800	1,048,730
Tax payable	74,375	106,875	147,625	198,450	262,183
---	---	---	---	---	---
DIFFERENCE
Profit difference	500	(2,000)
Tax difference	125	(500)
---	---	---	---	---	---
Deferred tax liability	125	250	375	500	0
TAX EXPENSE
(Current P/L)
Current tax expense	74,375	106,875	147,625	198,450	262,183
Deferred tax expense	125	(500)
---	---	---	---	---	---
Total tax expense	74,500	107,000	147,750	198,575	261,683

The bookkeeping journal carried out is as follows (in thousands):

Journal for period 2026-2029 as follows:

Dr.
Cr.
Deferred tax expense
Deferred tax liability
Rp125
Rp125

Journal at 2030 as follows:

Dr.
Cr.
Deferred tax liability
Deferred tax expense
Rp500
Rp500

At the beginning of 2030, accumulated deferred tax liability amounts to Rp500.
At the end of 2030, after depreciation is recorded, the difference becomes non-existent, so the value of deferred tax liability is 0.

CHAPTER XXV
OTHER COMPREHENSIVE INCOME

25.1. DEFINITION
Other comprehensive income is items of income and expense (including reclassification adjustments) that are not recognized in profit or loss as required or permitted by financial accounting standards.

25.2. EXPLANATION
a. Other comprehensive income arises from points in SAK EP Chapter 5 Paragraph 5.4 (b). b. Generally, for BPR, this is only relevant to fixed asset revaluation surplus. Fixed asset revaluation surplus is not reclassified to profit or loss.
c. Generally, for BPR, this is only relevant to fixed asset revaluation surplus if BPR chooses a revaluation accounting policy for its fixed assets (see Chapter IX on Fixed Assets and Inventory). Fixed asset revaluation surplus is not reclassified to profit or loss.

CHAPTER XXVI
CASH FLOW STATEMENT

26.1. INTRODUCTION
a. The cash flow statement is a report that provides information on changes in BPR cash and cash equivalents for the reporting period. The cash flow statement separately shows BPR cash receipts and payments from operating activities, investing activities, and financing activities. (This refers to SAK EP paragraph 7.1) b. Operating activities are the main activities that generate revenue for BPR and other activities that are not investing and financing activities. Examples of cash flows from operating activities are:

cash receipts from provision of services, fees, commissions, and other income;
cash payments to employees or income tax; and
cash receipts and payments from investments.
(This refers to SAK EP paragraph 7.4)
c. Investing activities are the acquisition and disposal of long-term assets and other investments that are not cash equivalents. Examples of cash flows from investing activities are:
cash payments for acquisition or cash receipts from sale of fixed assets and inventory, intangible assets, and other long-term assets;
cash payments for acquisition or cash receipts from sale of equity instruments or other debt instruments of BPR;
advances and loans given to other parties; and
cash receipts from repayment of advances and loans given to other parties.
(This refers to SAK EP paragraph 7.5) d. Financing activities are activities arising from changes in the size and composition of contributed equity and borrowings of BPR. Examples of cash flows from financing activities include:
cash receipts from issuance of shares or other equity instruments and from borrowings (other short-term or long-term borrowings);
cash payments to owners to acquire or redeem BPR shares; and
repayment of borrowings.
(This refers to SAK EP paragraph 7.6) e. Cash is the balance of cash and current accounts at Commercial Banks. f. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash equivalents are held to meet short-term cash commitments, not for investment or other purposes. As an example, fund placements for a period of no more than 3 (three) months or less from the date of acquisition. (This refers to SAK EP paragraph 7.2)

26.2. REGULATORY BASIS
a. BPR presents a cash flow statement reporting cash flows for a period and classified based on operating activities, investing activities, and financing activities. (This refers to SAK EP paragraph 7.3)

b. BPR presents cash flows from operating activities using the direct method, with this method, the main positions of gross cash receipts and gross cash payments are disclosed. (This refers to SAK EP paragraph 7.7)
c. In the direct method, net cash flows from operating activities are presented by disclosing information regarding classes of gross cash receipts and gross cash payments. This information can be obtained from:

BPR accounting records; or
by adjusting sales, cost of sales, and other positions in the profit and loss statement for:
a) changes in inventory and receivables as well as trade payables during the period; b) other non-cash items; and c) all other items that impact investing cash flows or financing cash flows. (This refers to SAK EP paragraph 7.9) d. BPR separately presents major groups of gross cash receipts and gross cash payments arising from investing and financing activities. Aggregate cash flows arising from the acquisition and disposal of subsidiary BPR or other business units are presented separately and classified as cash flows from investing activities. (This refers to SAK EP paragraph 7.10) e. Interest and Dividends
BPR presents cash flows from interest and dividends received and paid separately. BPR classifies cash flows consistently across periods as operating, investing, or financing activities. (This refers to SAK EP paragraph 7.14)
BPR classifies interest paid as well as interest and dividends received as operating cash flows because they are included in profit or loss. (This refers to SAK EP paragraph 7.15)
BPR classifies dividends paid as a component of cash flows from operating activities because dividends are paid from operating cash flows. (This refers to SAK EP paragraph 7.16)
f. BPR presents separately cash flows related to income tax and classifies them as operating activity cash flows, unless they can be specifically identified with financing and investing activities. If tax cash flows are allocated to more than one type of activity, then BPR discloses the total amount of tax paid. (This refers to SAK EP paragraph 7.17) g. BPR presents components of cash and cash equivalents and presents a reconciliation of such amounts in the cash flow statement with equivalent positions presented in the statement of financial position. However, BPR is not required to present this reconciliation if the amount of cash and cash equivalents presented in the cash flow statement is identical to the amount in the statement of financial position. (This refers to SAK EP paragraph 7.20) h. BPR discloses, together with management's opinion, the significant balance of cash and cash equivalents owned by BPR but cannot be used by BPR among others due to legal restrictions. (This refers to SAK EP paragraph 7.21)

26.3. EXPLANATION
a. Cash consists of:

cash in rupiah and cash in foreign currency;
current accounts at other banks;
savings at other banks or BPR.
b. Cash equivalents, among others:
securities with a maturity of no more than 3 (three) months;
deposits with a maturity of no more than 3 (three) months.
c. The cash flow statement provides information that enables users of the report to evaluate changes in BPR net assets, financial structure (including liquidity and solvency), and the ability to influence the amount and timing of cash flows in order to adapt to changes in circumstances and opportunities.
d. BPR presents cash flows from operating, investing, and financing activities in accordance with the BPR's business. Classification by activity provides information that enables report users to assess the impact of such activities on the BPR's financial position as well as on the amount of cash and cash equivalents. This information can also be used to evaluate the relationships among the three activities. e. BPR presents cash flows from operating activities using the direct method. f. A specific transaction may include cash flows classified into more than one activity. For example, loan repayment by BPR includes loan principal and interest; interest is an element that can be classified as operating activity and loan principal is an element classified as financing activity. g. The amount of cash flows arising from operating activities is a determining indicator of whether the BPR can generate sufficient cash flows from its operations to repay loans, maintain the BPR's operational capacity, pay dividends, and make new investments without relying on external funding sources. Information on historical cash flows along with other information can be useful in predicting future operating cash flows. h. Cash flows from operating activities are primarily obtained from the BPR's main revenue-generating activities. Therefore, these cash flows generally arise from transactions and other events that affect the determination of net profit or loss. Some examples of BPR cash flows arising from operating activities are:
granting and repayment of credit;
receipt and payment of deposits;
placement and withdrawal of deposits at other banks;
receipt and payment of borrowings received from commercial banks, BPR, and other parties.
i. Cash flows used for or arising from securities are classified as investing activity cash flows

Accounting treatment for transactions occurring in a Rural Bank (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and items used in the BPR accounting examples are merely illustrations according to the context of the illustration.

and reported at gross value for each category of securities in the cash flow statement.

j. Separate disclosure of cash flows arising from investing activities must be made because such cash flows reflect receipts and payments of cash in connection with resources intended to generate revenue and future cash flows. Several examples of BPR cash flows arising from investing activities are:

cash payments for purchasing securities;
cash payments for purchasing fixed assets and inventory;
cash receipts from the sale of securities;
cash receipts from the sale of fixed assets and inventory.

k. Separate disclosure of cash flows arising from financing activities must be made because it is useful for predicting claims against future cash flows by the BPR's capital providers. Several examples of BPR cash flows arising from financing activities are:

receipts from the issuance of new shares;
receipts and payments of loans from Bank Indonesia;
receipts and payments of loans received from commercial banks, BPRs, and other parties used for non-operating activities;
receipts and payments of subordinated loans.

