Institute of Indonesia Chartered Accountants

Public Accountants (Auditors) in Indonesia are subject to a multi-layer system of supervision, with each responsible party conducting quality assurance (QA) reviews of auditors. The Public Accountants Act No. 5 of 2011, requires the establishment of a mandatory quality assurance (QA) review system for all audits in Indonesia. In accordance the Act, the Finance Professions Supervisory Center (Pusat Pembinaan Profesi Keuangan – PPPK) and the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia – IAPI) are responsible for establishing a QA review system for Public Accountants (Auditors) and firms. In addition, the Financial Service Authority (Otoritas Jasa Keuangan – OJK) in accordance the Capital Market Act No. 8 of 1995 is also empowered to establish a QA system for Public Accountants (Auditors) providing services to companies under its supervision— banks, listed companies, insurance companies, and financial institutions. Additionally, under State Finance Law No. 17 of 2003 and Supreme Audit Board (Badan Pemeriksa Keuangan – BPK) Regulation No. 1 of 2008, the BPK is given the authority to review audit engagement work conducted by IAPI members on public sector entities. Accordingly, all entities have established QA review systems.

While IAI is not responsible for conducting QA reviews, given that it only regulates Chartered Accountants (CA), which do not perform an audit of financial statements, IAI has taken commendable efforts to promote the quality of work of its members. With the issuance of PMK 216/PMK.01/2017, IAI has developed and implemented a system of quality control for the work activities of its members and accounting services firm (Kantor Jasa Akuntan – KJA) since 2018. The IAI indicates in its SMO Action Plan that it has adopted the Quality Assurance Standard (Standar Pengendalian Mutu – SPM) SPM 1 based on the ISQC 1 for its members under this initiative.

To assist KJA in understanding, and implementing appropriate system of quality control, IAI has performed the following activities:

• Providing SAK Online, a web-based application and mobile-phone application that enables members to access code of ethics, professional standards (including ISQC1), implementation guidance, and educational materials of professional standards.
• Providing educational materials and implementation guidance of professional standards, such as ISQC 1, that includes sample of illustrative forms and guidelines to implement ISQC1.
• Providing CPD programs to members whose have practicing accountants license, regarding regulation and professional standards, including ISQC1.
• Providing online self-learning video program regarding code of ethics, and professional standards on YouTube channel.

To facilitate KJAs in undergoing quality reviews, IAI also provides:

• KJA Digital Library – an online resource center for KJAs to access information on regulations, professional standards (including ISQC 1), and business best practices;
• CPD Programs – which include tutorials and guidance on how to carry out and participate in the quality review process.

Based on PMK 216, DPPK is authorized to perform quality review on KJA. The DPPK’s scope of quality review on KJA includes code of ethics, professional standards (including ISQC1), and regulatory requirements. The review is performed on regular basis, and ad-hoc basis (based on public complaint reports or other information).

To ensure the proper operation of the QA review system, IAI has established a Quality Review Board (Dewan Reviu Mutu – DRM) responsible for the reviews (i.e., ensuring adherence of standards, Code of Ethics, and prevailing laws and regulations by Practicing Accountants) and developed implementation guidance for SPM 1.

The DRM KJA can submit a quality review report to the IAI Disciplinary Board (DPDA IAI). Based on this report, DRM KJA may recommend sanctions to the DPDA IAI for IAI Primary Members who hold a KJA license. Sanctions may be issued according to the nature of violations or instances of non-compliance with ethical codes, accounting service standards, and/or relevant laws and regulations found during the quality review.

To support its members with the review process, the IAI states that it: (i) disseminates information on quality control standard; (ii) liaise with IAPI and DPPK to create awareness on SPM 1; (iii) includes quality control standards in its continuing professional development; and (iv) promotes the continuous enhancement and update of the IAI reviewers’ skills and knowledge.

IAI implements its quality assurance (QA) activities through a combination of on-site and virtual assessments.

Quality assurance in Indonesia is conducted according to each PAO’s respective responsibilities, in coordination with relevant regulators such as DPPK, OJK, and BPK. As per prevailing regulations, IAI is responsible for QA of CAs in KJA, whilst IAPI for QA of public accountants in KAP, with both organizations and the regulators actively communicating for sharing and mutual learning.

