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

The Indonesia Financial Services Authority (OJK) issued Circular Letter No. 21/SEOJK.03/2024 to mandate that Rural Banks (BPR) adopt the Indonesian Financial Accounting Standards for Private Entities (SAK ETAP) for financial reporting effective January 1, 2025. This regulation supersedes previous accounting guidelines from Bank Indonesia and OJK Circular No. 40/SEOJK.03/2017 to enhance the transparency, reliability, and comparability of BPR financial statements. The document establishes the BPR Accounting Guidelines as the primary reference for implementing SAK ETAP, ensuring that any unaddressed matters default to the standard's provisions.

Indonesia

Otoritas Jasa Keuangan (Financial Services Authority)

Regulation /

Regulation Search / Bank Accounting Guidelines for Rural Banks

Sector: Banking

Sub-Sector: Rural Banks (BPR)

Type of Regulation: OJK Circular Letter

Regulation Number: 21/SEOJK.03/2024

Effective Date: 1/1/2025

Attachment 1 SEOJK 21-SEOJK.03-2024 Bank Accounting Guidelines for Rural Banks.pdf Abstract SEOJK 21-SEOJK.03-2024 Bank Accounting Guidelines for Rural Banks.pdf FAQ SEOJK 21-SEOJK.03-2024 Bank Accounting Guidelines for Rural Banks.pdf

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Circular Letter of the Financial Services Authority of the Republic of Indonesia Number 21/SEOJK.03/2024 on Bank Accounting Guidelines for Rural Banks

Abstract: As entities managing public funds, Rural Banks (BPR) have an obligation to present accurate financial reports that fully reflect the bank's financial position and performance, thereby generating quality and comprehensive information for all stakeholders. With the expiration of the Financial Accounting Standards for Entities without Public Accountability (SAK ETAP) on January 1, 2025, BPRs are designated to use the Indonesian Financial Accounting Standards for Private Entities as the accounting standard for preparing BPR financial reports.

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 OJK Reporting System and Transparency of Financial Conditions for Rural Banks and Sharia Rural Banks, it is necessary to regulate implementation provisions regarding the guidelines for the use of accounting standards for Rural Banks.

The legal basis for this OJK Circular Letter is: The Indonesian Financial Accounting Standards for Private Entities and POJK No. 23 of 2024.

In order to improve the transparency of BPR financial conditions and the preparation of relevant, comprehensive, reliable, and comparable financial reports, BPRs must prepare and present financial reports based on the accounting standards applicable to BPRs.

BPRs are designated to use the Indonesian Financial Accounting Standards for Private Entities as the accounting standard in the preparation of BPR financial reports.

The BPR Accounting Guidelines serve as a reference or guide for the general preparation of financial reports applied by BPRs. The BPR Accounting Guidelines contain further elaboration of the Indonesian Financial Accounting Standards for Private Entities, including explanations, accounting treatments, and transaction examples that incorporate judgments according to the context and conditions in the examples.

Matters not elaborated in the BPR Accounting Guidelines shall follow the Indonesian Financial Accounting Standards for Private Entities.

Note: This OJK Circular Letter was established on December 24, 2024. This OJK Circular Letter becomes effective on January 1, 2025.

Upon the effective date of this OJK Circular Letter: a. Bank Indonesia Circular Letter Number 12/14/DKBU concerning the Implementation of Accounting Guidelines for Rural Credit Banks; and b. OJK Circular Letter Number 40/SEOJK.03/2017 concerning the Determination of the Use of Accounting Standards for Rural Credit Banks, are revoked and declared invalid.