Institute of Indonesia Chartered Accountants

The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI) does not have direct responsibility for statutory audit quality assurance reviews, which are carried out through a multi-layer framework involving the Directorate of Financial Profession Development and Supervision, the Indonesian Institute of Certified Public Accountants, the Indonesia Financial Services Authority, and the Audit Board of the Republic of Indonesia. IAI’s direct role relates to quality review activities for Chartered Accountants that hold Accounting Services Firm licenses.

IAI has established a Quality Review Board (Dewan Reviu Mutu Kantor Jasa Akuntan, DRM KJA) to review compliance by licensed Accounting Services Firms with applicable ethical requirements, professional standards, and laws and regulations. The DRM KJA also evaluates the suitability and effectiveness of firms’ quality control systems and monitors follow-up on review recommendations.

IAI supports members through quality control standards and implementation guidance, continuing professional development programs, the KJA Digital Library, SAK Online, and online learning materials. IAI has also issued SPM 1 on quality control for Accounting Services Firms performing non-assurance engagements, requiring firms to establish quality control systems from January 1, 2018.

IAI continues to coordinate with relevant regulators and the Indonesian Institute of Certified Public Accountants to support awareness and implementation of quality management requirements. However, the broader jurisdiction-level QA framework remains multi-layered, and publicly available information does not clearly demonstrate full alignment of all responsible authorities’ QA systems with the requirements of SMO1. Accordingly, IAI is assessed as Review & Improve for SMO 1 fulfillment.

IAI is encouraged to continue conducting periodic self-assessments of its quality review system against SMO 1, strengthen documentation of follow-up and remedial actions from KJA reviews, and continue promoting coordination among responsible authorities to support consistent QA alignment across the jurisdiction.

Current Status: Review & Improve

The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI) has direct responsibility for establishing and maintaining initial professional development and continuing professional development requirements for Chartered Accountants in Indonesia, in coordination with the Ministry of Finance and higher education authorities. The Chartered Accountant Indonesia qualification is administered by IAI and structured across foundation, professional, and advanced levels, with entry routes established under Ministry of Higher Education Decree No. 153 of 2014 and Ministry of Finance Regulation No. 216/PMK.01/2017.

IAI continues to update the Chartered Accountant Indonesia syllabus and examination framework to align with the International Education Standards and support competence-based professional education. Recent activities include maintaining computer-based examinations, recognizing competency equivalency routes under IAI Organization Rules Number 1 of 2023, and expanding access through university, government, and regional computer-based exam centers.

IAI requires Chartered Accountant members to complete continuing professional development and supports implementation through the IAI Knowledge Centre, IAI Lounge, e-learning, self-study modules, professional training, seminars, workshops, and blended learning activities. IAI also continues to expand access through regional Knowledge Centers, affiliated campus partnerships, corporate partnerships, scholarships, and the Aspiring Professional Accountants Festival to strengthen the pipeline of future professional accountants.

IAI also contributes to the broader education ecosystem through the Indonesian Accounting Education Standards and its participation in the Independent Accreditation Board for Economics, Management, Business and Accounting, which supports the quality of accounting higher education and promotes incorporation of IES requirements into academic and professional pathways.

IAI demonstrates sustained implementation of SMO 2 requirements through its education standard-setting, qualification, examination, practical experience, continuing professional development, digital learning, and university engagement activities. Accordingly, IAI is assessed as Sustain for SMO 2 fulfillment.

Current Status: Sustain

The Indonesian Institute of Certified Public Accountants has direct responsibility for adopting auditing and assurance standards in Indonesia. The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI) has no direct responsibility for setting auditing standards but supports the standard-setting process through coordination with IAPI on financial reporting and related implementation matters relevant to audit practice.

IAI has direct responsibility for professional standards applicable to its members providing non-assurance services through Accounting Services Firms. Through the Accounting Services Professional Standards Board, IAI issues professional standards and guidance for practitioners, including SPM 1, SPJ 4400, SPJ 4410, SPJ 4510, SPJ 4580, and related educational materials. The 2024 compilation of professional standards and educational materials is available through IAI and supports implementation by practitioners.

IAI continues to support implementation through guidance, training, online self-learning, professional development activities, and access to standards and materials through SAK Online. IAI has also issued implementation guidance for SPJ 4400 to support practitioners in applying agreed-upon procedures requirements in Accounting Services Firms.

However, at the jurisdiction level, auditing standards remain based on an earlier International Auditing and Assurance Standards Board Handbook rather than the latest standards in effect. While IAI continues to support IAPI and provide implementation support within its own area of responsibility, the ongoing lag in adoption of IAASB pronouncements indicates that further improvement is needed. Accordingly, IAI is assessed as Review & Improve for SMO 3 fulfillment.

IAI is encouraged to continue working with IAPI to reduce the adoption lag for IAASB pronouncements and to document its advocacy, coordination, and member support activities related to timely adoption and implementation of current auditing, assurance, and related services standards.

Current Status: Review & Improve

The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI) has direct responsibility for setting ethical requirements for its members. IAI works with the Indonesian Institute of Certified Public Accountants and the Indonesian Institute of Management Accountants, with support from the Ministry of Finance, to maintain the Code of Ethics for Indonesian Accountants. The Code is applicable to professional accountants in Indonesia and is issued in parallel with the public accountant ethics code for auditors.

