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Institute of Indonesia Chartered Accountants

Member | Established: 1957 | Member since 1977

Ikatan Akuntan Indonesia/Institute of Indonesia Chartered Accountants (IAI) is responsible for the regulation of professional accountants, including setting accounting standards in the private sector, administering the Chartered Accountant Indonesia exam, providing continuing professional education, establishing a code of ethics, adopting professional standards, and maintaining a disciplinary system for members. IAI membership comprises accountants from all accounting backgrounds, including public accountants/auditors, management accountants, tax accountants, internal auditors, academics, and public sector accountants. Prior to 2014, membership in the IAI was voluntary; however, in 2014, Minister of Finance Decree No. 25 of 2014 (PMK) on State Registered Accountants introduced the requirement for accountants to become a member of a professional organization prior to registration with the Minister of Finance. This requirement has strengthened the standing of the IAI in the profession. In addition to being a member of IFAC, IAI is a member of the ASEAN Federation of Accountants.

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Statements of Membership Obligation (SMO)

The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.

Last updated: 10/2015
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SMO Action Plan

Status of Fulfillment by SMO

  • SMO 1: Quality Assurance

    Prior to the Institut Akuntan Publik Indonesia/Indonesian Institute of Certified Public Accountants (IAPI) becoming independent in 2012, the IAI (IAPI) Board of Quality Review adopted quality assurance (QA) guidelines and procedures that were mostly in line with the requirements of SMO 1. IAI (IAPI) regularly promoted the objectives of the QA guidelines and procedures to members and also performed reviews of members in practice.

    Since 2012, the IAI is no longer directly involved in conducting QA reviews of public accountants. The IAI does, however, develop Quality Review (QR) guidelines and procedures for firms that wish to provide accounting services, excluding those providing public accounting work. These guidelines are being developed based on ISQC 1.

    Given the role the IAI continues to play in the regulation of the accountancy profession, it is encouraged to actively work with the Pusat Pembinaan Profesi Keuangan/Center for Supervision of Financial Service Professions of the Ministry of Finance of the Republic of Indonesia, IAPI, and the Otoritas Jasa Keuangan/Financial Service to promote the establishment of a unified system of QA reviews on the jurisdiction level.

    Current Status: Sustain

  • SMO 2: International Education Standards

    The IAI is actively involved in setting and implementing initial professional development and continuing professional development (IPD and CPD, respectively) requirements for its members.

    The IAI has developed the IAI Knowledge Centre and is creating an e-learning system, through its IAI Exchange, that member will use to complete their CPD requirements. It has also developed a self-study module and computer-based exams for its students. In addition, the IAI reviews pronouncements and updates all training and educational materials to comply with the latest IAESB standards. The IAI also offers technical and non-technical CPD in the form of seminars, workshops, short courses, and conferences.

    With the assistance of the World Bank, the IAI has developed the Standar Pendidikan Akuntansi Indonesia/Indonesian Accounting Education Standards that will be used in developing accounting education programs in Indonesia.

    The IAI is encouraged to review its system against IES requirements and share the results of the review. In addition, the IAI is encouraged to participate in international standard setting by providing comments on IAESB Exposure Drafts and contributing to public consultations.

    Current Status: Execute

  • SMO 3: International Standards on Auditing

    Although it has no responsibility for setting auditing standards in Indonesia, the IAI continues to support the Institut Akuntan Publik Indonesia/Indonesian Institute of Certified Public Accountants (IAPI) in implementing Indonesian Public Accountant Professional Standards by encouraging the IAPI to continue adopting IAASB pronouncements and communicating with the IAPI on financial reporting issues that are relevant to the auditing profession.

    The IAI is encouraged to highlight what actions it is taking to support the IAPI in the implementation of auditing standards, and to consider whether it is pertinent for the IAI to be more involved in supporting implementation of auditing standards.

