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RSM Indonesia Client Alert is part of our firm newsletters, however it is not designed for a consistent periodical basis, and its publishing depends on whether there is new technical issues that we would like to share to our clients.
RSM Indonesia Client Alert - 2024
RSM Indonesia Client Alert – 21 June 2024
The new Standards for internal audit has been issued by The Institute of Internal Auditors and will be effective January 2025 and organizations need to prepare for alignment with the new Standards.
BACKGROUND
The International Professional Practices Framework (IPPF) serves as a conceptual framework that organizes authoritative guidance issued by The Institute of Internal Auditors (IIA). As a globally trusted guidance-setting body, the IIA provides internal audit professionals worldwide with essential guidance through the IPPF.
Key points about the IPPF:
1. Purpose: It offers required and recommended guidance for internal auditors.
2. Guiding Principles: The IPPF emphasizes independence, objectivity, effectiveness, efficiency, and ethical practices.
3. Global Standards: The Global Internal Audit Standards (GIAS or Standards) within the IPPF guide professional practice worldwide.
4. IIASB Oversight: The International Internal Audit Standards Board (IIASB) continually reviews and updates these standards.
5. Recent Updates: In 2023, the IIASB thoroughly reviewed public feedback on draft standards, resulting in updates to the IPPF, including the International Standards for the Professional Practice of Internal Auditing. The new Standards will take effect in January 2025.
The new Standards are not just relevant to internal auditing as it impacts to the entire organization.
This means that collaboration is needed to bring implementation of the new Standards to be successful.
RSM Indonesia Client Alert - 2024
RSM Indonesia Client Alert – 21 June 2024
The new Standards for internal audit has been issued by The Institute of Internal Auditors and will be effective January 2025 and organizations need to prepare for alignment with the new Standards.
BACKGROUND
The International Professional Practices Framework (IPPF) serves as a conceptual framework that organizes authoritative guidance issued by The Institute of Internal Auditors (IIA). As a globally trusted guidance-setting body, the IIA provides internal audit professionals worldwide with essential guidance through the IPPF.
Key points about the IPPF:
1. Purpose: It offers required and recommended guidance for internal auditors.
2. Guiding Principles: The IPPF emphasizes independence, objectivity, effectiveness, efficiency, and ethical practices.
3. Global Standards: The Global Internal Audit Standards (GIAS or Standards) within the IPPF guide professional practice worldwide.
4. IIASB Oversight: The International Internal Audit Standards Board (IIASB) continually reviews and updates these standards.
5. Recent Updates: In 2023, the IIASB thoroughly reviewed public feedback on draft standards, resulting in updates to the IPPF, including the International Standards for the Professional Practice of Internal Auditing. The new Standards will take effect in January 2025.
The new Standards are not just relevant to internal auditing as it impacts to the entire organization.
This means that collaboration is needed to bring implementation of the new Standards to be successful.
RSM Indonesia Client Alert – 21 June 2024
The new Standards for internal audit has been issued by The Institute of Internal Auditors and will be effective January 2025 and organizations need to prepare for alignment with the new Standards.
BACKGROUND
The International Professional Practices Framework (IPPF) serves as a conceptual framework that organizes authoritative guidance issued by The Institute of Internal Auditors (IIA). As a globally trusted guidance-setting body, the IIA provides internal audit professionals worldwide with essential guidance through the IPPF.
Key points about the IPPF:
1. Purpose: It offers required and recommended guidance for internal auditors.
2. Guiding Principles: The IPPF emphasizes independence, objectivity, effectiveness, efficiency, and ethical practices.
3. Global Standards: The Global Internal Audit Standards (GIAS or Standards) within the IPPF guide professional practice worldwide.
4. IIASB Oversight: The International Internal Audit Standards Board (IIASB) continually reviews and updates these standards.
5. Recent Updates: In 2023, the IIASB thoroughly reviewed public feedback on draft standards, resulting in updates to the IPPF, including the International Standards for the Professional Practice of Internal Auditing. The new Standards will take effect in January 2025.
The new Standards are not just relevant to internal auditing as it impacts to the entire organization.
This means that collaboration is needed to bring implementation of the new Standards to be successful.
