Loading Zantara...
Zantara AI
AI Business Advisor
Topics
Zantara AI
AI Business Advisor
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppIndonesian accounting standards require PT PMA companies to prepare a complete set of five financial statements at the end of each fiscal year. These statements tell the story of your company's financial health and are used by tax authorities, banks, investors, and regulators.
| Statement | Indonesian Name | Purpose |
|---|---|---|
| Balance Sheet | Laporan Posisi Keuangan | Snapshot of assets, liabilities, and equity |
| Profit & Loss | Laporan Laba Rugi dan Penghasilan Komprehensif Lain | Revenue, expenses, and net income |
| Cash Flow | Laporan Arus Kas | Cash inflows and outflows |
| Changes in Equity | Laporan Perubahan Ekuitas | Movement in capital and retained earnings |
| Notes | Catatan Atas Laporan Keuangan | Explanations and accounting policies |
The balance sheet shows what your company owns, owes, and is worth at a specific point in time (usually December 31).
Assets (Aset)
| Category | Sub-Categories | Examples |
|---|---|---|
| Current Assets (Aset Lancar) | Cash and equivalents | Bank accounts, petty cash |
| Accounts receivable | Client invoices outstanding | |
| Inventory | Raw materials, finished goods | |
| Prepaid expenses | Rent paid in advance, insurance | |
| Tax prepayments | PPh 25 installments, VAT input | |
| Non-Current Assets (Aset Tidak Lancar) | Fixed assets (net) | Equipment, vehicles, leasehold improvements |
| Intangible assets | Software licenses, trademarks | |
| Investment properties | Rented-out property | |
| Long-term deposits | Security deposits |
Liabilities (Kewajiban)
| Category | Sub-Categories | Examples |
|---|---|---|
| Current Liabilities (Kewajiban Lancar) | Accounts payable | Supplier invoices unpaid |
| Tax payables | PPh 21, 23, 25, PPN payable | |
| BPJS payable | Kesehatan and Ketenagakerjaan | |
| Accrued expenses | Salaries, utilities, interest | |
| Short-term loans | Bank overdraft, credit lines | |
| Non-Current Liabilities | Long-term loans | Bank loans, shareholder loans |
| Deferred tax liabilities | Timing differences | |
| Employee benefits | Post-employment obligations |
Equity (Ekuitas)
| Component | Description |
|---|---|
| Authorized capital | Total capital per company deed |
| Paid-up capital | Capital actually deposited |
| Additional paid-in capital | Premium above par value |
| Retained earnings | Accumulated profits not distributed |
| Current year profit/loss | Net income for the year |
The balance sheet equation must always hold: Assets = Liabilities + Equity
The P&L shows your company's revenue, expenses, and net income over the fiscal year.
Revenue (Pendapatan Usaha)
Sales / Service Revenue IDR xxx
Less: Sales Returns & Discounts (IDR xxx)
Net Revenue IDR xxx
Cost of Revenue (Beban Pokok Pendapatan)
Direct Costs (IDR xxx)
Gross Profit (Laba Kotor) IDR xxx
Operating Expenses (Beban Operasional)
Salaries & Benefits (IDR xxx)
Rent (IDR xxx)
Utilities (IDR xxx)
Depreciation & Amortization (IDR xxx)
Marketing & Advertising (IDR xxx)
Professional Fees (IDR xxx)
Office Supplies (IDR xxx)
Insurance (IDR xxx)
Travel & Transportation (IDR xxx)
Other Operating Expenses (IDR xxx)
Total Operating Expenses (IDR xxx)
Operating Profit (Laba Operasional) IDR xxx
Other Income/(Expenses)
Interest Income IDR xxx
Interest Expense (IDR xxx)
Foreign Exchange Gain/(Loss) IDR xxx
Other Income/(Expenses) IDR xxx
Total Other Income/(Expenses) IDR xxx
Profit Before Tax (Laba Sebelum Pajak) IDR xxx
Income Tax Expense (IDR xxx)
Net Profit (Laba Bersih) IDR xxx
Revenue recognition: Revenue is recognized when the service is delivered or goods are transferred to the customer, not when payment is received (accrual basis).