IAI continues to demonstrate sustained implementation of SMO 4 through its active monitoring and adoption of revisions to the International Code of Ethics for Professional Accountants, including International Independence Standards, issued by the International Ethics Standards Board for Accountants. In July 2025, the IAI Ethics Board approved revisions to the Code based on the 2024 edition of the IESBA Code.

IAI supports implementation through publication of the Code and related exposure drafts, dissemination through its website and member communications, continuing professional development, training, socialization activities, and coordination with the other recognized professional accountancy organizations and the Ministry of Finance. Recent updates also address technology-related revisions, tax planning and related services, quality management-related conforming amendments, and public interest entity definitions.

IAI demonstrates an ongoing process to adopt and implement current international ethics requirements, communicate changes to members, and coordinate nationally with relevant stakeholders. Accordingly, IAI is assessed as Sustain for SMO 4 fulfillment.

Current Status: Sustain

The Government Accounting Standards Committee (Komite Standar Akuntansi Pemerintahan, KSAP) has direct responsibility for developing Government Accounting Standards (Standar Akuntansi Pemerintahan, SAP) in Indonesia. SAP are established under Government Regulation No. 71 of 2010 and are applied on an accrual basis for central and regional government financial reporting. KSAP uses International Public Sector Accounting Standards as a key reference when developing SAP, with modifications to reflect Indonesia’s legal and institutional framework.

The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI) supports SMO 5 through its representation and engagement with KSAP, including promoting alignment with IPSAS and supporting dialogue with the Ministry of Finance, the Audit Board of the Republic of Indonesia, and other public sector stakeholders. IAI’s role is therefore focused on advocacy, technical contribution, and implementation support rather than direct standard-setting authority.

IAI also supports public sector accountants through its Public Sector Accountants Compartment (Kompartemen Akuntan Sektor Publik, KASP), which provides a platform for public sector professionals and conducts activities to strengthen public sector accounting capacity. IAI further supports implementation through public sector certification pathways, including Certified Government Accounting Associate and Certified Government Accounting Expert, which focus on competencies related to preparing, reviewing, analyzing, and using government financial reports.

IAI demonstrates sustained support for SMO 5 through ongoing engagement with KSAP, public sector training and certification, and awareness-raising on IPSAS and public sector financial reporting developments. Accordingly, IAI is assessed as Sustain for SMO 5 fulfillment.

Current Status: Sustain

The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI) has direct responsibility for investigation and discipline of its members. IAI’s disciplinary framework is supported by its National Council, Disciplinary and Ethics Board, and Supervisory Board, with procedures established through IAI Organizational Regulation No. 1 of 2020 on the Disciplinary Board and IAI Organizational Regulation No. 2 of 2020 on member disciplinary procedures. IAI states that its disciplinary process monitors member obligations and may be initiated through complaints or information received from other parties. (IAI disciplinary framework)

IAI has continued to implement disciplinary procedures, including the publication of professional sanctions for member misconduct. Its sanctions framework includes warnings, suspension, termination of membership, and revocation of related professional certificates. IAI also supports member awareness through continuing professional development, communications, and guidance on ethics and professional obligations. (IAI sanctions page)

At the jurisdiction level, I&D responsibilities remain shared among IAI, the Indonesian Institute of Certified Public Accountants, the Directorate of Financial Profession Development and Supervision, and the Indonesia Financial Services Authority (Otoritas Jasa Keuangan, OJK). In 2023, OJK issued Regulation No. 9 of 2023 to strengthen supervision of public accountants and public accounting firms providing services in the financial services sector. However, publicly available information does not clearly demonstrate that all I&D systems across the profession are consistently aligned with the requirements of SMO 6, particularly with respect to coordination, case-sharing, documentation, appeals, and treatment of members with multiple professional registrations. (OJK Regulation No. 9 of 2023 announcement). Accordingly, IAI is assessed as Review & Improve for SMO 6 fulfillment.

IAI is encouraged to continue strengthening coordination with IAPI, DPPPK, OJK, and IAMI to address jurisdiction-level gaps, including harmonized case-handling protocols, clearer information-sharing arrangements, consistent documentation and appeals processes, and mechanisms for cases involving dual or multiple memberships.

Current Status: Review & Improve

The Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia, IAI) has direct responsibility for developing financial reporting standards in Indonesia through the Indonesian Financial Accounting Standards Board (Dewan Standar Akuntansi Keuangan, DSAK-IAI). Indonesia applies a four-tier financial reporting framework, including SAK Internasional, which fully adopts IFRS Accounting Standards and is effective for eligible entities from January 1, 2024, and SAK Indonesia, which is substantially converged with IFRS Accounting Standards.

IAI continues to support implementation through SAK Online, implementation guidance, seminars, training, provincial outreach, and participation in international and regional standard-setting forums. IAI also maintains engagement with regulators, including the Indonesia Financial Services Authority, to support implementation of SAK Internasional and the broader financial reporting framework.

IAI has also expanded its SMO 7 activities to sustainability reporting. In 2025, the Indonesian Sustainability Standards Board approved PSPK 1 and PSPK 2, based on IFRS S1 and IFRS S2 issued by the International Sustainability Standards Board, with an effective date of January 1, 2027. IAI has supported this process through its sustainability standard-setting governance structure, roadmap development, stakeholder consultations, and awareness-raising activities.

IAI demonstrates sustained implementation of SMO 7 through direct standard-setting, IFRS convergence and adoption activities, member implementation support, stakeholder engagement, and development of sustainability disclosure standards aligned with ISSB Standards. Accordingly, IAI is assessed as Sustain for SMO 7 fulfillment.

Current Status: Sustain