INDONESIA Law and Practice Contributed by: Ira A Eddymurthy and A Charlie R Malessy, SSEK Law Firm
Pursuant to OJK Regulation No 14/POJK.04/2022 regarding the Submission of Periodic Financial Reports for Issuers or Public Companies, pub - lic companies are obligated to submit periodic financial statements, consisting of annual and mid-year financial statements, to the OJK and disclose the same to the public. 6.2 Disclosure of Corporate Governance Arrangements The Company Law does not mandate companies to publicly disclose their corporate governance arrangements. However, pursuant to Article 66 of the Company Law, the BOD must ensure that the company’s annual report includes, among other elements, a report on the company’s activ - ities, the names of the BOD and BOC members and a report on the supervisory duties performed by the BOC. For further details, refer to 6.1 Financial Report- ing regarding the obligation to deliver the com - pany’s annual report. 6.3 Companies Registry Filings In Indonesia, the Company Registry is maintained by the Directorate General of General Legal Administration ( Administrasi Hukum Umum , or AHU) under the Ministry of Law. Essentially, the Company Registry is an official record consisting of information regarding companies in Indonesia. Among other things, it consists of information regarding a company’s name, domicile, address, purpose and objectives, time period of estab - lishment and shareholding structure. Addition - ally, the Company Registry contains information regarding the company’s corporate documents, including the deed of establishment, articles of association and its amendments, as well as the notary in charge of creating the deed of estab - lishment and articles of association.
Upon a company’s submission of its informa - tion to the AHU, that information will be avail - able through the AHU’s website. Members of the public must pay from IDR50,000 to IDR500,000 to obtain a company profile from the Company Registry. 7. Audit, Risk and Internal Controls 7.1 Appointment of External Auditors As previously discussed in 6.1 Financial Report- ing , the financial statements of private compa - nies in Indonesia generally do not require an audit by a public accountant unless the com - pany: • engages in business activities that involve collecting and/or managing public funds; • issues debt securities to the public; • is a public company; • is a state-owned enterprise; • has assets and/or annual business turnover with a minimum value of IDR50 billion; or • is required to do so under other regulations. The annual financial statements of public com - panies must be audited by an independent and accredited public accountant registered with the OJK. The decision to appoint a public accountant or public accounting firm to provide audit services for the company is typically made at the GMS with a simple majority quorum. 7.2 Requirements for Directors Concerning Management Risk and Internal Controls A company’s annual report, which encapsu - lates its activities and performance throughout the financial year, serves as a crucial tool for the
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