Guidelines for Preparing Management Statements in the Field of Accounting

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 24 /POJK.04/2020
CONCERNING
GUIDELINES FOR PREPARING MANAGEMENT STATEMENTS IN THE FIELD OF ACCOUNTING BY THE GRACE OF THE ALMIGHTY GOD THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that with the transfer of functions, duties, and authorities for the regulation and supervision of financial services activities in the capital market sector, including regarding guidelines for preparing management statements in the field of accounting, from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority; b. that to provide clarity and certainty regarding guidelines for preparing management statements in the field of accounting, regulations in the capital market sector regarding guidelines for preparing management statements in the field of accounting issued before the establishment of the Financial Services Authority need to be changed into a Financial Services Authority Regulation;
c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

Guidelines for Preparing Management Statements in the Field of Accounting; Recalling: 1. Law Number 8 of 1995 concerning Capital Markets (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
DECIDING:
To Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING GUIDELINES FOR PREPARING MANAGEMENT STATEMENTS IN THE FIELD OF ACCOUNTING.
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Prospectus is any written information related to a public offering with the aim for other Parties to purchase Securities.
2. Issuer is the Party conducting a public offering.
3. Public Offering is the activity of offering Securities conducted by the Issuer to sell Securities to the public based on procedures regulated in the Law concerning Capital Markets and its implementing regulations.
4. Registration Statement is a document that must be submitted to the Financial Services Authority by the Issuer in the context of a Public Offering or a Public Company.
5. Public Accountant is a person who has obtained a license to provide services as referred to in regulations concerning public accountants and is registered with the Financial Services Authority.
   Article 2
   Issuers must submit a management statement in the field of accounting regarding financial reports for the periods presented in the Prospectus submitted to the Financial Services Authority as a supplement to the review of the financial reports presented in the Prospectus.
   CHAPTER II
   STRUCTURE AND CONTENT OF THE MANAGEMENT STATEMENT
   Article 3
   The management statement in the field of accounting is presented with the following structure:
   a. date of the statement; b. address of the statement;
   c. content of the statement; and
   d. signing of the statement.
   Article 4
   The date of the management statement as referred to in Article 3 letter a must be adjusted to the date of signing the comfort letter by the Public Accountant.
   Article 5
   The address of the management statement as referred to in Article 3 letter b must be addressed to the Financial Services Authority with a copy to the Public Accountant who conducted the audit on the financial reports presented in the Prospectus.
   Article 6
   The content of the management statement as referred to in Article 3 letter c must at least contain the following:
   a. a statement of conformity of the accounting standards applied by the Issuer with generally accepted accounting principles and accounting regulations in the capital market sector, referring to related regulations, as well as the consistency of their application with previous periods; b. a statement that all assets on the date of the financial reports presented in the Prospectus have been recorded and reported in the financial reports, with additional statements and explanations for each important asset account, both because the amount is relatively material or because of its special nature;
   c. a statement that all liabilities on the date of the financial reports presented in the Prospectus have been recorded and reported in the financial reports, with additional statements and explanations for each important liability account, both because the amount is relatively material or because of its special nature;
   d. a statement that all equity on the date of the financial reports presented in the Prospectus has been recorded and reported in the financial reports, with additional statements and explanations for each important account, both because the amount is material or because of its special nature; e. a statement that all income, expenses, profits, and losses on the date of the financial reports presented in the Prospectus have been recorded and reported in the financial reports, with additional statements and explanations for each important income, expense, profit, and loss, both because the amount is material or because of its special nature; f. a statement that all existing commitments and contingencies in the financial reporting period in the Prospectus have been reported or disclosed in the financial reports; if there are no such commitments and contingencies, this must be clearly stated; g. a statement that all material events after the balance sheet date up to the date of the Public Accountant's report that affect the financial reports have been reported or disclosed in the financial reports, and all material events after the Public Accountant's report date up to the effective date that affect the financial position and business results of the Issuer have been disclosed in the management statement or submitted to the Financial Services Authority and the Public Accountant; h. a statement on other material matters, at least containing:
6. all results or minutes of board of directors meetings, board of commissioners meetings, and shareholders' meetings up to the date of the Public Accountant's report have been shown or submitted to the Public Accountant;
7. up to the date of the Public Accountant's report, there are no disputes related to business transactions, loan agreements, and others;
8. there are no claims or accusations arising from violations of laws and regulations that have a sufficiently large impact on the financial position or business results of the Issuer during the financial reporting period up to the date of the Public Accountant's report;
9. all transactions of the Issuer with external parties during the financial reporting period up to the date of the Public Accountant's report were conducted fairly and there are no officials of the Issuer who have a direct interest in the Issuer conducting transactions with the Issuer;
10. all accounting and financial records have been shown to the Public Accountant and nothing has been hidden;
11. there are no other transactions with affiliated parties except those disclosed in the financial reports; and
12. there is no fraud or irregularity found during the financial reporting period up to the date of the Public Accountant's report;
    and
    i. a statement on other material matters as referred to in letter h that occurred after the date of the Public Accountant's report up to the effective date has been explained in the management statement or submitted directly to the Financial Services Authority and the Public Accountant.
    Article 7
    The management statement in the field of accounting must be signed by the Chief Executive Officer and members of the board of directors who oversee the accounting or finance field.
    CHAPTER III
    ADMINISTRATIVE SANCTIONS
    Article 8
    (1) Any party that violates the provisions as referred to in Article 7 is subject to administrative sanctions.
    (2) Sanctions as referred to in paragraph (1) are also imposed on parties that cause the occurrence of violations as referred to in paragraph (1).
    (3) Sanctions as referred to in paragraph (1) and paragraph (2) are imposed by the Financial Services Authority.
    (4) Administrative sanctions as referred to in paragraph (1) consist of:
    a. written warning; b. fine, namely the obligation to pay a certain amount of money;
    c. restriction of business activities;
    d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and/or g. cancellation of registration.
    (5) Administrative sanctions as referred to in paragraph (4) letters b, c, d, e, f, or g may be imposed with or without preceding the imposition of administrative sanctions in the form of a written warning as referred to in paragraph (4) letter a. (6) Administrative sanctions in the form of a fine as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (4) letters c, d, e, f, or g. (7) The procedure for imposing sanctions as referred to in paragraph (3) is carried out in accordance with the provisions of the legislation.
    Article 9
    In addition to administrative sanctions as referred to in Article 8 paragraph (4), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.
    Article 10
    The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 8 paragraph (4) and specific actions as referred to in Article 9 to the public.
    CHAPTER IV
    CLOSING PROVISIONS
    Article 11
    At the time this Financial Services Authority Regulation takes effect, the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-42/PM/1996 concerning Guidelines for Preparing Management Statements in the Field of Accounting, along with Regulation Number VIII.G.6 which is its attachment, is revoked and declared invalid.
    Article 12
    This Financial Services Authority Regulation takes effect on the date of its promulgation.