26.4. ILLUSTRATION OF CASH FLOW STATEMENT
The illustration of the cash flow statement is as follows:
Direct Method

	2026	2025
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts of interest income	xxx	yyy
Receipts of fee, commission, and premium income	xxx	yyy
Receipts of insurance claims
Payments of insurance claim expenses	xxx	yyy
Payments of interest expenses	xxx	yyy
Other operating income	xxx	yyy
Other operating expenses	xxx	yyy
Salary and allowance expenses	xxx	yyy
General and administrative expenses
Dividend payments	xxx	yyy
Non-operating income	xxx	yyy
Corporate income tax payments	xxx	yyy
Decrease/(Increase) in operating assets:
Placements in other banks	xxx	yyy
Loans granted	xxx	yyy
Assets taken over	xxx	yyy
Other assets	xxx	yyy
Receipts from financial assets that have been written off	xxx	yyy
Increase/(Decrease) in operating liabilities:
Current liabilities	xxx	yyy
Savings	xxx	yyy
Deposits	xxx	yyy
Deposits from other banks	xxx	yyy

	2026	2025
Loans received	xxx	yyy
Employee benefit liabilities	xxx	yyy
Other liabilities	xxx	yyy
Net cash obtained from operating activities	xxx	yyy
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase/sale of fixed assets and inventory	xxx	yyy
Purchase/sale of intangible assets	xxx	yyy
Purchase/sale of securities	xxx	yyy
Purchase/sale of equity investments	xxx	yyy
Other adjustments	xxx	yyy
Net cash obtained from investing activities	xxx	yyy
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts/payments of subordinated loans	xxx	yyy
Receipts/payments of loan capital	xxx	yyy
Net cash obtained from financing activities	xxx	yyy
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	xxx	yyy
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	xxx	yyy
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	xxx	yyy

CHAPTER XXVII
STATEMENT OF CHANGES IN EQUITY

27.1. INTRODUCTION
The statement of changes in equity is a financial statement that presents profit or loss and other comprehensive income for a period, items of income and expense recognized directly in equity for that period, the impact of changes in accounting policies and correction of errors recognized in that period, and (depending on the format of the equity change report chosen by the BPR) the amount of transactions with owners acting in their capacity as owners during that period.

27.1. REGULATORY BASIS
BPRs present a statement of changes in equity showing:
a. total comprehensive income for a period, showing separately the total amount attributable to the owners of the parent BPR and to non-controlling interests; b. for each component of equity, the impact of the retrospective application or retrospective restatement recognized in accordance with Chapter 10 Accounting Policies, Estimates and Errors; and
c. for each component of equity, a reconciliation between the opening and closing carrying amounts of the period, separately disclosed changes arising from:

profit or loss;
other comprehensive income;
amounts of investments by, and dividends and other distributions to owners in their capacity as owners, showing separately the issuance of shares, treasury share transactions, dividends and other distributions to owners, and changes in ownership interests in subsidiary BPRs that do not result in loss of control. (This refers to SAK EP paragraph 6.3)

27.3. EXPLANATION a. Changes in BPR equity reflect the increase or decrease in BPR net assets or wealth during the reporting period based on certain measurement principles adopted and must be disclosed in the financial statements. b. The statement of changes in equity, except for changes arising from transactions with shareholders such as capital deposits and dividend payments, reflects the amount of profits and losses arising from BPR activities during the reporting period.
c. The BPR statement of changes in equity includes among others:

share capital, for example, additional share capital;
unrealized profit/loss on securities;
asset revaluation surplus;
paid-in capital funds - equity;
retained earnings (retained profit).

CHAPTER XXVIII
NOTES TO FINANCIAL STATEMENTS

28.1. INTRODUCTION a. Notes to financial statements are an integral part of BPR financial statements. Notes to financial statements contain explanations regarding the general overview of the BPR, summary of accounting policies, explanation of financial statement items, and other important information. b. Notes to financial statements must be presented systematically. Each item in the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and cash flow statement must relate to information contained in the notes to financial statements.
c. In these BPR accounting guidelines, matters to be disclosed are regulated, including but not limited to the elements described in this section.
d. Generally, notes to financial statements disclose:

Information about the basis of preparation of financial statements and accounting policies chosen and applied to significant events and transactions;
Information required by SAK EP but not presented in the statement of financial position, statement of profit or loss and other comprehensive income, cash flow statement, and statement of changes in equity, for example, sub-classification of certain items;
Additional information not presented in the statement of financial position, statement of profit or loss and other comprehensive income, cash flow statement, and statement of changes in equity but required for fair presentation;
For items with material values, must be detailed and explained in the notes to financial statements. Whereas for items that are special must be detailed and explained in the notes to financial statements without considering materiality;
For items that are the result of combining several similar items, the nature of the main elements must be detailed and explained in the notes to financial statements.
e. Notes to financial statements related to loans, deposits, income, and expenses must show separately the amount of each type of transaction and balance with directors, employees, commissioners, shareholders, and related parties. f. In order to help users of financial statements understand and compare them with other BPR financial statements, notes to financial statements are generally presented in the following order:
Disclosure regarding measurement basis and accounting policies applied.
Supporting information for financial statement items in the order as those items are presented in the financial statements and the order of presentation of financial statement components.
Other disclosures including contingencies, commitments, other financial disclosures, and non-financial disclosures.

28.2. REGULATORY BASIS a. Financial statements present fairly the financial position, financial performance, and cash flows of a BPR. Fair presentation requires a faithful representation of the impact of transactions, events, and other conditions in accordance with the definitions and recognition criteria for assets, liabilities, income, and expenses explained in SAK EP Chapter 2 Concepts and Pervasive Principles. Application of SAK EP, with additional disclosures if needed, is considered to produce fair financial statements regarding the financial position, financial performance, and cash flows of the BPR. Additional disclosures are necessary when compliance with specific requirements in SAK EP is not sufficient for users to understand the impact of specific transactions, events, and other conditions on the financial position and financial performance of the BPR. (This refers to SAK EP paragraph 3.2)

b. In preparing financial statements, BPR management using SAK EP makes judgments regarding the BPR's ability to continue as a going concern. A BPR has a going concern unless management intends to liquidate the BPR or cease operations, or has no other realistic alternative but to do so. In assessing whether the going concern assumption is appropriate, management considers all available information regarding the future, at least (but not limited to) twelve from the reporting date. In making the going concern assessment, if management is aware of material uncertainties related to events or conditions that may cast significant doubt on the BPR's ability to continue as a going concern, then the BPR must disclose such facts, along with the basis used in preparing the financial statements and disclose reasons why the BPR is not considered a BPR that can use the going concern assumption. (This refers to SAK EP paragraphs 3.8 and 3.9)

c. BPR discloses comparative information related to the previous comparative period for all amounts presented in the financial statements of the current period, unless permitted or required otherwise by SAK EP. BPR includes narrative and descriptive comparative information if relevant to understanding the financial statements of the current period. (This refers to SAK EP paragraph 3.14)

d. BPR must clearly identify each financial statement and notes to financial statements and distinguish them from other information in the same document. In addition, BPR presents the following information clearly and repeats it if needed to understand the information presented:

name of the reporting BPR and changes in name since the end of the nearest previous reporting period;
whether the financial statements cover an individual BPR or a group of BPRs;
the end date of the reporting period and the period covered by the financial statements;
presentation currency, as defined in Chapter 30 Foreign Currency Translation; and

rounding level, if any, used in presenting amounts in the financial statements. (This refers to SAK EP paragraph 3.23)

e. BPR discloses in the statement of financial position or in the notes to financial statements, sub-classification of the following presented items:

fixed assets and inventory in classifications appropriate for BPR;
trade receivables and other receivables showing separately the amount due from related parties, the amount due from other parties, and receivables arising from accrued income not yet billed;
inventory, showing separately the amount of inventory:
a) held for sale in normal business activities b) in production process for such sale; and c) in the form of materials or supplies to be consumed in the production process or provision of services;
trade payables and other payables, showing separately the amount of trade payables to suppliers, payables to related parties, deferred income, and accruals;
provisions for employee benefits and other provisions;
equity classes, such as paid-in capital, share premium, retained earnings, and income and expenses as required by SAK EP, recognized in other comprehensive income and presented separately in equity. (This refers to SAK EP paragraph 4.11)

f. BPRs with share capital disclose the following, either in the statement of financial position or in the notes to financial statements:

For each group of share capital:
a) number of basic share capital shares; b) number of shares issued and fully paid, and issued but not fully paid; c) nominal value of shares, or that shares have no nominal value; d) reconciliation of the number of shares outstanding at the beginning and end of the period. This reconciliation does not need to be presented for previous periods; e) rights, privileges, and restrictions attached to each type of share, including restrictions on dividend distribution and repayment of capital; f) BPR shares owned by the BPR, subsidiary BPR, or associated BPR; g) shares reserved for issuance with option rights and share sale contracts, including terms and amounts.
Description of reserves in equity. (This refers to SAK EP paragraph 4.12)

g. Accounting for equity of BPRs that are not PT (Limited Liability Companies) is reported in accordance with applicable laws and regulations for such business entities and relevant financial accounting standards.

