Indonesia set to achieve full IFRS convergence

PLANS for Indonesia to achieve full IFRS convergence were rubber-stamped this week as the trustees of the IFRS Foundation, the Indonesia Financial Services Authority and the Institute of Indonesia Chartered Accountants announced their intention to deepen cooperation.

The framework was agreed by all the three parties on the occasion of the IFRS Foundation Trustees’ meeting held in Jakarta between 24 and 26 May.

A joint statement reaffirmed Indonesia’s commitment to the G20-endorsed goal of a single set of global accounting standards, and stressed the importance of IFRS in achieving the Association of Southeast Asian Nations Economic Community Blueprint 2025, which seeks to increase the attractiveness of the south east Asian region to investors through the creation of an open, transparent and predictable investment regime.

The parties said they will explore ways to to further involve Indonesian stakeholders in the work of the IFRS Foundation and the IASB, including in its advisory bodies.

The move underlines the importance of the IASB’s work to ensure that IFRS standards are applied on a globally consistent basis across both emerging and developed economies, and are relevant to all types of financial transactions.

Michel Prada, chairman of the IFRS Foundation, said: “We are grateful to the Indonesia Financial Services Authority and the Institute of Indonesia Chartered Accountants for helping to organise an excellent programme of meetings with Indonesian stakeholders. As trustees, we are keen to support Indonesia on every step of its journey towards achieving full convergence with IFRS Standards.”