Frequently Asked Questions: #statutory-audit-mandatory-small-pma

Usually not. Indonesian law requires an independent audit of the annual financial statements only for defined categories of company, principally:

• Companies whose assets meet the statutory threshold under the Company Law (set at IDR 50 billion)
• Companies that gather funds from the public (banks, insurers, finance companies and similar regulated entities)
• Companies that issue debt instruments, listed companies, and state-owned enterprises
• Companies whose sector regulator or licence imposes an audit requirement

A small services or trading PMA below the asset threshold, unregulated and unlisted, is not legally obliged to appoint a public accountant to audit its accounts. Its obligations are proper bookkeeping, tax filings, and its annual report duties as a PT.

Why small companies still commission audits, in practice:

• Shareholders demand it — foreign parents consolidating an Indonesian subsidiary routinely require audited statements regardless of local law
• Banks and counterparties ask — credit applications and tenders often specify audited accounts
• Disputes — a shareholder who suspects the numbers (a common inquiry we receive from minority partners) can commission an independent audit as the factual foundation for whatever comes next

Note the difference between this statutory audit question and the company’s annual reporting duties, which apply to all PTs regardless of size, and have their own current requirements. When in doubt, ask with your figures to hand: the asset test is mechanical.

Okusi Associates arranges statutory and special-purpose audits through licensed public accountants, and conducts internal audits and financial reviews directly.

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