h. BPRs must not present or disclose income and expense items as "extraordinary items," either in the statement of profit or loss and other comprehensive income or in the notes to financial statements. (This refers to SAK EP paragraph 5.10)

i. Notes to financial statements must:

present information about the basis of preparation of financial statements and specific accounting policies used in accordance with paragraphs 8.5 – 8.7 in SAK EP;
disclose information required by SAK EP that is not presented anywhere in the financial statements; and
provide additional information not presented anywhere in the financial statements, but such information is relevant to understanding the financial statements.

j. Notes to financial statements are presented systematically insofar as it is practical. Each item in the financial statement cross-references to related information in the notes to financial statements. (This refers to SAK EP paragraph 8.3)

k. In the summary of significant accounting policies, the following must be disclosed:

the measurement basis used in preparing financial statements;
other accounting policies used that are relevant to understanding the financial statements. (This refers to SAK EP paragraph 8.5)

l. BPR discloses in the notes to financial statements information about the main assumptions concerning the future, and other main sources of estimation uncertainty at the reporting date, which have significant risk resulting in material adjustments to the carrying amounts of assets and liabilities in the next reporting period. Regarding such assets and liabilities, the notes to financial statements must include details on:

nature; and
carrying amount at the end of the reporting period. (This refers to SAK EP paragraph 8.7)

28.3. EXPLANATION a. SAK EP is intended so that financial statements present fairly the financial position, performance, and cash flows so that the objectives of those financial statements can be achieved. SAK EP may not regulate the disclosure of certain information although disclosure of such information is necessary to present financial statements fairly. In such cases, the BPR must provide additional relevant information disclosures so that financial statements can be presented fairly.

b. In some cases, narrative information presented in the financial statements of previous periods may still be relevant to disclose in the current period. For example, details about legal disputes faced, the outcome of which was not yet known with certainty in the previous period and is still being resolved, need to be disclosed again in the current period. Users of the report will benefit from information about the existence of uncertainty at the date of the previous statement of financial position and the steps taken in the current period to address such uncertainty.

c. There is a situation where reclassification to maintain the comparability of comparative information with information in the current period is not practical, for example, in previous periods data was collected in such a way that reclassification is not possible and it is not practical to recreate such information. In such circumstances, the nature of adjustments to comparative information that should be made must be disclosed.

d. In very extraordinary situations, BPRs may be forced or decide to change the date of the statement of financial position. In such cases, users of financial statements need to know that the amounts presented in the current period and comparative amounts are not comparable and the reason for changing the date of the statement of financial position is disclosed.

e. Details included in sub-classifications, in the statement of financial position or in the notes to financial statements, depend on the requirements of SAK EP and the materiality of the relevant item amounts. Consideration of whether additional items are presented separately is based on the judgment of:

nature, liquidity, and materiality of assets;
function of such items;
amount, nature, and duration of liabilities.

f. Notes to financial statements include narrative explanations or details of amounts stated in the statement of financial position, statement of profit or loss, cash flow statement, and statement of changes in equity, as well as additional information such as contingent liabilities and commitments. Notes to financial statements also include information required and recommended to be disclosed in SAK and other disclosures necessary to produce a fair presentation of financial statements.

g. In order to help users of reports understand financial statements and compare them with other BPR financial statements, notes to financial statements are generally presented in the following order:

Disclosure regarding measurement basis and accounting policies applied;
Supporting information for financial statement items in the order as those items are presented in the financial statements and the order of presentation of financial statement components;
Other disclosures including contingencies, commitments, other financial disclosures, and non-financial disclosures.
The systematic structure in the notes to financial statements must be maintained insofar as it is practical to implement.

h. Users of reports need to know the measurement basis used (historical value, market value, realization value, fair value, or present value) as the basis for preparing financial statements. If more than one measurement basis is used in financial statements, the information presented is sufficiently adequate to indicate assets and liabilities using such measurement basis. Furthermore, in determining whether certain accounting policies should be disclosed, management considers whether such disclosure will help users of reports understand how transactions and events are reflected in the statement of profit or loss and statement of financial position. Accounting policies include but are not limited to the following:

recognition of interest income;
recognition of assets taken over as collateral;

Accounting treatment for transactions occurring in a Rural Bank (BPR) must be carried out in accordance with the principles regulated in the Small Entity Accounting Standards (SAK EP). The journals and items used in the BPR Accounting Guidelines examples are merely illustrations according to the context in the illustrations.

recognition of expenses including depreciation or amortization methods for tangible and intangible assets;
leases;
taxes;
provisions;
employee benefits;
definition of cash and cash equivalents.

28.4. ELEMENTS
a. General Overview of BPR
Matters to be disclosed include:

Establishment.
Brief history.
Number and date of the deed of establishment and the latest amendment, approval by the Ministry of Law and Human Rights (hereinafter referred to as the Ministry of Justice) and/or the number and date of the relevant State Gazette.
Main business field according to the articles of association and main activities during the reporting period.
Domicile and main location of business activities.
Date of commencement of operations. If the BPR carries out significant expansion or contraction of business in the reporting period presented, the start of the expansion or contraction of business and business capacity must be stated.
Ownership, consisting of the owner's name, size, and composition of ownership.
Board of Directors, Commissioners, and Employees
a) Names of members of the Board of Directors and Board of Commissioners; b) Number of employees at the end of the period or average number of employees during the relevant period.

b. Summary of Accounting Policies
In this section, the following matters must be disclosed:

A statement that the BPR uses SAK EP.
Measurement basis and preparation of financial statements.
a) The measurement basis of financial statements is based on historical cost, current cost, realizable value, present value, and fair value. b) The basis for preparing financial statements is the accrual basis except for the cash flow statement. c) Specific accounting policies.
Accounting policies include but are not limited to the following:
a) Basic measurement concept; b) Loans granted; c) Credit loss provisions; d) Investments in Bank Indonesia Certificates; e) Foreclosed collateral; f) Cash and cash equivalents; g) Fixed assets and inventory and depreciation; h) Interest income recognition; i) Interest expense recognition; j) Income tax; k) Employee benefits.

c. Explanations of Financial Statement Items
Explanations of financial statement items are prepared by paying attention to the presentation order of the statement of financial position, statement of profit or loss, statement of cash flows, and statement of changes in equity, as well as additional information in accordance with disclosure regulations for each item in the relevant section, plus the following disclosures:

Related Party Transactions
a) Details of the amount of each asset, liability, income, and expense item to parties having related party relationships, along with their percentage of total assets, liabilities, income, and expenses; b) Explanation of transactions not related to main business activities and the amount of debt/receivables related to such transactions; c) Nature of the relationship, type, and elements of related party transactions; d) Policy on transaction terms and a statement on whether the application of such term policies is the same as the term policy for transactions with other parties who do not have related party relationships; e) Reasons and basis for the formation of provisions for doubtful accounts related to related party relationships.
Accounting Changes and Error Corrections
a) Changes in accounting estimates
(1) Nature and reasons for changes in accounting estimates; (2) Amount of changes in estimates affecting the current period; (3) Effect of estimates on future periods. If calculating the effect on future periods is impracticable, this fact must be disclosed. b) Changes in accounting policies (1) Nature, reasons, and objectives of changes in accounting policies; (2) Amount of adjustments for changes in accounting policies for the current period and prior periods presented as restated; (3) Amount of adjustments related to periods prior to those covered in comparative information; (4) Fact that comparative information has been restated or the fact that restating comparative information is considered impracticable. c) Errors (1) Nature of the error; (2) Amount of corrections for the current period and prior periods; (3) Amount of corrections related to periods prior to those covered in comparative information; (4) Fact that comparative information has been restated or the fact that restating comparative information is impracticable.
Commitments and Contingencies
a) Disclosure of commitments
(1) Contracts/agreements requiring the use of funds in the future, such as credit and loan agreements:
(a) Parties involved in the agreement;
(b) Period of commitment validity;
(c) Total value and portion realized;
(d) Sanctions.
(2) Description regarding nature, type, amount, and limitations. b) Disclosure of contingencies (1) For legal cases/disputes:
(a) Parties involved;
(b) Amount in dispute;
(c) Background, content, and status of the case and legal opinion; (d) Probability of risk from contingent events is disclosed based on risk management principles. (2) For binding government regulations, such as labor issues, a brief description of the regulation and its impact is disclosed. (3) Possibility of additional tax liabilities (a) Type of tax assessment/notice, type of tax, tax year, and principal amount and fines/interest; (b) BPR's stance on tax assessments/notices, such as objections, appeals, etc.
Other Important Information
Other important information includes the nature, type, amount, and impact of specific events or conditions affecting the BPR's performance, such as events or conditions affecting its going concern status.
Events after the reporting date.
Latest developments in SAK EP and other regulations
a) Explanation regarding SAK EP and new regulations to be applied and affecting BPR activities; b) Estimated impact of applying SAK EP and new regulations.
Reclassification
Disclosures must include the nature, amount, and reason for reclassification for each item in the fiscal year prior to the last fiscal year presented in the comparative financial statements.