RSM Indonesia Client Alert – 21 June 2024
The new Standards for internal audit has been issued by The Institute of Internal Auditors and will be effective January 2025 and organizations need to prepare for alignment with the new Standards.
BACKGROUND
The International Professional Practices Framework (IPPF) serves as a conceptual framework that organizes authoritative guidance issued by The Institute of Internal Auditors (IIA). As a globally trusted guidance-setting body, the IIA provides internal audit professionals worldwide with essential guidance through the IPPF.
Key points about the IPPF:
1. Purpose: It offers required and recommended guidance for internal auditors.
2. Guiding Principles: The IPPF emphasizes independence, objectivity, effectiveness, efficiency, and ethical practices.
3. Global Standards: The Global Internal Audit Standards (GIAS or Standards) within the IPPF guide professional practice worldwide.
4. IIASB Oversight: The International Internal Audit Standards Board (IIASB) continually reviews and updates these standards.
5. Recent Updates: In 2023, the IIASB thoroughly reviewed public feedback on draft standards, resulting in updates to the IPPF, including the International Standards for the Professional Practice of Internal Auditing. The new Standards will take effect in January 2025.
The new Standards are not just relevant to internal auditing as it impacts to the entire organization.
This means that collaboration is needed to bring implementation of the new Standards to be successful.
RSM Indonesia Client Alert – 21 June 2024
The new Standards for internal audit has been issued by The Institute of Internal Auditors and will be effective January 2025 and organizations need to prepare for alignment with the new Standards.
BACKGROUND
The International Professional Practices Framework (IPPF) serves as a conceptual framework that organizes authoritative guidance issued by The Institute of Internal Auditors (IIA). As a globally trusted guidance-setting body, the IIA provides internal audit professionals worldwide with essential guidance through the IPPF.
Key points about the IPPF:
1. Purpose: It offers required and recommended guidance for internal auditors.
2. Guiding Principles: The IPPF emphasizes independence, objectivity, effectiveness, efficiency, and ethical practices.
3. Global Standards: The Global Internal Audit Standards (GIAS or Standards) within the IPPF guide professional practice worldwide.
4. IIASB Oversight: The International Internal Audit Standards Board (IIASB) continually reviews and updates these standards.
5. Recent Updates: In 2023, the IIASB thoroughly reviewed public feedback on draft standards, resulting in updates to the IPPF, including the International Standards for the Professional Practice of Internal Auditing. The new Standards will take effect in January 2025.
The new Standards are not just relevant to internal auditing as it impacts to the entire organization.
This means that collaboration is needed to bring implementation of the new Standards to be successful.
RSM Indonesia Client Alert – 21 June 2024
The new Standards for internal audit has been issued by The Institute of Internal Auditors and will be effective January 2025 and organizations need to prepare for alignment with the new Standards.
BACKGROUND
The International Professional Practices Framework (IPPF) serves as a conceptual framework that organizes authoritative guidance issued by The Institute of Internal Auditors (IIA). As a globally trusted guidance-setting body, the IIA provides internal audit professionals worldwide with essential guidance through the IPPF.
Key points about the IPPF:
1. Purpose: It offers required and recommended guidance for internal auditors.
2. Guiding Principles: The IPPF emphasizes independence, objectivity, effectiveness, efficiency, and ethical practices.
3. Global Standards: The Global Internal Audit Standards (GIAS or Standards) within the IPPF guide professional practice worldwide.
4. IIASB Oversight: The International Internal Audit Standards Board (IIASB) continually reviews and updates these standards.
5. Recent Updates: In 2023, the IIASB thoroughly reviewed public feedback on draft standards, resulting in updates to the IPPF, including the International Standards for the Professional Practice of Internal Auditing. The new Standards will take effect in January 2025.
The new Standards are not just relevant to internal auditing as it impacts to the entire organization.
This means that collaboration is needed to bring implementation of the new Standards to be successful.
RSM Indonesia Client Alert – 21 June 2024
The new Standards for internal audit has been issued by The Institute of Internal Auditors and will be effective January 2025 and organizations need to prepare for alignment with the new Standards.
BACKGROUND
The International Professional Practices Framework (IPPF) serves as a conceptual framework that organizes authoritative guidance issued by The Institute of Internal Auditors (IIA). As a globally trusted guidance-setting body, the IIA provides internal audit professionals worldwide with essential guidance through the IPPF.