Expense deductibility: Not all expenses in the commercial P&L are deductible for tax purposes. The fiscal reconciliation adjusts for:
The cash flow statement shows actual cash movement, categorized into three activities:
Cash flows from normal business operations:
Cash flows from buying/selling long-term assets:
Cash flows from capital and debt transactions:
PT PMA can use either:
This statement tracks movement in the company's equity during the year:
| Component | Opening Balance | Changes During Year | Closing Balance |
|---|---|---|---|
| Paid-up Capital | IDR xxx | New capital injection | IDR xxx |
| Retained Earnings | IDR xxx | +/- Net profit/loss | IDR xxx |
| - Dividends declared | |||
| Other Comprehensive Income | IDR xxx | Revaluation adjustments | IDR xxx |
| Total Equity | IDR xxx | IDR xxx |
The notes provide essential context and are actually the largest part of the financial statements. They must include:
Indonesian tax law differs from SAK accounting standards in several areas. PT PMA must prepare:
| Item | Commercial (SAK) | Fiscal (Tax) |
|---|---|---|
| Depreciation - Buildings | Flexible (useful life estimate) | 5% per year (20 years) |
| Depreciation - Vehicles | Flexible | 12.5% per year (8 years) |
| Depreciation - Equipment | Flexible | 25% per year (4 years) |
| Entertainment expenses | Fully expensed | Must provide nominative list |
| Employee benefits | Accrued when obligated | Deductible when paid |
| Bad debt provisions | Based on assessment | Specific criteria required |
| Donations | Expensed | Limited deductibility |
| Fines and penalties | Expensed | Not deductible |
| Company car (personal use) | Full depreciation | 50% depreciation + 50% operating costs |
Commercial Profit Before Tax IDR 500,000,000
Positive Adjustments (add back):
Entertainment without nominative list IDR 20,000,000
Depreciation difference IDR 15,000,000
Employee benefits (not yet paid) IDR 10,000,000
Penalties and fines IDR 5,000,000
Subtotal IDR 50,000,000
Negative Adjustments (deduct):
Tax depreciation excess (IDR 8,000,000)
Subtotal (IDR 8,000,000)
Fiscal Profit Before Tax IDR 542,000,000
Corporate Tax (22%) IDR 119,240,000
| Requirement | Detail |
|---|---|
| Filing deadline | April 30 of the following year |
| Extension possible | Up to 2 months (must apply by April 30) |
| Required attachments | Financial statements, fiscal reconciliation, supporting schedules |
| Filing method | DJP Online (e-Filing) or e-SPT application |
| Late filing penalty | IDR 1,000,000 |
Financial data must also be reported quarterly through LKPM:
Financial statements must be presented to and approved by shareholders at the annual RUPS within 6 months of fiscal year end (by June 30 for calendar year companies).
| Month | Task |
|---|---|
| January | Close December books, prepare trial balance |
| February | Draft financial statements, run preliminary checks |
| March | Finalize commercial financial statements |
| March | Prepare fiscal reconciliation |
| March | Engage auditor (if required) |
| April 1-30 | File SPT Tahunan PPh Badan with financial statements |
| June | RUPS with approved financial statements |
Changing depreciation methods or revenue recognition policies between years without disclosure creates audit flags and tax issues.
Transactions with shareholders, directors, or affiliated companies must be disclosed in the notes. DJP pays special attention to transfer pricing between related parties.
All foreign currency balances must be restated at the BI middle rate on December 31. Unrealized exchange gains/losses must be recognized. Many companies forget to restate USD receivables/payables at year-end.
The tax payable balances in the balance sheet must match actual tax obligations. A common error is having PPh 25 prepaid amounts that do not reconcile with actual payments.
Under PSAK 24 (employee benefits), companies must calculate and disclose post-employment benefit obligations. Even if the calculation is immaterial, the disclosure is required.
Annual financial statements must be prepared by the end of Q1 (March 31) for the previous fiscal year. They are submitted to DJP as part of the SPT Tahunan PPh Badan (corporate tax return) by April 30. Companies with an audit requirement must have audited statements ready by the RUPS deadline (within 6 months of fiscal year end, i.e., June 30).
Most private PT PMA companies can use SAK ETAP (simplified standards for entities without public accountability). Full PSAK is required only for publicly listed companies, financial institutions, and companies planning to go public. SAK EMKM is available for micro/small entities but rarely applies to PT PMA due to their minimum capital requirements.
Commercial financial statements follow SAK/PSAK accounting standards for accurate business reporting. Fiscal financial statements are adjusted versions that comply with Indonesian tax law, which has different rules for depreciation rates, allowable deductions, and revenue recognition. PT PMA must prepare both and include a fiscal reconciliation in the tax return.
Bali Zero connects PT PMA owners with qualified accounting and audit professionals:
Contact us at info@balizero.com or WhatsApp +62 813 3805 1876 for financial reporting support.