60th Anniversary of the Institute of Indonesia Chartered Accountants

Ikatan Akuntan Indonesia (Institute of Indonesia Chartered Accountants – IAI) celebrated its 60th anniversary by conducting a chain of events throughout the year, culminated with the hosting of the IAI International Seminar in Semarang, December 14-15, 2017 – supported by the ASEAN Federation of Accountants (AFA) and the Chartered Accountants Worldwide (CAW).

Taking the theme of “The Glory of Professional Accountants, the Glory of the Nation” IAI together with accountants from different sectors; public practice, academic, public sector, and management, hosted events and activities that accommodate different needs and interest of the stakeholders in the country such as workshops and training on professional standards, Chartered Accountants Indonesia scholarship programs and career fair, and assistance for the SMEs. In the opening speech Prof. Mardiasmo, mention that “IAI as the national organization of professional accountants in Indonesia is always aware of the latest development, especially related to the issues influence the business world and the accounting profession. This can be seen from the transformation process of IAI from 1957 up to the present. As for recent development, IAI is currently in the process of finishing the transformation process of accounting profession. IAI sets up the organization according to on the guidance provided by the IFAC. It also proposes some new regulations in regard with the improvement in the accounting profession to the government”.

Officiated by the Vice President of the Republic of Indonesia, H.E. Muhammad Jusuf Kalla, the IAI International Seminar focused on the theme of “Toward 2030: Transforming Role of the Professional Accountants in the New Economy Order”, highlighting the evolution of the profession in adapting with current volatility, uncertainty, complexity, and ambiguity affecting business environment. In his opening speech, the Vice President underlined the important role of professional accountants in supporting the successful achievement of Government’s aspirations and programs.

President of IFAC, Rachel Grimes in her keynote highlighted how technology in particular will change the profession’s focus in front of more than 800 confirmed participants from various backgrounds coming from different parts of the country. “As the largest economy in South East Asia, Indonesia’s regional leadership on economic policy and development is welcomed. So too is its commitment to fighting fraud and corruption. As professional accountants, we know these issues are interwoven. Also interwoven into Indonesia’s economy, and critical to its continued progress, is your public interest mandate. This mandate is one you share with every professional accountant around the world.

Southeast Asia’s digital economy—includes e-commerce, online games, advertising and other economic activities related to the Internet—is expected to surge to USD $200 billion by 2025. Indonesia’s digital market will account for 40.5% – or USD $81 billion – of this total market. With an estimated USD $46 billion, Indonesia’s e-commerce sector will contribute most to the total” Rachel Grimes pointed out. Accountants need to consider both technical and soft skills that will be in demand and those that will become obsolete, as technology play an even greater role in defining future economy. “It is the professional body’s role to equip professional accountants with a new paradigm and skill sets, that are based on global standards” as voiced by President of IAI, Prof Mardiasmo.

Also sharing their views on the anniversary theme and outlook of the country’s future were the Minister of Finance, Sri Mulyani Indrawati, and the Minister of National Development Planning, Prof Bambang Brodjonegoro. They shared the same sentiments that accountants need to do more to support the Government not only through ensuring the accountability of financial reporting, but by contributing to the sustainability of the national economy.

Also participated in the seminar were some of the key and prominent accountants in the country were participated in the seminar, among others Moermahadi Djanegara (Chairman, Audit Board), Prof M. Nasir (Minister of Research, Technology, and Higher Education), and Prof Sidharta Utama (Board Member, IAESB). In addition, also in attendance were Yasonna Laoly (Minister of Law and Human Rights), Tito Sulistio (President Director, Indonesia Stock Exchange) and Chairs and members of the IAI boards and committees. As the host, the Governor of Central Java, Ganjar Prabowo also participated in the event, and welcomed participants to the state’s gala dinner.

Among the foreign speakers participated in the seminar was Pat Costello (Chartered Accountants Worldwide). During his speech Costello said that, “Chartered Accountants are trust leaders in business, finance, and accountancy across the world. Chartered Accountants bring a unique, time honoured, and ongoing delivery of expertise, excellence, ethics, and commitment to the public interest. Chartered Accountants use their skills, insight, and influence to empower prosperity in a changing and challenging world”. Beside Pat Costello there were also Lucia Real-Martin (ACCA), Toh Beng Siew (CPA Australia), Chari TVT (CIMA), Deny Poerhadiyanto (ICAEW), and also Nik Hasyudeen Yusoff (AFA Deputy President, 2008-2009).

To satisfy the different needs of the participants coming from different backgrounds, the second day of the seminar focused on breakout sessions looking at issues such as; the relevance of SMPs for accountability in the new economy era, efforts to improve the accountability of public sector financial statements, reformation of Indonesia’s financial reporting standards for entities with no significant public accountability and SMEs, development and challenges of Sharia business in Indonesia, future competencies of management accountant in Indonesia, role of accountants in the open era of information disclosure, and link and match concept for accounting education in Indonesia.