The IAI is encouraged to conduct a self-assessment of its QA review system against the requirements of SMO 1 and develop specific actions to close the existing gaps if any. If deemed needed and necessary, the IAI is encouraged to consider promoting the creation of a unified joint QA system for Public Accountants (Auditors) in Indonesia.

Current Status: Review & Improve

The Ministry of Finance (MoF), the Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia – IAI), and the Ministry of Higher Education share responsibility for establishing and maintaining the initial and continuing professional development (IPD and CPD) requirements for Chartered Accountants.

There are two pathways to becoming a CA in Indonesia. Pursuant to the Ministry of Higher Education Decree No. 153 of 2014 on the Professional Accountancy Education Program and the Minister of Finance Regulation No. 216/PMK.01/2017 on Registered Accountants, individuals aspiring to obtain the CA designation may follow one of the following routes: First: The Professional Qualification Route, in which candidates must complete and pass the CA examination program administered by IAI; and second routes: The Professional Accounting Education Program Route, which requires candidates to: (i) successfully complete the Professional Accounting Education Program (Pendidikan Profesi Akuntan – PPAk) offered by an accredited university; and (ii) pass the CA final examination administered by IAI as the final assessment of the PPAk program before registering with the MoF to obtain the state-registered accountant title (Register Negara Akuntan – Ak).

The CA qualification program consists of three levels of examinations: Foundation Level – six subjects to become Business and Finance Associate; Professional Level – five subjects, to become an Associate CA, and Advanced Level – two subjects to achieve CA Indonesia designation. Based on IAI Organization Rules Number 1 of 2023, candidate can obtain recognition of competencies in one or more CA exam’s subjects at each level. Recognition of competencies is conducted by assessing the suitability of the syllabus and learning achievements in each exam subject at each level, as well as participant's knowledge and competency in accounting obtained through education, certification, and/or work experience. 

To be recognized as a registered accountant by the MoF, an individual must (i) pass the professional accountancy certification examination administered by Recognized PAO by MoF, (ii) be a member in good standing of recognized PAO by MoF, (iii) complete at least three years of relevant practical experience in the field of accountancy.

Once a member of the IAI, individuals are required to complete 40 hours of CPD on an annual basis, covering 4 hours on regulation, 4 on professional standards, 4 on accounting standards, and 4 on ethics. Other members must complete at least 30 hours per year or 120 hours every three years. IAI bylaws also recognize postgraduate programs, research, publication, and participation in professional boards as valid CPD activities.

The IAI has developed the Indonesian Accounting Education Standards (Standar Pendidikan Akuntansi Indonesia (SPAI), which incorporates the latest IES requirements, and this is updated on an ongoing basis. For this, it has established the Certification Board for Professional Accountant (Dewan Sertifikasi Akuntan Profesional – DSAP) responsible for ensuring the quality of the CA certification, and monitoring of the education and practical experience. IAI reports that the IES are incorporated into the educational programs in Indonesia for all professional accountants. IAPI reports that the latest 2021 IES are incorporated in Indonesia.

The IAI is actively involved in implementing IPD requirements. Following the mandate given under the Minister of Research, Technology, and Higher Education Regulation No. 32 of 2016 on Study Program and Higher Education Accreditation, IAI in association with the Indonesian Bachelor of Economics Association (Ikatan Sarjana Ekonomi Indonesia – ISEI) and the Economics and Business Faculties Association (Asosiasi Fakultas Ekonomi dan Bisnis Indonesia – AFEBI), have established the Independent Accreditation Board (Lembaga Akreditasi Mandiri Ekonomi, Manajemen, Bisnis, dan Akuntansi – LAMEMBA), responsible for monitoring the quality of accountancy higher education in Indonesia. In this role, IAI consistently promotes the incorporation of the IES requirements into the IPD requirements, working together with universities and other relevant stakeholders in developing professional competence of professional accountants.