Key points about the IPPF:
1. Purpose: It offers required and recommended guidance for internal auditors.
2. Guiding Principles: The IPPF emphasizes independence, objectivity, effectiveness, efficiency, and ethical practices.
3. Global Standards: The Global Internal Audit Standards (GIAS or Standards) within the IPPF guide professional practice worldwide.
4. IIASB Oversight: The International Internal Audit Standards Board (IIASB) continually reviews and updates these standards.
5. Recent Updates: In 2023, the IIASB thoroughly reviewed public feedback on draft standards, resulting in updates to the IPPF, including the International Standards for the Professional Practice of Internal Auditing. The new Standards will take effect in January 2025.
The new Standards are not just relevant to internal auditing as it impacts to the entire organization.
This means that collaboration is needed to bring implementation of the new Standards to be successful.
RSM Indonesia Client Alert - 2024
RSM Indonesia Client Alert – 1 November 2024
Otoritas Jasa Keuangan (OJK) has released POJK No.15/2024 in October 2024 - this regulation focuses on ensuring the integrity of financial reporting by banks. It emphasizes the importance of accurate and reliable financial information for decision-making by regulators and stakeholders.
KEY POINTS
Financial Reporting Requirements. Banks must ensure the accuracy, transparency, and reliability of financial information and reports. Financial reports must comply with financial accounting standards and OJK regulations.
Prohibited Actions. Directors, commissioners, and executives are prohibited from manipulating financial information or reports. Any actions that cause financial reports to misrepresent the bank’s actual condition are forbidden.
Internal Control Policies. Banks must establish internal control policies to ensure the accuracy and transparency of financial reporting. These policies should prevent unauthorized transactions and ensure compliance with accounting standards.
Special Unit for Fraud Prevention. Banks are required to form special unit or designate executives responsible for preventing fraud in financial reporting.
Sanctions. Administrative sanctions, including fines and restrictions on business activities, are imposed for non-compliance. Severe penalties are outlined for significant violations, including fines up to Rp50 billion for commercial banks.
Roles and Responsibilities. The Board of Directors is responsible for the preparation and presentation of financial information and reports. The Board of Commissioners and Audit Committee must oversee the implementation of internal control policies.
Shareholders and Affiliates. Controlling shareholders must support reliable financial reporting and avoid any actions that could lead to misrepresentation. Affiliates are prohibited from interfering with the financial reporting process.
Reporting to OJK. Banks must report any significant weaknesses or conditions that could endanger their business continuity to OJK.
Implementation. Banks are given specific timeframes to comply with the new regulations, including establishing internal control policies and forming special units for fraud prevention.
RSM Indonesia Client Alert – 1 November 2024
Otoritas Jasa Keuangan (OJK) has released POJK No.15/2024 in October 2024 - this regulation focuses on ensuring the integrity of financial reporting by banks. It emphasizes the importance of accurate and reliable financial information for decision-making by regulators and stakeholders.
KEY POINTS
Financial Reporting Requirements. Banks must ensure the accuracy, transparency, and reliability of financial information and reports. Financial reports must comply with financial accounting standards and OJK regulations.
Prohibited Actions. Directors, commissioners, and executives are prohibited from manipulating financial information or reports. Any actions that cause financial reports to misrepresent the bank’s actual condition are forbidden.
Internal Control Policies. Banks must establish internal control policies to ensure the accuracy and transparency of financial reporting. These policies should prevent unauthorized transactions and ensure compliance with accounting standards.
Special Unit for Fraud Prevention. Banks are required to form special unit or designate executives responsible for preventing fraud in financial reporting.
Sanctions. Administrative sanctions, including fines and restrictions on business activities, are imposed for non-compliance. Severe penalties are outlined for significant violations, including fines up to Rp50 billion for commercial banks.
Roles and Responsibilities. The Board of Directors is responsible for the preparation and presentation of financial information and reports. The Board of Commissioners and Audit Committee must oversee the implementation of internal control policies.
Shareholders and Affiliates. Controlling shareholders must support reliable financial reporting and avoid any actions that could lead to misrepresentation. Affiliates are prohibited from interfering with the financial reporting process.
