Annual Report Obligation for Companies in Indonesia
Aside from annual corporate tax reporting filings and the annual financial reports, companies in Indonesia, including both local company and PMA Company, has the obligation to submit an Annual Report pursuant to the Indonesian Company Law. Learn more regarding what the obligation entails and how to do it.
Pursuant to Article 66 (1) of Law No. 40 of 2007 concerning Limited Liability Company (“Company Law”) the Board of Directors of a company has the obligation to submit an Annual Report to the General Meeting of Shareholders (“GMS”). The GMS where the submission itself is conducted is called the Annual General Meeting of Shareholders (“AGMS”).
Contents of Annual Report
The Annual Report itself, pursuant to Article 66 (2) of Company Law, must consist at least of the following contents:
The Financial Report consisting of the following items:
The Balance Sheet of the latest Financial Year in comparison with the previous year;
Profit and Loss Statement;
Cash Flow Report;
Statements of changes in company Equity; and
Notes to The Financial Report.
A Report on the Company Activities in the latest Financial Year;
A Report on the implementation of Corporate Social and Environmental Responsibility (CSR) by the Company;
A Report on the supervisory tasks that have been performed by the Board of Directors during the previous financial year; and
The names of the members of the Board of Directors and the Board of Commissioners, as well as the salaries of each member, including any allowances and/or benefits each of them, has received in the latest Financial Year
The financial report shall be prepared based on the financial accounting standard. The financial accounting standard is a standard set by the Indonesian Accountant Profession Organization and recognized by the government of the Republic of Indonesia.
Under Article 66 paragraph (4) of the Company Law, for the company that is obliged to be audited, then the balance sheet and relevant profit and loss statement that have been audited shall be submitted to the Minister in accordance with the prevailing laws and regulations.