To support its members and students, the IAI has developed the IAI Knowledge Centre and an e-learning system, through its IAI Exchange, that members will use to complete their CPD requirements. It has also launched the IAI Lounge—an upgraded digital platform offering e-learning videos, self-study modules, and CPD tracking tools, integrated with the DPPK e-learning system. It also has developed a self-study module and computer-based exams for its students. In addition, the IAI updates all training and educational materials to comply with the latest IAESB standards. The IAI also offers CPD in the form of seminars, workshops, short courses, and conferences. IAI also organizes symposiums, online/offline training, and blended learning post-pandemic, ensuring continuous competence of its members.

To facilitate IAI members and accountants in Indonesia in building their knowledge and technical capacity, IAI continues to expand its reach to parts of the country, particularly through its IAI Knowledge Center. Currently, IAI operates 15 Knowledge Centers (3 under IAI Headquarters in Greater Jakarta and 12 under regional branches across Indonesia). This expansion enhances equal access to CPD and professional support throughout the country.

IAI also continues to establish cooperation with corporate partners and affiliated campuses and introduce the aspiring professional accountant’s initiative and CA scholarship. Since 2017, IAI has organized the Aspiring Professional Accountants Festival (APA Fest)an annual flagship event attracting over 3,500 participants nationwide and supported by AFA, CAW, and FinBiz2030 (One Young World). IAI has also provided more than 1,000 CA scholarships and expanded its Affiliated Campus Program to strengthen university partnerships.

IAI continues to update its CA syllabus, based on the latest IESs requirements. The CA syllabus has also been used as the best practice reference by some universities in Indonesia in establishing their accountancy bachelor’s degree program content/syllabus. This will ensure further use of IES in both professional qualifications (CA) and academic qualifications.

Since 2019, IAI has focused on modernizing accounting education to reflect business disruption and digital transformation, aligning with IFAC’s SMO 2. In December 2022, IAI launched its Strategic Plan for 2022–2026, “Next4Success,” structured around four pillars aimed at achieving growth, strength, and sustainability through collaboration. Pillar 2 focuses on enhancing public trust and accountability, positioning IAI as a leader in developing the finance and sustainability ecosystem through code of ethics, professional standards, financial reporting, and sustainability disclosure standards.

IAI’s CA program (including its learning outcomes and examination) consists of 3 (three) levels: foundation level (CAFB), professional level, and advanced level in line with provisions of IES 2 – Technical Competence. To facilitate students in conducting the exams, IAI has developed a Computer Based Written Exam in 2020, in addition to contributing to the PPPK’s e-learning platform. The 2023 regulation also introduced a competency equivalency (waiver) route for Doctorate in Accounting holders and for senior practitioners at Director level, assessed by DSAP based on their educational background, dissertation, published research, and professional experience. To further supplement the development of the qualification, IAI maintains strategic international partnerships, including a Mutual Pathway Agreement (MPA) with CPA Australia and Memoranda of Understanding (MoUs) with the Institute of Chartered Accountants in England and Wales (ICAEW), and the Association of International Certified Professional Accountants-the Chartered Institute of Management Accountants (CIMA), the Association of Chartered Certified Accountants (ACCA) and Institute of Singapore Chartered Accountants (ISCA). IAI has been an Associate Member of Chartered Accountants Worldwide (CAW) since 2016, strengthening the global recognition of CA (Indonesia).

Current Status: Sustain

Under the Public Accountants Law of 2011, the Institut Akuntan Publik Indonesia/Indonesian Institute of Certified Public Accountants (IAPI) has direct responsibility for setting auditing standards in Indonesia. It does so via the Indonesian Auditing and Assurance Standards Board (“Indonesian AASB”) which has adopted the Indonesian Public Accountant Professional Standards (SPAPs) based on the ISA and translated into Bahasa Indonesia. The SPAPs are currently based on the 2020 IAASB Handbook. The Indonesia AASB is reviewing and has made plans to adopt ISA 315 (revised 2019), ISQM 1, 2, and ISA 220 (revised), and ISA 600 over the next two—three years.