28.5. DISCLOSURE
BPR discloses in the notes to the financial statements among other things the following:

a. Assets

Cash
Details of the amount of cash between main cash, petty cash, and cash in ATMs.
Cash in Foreign Currency
a) Currency used in the presentation of financial statements. b) Details of cash nominal amounts based on foreign currency type. c) Amount of exchange differences at the end of the period recognized in the profit or loss statement. d) Amount of exchange differences arising during the period and classified in a separate component of equity at the end of the period.
Securities
a) Type of securities. b) Information on securities includes information on the issuer, security rating, rating agency issuing the rating, and maturity of the security. c) Quality of securities.
Placements with Other Banks
a) Details of placements with other banks based on type, namely demand deposits, savings, time deposits, and certificates of deposit. b) Placements with other banks that meet related party relationships. c) Amount of demand deposits, savings, and time deposits that are blocked and the reasons. d) Details of placements and income from placements with Sharia banks. e) Details of placements with other banks with restrictions on cash usage (e.g., linkage programs).
Loans
a) Granting of Loans
(1) Type and amount of loans based on use and economic sector.
(2) Amount of loans granted to parties having related party relationships.
(3) BPR's position in joint financing and the size of the financed portion.
(4) Amount of guaranteed loans, the size of the risk borne by the guarantor, and the guarantor.
(5) Amount of channeling and executing loans.
(6) Amount of loans that have been restructured and other information about restructured loans during the current period.
(7) Classification of loans by term, quality, and average loan interest rate.
(8) Summary of changes in provisions for losses and write-offs and handling of problematic loans.
(9) Accounting policies and methods for provisions, write-offs, and handling of problematic loans.
(10) Policies, management, and implementation of credit portfolio risk control.
(11) Size of problematic loans and their provisions for each economic factor and type of loan use.
(12) Loan balances on which interest accrual has been stopped.
(13) Foreclosed collateral, at fair value less costs to sell.
(14) Summary of written-off loans, showing the beginning of the year balance, loan write-offs in the current year, loans that have been written off, and the end of the year balance. b) Loan Restructuring (1) Amount of loans restructured, type of restructuring carried out, and reasons for restructuring. (2) Comparative data regarding: (a) amount of problematic loans; (b) amount of income recognized on a cash basis during the period the problematic loans arose; (c) amount of additional credit facilities granted to restructured debtors; (d) loan restructuring losses; and (e) other information on restructured loans. c) Loan Write-offs Summary of written-off loans, showing the beginning of the year balance, loan write-offs in the current year, recovery of loans that have been written off, and the end of the year balance.
Equity Investments
a) Accounting policy on investments in associated BPRs. b) Carrying amount of investments in associated BPRs. c) Fair value of investments in associated BPRs, which are recorded using the equity method, that have published price quotations. d) For investments in associated BPRs recorded using the cost model, the investor discloses the amount of dividends and other distributions recognized as income. e) For investments in associated BPRs recorded using the equity method, the investor separately discloses its share in the profit or loss of the associated BPR and its share in discontinued operations of the associated BPR.
Foreclosed Collateral (AYDA)
a) Description of Foreclosed Collateral. b) Fair value of Foreclosed Collateral. c) Methods and significant assumptions applied in determining the fair value of Foreclosed Collateral, including a statement on whether the determination of fair value is supported by market evidence or more based on other factors (which must be disclosed by the BPR) due to the nature of the Foreclosed Collateral and limitations of comparable market data. d) Sales efforts carried out by the BPR. e) Impairment losses. f) Gains or losses recognized from sales.
Vacant Properties
a) Methods and significant assumptions applied in determining the fair value of vacant properties. b) To what extent the fair value of vacant properties (measured or disclosed in financial statements) is based on valuation by an independent appraiser with recognized professional qualifications and relevant experience, as well as recent experience in the location and class of vacant properties being valued. If no such valuation exists, this fact is disclosed. c) Existence and amount of restrictions on the realization ability of vacant properties or on the payment of income and proceeds from disposal. d) Contractual obligations to purchase, construct, or develop vacant properties or for repair, maintenance, or improvement of investment properties. e) Reconciliation of the carrying amount of vacant properties at the beginning and end of the period, showing separately:
(1) Additions, with separate disclosure of additions resulting from acquisitions through business combinations.
(2) Net gains or losses from fair value adjustments.
(3) Transfers to and from vacant properties recorded at cost less accumulated depreciation and impairment.
(4) Transfers to and from inventory and owner-occupied properties.
(5) Other changes.
Fixed Assets and Inventory
a) Measurement basis used to determine gross carrying amount. b) Depreciation method used. c) Useful life or depreciation rate used. d) Gross carrying amount and accumulated depreciation (combined with accumulated impairment losses) at the beginning and end of the reporting period. e) Reconciliation of carrying amount at the beginning and end of the reporting period showing separately: (1) additions; (2) disposals; (3) acquisitions through business combinations; (4) increases or decreases due to revaluation based on paragraphs 17.15B – 17.15D and from impairment losses recognized or reversed in other comprehensive income in accordance with Chapter 27; (5) transfers to and from investment properties recorded at fair value through profit or loss (see paragraph 16.8); (6) impairment losses recognized or reversed in profit or loss in accordance with Chapter 27; (7) depreciation; and (8) other changes. This reconciliation need not be presented for prior periods. f) Existence and carrying amount of fixed assets and inventory over which the BPR has limited ownership rights or which are pledged as liability collateral. g) Amount of contractual commitments for acquisition of fixed assets and inventory. h) Considerations used in carrying out exchanges of fixed assets and inventory in determining commercial substance. i) If fixed asset and inventory items are stated at revalued amounts, then the BPR discloses the following: (1) effective date of revaluation; (2) whether it involves an independent appraiser; (3) methods and significant assumptions applied in estimating the fair value of fixed asset and inventory items; (4) for each class of revalued fixed assets and inventory, the carrying amount of fixed assets and inventory if such fixed assets and inventory were recorded using the cost model; and (5) revaluation surplus, indicating changes during the period and any restrictions on distribution to shareholders.
Intangible Assets
a) Useful life or amortization rate used. b) Amortization method used. c) Gross carrying amount and accumulated amortization (combined with accumulated impairment losses) at the beginning and end of the reporting period. d) Item in the statement of comprehensive income (and in the profit or loss statement, if presented) where amortization of intangible assets is included. e) Reconciliation of carrying amount at the beginning and end of the reporting period showing separately: (1) additions; (2) disposals; (3) acquisitions through business combinations; (4) amortization; (5) impairment losses; and (6) other changes. Reconciliation need not be presented for prior periods. f) Description, carrying amount, and remaining amortization period of each material intangible asset to the BPR's financial statements. g) Intangible assets acquired through government grants and initially recognized at fair value (see paragraph 18.12):
(1) fair value at initial recognition of the asset; and (2) its carrying amount. h) Existence and carrying amount of intangible assets over which the BPR has limited ownership or which are pledged as liabilities. i) Amount of contractual commitments for acquisition of intangible assets. j) Aggregate amount of research and development expenditures recognized as expenses during the period (i.e., the amount of expenditures incurred internally for research and development that are not capitalized as part of the cost of other assets meeting recognition criteria.
Other Financial Assets
Details of the amount of other financial assets.
Other Assets
a) Details of other assets and their nominal amounts. b) Accounting policies.
CKPN (Credit Card/Loan Notes - Note: Context implies specific financial instrument, likely related to credit losses or specific notes)
a) Amount of impairment losses recognized in the profit or loss statement and other comprehensive income and the item in the statement of comprehensive income. b) Amount of reversal of impairment losses recognized in profit or loss and the item in the statement of comprehensive income. c) Amount of impairment losses may be disclosed separately for individual and collective impairment losses. d) Amount of impairment losses may be disclosed per credit group.

