Indonesian limited liability companies, including foreign-owned PT PMAs, must prepare a statutory Annual Report (laporan tahunan) for each financial year. This requirement is set out in Indonesia’s Company Law (Law No. 40 of 2007). The Annual Report is not the same as the company’s annual financial statements.
What Must Be Included in an Indonesian Company’s Annual Report?
The Annual Report must contain the company’s financial statements, including the balance sheet, profit and loss statement, cash flow statement, statement of changes in equity, and notes to the financial statements.
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It must also contain a report on the company’s activities, information on significant matters that affected its activities during the financial year, the Board of Commissioners’ supervisory report, and information on the company’s implementation of social and environmental responsibility.
The Annual Report must identify the members of the Board of Directors and Board of Commissioners and disclose the salary and allowances of directors and the salary or honorarium and allowances of commissioners for the preceding financial year.
Who Is Responsible for Preparing and Signing the Annual Report?
The Board of Directors is responsible for preparing the Annual Report.
All members of the Board of Directors and Board of Commissioners who hold office during the relevant financial year must sign the Annual Report.
A director or commissioner who does not sign must provide the reason in writing. If no written reason is provided, that person is deemed to have approved of the contents of the Annual Report.
Does the Annual Report Need to Be Audited?
Not every company requires an Annual Report to have its financial statements audited.
An audit by a public accountant is required in specified circumstances, including where the company collects or manages public funds, issues debt instruments to the public, is publicly listed, is state-owned, has assets and/or annual turnover of at least IDR 50 billion (USD 2.8 million), or is otherwise subject to a statutory audit requirement.
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Where an audit is mandatory, the financial statements must be audited before they can be ratified by the GMS. The auditor’s report is submitted in writing to the GMS through the Board of Directors.
When and How Is the Annual Report Approved?
The Board of Directors must submit the Annual Report to the annual GMS after review by the Board of Commissioners, no later than six months after the end of the company’s financial year.
For a company with a December 31 year-end, this means the Annual Report must be submitted to the annual GMS by June 30 of the following year.
At the meeting, shareholders approve the Annual Report and ratify the financial statements and the Board of Commissioners’ supervisory report.
How Must the Annual Report Be Filed Through SABH?
A newer requirement comes from Ministry of Law Regulation No. 49 of 2025. Shareholder approval of the Annual Report must be recorded in a notarial deed.
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The Board of Directors, through a notary, must submit the notarial deed approving the Annual Report and the Annual Report itself electronically to the Ministry of Law through SABH within 30 calendar days from the date the deed is signed.
Failure to comply with the filing requirement can result in a written warning and ultimately the blocking of the company’s access to SABH.
Meet Your Annual Report Requirements with MAP Resources Indonesia
MAP Resources Indonesia can support foreign-owned companies with preparing statutory Annual Reports and completing the required SABH filing. Contact us today at info@mapresourcesindonesia.com.