During the period from 2022 up to mid-2023, IAPI adopted the revisions to ISAE 3000, ISRE 2400 and ISRE 2410. The ISAE 3410 is also currently in the process of adoption and is expected to be finalized in Q3 2023. IAPI has indicated that it is putting great effort into fully adopting ISAs and other IAASB pronouncements, exposing them for public consultation, seeking approval for the standards, and disseminating them to its members. Indonesian AASB aims to maintain a two-year gap in adopting the IAASB Handbook and other relevant pronouncements, which is a significant milestone for the association given the stringent and meticulous process to get regulator buy-in and inform the public of changes. IAPI has indicated that updates regarding these initiatives will be shared as they progress within the regular review and adoption cycle. As part of the local standard-setting process, IAPI also participates in regional and international standard-setting activities.

Although it has no responsibility for setting auditing standards in Indonesia, the IAI continues to support IAPI in the standard-setting process 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.

IAI continues to publish standards for practicing accountants providing non-assurance services in KJA. These standards follow the latest relevant pronouncements as issued by IAASB.

As mandated by KMK 263 and PMK 216, IAI has issued professional and ethical standards for its members. DSPJA IAI is an independent standard-setting body established by IAI that has authority to set professional standards for IAI members with practicing license that provide their non-assurance services through KJA. DSPJA continues to publish SPJs based on IAASB’s pronouncements (International Standards on Related Services) and other relevant standards for non-assurance services.

As of June 2024, DSPJA has issued a suite of professional standards and accompanying educational materials based on relevant pronouncements from the IAASB Handbooks.

To assist members with KJA license in implementing the standards, KAKJA IAI has issued the following implementation guidance:

• SPM1 Implementation Guidance
• SPJ 4400 Implementation Guidance

The implementation guidance released by KAKJA IAI includes comprehensive practical explanations and illustrative examples.

All of the standards, educational materials, and implementation guidance are available for IAI members through SAK Online web-based application and mobile-version application.

Given that KJAs are authorized solely to provide non-assurance services, DSPJA IAI remains committed to reinforcing KJA capacity building initiatives focused on the effective implementation of established standards. Both DSPJA and KAKJA IAI continually work to advance KJA expertise in interpreting these standards through comprehensive training programmes, online self-learning modules, and various other professional development events.

Current Status: Sustain

The Ikatan Akuntan Indonesia/Institute of Indonesia Chartered Accountants (IAI) and the Institut Akuntan Publik Indonesia/Indonesian Institute of Certified Public Accountants (IAPI) are responsible for setting ethical requirements for their members, in accordance with the Minister of Finance Decree No. 216/PMK.01/2017, and the Public Accountants Act No. 5 of 2011.

IAI, IAPI, and IAMI as the three recognized PAOs in Indonesia have published a joint Code of Ethics for all professional accountants in Indonesia called the Kode Etik Akuntan Indonesia. This milestone was achieved in 2019 through collaboration with the Ministry of Finance’s Finance Profession Supervisory Center (Pusat Pembinaan Profesi Keuangan – PPPK). The unified Code, effective July 1, 2020, is harmonized with the 2018 International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA). With support from PPPK, the three PAOs jointly issued “The 2021 Revision of the Code of Ethics for Indonesian Accountants,” based on IESBA’s 2020 pronouncement titled “Revisions to the Code to Promote the Role and Mindset Expected of Professional Accountants.” The revised Code has been effective since December 31, 2021.

At the end of 2023, IAI, IAPI, and IAMI—again with PPPK’s support—issued “The 2023 Revision of the Code of Ethics for Indonesian Accountants,” effective January 1, 2024. This revision was based on IESBA’s 2021 pronouncement “Revisions to the Non-Assurance Service Provisions of the Code.”

IAI’s focus to support implementation has included publication of education resources and Q&A to support implementation of the unified Code of Ethics. For example, IAI developed the “Code of Ethics FAQ – Ethical Considerations in COVID-19,” providing guidance for members on applying ethical principles during the pandemic. In addition, IAI offers structured training sessions and online self-learning programs related to ethical practices.

