A company must maintain a register of shareholders, as well as a special register for members of the board of directors and commissioners and their family members, detailing share ownership within Indonesia. Changes of share ownership must also be recorded in the register of shareholders and special register. Each year, within six months of the closing of a company’s books, the board of directors must submit an annual report to a general meeting of shareholders. The report must contain at least: (1) a consolidated balance sheet and profit and loss statement for the preceding financial year and comparative figures from the previous year, audited by a registered public accountant in certain instances; and (2) a report on the condition and performance of the company.

Five types of limited liability companies (banks and financial institutions, publicly listed companies, companies issuing debt, state-owned companies and companies having assets of at least IDR 50 billion) must publish audited financial statements that have been approved by the general meeting of shareholders.

Annual reports should be prepared in accordance with generally accepted accounting principles in Indonesia; only certain companies (notably banks, public companies and firms that have issued an acknowledgement of indebtedness) must have their annual financial statements audited by a certified public accountant. If a company’s capital is reduced, the directors must publish the reduction in the State Gazette and in two daily newspapers.

In the past, companies followed the Indonesian Generally Accepted Accounting Principles (GAAP) called “PSAK.” As accounting standard bodies have worked to create a single high quality global standard, the Indonesian Institute of Accountants (IAI) has launched the International Financial Reporting Standards (IFRS) convergence program. The aim is that by 1 January 2012, PSAK will adopt all IFRS that were issued as of 1 January 2009.