SEOJK Regarding the Revocation of SEOJK Number 27/SEOJK.04/2015 on Accounting Treatment for Leased Telecommunication Tower Assets

To:
Directors of Issuers and Public Companies

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 36/SEOJK.04/2016

REGARDING
THE REVOCATION OF CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 27/SEOJK.04/2015 ON ACCOUNTING TREATMENT FOR LEASED TELECOMMUNICATION TOWER ASSETS

In connection with Regulation Number VIII.G.7, Appendix of the Decision of the Chairman of the Capital Market and Financial Institution Supervisory Board Number: Kep-347/BL/2012 dated June 25, 2012 concerning the Presentation and Disclosure of Financial Reports of Issuers or Public Companies, combined with Article 69 paragraph (2) of 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) and Circular Letter of the Financial Services Authority Number 27/SEOJK.04/2015 on Accounting Treatment for Leased Telecommunication Tower Assets, as well as considering the issuance of Interpretation of Financial Accounting Standards (ISAK) 31: Interpretation on the Scope of PSAK 13: Investment Property, it is necessary to establish the revocation of the Circular Letter of the Financial Services Authority Number 27/SEOJK.04/2015 in the Circular Letter of the Financial Services Authority as follows:

I. GENERAL PROVISIONS

1. That based on legislation in the Capital Market sector, Issuers or Public Companies have the obligation to submit financial reports to the Financial Services Authority prepared in accordance with Financial Accounting Standards.

2. That Financial Accounting Standards, hereinafter referred to as SAK, are Statements and Interpretations issued by the Financial Accounting Standards Board (DSAK) of the Indonesian Accountants Association (IAI) as well as capital market regulatory regulations for entities under its supervision.

3. That considering there are no SAK regulations specifically governing the accounting treatment for leased telecommunication tower assets and in order to provide guidelines to Issuers or Public Companies so that there is uniformity in the accounting treatment for the aforementioned assets, on September 1, 2015, the Financial Services Authority issued Circular Letter of the Financial Services Authority Number 27/SEOJK.04/2015 on Accounting Treatment for Leased Telecommunication Tower Assets.

4. That on November 18, 2015, DSAK-IAI issued ISAK 31: Interpretation on the Scope of PSAK 13, which limits the definition of buildings as referred to in PSAK 13, so that it can be used as a guideline by Issuers or Public Companies and/or their subsidiaries in the accounting treatment for leased telecommunication tower assets.

5. That with the issuance of ISAK 31, the Financial Services Authority deems it necessary to emphasize that Issuers or Public Companies and/or their subsidiaries are required to follow the latest SAK regulations regarding leased telecommunication tower assets, thus it is necessary to revoke the Circular Letter of the Financial Services Authority Number 27/SEOJK.04/2015 on Accounting Treatment for Leased Telecommunication Tower Assets.

II. DETERMINATION OF REVOCATION OF CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 27/SEOJK.04/2015

Based on the considerations as referred to in paragraph I, the Circular Letter of the Financial Services Authority Number 27/SEOJK.04/2015 on Accounting Treatment for Leased Telecommunication Tower Assets is revoked and declared invalid.

III. CLOSING PROVISIONS

1. With the revocation of the Circular Letter of the Financial Services Authority Number 27/SEOJK.04/2015 on Accounting Treatment for Leased Telecommunication Tower Assets, ISAK 31 applies to the preparation of financial reports submitted to the Financial Services Authority starting from the year 2018.

2. This Circular Letter of the Financial Services Authority takes effect on the date of establishment.

Established in Jakarta on September 5, 2016

EXECUTIVE HEAD
CAPITAL MARKET SUPERVISOR,

signed,
NURHAIDA

Copy matches the original
Legal Director 1
Legal Department

signed,
Yuliana