Moreover, IAI continues to work with IAPI and IAMI, and supported by PPPK in conducting joint socializations of the Code. IAI also 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. This process has resulted in successive updates to ensure alignment with global ethics standards. In 2024, the IAI Ethics Board, in collaboration with IAPI and IAMI, updated the Indonesian Code of Ethics to incorporate IESBA’s April 2022 revisions concerning the definitions of “Listed Entity” and “Public Interest Entity.”

Most recently, in 2025, the IAI Ethics Board published the 2025 Code of Ethics, which fully incorporates the “Handbook of the International Code of Ethics for Professional Accountants – Including International Independence Standards, 2024 Edition” issued by IESBA. This comprehensive update reflects evolving business environments, regulatory frameworks, and technological advancements. It introduces enhanced ethical guidance addressing tax planning and related services, technology use, engagement teams and group audits, firm quality management, and the objectivity of engagement quality reviewers.

IAI has made a commitment to continue supporting the development of the Code by participating in the regional and global standard-setting process.

Current Status: Sustain

The authority to develop and adopt public sector accounting standards lies with the KSAP, an independent organization established by the government pursuant to Government Regulation No. 24/2005, as amended by Government Regulation No. 71/2010.

KSAP is tasked with formulating draft Government Regulations on Accounting Standards (Standar Akuntansi Pemerintahan – SAP), which govern the preparation and presentation of financial statements for central and regional governments. KSAP reports to the Minister of Finance and ultimately to the President, and its membership includes representatives from the IAI, government officials, practitioners, academics, and other experts with proven expertise in public sector accounting. The President of IAI serves as an ex-officio member of the KSAP Consultative Committee.

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 KSAP uses IPSASs as the primary reference when drafting national public sector accounting standards; however, modifications are made to allow for the differences in Indonesia’s legal and regulatory environment. Since 2015, accrual accounting has been implemented in the Indonesian public sector.

Through its representation in KSAP and its active engagement with stakeholders, IAI continues to promote the use of IPSAS as the foundation for public sector accounting standards in Indonesia, adapting the international standards as necessary for local legal and institutional frameworks. IAI reports that it held ongoing meetings with relevant regulators (among others, the BPK, KSAP, Ministry of Finance, and Ministry of Internal Affairs) to endorse the use of IPSAS. The IAI President serves ex officio on KSAP’s Consultative Board to ensure close coordination between professional and governmental perspectives.

As of February 2021, KSAP had approved two new SAPs, bringing the total to 17. By December 2024, this number had grown to 19 SAPs, with additional standards under development to be launched in 2025 through Minister of Finance Regulation (PMK). According to KSAP’s strategic plan, it aims to submit proposals for three new SAPs in 2022, seven in 2023, and several revisions in 2024, reflecting continuous alignment with IPSAS updates.

To support its members that work in the public sector, IAI has established IAI’s Compartment for Public Sector, known as Kompartemen Akuntan Sektor Publik (KASP IAI), a platform for professional accountants in the public sector to network. KASP IAI regularly conducts seminars and workshops on IPSASs, and topics related to the public sector. In addition, the IAI notifies its members about IPSASB pronouncements, including Exposure Drafts, and promotes awareness of the standards through its website and emails.

To further support adoption and implementation of IPSAS in Indonesia, IAI introduced Ujian Sertifikasi Ahli Akuntansi Pemerintahan/Government Accounting Expert Certification Exam (US AAP), aimed to enhance the capacity of accountants in the public sector (e.g., central and regional Governments, Ministries, etc.). The certification refers to IPSAS as the best practice for competency of these public sector accountants.

As of late 2021, US AAP has been redesigned by introducing Certified Government Accounting Associate (CGAA) and Certified Government Accounting Expert (CGAE). CGAA exam focuses on competencies of preparation of government financial report, while CGAE exam focuses on reviewing and analyzing government financial report, as well as use for decision-making process. The certification refers to IPSAS as the best practice for competency of these public sector accountants.

Pillar 3 of the IAI Strategic Plan 2022–2026, “Next4Success,” explicitly supports professional accountants working in sustainability and the public sector. This pillar emphasizes strengthening IPSAS adoption and building capacity through certification, training, and collaboration with public institutions.