Reporting to OJK. Banks must report any significant weaknesses or conditions that could endanger their business continuity to OJK.
Implementation. Banks are given specific timeframes to comply with the new regulations, including establishing internal control policies and forming special units for fraud prevention.
RSM Indonesia Client Alert – 21 June 2024
The new Standards for internal audit has been issued by The Institute of Internal Auditors and will be effective January 2025 and organizations need to prepare for alignment with the new Standards.
BACKGROUND
The International Professional Practices Framework (IPPF) serves as a conceptual framework that organizes authoritative guidance issued by The Institute of Internal Auditors (IIA). As a globally trusted guidance-setting body, the IIA provides internal audit professionals worldwide with essential guidance through the IPPF.
Key points about the IPPF:
1. Purpose: It offers required and recommended guidance for internal auditors.
2. Guiding Principles: The IPPF emphasizes independence, objectivity, effectiveness, efficiency, and ethical practices.
3. Global Standards: The Global Internal Audit Standards (GIAS or Standards) within the IPPF guide professional practice worldwide.
4. IIASB Oversight: The International Internal Audit Standards Board (IIASB) continually reviews and updates these standards.
5. Recent Updates: In 2023, the IIASB thoroughly reviewed public feedback on draft standards, resulting in updates to the IPPF, including the International Standards for the Professional Practice of Internal Auditing. The new Standards will take effect in January 2025.
The new Standards are not just relevant to internal auditing as it impacts to the entire organization.
This means that collaboration is needed to bring implementation of the new Standards to be successful.
RSM Indonesia Client Alert – 2 February 2024
On 29 December 2023, the Minister of Finance issued Regulation No. 168 Year 2023 concerning Guidelines for the Implementation of Withholding Tax on Income Earned by Individuals from Employment, Services or Activities (“PMK-168”). PMK-168 is the implementing regulation for Government Regulation
No. 58 Year 2023 that was issued on 27 December 2023 (“GR-58”).
For details of GR-58, please refer our Client Alert dated 11 January 2024.
PMK-168 revokes the following regulations:
1. Minister of Finance (“MoF”) Regulation No.250/PMK.03/2008 (“PMK-250”),
2. MoF Regulation No. 252/PMK.03/2008 (“PMK-252”),
3. MoF Regulation No. 102/PMK.010/2016 (“PMK-102”),
4. MoF Regulation No. 262/PMK.03/2010 (“PMK-262”) (specific clauses only), and
5. DGT Regulation No. PER-16/PJ/2016 (“PER-16/2016”).
When is PMK-168 applicable?
RSM Indonesia Client Alert – 1 February 2024
Minister of Finance Regulation No. 172 regarding Application of Arm’s Length Principle on Transaction Affected by Special Relationship was issued on 29 December 2023 (“MoFR-172”). MoFR-172 was mandated by Article 37 of Government Regulation No. 55 of 2022 (GR-55). It applies to any taxpayer conducting transaction affected by special relationship. In addition to providing additional clarification and guidance, MoFR-172 combines the regulatory content of three previous Minister of Finance regulations: MoFR-213/2016, which regulates transfer pricing documentation; MoFR-49/2019, which oversees the administration of the Mutual Agreement Procedure (“MAP”), and MoFR-22/2020, which contains administrative regulations for the Advance Pricing Agreement (“APA”) as well as the norm for applying the arm’s length principle (“ALP”). Therefore, these regulations are now revoked. This Client Alert summarises MOFR-172 and highlights key points for taxpayers conducting transactions where there is a special relationship.
When is MoFR-172 effective?
RSM Indonesia Client Alert – 11 January 2024
On 27 December 2023, the Government issued Regulation No. 58 Year 2023 concerning Income Tax Rate on Income earned from Employment or Service Activities for Individual Taxpayers (“GR-58”). In general, GR-58 creates a simplified system for calculating the amount of Article 21 income tax to be withheld during the year from payments to employees. It does not amend the rates of income tax used to determine the income tax due by resident employees on their annual income.
It applies for any employee receiving income in connection with work or services include state officials, civil servants, members of the Indonesian national armed forces, Indonesian national police, and retirees.
Although the title of GR-58 also refers to income tax on income earned by individuals from service activities, in practice the subject of GR-58 is limited to employees.
When is GR-58 applicable?