This copy is consistent with the original
Deputy Director of Legal Consultation and
Harmonization of Banking Regulations 1
Legal Directorate 1
Legal Department signed
Wiwit Puspasari
For everyone to know, ordering the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on April 22, 2020
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO
Promulgated in Jakarta on April 23, 2020
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2020 NUMBER 114

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 24 /POJK.04/2020
CONCERNING
GUIDELINES FOR PREPARING MANAGEMENT STATEMENTS IN THE FIELD OF ACCOUNTING
I. GENERAL
That since December 31, 2012, the functions, duties, and authorities for the regulation and supervision of financial services activities in the capital market, insurance, pension funds, financing institutions, and other financial service institutions have transferred from the Minister of Finance and the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority. In relation to the above, it is necessary to reorganize the existing regulatory structure, particularly those related to the capital market sector, by converting Capital Market Supervisory Agency and Financial Institutions regulations related to the capital market sector into Financial Services Authority Regulations. The reorganization is carried out so that Financial Services Authority Regulations related to the capital market sector are aligned with Financial Services Authority Regulations in other sectors. Based on the background thinking and aspects mentioned, it is necessary to replace the regulations in the capital market sector governing guidelines for preparing management statements in the field of accounting, namely the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-42/PM/1996 concerning Guidelines for Preparing Management Statements in the Field of Accounting, along with Regulation Number VIII.G.6 which is its attachment, into a Financial Services Authority Regulation concerning Guidelines for Preparing Management Statements in the Field of Accounting.
II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.
Article 2
Sufficiently clear.
Article 3
Sufficiently clear.
Article 4
The date of the comfort letter is in accordance with the regulations in the capital market sector governing comfort letters.
Article 5
Sufficiently clear.
Article 6
Sufficiently clear.
Article 7
Sufficiently clear.
Article 8
Sufficiently clear.
Article 9
The term "specific actions" includes, among others, the postponement of the issuance of the effectiveness statement of the Registration Statement in the context of a Public Offering.
Article 10
Sufficiently clear.

Article 11
Sufficiently clear.
Article 12
Sufficiently clear.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6500