b. Liabilities

Current Liabilities
a) Details of current liabilities. b) Explanation for credits given with credit balances.
Interest Payable
a) Details of interest payables arising from interest accruals and due interest. b) Details of interest payables to parties having related party relationships with the BPR.
Tax Payables
a) Fiscal losses that can still be compensated in subsequent periods. b) Details of main components of income tax expense.
Deposits
a) Amount and type of deposits, including from parties having related party relationships. b) Composition of deposit amounts by term. c) Amount of savings and time deposits blocked for specific purposes. d) Granting of special facilities to customers. e) Amount of deposits with interest rates exceeding the deposit guarantee interest rate set by the deposit guarantee institution. f) Amount of time deposits that have matured.
Deposits from Other Banks
a) Amount and type of liabilities to other banks, including from parties having related party relationships. b) Composition of deposit amounts by term. c) Amount of savings and time deposits blocked for specific purposes. d) Granting of special facilities to depositing banks. e) Amount of deposits with interest rates exceeding the deposit guarantee interest rate set by the deposit guarantee institution.
Loans Received
a) Details of loans received regarding:
(1) Type (source of funds), term, interest rate, and maturity of loans received.
(2) Covenants accompanying them.
(3) Value and covenants of pledged assets.
(4) Related party relationships (financial, ownership, and management linkages). b) Loans from the government, Bank Indonesia, or other parties as assistance to the BPR, including loans in the context of liquidity assistance.
Capital Contribution Funds – Liabilities
a) Details of capital contribution funds and fund owners. b) Process carried out on capital contribution funds up to the reporting date.
Employee Benefit Liabilities
a) SAK EP does not require specific disclosure regarding short-term employee benefits. (This refers to SAK EP paragraph 28.39) b) Post-employment benefits (1) Defined contribution post-employment benefits Amount recognized as expense in the current period. (This refers to SAK EP paragraph 28.40) (2) Defined benefit post-employment benefits (a) General description of the type of program, including funding policy. (b) BPR's accounting policy for recognizing actuarial gains and losses and the amount of actuarial gains and losses recognized during the current period. (c) Narrative explanation if the BPR uses simplification methods in measuring defined benefit obligations. (d) Date of the latest comprehensive actuarial valuation. If valuation is not performed on the reporting date, then a description of adjustments made to measure the defined benefit obligation on the reporting date. (e) Reconciliation of beginning and ending balances of defined benefit obligations showing separately benefits paid and all other changes. (f) Reconciliation of beginning and ending balances of the fair value of plan assets and recognized right of reimbursement. (g) Total cost related to the defined benefit program. (h) Percentage or amount of each main class of plan assets (such as equity instruments, debt instruments, property, and other assets) that form the fair value of total plan assets. (i) Amount included in the fair value of plan assets for each class of the BPR's own financial instruments and any property or other assets owned or used by the BPR. (j) Actual return on plan assets. (k) Main actuarial assumptions used. (This refers to SAK EP paragraph 28.41) (3) Other long-term employee benefits Nature of benefits and amount of obligations and funding status. (This refers to SAK EP paragraph 28.42) (4) Severance Benefits Nature of benefits, amount of obligations, and funding status. (This refers to SAK EP paragraph 28.43)

Accounting treatment for transactions occurring in Rural Banks (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and postings used in the BPR Accounting Guidelines examples are merely illustrations in accordance with the context of the illustrations.

Subordinated Loans
a) Details of subordinated loans regarding the source of funds, principal value, term, interest rate, and maturity of the subordinated loan. b) Special relationships (if any).
Other Liabilities
Details of other liabilities.

c. Equity

Paid-in Capital
a) BPRs with share capital:
(1) Number of basic capital shares.
(2) Number of shares issued and fully paid, and those issued but not fully paid.
(3) Nominal value of shares.
(4) Reconciliation of the number of shares outstanding at the beginning and end of the period.
(5) Rights and privileges of a class of shares regarding dividends and capital repayment upon liquidation, in the event there is more than one type of share. (6) Restrictions attached to each type of share, including restrictions on dividends and repayment of capital. (7) Amount of dividend arrears on cumulative dividend preference shares per share and the total amount of dividends for previous periods. (8) Changes in paid-in capital during the current year. b) BPRs without share capital disclose information equivalent to letter a) above, showing changes during a period for each category of equity, rights, privileges, and restrictions attached to each category of equity.
Additional Paid-in Capital
a) Details of capital deposit funds and fund owners. b) The process carried out on capital deposit funds up to the reporting date. c) Capital deposit funds used by the BPR. d) Share premium. e) Details of donated capital. f) Names of donors.
Retained Earnings
Description of each reserve in equity.

Appendix: Guide to Adjustments to Financial Statement Items and Comparative Presentation in the Initial Application Year

Generally, at the beginning of the application, BPRs start implementing the provisions in these BPR Accounting Guidelines with the following provisions:

Recognize all assets and liabilities whose recognition is required in SAK EP;
Do not recognize items as assets or liabilities if SAK EP does not allow such recognition;
Reclassify items recognized as a type of asset, liability, or equity component in the previous SAK ETAP, but which are a different type of asset, liability, or equity component based on SAK EP;
Apply SAK EP in the measurement of all recognized assets and liabilities; and
The impact of the above adjustments is recognized directly in the retained earnings balance of the earliest period presented.

The explanation above reflects a retrospective approach, so BPRs must perform:
a. Recalculation of accounts in the Statement of Financial Position opening balances in the year prior to implementation (January 1, 2024) by booking the difference between the opening balance (January 1, 2024) and the ending balance 2 (two) years prior to implementation (December 31, 2023) to the retained earnings of the year prior to implementation (January 1, 2024). b. Restate the income statement for the year prior to implementation (December 31, 2024) using calculations based on SAK EP. The difference between the income statement according to SAK ETAP and SAK EP in the year prior to implementation is booked as an adjustment to retained earnings for the year prior to implementation (December 31, 2024).

In carrying out the initial application of SAK EP, BPRs may encounter impracticable conditions, namely when the BPR cannot apply a requirement in SAK EP after making every reasonable effort to do so (see sub-chapter 1.3 regarding the Method of Adjustments to Financial Statement Items). The aforementioned impracticable condition causes the BPR to experience high difficulty in recalculating the opening balance figures in the year prior to implementation (January 1, 2024) and adjusting income statement components in the year prior to implementation (December 31, 2024). As an example, for the retrospective application in the 'Loans Given' account, banks face high difficulties including:

The absence of cost or revenue information that can be directly attributed to loans such as revenue from commissions and administrative fees charged to debtors as well as costs incurred directly by the BPR for granting loans to debtors; and
The lack of adequate resources to recalculate the application of SAK EP as if it had been applied since the beginning of the loan transaction, for example, the number of bank debtors with a term of more than 2 (two) years is quite large.

Referring to SAK EP Paragraph 35.1, if there are impracticable conditions for the BPR to perform the aforementioned adjustments or calculations at the beginning of the application according to SAK EP, then the BPR applies SAK EP prospectively for all contracts not yet expired in the fiscal year period starting on or after January 1, 2025 (quoted from PSAK 55 transition provisions). Referring to PSAK 208, the BPR makes adjustments to the opening balance of each affected equity component in the current period (year 2025).

(PSAK 208 Paragraph 25 - if it is impracticable to determine the specific period impact due to changes in accounting policy in comparative information for one or more presentation periods, then the entity applies the new accounting policy to the carrying amount of assets and liabilities at the beginning of the earliest period for which retrospective application is practicable, possibly the current period, and makes adjustments to the opening balance of each affected equity component for that period.

As an example for the 'Loans Given' account:

The BPR calculates the effective interest rate according to SAK EP for January 1, 2025, using the carrying value of loans and related accounts (e.g., commission revenue or unamortized expenses) as of December 31, 2024. Subsequently, revenue recognition follows the effective interest rate; and
The BPR discloses information regarding the impracticability in the financial statements.

Additional Expected Credit Loss Provisions (CKPN) that need to be formed by the BPR due to the change in standards from SAK ETAP to SAK EP becomes an expense in the initial application year of SAK EP.

