Foreign ownership over tangible assets

Company

There is no restriction of foreign investment company (treated as a Indonesian resident) to own land and building.

Foreign Individual as Indonesian Resident

There is no restriction of foreign individual (treated as a Indonesian resident) to own apartment.

Branch / Representative office

Non-resident is not allowed to own land and/or building in Indonesia.

Accounting standards and audit requirements

Accounting Standards:

Businesses are required to maintain accounting records and prepare annual financial statements in accordance with the Indonesian Financial Accounting Standards (SAK is the local acronym) effective 1 January 2015, which are mostly adopted from International Financial Reporting Standards (IFRS) starting 1 January 2014 as issued by the International Accounting Standard Board (IASB).

Audit Requirements:

Statutory audit by a qualified auditor is mandatory for the following types of entities, which are required to submit their annual financial statements to the Ministry of Trade:

• Publicly-listed companies.

• Companies involved in accumulating funds from the public (such as banks and insurance companies).

• Companies issuing debt instruments.

• Companies with assets of 25 billion Rupiah or more.

• Bank debtors whose financial statements are required by the bank to be audited.

• Certain types of foreign entities engaged in business in Indonesia that are authorized to enter into agreements.

• Certain types of state-owned enterprises.

Audits are conducted based on auditing standards promulgated by the Indonesian Institute of Certi-fied Public Accountants (IICPA). Public companies are required to submit to the Indonesia capital market regulator, Indonesia Finan-cial Service Authority (“OJK”), audited annual financial statements within three months after the end of the annual financial statements period. For interim financial statements, the submission to OJK should be conducted within one (1) month after the date of the interim financial statements if not audited; within two (2) months if statements are reviewed, and within three (3) months if the statements are audited.