    Current Status: Review & Improve

  • SMO 4: Code of Ethics for Professional Accountants

    The IAI’s Ethics Committee has adopted, for its members, the 2014 IESBA Code of Ethics, which is in the final stages of approval for implementation for all State Registered Accountants in Indonesia. The IAI’s Code focuses on Part A and Part C of the IESBA Code, referring to the Institut Akuntan Publik Indonesia/Indonesian Institute of Certified Public Accountants’ (IAPI) Code for Part B. The IAI and IAPI collaborate on the development of the Code in Indonesia to ensure unified ethical requirements for all accountancy professionals.

    To support the implementation of the Code of Ethics by its members, the IAI hosts training workshops, provides continuing professional development learning activities, and disseminates the Code via its website, mailing lists and other printed material. The IAI also maintains an active process to monitor IESBA updates about revisions to its code, so that the Indonesian code can be updated accordingly.

    The IAI is encouraged to highlight what actions it has taken to enforce the Code and to monitor compliance by its members. In addition, the IAI is encouraged to work with the IAPI on considering establishing a unified code for all accountancy professionals in Indonesia. The IAI is also encouraged to participate in the international standard-setting process by reviewing and responding to IESBA Exposure Drafts.

    Current Status: Review & Improve

  • SMO 5: International Public Sector Accounting Standards

    As a member of the Government Accounting Standard Committee (KSAP), which is responsible for the adoption of public sector accounting standards in Indonesia, the IAI promotes the adoption of IPSASs through dialogue with the KSAP Committee and other Indonesian regulators.

    The IAI notifies its members about IPSASB pronouncements, including Exposure Drafts, and promotes awareness of the standards through its website and emails. In addition, the IAI presents seminars and workshops on IPSASs and topics related to the public sector.

    Current Status: Sustain

  • SMO 6: Investigation and Discipline

    The IAI is responsible for maintaining an investigation and disciplinary (I&D) process for its members. It has a Disciplinary Committee to conduct the disciplinary process and has created an Appeals Board to handle appeals by members on sanctions handed out by the Disciplinary Committee.

    The IAI reports that it has reviewed its I&D system and that the resulting revisions are in the final stages of development and implementation. To educate members on the revised system, the IAI intends to host training workshops, continuing professional development -related activities, and distribute relevant information via its website, mailing lists, printed materials, and magazines.

    The IAI is also a member on the Komite Profesi Akuntan Publik/Public Accountant Professional Committee, which has the authority to act as an appeals committee for sanctions issued by the Pusat Pembinaan Profesi Keuangan/Center for Supervision of Financial Service Professions of the Ministry of Finance of the Republic of Indonesia.

    The IAI is encouraged to ensure that the update to its I&D system incorporates the requirements of SMO 6. In addition, the IAI is encouraged to report on the extent of compliance with those requirements and to promote a unified I&D system in Indonesia to all the responsible parties.

    Current Status: Execute

  • SMO 7: International Financial Reporting Standards

    With full responsibility for adopting accounting standards in Indonesia, the IAI recently completed the second phase of a project to fully align Indonesian GAAP with IFRSs. In June 2015, the IAI signed a Memorandum of Understanding with the Otoritas Jasa Keuangan/Indonesia Financial Services Authority (OJK) to develop accounting standards in Indonesia, and part of this process is to develop a pathway to fully adopt IFRSs.

    The IAI conducted a survey to assess the readiness of Indonesian companies to implement IFRSs. It also developed seminars on the impact of IFRSs on businesses in Indonesia to raise awareness of the standards and support implementation. The IAI is working with the OJK to create working groups for implementation guidance on IFRS 9, Financial Instruments, and PSAK 88, Fair Value Measurements, as well as to develop accounting rules for Micro Financial Institutions. In addition, the IAI supports its members in the implementation of IFRSs by issuing implementation guidelines, bulletins, and other publications, and offering relevant training and seminars.

    The IAI participates in the international standard-setting process by reviewing and responding to IASB Exposure Drafts, and participates in regional and international groups such as the Asian-Oceanian Standard-Setters Group, which advises the IASB on IFRS adoption concerns and issues. The IAI also attends various international and regional meetings and conferences and hosted the 8th Emerging Economies Group in Indonesia in 2014.

    Current Status: Sustain


IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.


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