The BPR makes adjustments to the carrying amount of assets and liabilities at the beginning of the application of SAK EP as follows:

A. Financial Assets

Cash
There is no difference in the recording of Cash in SAK EP and SAK ETAP. a. Reclassification The BPR does not perform reclassification of the Cash item. b. Adjustment to opening balance The ending balance of December 31, 2024 becomes the opening balance of January 1, 2025.
c. Presentation of comparative balances at the beginning of application
The BPR presents the ending balance of December 31, 2024 as the comparative figure for the financial statements as of December 31, 2025.
Securities/Placements with Other Banks/Loans
The BPR records Securities Held to Maturity, Placements with Other Banks, and Loans using amortized cost. a. Reclassification The BPR does not perform reclassification of the Securities/Placements with Other Banks/Loans item. b. Adjustment to opening balance

Retrospective application
a) The BPR calculates the application opening balance (January 1, 2025) by recalculating Securities/Placements with Other Banks/Loans at amortized cost as if the application of the effective interest rate had been applied since the beginning of ownership of Securities/Placements with Other Banks/Loans. b) The BPR books the difference between the ending balance of December 31, 2024 according to SAK ETAP and the recalculated balance according to SAK EP to Retained Earnings as of December 31, 2024. c) Subsequently, the BPR uses the effective interest rate as referred to in letter a) above as the basis for recognizing interest income amounts and amortization of commission revenue and transaction costs. d) Illustration of retrospective application of Loans Given as in Example 1.
If there are impracticable conditions for retrospective application
a) The BPR documents the impracticable condition and the management decision regarding the impracticable condition. b) The opening application balance of January 1, 2025 uses the recorded balance of December 31, 2024 from Securities/Placements with Other Banks/Loans, plus unamortized transaction costs, and minus unamortized commission revenue. c) Subsequently, the BPR calculates the effective interest rate using data as referred to in letter b) above as the basis for recognizing interest income amounts and amortization of commission revenue and transaction costs. d) Illustration of application if there are impracticable conditions for Loans Given as in Example 2.

c. Presentation of comparative balances at the beginning of application

Retrospective application
The BPR presents the ending balance of December 31, 2024 which has been recalculated with the effective interest rate since the beginning of the transaction as referred to in letter b) number 2a) above as the comparative figure for the financial statements as of December 31, 2025.
If there are impracticable conditions for retrospective application
The BPR presents the ending balance of December 31, 2024 according to SAK EP by writing a note that the balance referred to is the balance according to SAK EP. The presentation of the balance uses the recorded balance of December 31, 2024 from Securities/Placements with Other Banks/Loans, plus unamortized transaction costs, and minus unamortized commission revenue.

Impairment
a. Retrospective application

The BPR recalculates the impairment loss provision for 2023 and the difference in provisions formed according to SAK ETAP with the provisions that must be formed according to SAK EP is booked in Retained Earnings 2023. Subsequently, the CKPN expense in 2024 is calculated based on SAK EP.
In the event that the BPR cannot recalculate the impairment loss provision for 2023, but can calculate and the difference in provisions formed according to SAK ETAP with the provisions that must be formed according to SAK EP is booked in Retained Earnings 2024.
Journal Illustration
BPR ABC has historical loan data from debtors for the years 2020, 2021, and 2022 to form the probability of default for 2023, and loan recovery data from written-off loans and collateral for 2018, 2019, 2020, 2021, and 2022 to form the loss given default for 2023, then the BPR recalculates the CKPN that must be formed based on loans given as of December 31, 2023, and the CKPN expense for 2024. a) Charging the CKPN balance difference of Dec 31, 2023 to Retained Earnings If the PPKA (Provision for Loan Losses) formed is smaller than the CKPN Dr. Retained Earnings – December 31 XXX Cr. Impairment Loss Provision XXX If the PPKA formed is larger than the CKPN Dr. Impairment Loss Provision XXX Cr. Retained Earnings – December 31 XXX

b) Charging the CKPN difference for 2024
If the provision formed according to POJK regarding the quality of BPR assets is smaller than the CKPN Dr. Retained Earnings – December 31 XXX Cr. Impairment Loss Provision XXX If the provision formed according to POJK regarding the Quality of Assets of Rural Banks for the People's Economy is larger than the CKPN Dr. Impairment Loss Provision XXX Cr. Retained Earnings – December 31 XXX

c) If the BPR only has probability of default data for 2024 only, the BPR charges the CKPN difference for 2024 If the provision formed according to POJK regarding the quality of BPR assets is smaller than the CKPN Dr. Retained Earnings – December 31 XXX Cr. Impairment Loss Provision XXX If the provision formed according to POJK regarding the quality of BPR assets is larger than the CKPN Dr. Impairment Loss Provision XXX Cr. Retained Earnings – December 31 XXX

b. If there are impracticable conditions for prospective application The BPR applies the impairment loss provision according to SAK EP on January 1, 2025, and the difference in impairment expense becomes an expense in 2025. If the provision formed according to POJK regarding the quality of BPR assets is smaller than the CKPN Dr. CKPN Expense 2025 XXX Cr. Impairment Loss Provision XXX If the provision formed according to POJK regarding the quality of BPR assets is larger than the CKPN Dr. Impairment Loss Provision XXX Cr. CKPN Expense 2025 XXX

c. The BPR performs impairment calculations for each account. For example, the BPR applies retrospective CKPN for the account of placements with other banks, but for the 'Loans Given' account, the BPR chooses to apply SAK EP prospectively due to impracticable conditions, namely the historical data owned is inadequate to calculate the probability of default for 2023 and 2024.

Foreclosed Collateral
There is no difference in the recording of Cash in SAK EP and SAK ETAP. a. Adjustment to opening balance The ending balance of December 31, 2024 becomes the opening balance of January 1, 2025. b. Presentation of comparative balances at the beginning of application The BPR presents the ending balance of December 31, 2024 as the comparative figure for the financial statements as of December 31, 2025.
c. Others
The BPR re-evaluates whether there is objective evidence of impairment for foreclosed collateral in accordance with Chapter 27 of SAK EP Impairment.
Fixed Assets and Inventories/Vacant Property
There is no difference in the recording of Cash in SAK EP and SAK ETAP. a. Adjustment to opening balance The ending balance of December 31, 2024 becomes the opening balance of January 1, 2025. b. Presentation of comparative balances at the beginning of application The BPR presents the ending balance of December 31, 2024 as the comparative figure for the financial statements as of December 31, 2025.
c. Others
For BPRs that choose to use the fixed asset revaluation policy, the BPR makes a policy change as of January 1, 2025.
The BPR re-evaluates whether there is objective evidence of impairment for Fixed Assets and Inventories/Vacant Property in accordance with Chapter 27 of SAK EP Impairment.

B. Financial Liabilities
Deposits/Debts/Loans/Current Liabilities

Retrospective Application
a. Adjustment to opening balance
The BPR restates the opening balance using the ending balance of December 31, 2023, plus unamortized transaction costs, and minus unamortized commissions. The BPR recalculates the effective interest rate and its amortization as the basis for recognizing interest income and amortization of Deposits/Debts/Loans/Current Liabilities. b. Presentation of comparative balances at the beginning of application The BPR presents the ending balance of December 31, 2024 as the comparative figure for the financial statements as of December 31, 2025.
Impracticable Conditions
a. The BPR documents the impracticable condition and the management decision regarding the impracticable condition. b. The opening application balance of January 1, 2025 uses the recorded balance of December 31, 2024 from Deposits/Debts/Loans/Current Liabilities, plus unamortized transaction costs.
c. Subsequently, the BPR calculates the effective interest rate using data as referred to in letter b) above as the basis for recognizing interest expense amounts and amortization of transaction costs.

Example 1 - Illustration of Retrospective Application of Loans Given

Illustration
On September 1, 2023, the Bank granted a loan of Rp60,000,000 with a flat interest rate of 6% per year and a tenor of 30 (thirty) months. The Bank charges a commission of 1% of the ceiling or Rp600,000. For this loan, the bank recognizes revenue with a flat interest rate according to installments with the customer. This loan is still running and in good condition as of January 1, 2025 when the BPR applies SAK EP.
Initial Table of Loans Given according to SAK ETAP
Information for Recalculation according to SAK EP

Date	Carrying Amount	Unamortized Commission	Interest Income 2024 (Rp300,000 x 12)	Discount Income 2024
Dec 31, 2024	52,000,000	520,000	3,600,000	240,000
Dec 31, 2023	28,000,000	280,000	-	-