Current Status: Sustain

Professional accountants, Chartered Accountant (CA) and Public Accountants (Auditors), are subject to a multi-layer system of supervision, with each responsible party conducting investigative and disciplinary (I&D) processes of professionals. I&D processes are shared between the Finance Professions Supervisory Center (Pusat Pembinaan Profesi Keuangan – PPPK), under the Minister of Finance (MoF), the Financial Service Authority (Otoritas Jasa Keuangan –OJK), Indonesian Institute of Accountants (Ikatan Akuntan Indonesia – IAI), and the Indonesian Institute of Certified Public Accountants (Institut Akuntan Publik Indonesia – IAPI).

These institutions collectively ensure that both assurance and non-assurance engagements are monitored for compliance with professional, ethical, and legal standards. OJK oversees auditors of publicly listed entities, PPPK supervises all registered accountants, while IAI, IAPI, and IAMI oversee disciplinary procedures within their respective member groups.

Both IAI and IAPI have developed their own Investigation and Disciplinary (I&D) systems. IAMI also applies its own I&D mechanism for management accountants. Regulators such as OJK and PPPK coordinate to avoid overlap and ensure proportional enforcement, especially for members who hold dual memberships.

The IAI National Council (DPN IAI) and the IAI Disciplinary and Ethics Board (DPDA IAI) are both authorized to impose sanctions on members for violations. The IAI Supervisory Board (Dewas IAI) has the authority to conduct appellate proceedings for sanctions. The rules governing I&D procedures are outlined in the IAI Constitution, Bylaws, and Organizational Regulation No. 2/2020, which formalized the I&D framework.

Disciplinary actions can lead to written warnings, membership suspension, or Permanent termination of IAI membership and revocation of any associated CA or other IAI certificates. Additionally, a Registered Accountant whose certification or membership is revoked by the IAI may also have their Registered Accountant (RNA) certificate revoked by the Head of the DPPK. Both systems are aligned with the requirements of SMO 6.

The IAI reports that it has reviewed its I&D system on an ongoing basis and that the current system is aligned with SMO 6 requirements. In developing its system, IAI prioritized minimizing overlap with IAPI’s framework, given the distinct mandates of both organizations. Coordination with OJK and DPPK is maintained to ensure proportional enforcement for members who serve both public and non-assurance functions.

IAI introduced remote I&D assessments to navigate challenges that arose with the pandemic. To strengthen coordination with IAPI and IAMI, IAI has initiated discussion on I&D for accountants who hold multiple memberships.

IAI’s I&D mechanism includes role and responsibilities conducted by the DRM, DPDA, and MK. IAI has recently (2020) finalized its Organizational Rules to cover mechanism for members’ discipline enforcement for implementation. This covers among others, notifications and reminders for members, dismissal, and revocation and membership.

IAI Organizational Regulation No. 2/2020 outlines the full procedure for notifications, member reminders, sanctions, suspensions, and appeals. The process requires complete documentation and record-keeping of all meetings, evidence, and deliberations to ensure procedural integrity.

The disciplinary and investigative authority of IAI is grounded in two key legal instruments:

• Minister of Finance Decree No. 263/KMK.01/2014, appointing IAI as a professional accounting organization; and
• Minister of Finance Regulation No. 216/PMK.01/2017, concerning Registered Accountants.

DPDA investigations may be initiated either by formal complaints or based on information received (information-based approach). Before each investigation, conflict-of-interest checks are conducted among committee members. Hearings are held for professional violations, while administrative cases may be resolved without formal hearings.

Acts of misconduct under IAI’s disciplinary jurisdiction include:

• Failure to pay membership dues;
• Failure to fulfill Continuing Professional Education (CPE/CPD) obligations;
• Violations of IAI’s Articles of Association, Bylaws, or Organizational Regulations;
• Breach of the Code of Ethics or professional standards;
• Violations identified by the Dispute Resolution Mechanism (DRM) for KJA members;
• Violations sanctioned by other competent bodies, including regulators, courts, or other professional associations; or
• Conviction of a criminal offense punishable by at least two (2) years of imprisonment, based on a final court ruling.

