IDX president director Inarno Djajadi (left) and Taxation Director General Robert Pakpahan exchange documents after signing a memorandum of understanding on the exchange of financial information of 33 state-owned listed companies in Jakarta on Jan. 25 in an effort to simplify the filing of their annual tax returns. (Antara/ Sigid Kurniawan)
The Finance Ministry’s Taxation Directorate General and the Indonesia Stock Exchange (IDX) signed on Friday a memorandum of understanding on the exchange of financial information of 33 state-owned listed companies in order to simplify their annual tax returns.
IDX president director Inarno Djajadi said the MoU would enable the tax office to access listed companies’ financial statements reported through the bourse’s extensible business reporting language (XBRL) system.
Taxation Director General Robert Pakpahan said the agreement would simplify the filing of listed companies’ annual tax returns as they would no longer be required to submit hard copies of their financial statements because the tax office could monitor them through the system.
The exchange of information with the IDX instead of financial statement submission would also make listed companies’ annual tax returns more accurate, Robert said.
Robert said the exchange would initially be applied to only 33 state-owned enterprises listed on the IDX, including the country’s large lenders PT Bank Mandiri and PT Bank Rakyat Indonesia (BRI) as well as toll road operator Jasa Marga and telecommunications firm PT Telkom.
He said the tax office would evaluate the collaboration every six or 12 months and would gradually monitor more companies through the system.
IDX director I Gede Nyoman Yetna said the XBRL system, which the bourse had been developing since 2013, was being used to ease listed companies’ business information analysis and to ensure accuracy. (bbn)