Transaction Date	Payment Date	Principal	Interest	Monthly Installment	Amortization of Commission	Loan Balance Flat	Balance Commission
0	1-Sep-23	60,000,000	600,000
1	30-Sep-23	2,000,000	300,000	2,300,000	20,000	58,000,000	580,000
2	31-Oct-23	2,000,000	300,000	2,300,000	20,000	56,000,000	560,000
3	30-Nov-23	2,000,000	300,000	2,300,000	20,000	54,000,000	540,000
4	31-Dec-23	2,000,000	300,000	2,300,000	20,000	52,000,000	520,000 (a)
5	31-Jan-24	2,000,000	300,000	2,300,000	20,000	50,000,000	500,000
6	29-Feb-24	2,000,000	300,000	2,300,000	20,000	48,000,000	480,000
7	31-Mar-24	2,000,000	300,000	2,300,000	20,000	46,000,000	460,000
8	30-Apr-24	2,000,000	300,000	2,300,000	20,000	44,000,000	440,000
9	31-May-24	2,000,000	300,000	2,300,000	20,000	42,000,000	420,000
10	30-Jun-24	2,000,000	300,000	2,300,000	20,000	40,000,000	400,000
11	31-Jul-24	2,000,000	300,000	2,300,000	20,000	38,000,000	380,000
12	31-Aug-24	2,000,000	300,000	2,300,000	20,000	36,000,000	360,000
13	30-Sep-24	2,000,000	300,000	2,300,000	20,000	34,000,000	340,000
14	31-Oct-24	2,000,000	300,000	2,300,000	20,000	32,000,000	320,000
15	30-Nov-24	2,000,000	300,000	2,300,000	20,000	30,000,000	300,000
16	31-Dec-24	2,000,000	300,000	2,300,000	20,000	28,000,000	280,000 (b)
17	31-Jan-25	2,000,000	300,000	2,300,000	20,000	26,000,000	260,000
18	28-Feb-25	2,000,000	300,000	2,300,000	20,000	24,000,000	240,000
19	31-Mar-25	2,000,000	300,000	2,300,000	20,000	22,000,000	220,000
20	30-Apr-25	2,000,000	300,000	2,300,000	20,000	20,000,000	200,000
21	31-May-25	2,000,000	300,000	2,300,000	20,000	18,000,000	180,000
22	30-Jun-25	2,000,000	300,000	2,300,000	20,000	16,000,000	160,000
23	31-Jul-25	2,000,000	300,000	2,300,000	20,000	14,000,000	140,000
24	31-Aug-25	2,000,000	300,000	2,300,000	20,000	12,000,000	120,000
25	30-Sep-25	2,000,000	300,000	2,300,000	20,000	10,000,000	100,000
26	31-Oct-25	2,000,000	300,000	2,300,000	20,000	8,000,000	80,000
27	30-Nov-25	2,000,000	300,000	2,300,000	20,000	6,000,000	60,000
28	31-Dec-25	2,000,000	300,000	2,300,000	20,000	4,000,000	40,000
29	31-Jan-26	2,000,000	300,000	2,300,000	20,000	2,000,000	20,000
30	28-Feb-26	2,000,000	300,000	2,300,000	20,000	-	-

Table of Recalculation of Loans Given according to SAK EP
a. The Bank first converts the flat table to an annuity table

TABLE OF ANNUITY / EFFECTIVE

Transaction Date	Opening Principal Balance	Monthly Installment	Interest	Annuity Installment	Annuity Principal	Ending Principal Balance
0	1-Sep-23	(60,000,000)	60,000,000
1	30-Sep-23	60,000,000	2,300,000	555,898	1,744,102	58,255,898
2	31-Oct-23	58,255,898	2,300,000	539,739	1,760,261	56,495,637
3	30-Nov-23	56,495,637	2,300,000	523,430	1,776,570	54,719,067
4	31-Dec-23	54,719,067	2,300,000	506,970	1,793,030	52,926,037
5	31-Jan-24	52,926,037	2,300,000	490,358	1,809,642	51,116,395
6	29-Feb-24	51,116,395	2,300,000	473,592	1,826,408	49,289,987
7	31-Mar-24	49,289,987	2,300,000	456,670	1,843,330	47,446,656
8	30-Apr-24	47,446,656	2,300,000	439,592	1,860,408	45,586,248
9	31-May-24	45,586,248	2,300,000	422,355	1,877,645	43,708,603
10	30-Jun-24	43,708,603	2,300,000	404,959	1,895,041	41,813,562
11	31-Jul-24	41,813,562	2,300,000	387,401	1,912,599	39,900,963
12	31-Aug-24	39,900,963	2,300,000	369,681	1,930,319	37,970,644
13	30-Sep-24	37,970,644	2,300,000	351,797	1,948,203	36,022,441
14	31-Oct-24	36,022,441	2,300,000	333,747	1,966,253	34,056,187
15	30-Nov-24	34,056,187	2,300,000	315,529	1,984,471	32,071,717
16	31-Dec-24	32,071,717	2,300,000	297,143	2,002,857	30,068,860
17	31-Jan-25	30,068,860	2,300,000	278,587	2,021,413	28,047,447
18	28-Feb-25	28,047,447	2,300,000	259,859	2,040,141	26,007,305
19	31-Mar-25	26,007,305	2,300,000	240,957	2,059,043	23,948,262
20	30-Apr-25	23,948,262	2,300,000	221,880	2,078,120	21,870,142
21	31-May-25	21,870,142	2,300,000	202,626	2,097,374	19,772,768
22	30-Jun-25	19,772,768	2,300,000	183,194	2,116,806	17,655,962
23	31-Jul-25	17,655,962	2,300,000	163,582	2,136,418	15,519,544
24	31-Aug-25	15,519,544	2,300,000	143,788	2,156,212	13,363,332
25	30-Sep-25	13,363,332	2,300,000	123,811	2,176,189	11,187,143
26	31-Oct-25	11,187,143	2,300,000	103,648	2,196,352	8,990,791
27	30-Nov-25	8,990,791	2,300,000	83,299	2,216,701	6,774,091
28	31-Dec-25	6,774,091	2,300,000	62,762	2,237,238	4,536,852
29	31-Jan-26	4,536,852	2,300,000	42,034	2,257,966	2,278,886
30	28-Feb-26	2,278,886	2,300,000	21,114	2,278,886	0

Accounting treatment for transactions occurring in a Rural Bank (BPR) must be carried out in accordance with the principles regulated in SAK EP. The journals and positions used in the BPR Accounting (PA) examples are merely illustrations according to the context of the illustration.

Recap Comparison of SAK ETAP vs. SAK EP

	31 Dec 2023	31 Dec 2024	31 Dec 2023	31 Dec 2024
Credit Balance	52,000,000	28,000,000
Unamortized Fees	520,000	280,000
Net Credit Balance (Debit Side)	51,480,000	27,720,000	52,461,711	29,919,107
(g)			(i)	(j)
Credit Interest Income	3,600,000
Amortization Income	240,000
Credit Interest Income + Fees	3,840,000		5,057,396	(k) (l)
Difference in Beginning Credit Balance = (i) - (g)	981,711
Difference in Ending Credit Balance = (j) - (h)	2,199,107
Difference in Income = (l) - (k)	1,217,396

b. The Bank calculates cash flows using the accounting effective interest rate.

5. Adjustment Journal for the Application of SAK EP

TABLE OF ACCOUNTING EFFECTIVE INTEREST RATES

Transaction	Date	Cash Flow	Installment Principal	Installment Annuity	Interest Annuity	Beginning Accounting Balance	Effective Interest Accounting	Amortization	Beginning Accounting Balance
1	30-Sep-23	2,300,000	1,744,102	555,898	59,400,000	591,106	35,208	57,691,106
2	31-Oct-23	2,300,000	1,760,261	539,739	57,691,106	574,100	34,361	55,965,206
3	30-Nov-23	2,300,000	1,776,570	523,430	55,965,206	556,925	33,495	54,222,132
4	31-Dec-23	2,300,000	1,793,030	506,970	54,222,132	539,580	32,609	52,461,711	(c)
5	31-Jan-24	2,300,000	1,809,642	490,358	52,461,711	522,061	31,703	50,683,773
6	29-Feb-24	2,300,000	1,826,408	473,592	50,683,773	504,368	30,777	48,888,141
7	31-Mar-24	2,300,000	1,843,330	456,670	48,888,141	486,500	29,830	47,074,640
8	30-Apr-24	2,300,000	1,860,408	439,592	47,074,640	468,453	28,861	45,243,093
9	31-May-24	2,300,000	1,877,645	422,355	45,243,093	450,227	27,872	43,393,320
10	30-Jun-24	2,300,000	1,895,041	404,959	43,393,320	431,819	26,860	41,525,139
11	31-Jul-24	2,300,000	1,912,599	387,401	41,525,139	413,228	25,827	39,638,367
12	31-Aug-24	2,300,000	1,930,319	369,681	39,638,367	394,452	24,771	37,732,820
13	30-Sep-24	2,300,000	1,948,203	351,797	37,732,820	375,490	23,693	35,808,310
14	31-Oct-24	2,300,000	1,966,253	333,747	35,808,310	356,339	22,592	33,864,648
15	30-Nov-24	2,300,000	1,984,471	315,529	33,864,648	336,997	21,467	31,901,645
16	31-Dec-24	2,300,000	2,002,857	297,143	31,901,645	317,462	20,319	29,919,107	(d)
17	31-Jan-25	2,300,000	2,021,413	278,587	29,919,107	297,733	19,146	27,916,840
18	28-Feb-25	2,300,000	2,040,141	259,859	27,916,840	277,808	17,950	25,894,649
19	31-Mar-25	2,300,000	2,059,043	240,957	25,894,649	257,685	16,728	23,852,334
20	30-Apr-25	2,300,000	2,078,120	221,880	23,852,334	237,361	15,481	21,789,695
21	31-May-25	2,300,000	2,097,374	202,626	21,789,695	216,835	14,209	19,706,530
22	30-Jun-25	2,300,000	2,116,806	183,194	19,706,530	196,105	12,911	17,602,635
23	31-Jul-25	2,300,000	2,136,418	163,582	17,602,635	175,169	11,587	15,477,804
24	31-Aug-25	2,300,000	2,156,212	143,788	15,477,804	154,024	10,236	13,331,828
25	30-Sep-25	2,300,000	2,176,189	123,811	13,331,828	132,669	8,858	11,164,497
26	31-Oct-25	2,300,000	2,196,352	103,648	11,164,497	111,101	7,453	8,975,598
27	30-Nov-25	2,300,000	2,216,701	83,299	8,975,598	89,319	6,019	6,764,916
28	31-Dec-25	2,300,000	2,237,238	62,762	6,764,916	67,320	4,558	4,532,236
29	31-Jan-26	2,300,000	2,257,966	42,034	4,532,236	45,102	3,068	2,277,338
30	28-Feb-26	2,300,000	2,278,886	21,114	2,277,338	22,662	1,549	0