The investigative process under DPDA ensures impartiality, confidentiality, and due process. Meeting minutes, investigation reports, and supporting documentation are maintained under strict confidentiality and are reviewed by the IAI Supervisory Board (Dewas) during appeal stages.

In developing its I&D mechanism, IAI continues to refer to SMO 6 best practices and take into consideration prevailing laws and regulations in Indonesia. Collectively, IAI and IAPI are in close coordination with DPPK in ensuring effective implementation of both organization and PPPK’s I&D system.

IAI is a member of the Public Accountant Professional Committee (Komite Profesi Akuntan Publik – KPAP), which has the authority to act as an appeals committee for sanctions issued by the PPPK.

To support and educate members on the I&D system, the IAI continues to host training workshops, continuing professional development -related activities, and distribute relevant information via its website, mailing lists, printed materials, and magazines.

IAI is encouraged continue strengthening coordination with PPPK, OJK, IAPI, and IAMI to ensure that all investigative and disciplinary (I&D) procedures across institutions remain consistently aligned with SMO 6 requirements. This includes sharing case-handling protocols, harmonizing documentation standards, and establishing clear mechanisms for managing cases involving dual or multiple memberships.

Current Status: Sustain

In Indonesia, all companies must prepare annual financial statements following the financial reporting requirements established by the Indonesian Financial Accounting Standards Board (Dewan Standar Akuntansi Keuangan – DSAK-IAI). This authority is supported by key legislation, including Law No. 40/2007 on Limited Liability Companies, Law No. 8/1995 on the Capital Market, Law No. 1/2013 on Micro Financial Institutions, and Law No. 4/2023 on the Development and Strengthening of the Financial Sector (UU P2SK). The UU P2SK specifically mandates financial institutions and related entities to submit financial statements in accordance with applicable accounting standards.

The DSAK-IAI, under IAI, is the independent national accounting standard-setting body that establishes the Indonesian Financial Accounting Standards (Standar Akuntansi Keuangan – SAK) based on IFRS. The standard-setting process operates independently under a transparent three-tier governance structure, consisting of National Board (Dewan Pengurus Nasional – DPN IAI), DSAK, and the DKSAK (Dewan Konsultatif Standar Akuntansi Keuangan – DKSAK). DPN IAI oversees governance and recruitment, ensuring the DSAK’s independence and diverse representation.

DSAK-IAI has developed SAK, which are based on IFRS with adjustments to Indonesia’s conditions and regulations and to the effective date (one year gap), for all listed companies and other entities with significant public accountability. DSAK-IAI also published the SAK ETAP for entities without public accountability. SAK ETAP will be superseded by SAK PE for private entities effective 1 January 2025 (with option for early adoption). SAK PE is a convergence of the 2015 IFRS for SMEs. For micro, small, and medium enterprises which meet the criteria sets in prevailing laws on MSMEs, DSAK-IAI published the SAK EMKM.

As part of IAI’s collaboration with the Financial Services Authority (Otoritas Jasa Keuangan – OJK), DSAK-IAI—through authorization from the IAI National Council (Dewan Pengurus Nasional – DPN IAI)—introduced SAK Internasional (SAK-I) in January 2023.

As of January 1, 2025, there are four tiers of financial reporting frameworks under SAK:

• Tier 1 – SAK International: Full adoption of IFRS Accounting Standards (word-for-word). Optional for entities meeting criteria established by OJK.
• Tier 2 – SAK Indonesia: Substantially converged with IFRS, generally with a one-year lag. Includes local standards (e.g., for business combinations under common control) and Sharia standards.
• Tier 3 – SAK for Private Entities (SAK EP): Converged with IFRS for SMEs Accounting Standards, effective January 1, 2025.
• Tier 4 – SAK for Micro, Small, and Medium Entities (SAK EMKM): Designed for MSMEs, aligned with prevailing MSME laws.

In response to global sustainability reporting developments, the IAI established the Indonesia Task Force on Comprehensive Corporate Reporting (TF CCR) in December 2020 to explore integration of financial and non-financial reporting.

