KPPK Report Obligation Through Attestation

KPPK REPORT OBLIGATION THROUGH ATTESTATION PROCEDURE UPON THE REPORT ON FOREX TRAFFIC ACTIVITY AND FOREIGN DEBT TO BANK INDONESIA In accordance with the Bank Indonesia’s Regulation No. 16/21/PBI/2014, and  No. 14/21/PBI/2014 To encourage the prudential principles of Non-Bank corporations on the risk management of Foreign Loan, Bank Indonesia recently issued the regulation No. 16/21/PBI/2014 concerning the Implementation of Prudential Principles on the Management of Foreign Loans of Non-Bank Corporations. Further, according to the regulation No. 14/21/PBI/2014 on Foreign Exchange Traffic Activities Reporting (LLD Report), every Non-Bank corporation and  foreign loan debtor  is required to submit LLD report and Foreign Loan report to Bank Indonesia completely, accurately, and timely.This report is required to include: Trade activities in goods, services and other transactions between residents and non-residents of Indonesia; The position and changes in the balance of foreign financial assets and/or foreign financial liabilities; and The plan to incur foreign debt and/or its implementation. In addition, according to this new regulation repealing the Regulation No. 16/20/PBI/2014, the Non-Bank Corporations are required to submit the following reports to Bank Indonesia on their compliance with the prudential principle requirements: (1) the report on the application of prudential principles (KPPK Report), (2) the report on the application of prudential principles passing the Attestation Procedure by independent public accountant, (3) information on the satisfaction of credit rating requirement, comprising credit rating, rating period, and issuer of credit rating, and (4) financial statement, including quarterly unaudited financial statement and annually audited financial statement.The due date for submitting this report and its correction is regulated as follows: The KPPK Report and the Quarterly Financial Statement  shall be submitted every 3 months (quarter I to IV) at the latest on the third month after the due date of quarterly period with the correction period at the latest at the end of the fourth month;   The KPPK Report of quarter IV passing the Attestation Procedure by a Public Accountant and the Audited Financial Statement shall be submitted at the end of June subsequent to the end of reporting period with correction period at the latest at the end of July. For example, the due date for submitting the fourth quarter of KPPK report passing the attestation procedure and the financial statement year 2015 is on 30 June 2016 with correction period at the latest on 31 July 2016.The Non-Bank Corporations are subject to administrative sanction if submit the incomplete/incorrect report, or late in submitting the report or fail to submit the reports. The administrative sanction is in the form of fine and issuance of warning letter due to its failure to comply with the Regulation and the authority of Bank Indonesia to disclose information in regards to the imposition of sanctions to creditor or relevant authorities. This sanction has been effective since the third quarter of 2015. Summarized from FAQ Bank Indonesia. For more information regarding the Attestation Service on the KPPK report, please contact us: KAP Razikun Tarkosunaryo MUC Building, Jl TB Simatupang No. 15 Tanjung Barat Jakarta Selatan Phone  021 78837111 (hunting), www. rts.co.id