Effective interest rate = IRR(all cash flows above) = 0.995% per month or 11.94% per year.

a. Charging the balance difference of December 31, 2023 to Retained Earnings Db. Loans Given 981,711 Cr. Retained Earnings December 31, 2023 981,711

b. Charging the balance difference of December 31, 2024 to Retained Earnings Db. Loans Given 2,199,107 Cr. Retained Earnings December 31, 2024 2,199,107

c. Income adjustment in 2024 to Retained Earnings
Db. Retained Earnings December 31, 2024 1,217,396 Cr. Interest Income 2024 1,217,396

d. Adjustment of Credit Impairment Loss Provisions Given Db. Retained Earnings December 31, 2024 XXX.XXX Cr. CKPN Loans Given XXX.XXX

6. Illustration of Comparative Figures

	31 Dec 2023	31 Dec 2024	31 Dec 2025
Loans Given	52,461,711	29,919,107	4,532,236
Interest Income	5,057,396	2,213,129

Example 2 - Illustration of the Application of Impractical Conditions for Loans Given

1. Illustration
On September 1, 2023, the Bank provided a loan of Rp60,000,000 with a flat interest rate of 6% per year and a tenor of 30 (thirty) months. The Bank charges a fee of 1% of the ceiling or Rp600,000. For this loan, the bank recognizes income with a flat interest rate according to installments with the customer. This loan is still running and is in good condition as of January 1, 2025, when the BPR applies SAK EP.

2. Initial Table of Loans Given according to SAK ETAP

Transaction	Date	Payment	Principal	Interest	Monthly Installment	Fee Amortization	Flat Loan Balance
0	1-Sep-23	60,000,000	600,000
1	30-Sep-23	2,000,000	300,000	2,300,000	20,000	58,000,000	580,000
2	31-Oct-23	2,000,000	300,000	2,300,000	20,000	56,000,000	560,000
3	30-Nov-23	2,000,000	300,000	2,300,000	20,000	54,000,000	540,000
4	31-Dec-23	2,000,000	300,000	2,300,000	20,000	52,000,000	520,000
5	31-Jan-24	2,000,000	300,000	2,300,000	20,000	50,000,000	500,000
6	29-Feb-24	2,000,000	300,000	2,300,000	20,000	48,000,000	480,000
7	31-Mar-24	2,000,000	300,000	2,300,000	20,000	46,000,000	460,000
8	30-Apr-24	2,000,000	300,000	2,300,000	20,000	44,000,000	440,000
9	31-May-24	2,000,000	300,000	2,300,000	20,000	42,000,000	420,000
10	30-Jun-24	2,000,000	300,000	2,300,000	20,000	40,000,000	400,000
11	31-Jul-24	2,000,000	300,000	2,300,000	20,000	38,000,000	380,000
12	31-Aug-24	2,000,000	300,000	2,300,000	20,000	36,000,000	360,000
13	30-Sep-24	2,000,000	300,000	2,300,000	20,000	34,000,000	340,000
14	31-Oct-24	2,000,000	300,000	2,300,000	20,000	32,000,000	320,000
15	30-Nov-24	2,000,000	300,000	2,300,000	20,000	30,000,000	300,000
16	31-Dec-24	2,000,000	300,000	2,300,000	20,000	28,000,000	280,000
17	31-Jan-25	2,000,000	300,000	2,300,000	20,000	26,000,000	260,000
18	28-Feb-25	2,000,000	300,000	2,300,000	20,000	24,000,000	240,000
19	31-Mar-25	2,000,000	300,000	2,300,000	20,000	22,000,000	220,000
20	30-Apr-25	2,000,000	300,000	2,300,000	20,000	20,000,000	200,000
21	31-May-25	2,000,000	300,000	2,300,000	20,000	18,000,000	180,000
22	30-Jun-25	2,000,000	300,000	2,300,000	20,000	16,000,000	160,000
23	31-Jul-25	2,000,000	300,000	2,300,000	20,000	14,000,000	140,000
24	31-Aug-25	2,000,000	300,000	2,300,000	20,000	12,000,000	120,000
25	30-Sep-25	2,000,000	300,000	2,300,000	20,000	10,000,000	100,000
26	31-Oct-25	2,000,000	300,000	2,300,000	20,000	8,000,000	80,000
27	30-Nov-25	2,000,000	300,000	2,300,000	20,000	6,000,000	60,000
28	31-Dec-25	2,000,000	300,000	2,300,000	20,000	4,000,000	40,000
29	31-Jan-26	2,000,000	300,000	2,300,000	20,000	2,000,000	20,000
30	28-Feb-26	2,000,000	300,000	2,300,000	20,000	-	-

3. Information for Recalculation according to SAK EP On January 1, 2025, the BPR recalculates the balance of each debtor's loan account using the effective interest rate according to SAK EP. In the example above, for BPRs that previously used flat interest rates with customers, they must calculate the annuity interest rate based on the remaining unpaid loan balance and unamortized fees.

a. The Bank calculates from the remaining loan balance with a flat interest rate to an annuity interest rate. b. Cash flows from the annuity interest rate become the basis for calculating the accounting effective interest rate.

4. Next, the BPR recognizes interest income and fee amortization according to the table in number 3 letter b.

5. Illustration of Comparative Figures

	31 Dec 2023	31 Dec 2024	31 Dec 2025
Loans Given	52,000,000	28,000,000	4,461,426
Unamortized Fees	(520,000)	(280,000)	-
Interest Income	3,600,000	4,341,426

The BPR adds information about impractical conditions and that the figures for December 31, 2024, are presented according to SAK ETAP.

Transaction	Date	Cash Flow	Annuity	Beginning Annuity Balance	Installment Principal Annuity	Installment Interest Annuity
a
b
= (e) previous month
c = (a) - (d)
d = (b) x annuity interest rate
e = (b) - (c)
0	31-Dec-24	(28,000,000)	28,000,000
1	31-Jan-25	2,300,000	28,000,000	1,762,147	537,853	26,237,853
2	28-Feb-25	2,300,000	26,237,853	1,795,996	504,004	24,441,858
3	31-Mar-25	2,300,000	24,441,858	1,830,495	469,505	22,611,362
4	30-Apr-25	2,300,000	22,611,362	1,865,657	434,343	20,745,705
5	31-May-25	2,300,000	20,745,705	1,901,495	398,505	18,844,210
6	30-Jun-25	2,300,000	18,844,210	1,938,021	361,979	16,906,190
7	31-Jul-25	2,300,000	16,906,190	1,975,248	324,752	14,930,942
8	31-Aug-25	2,300,000	14,930,942	2,013,191	286,809	12,917,751
9	30-Sep-25	2,300,000	12,917,751	2,051,862	248,138	10,865,888
10	31-Oct-25	2,300,000	10,865,888	2,091,277	208,723	8,774,612
11	30-Nov-25	2,300,000	8,774,612	2,131,448	168,552	6,643,164
12	31-Dec-25	2,300,000	6,643,164	2,172,391	127,609	4,470,773
13	31-Jan-26	2,300,000	4,470,773	2,214,121	85,879	2,256,652
14	28-Feb-26	2,300,000	2,256,652	2,256,652	43,348	0

Annuity interest rate = IRR(all cash flows above) = 1.92% per month.

This copy is consistent with the original.
Director of Legal Development
Legal Department
Aat Windradi

Established in Jakarta on December 24, 2024

EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,

DIAN EDIANA RAE

ttd ttd

Bank Accounting Guidelines for Rural Banks (SEOJK No. 21/SEOJK.03/2024)

Lineage: In force