Building on this initiative, on November 27, 2023, IAI formally launched two new boards: (1) Sustainability Oversight Board (Dewan Pemantau Standar Keberlanjutan – DPSK) and (2) Sustainability Standards Board (Dewan Standar Keberlanjutan – DSK. These bodies, along with the National Board, form a three-tier governance structure to ensure accountability in the development of sustainability reporting standards.

Their mandate includes developing the Sustainability Disclosure Standards (Standar Pengungkapan Keberlanjutan – SPK) or, referencing the IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2).

On December 2, 2024, IAI published a national roadmap for the SPK development process, outlining stakeholder consultations conducted throughout 2024 with regulators, preparers, investors, academics, and civil society organizations.

The roadmap identified two key implementation principles:

• Sustainability disclosures must include climate-related information, while other sustainability topics remain voluntary in the early stages.
• SPK will become effective on January 1, 2027, with early adoption permitted.

The roadmap also introduces an integrated strategy to strengthen Indonesia’s sustainability ecosystem through regulations, assurance mechanisms, reporting infrastructure, competency development, and education.

On July 1, 2025, the DSK ratified two Sustainability Disclosure Standards—PSPK 1 and PSPK 2—aligned with IFRS S1 and IFRS S2, respectively, both effective January 1, 2027.

• PSPK 1 provides general requirements for sustainability-related financial information, including fair presentation, materiality, reporting entities, and connectivity of information.
• PSPK 2 focuses on climate-related disclosures, including governance, strategy, risk management, metrics, and targets.

Through these initiatives, IAI is advancing Indonesia’s alignment with global sustainability reporting frameworks while fostering national readiness for integrated financial and non-financial disclosures.

Furthermore, given the strong role of Islamic finance in Indonesia, the IAI has also established the Dewan Standar Akuntansi Syariah (DSAS), responsible for issuing and maintaining Sharia-based accounting standards that complement the existing SAK. DSAS continues to issue and revise its own Conceptual Framework, standards, and interpretations to respond to market needs.

The convergence process established by DSAK-IAI stipulates a commitment to maintain a one-year gap with IFRS until the decision to fully adopt IFRS has been mutually agreed by the relevant stakeholders in Indonesia. The DSAK’s IFRS convergence journey began in December 2008, with the first phase completed in 2012 (three-year lag) and the second in 2015 (one-year lag). DSAK continues to maintain this one-year difference. Notably, PSAK 117 Insurance Contracts—adopted from IFRS 17—became effective on January 1, 2025. A dedicated working group formed in 2017, comprising insurance entities, actuaries, accountants, tax authorities, and OJK representatives, oversaw the adoption process.

To support this process, the IAI has signed Memorandum of Understanding with the Financial Service Authority (Otoritas Jasa Keuangan –OJK) and plan MoUs with the Central Bank of Indonesia and the Indonesian Self-Regulatory Organizations, comprised by the Indonesian Stock Exchange, Indonesia Central Securities Depository, and Indonesian Clearing and Guarantee Corporation, to progress with the project to adopt IFRS. In addition, an MoU was signed with the Ministry of Cooperatives and SMEs in 2024 to promote the use of SAK for cooperatives and MSMEs. These collaborations ensure alignment across regulators and industry bodies.

To facilitate the implementation of SAK, IAI established the Tim Implementasi Standar Akuntansi Keuangan (TISAK), a practitioner-based team that coordinates national outreach, training, and provincial dissemination of accounting standards. To further enhance access to standards, IAI launched SAK Online in June 2019, a digital platform providing online and mobile access to all published SAK and updates. IAI also develops implementation guidelines, delivers seminars on and training activities on the standards, and disseminates information on the standards and international developments.

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, IASB’s World Standard Setters (WSS) forum and Emerging Economies Group (EEG), and the International Forum of Accounting Standard Setters (IFASS). IAI’s active participation in these global forums ensures that Indonesia remains closely connected to the evolution of international financial reporting practices.

Throughout the pandemic, IAI refocused its efforts to support discussion on and implementation of its different reporting standards (based on IFRS) to online platform via a series of webinars and other activities.

Current Status: Sustain