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Indonesian Accounting <t4Vifc**i$ ISKVM By HENDRA DARMAWAN/Managing Partner, Darmawan & Co., Jakarta, Indonesia and DANIEL D O R I A N / Supervisor, TRI, Jakarta It's not all "debet" and "kredit" when an "akuntan" computes the "amortisasi" in accordance with "Prinsip- Prinsip Akuntansi Indonesia." Even the "konsolidasi" or "kas" (cash) and "bursa" (bourse) still rings with a familiar tone. It's only when we get to the "laporan keuangan" (financial statements) and the "aktiva tetap" (fixed assets) that we come to a realization that somehow Indonesian accounting and auditing is not directed from Stamford, New York City, or Washington,D.C. Three Influences Indonesian accounting and auditing practices reflect indigenous, Dutch, and American influences. The ten basic Indonesian auditing standards, for example, are almost a direct translation of the ten basic American standards. Similarly, Indonesian accounting principles list six key sources, four of which were published by the AICPA. The others are Australian and Dutch. The Dutch influence is based on the colonial era, which officially ended with independence being declared on August 17,1945, but in practice continued into the 1950's and beyond—much as British influence in the United States carried forward well beyond July 4, 1776. The indigenous influence, which is the most important, is not the product of a separate stream of accounting and auditing theory but is based on an adaptation of borrowed business traditions to the economic and cultural realities of Indonesia. Due to these factors, most of the major public accounting firms in Indonesia have expatriate advisors—from their international associates—working with them. With most of these advisors being Australian, American, or from the Philippines, the so-called "Anglo-Saxon" system is, as a practical matter, the major external influence on the scene today. The Indonesian Influence Another way of evaluating these influences is to categorize them in terms of time—that is, historical, colonial, and modern. The historic principles are those time-honored beliefs imbedded in the cultural habits of Indonesia: the desire to please, an oriental approach to defining truth, and respect for position and hierarchies. The colonial concepts are those surviving from the first prolonged exposure of Indonesia to European commerce, although many of these concepts have since been discarded or updated. One example of a concept which remains, is an emphasis on accuracy, which shows up in financial statements, bank statements, and tax assessments carried out to the hundredth of a Rupiah, a unit (U.S. $.0024) which is no longer circulated. The stress on legal form over substance is another such concept, although it has since been modified in western economies. As for modern concepts, they are readily seen in the direct borrowing of U.S. audit standards, the existence of computers, and the use of U.S. accounting textbooks. Essentially, trying to understand a third world economy means grasping how the latest in modern technology has been blended with local cultural patterns and the preexisting infrastructure. For example, the pace of change, as modern ideas impact the existing fabric, is necessarily uneven. It is at once too fast and too slow, since the slow pace at which foreign business methods can be fitted into the existing environment often makes even new ideas out of date. Finding a successful middle way that does not settle for a poor copy, but creates a new and better version, is the main task of technology transfer. The American Influence The influence of American accounting in Indonesia became significant in 1958, when Indonesia was having difficulties with the Dutch government and expelled Dutch nationals from within its borders. The University of Indonesia replaced the Dutch accounting faculty with Americans, who brought along their GAAP and GAAS to teach what they knew best. Although the Americans were gradually replaced by Indonesian faculty, the American concepts took hold and grew in influence,sothat by 1973 Indonesian Prinsip-Prinsip Akuntansi and Norma-Norma Pemeriksaan (pemeriksaan means "examination") were heavily based on the American system. By 1977 most of the major Indonesian universities teaching accounting were following the American system. Banners posted over streets to advertise private bookkeeping courses now exclaim "Akuntansi-Sistim Amerika." The newsletter of the Indonesian Accountants Institute (restricted to registered public accountants) borrows heavily today from the Journal of Accountancy of the AICPA. Most 26
Object Description
Title |
Akuntansi-sistim Amerika |
Author |
Darmawan, Hendra Dorian, Daniel |
Subject |
Darmawan & Co. Accounting -- Indonesia |
Personal Name |
Djaiz, Ladiman Toma, Wayne Susilo, Joseph Hadiwinata, Paul |
Portrait |
Djaiz, Ladiman Toma, Wayne Susilo, Joseph Hadiwinata, Paul |
Office/Department |
Touche Ross. Jakarta Office |
Citation |
Tempo, Vol. 24, no. 1 (1978), p. 26-31 |
Date-Issued | 1978 |
Source | Originally published by: Touche Ross, & Co. |
Rights | Copyright and permission to republish held by: Deloitte |
Type | Text |
Format | PDF page image with corrected OCR scanned at 400 dpi |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Library. Accounting Collection |
Date-Digitally Created | 2010 |
Language | eng |
Identifier | Tempo_1978_Spring-p26-31 |