Financial Reporting Single Window

Trust in the business world is anchored of the strength of reliable data. To reinforce this foundation, the government has restructured the national reporting architecture through the mandatory submission of financial statements via the Financial Reporting Single Window (FRSW). FSRW serves as a strategic measure in Indonesia’s transparency agenda and designed to implement the mandates of Law Number 4 of 2023 and Government Regulation Number 43 of 2025 (PP 43/2025). Through this framework, the government aims to establish an integrated, standardized, and consistent financial reporting ecosystem across all relevant sectors.

PP 43/2025 adopts a prudential and phased implementation strategy to safeguard operational stability during the transition. In its initial phase, this policy prioritizes issuers (emiten) and public companies in the capital market, with full enforcement mandated by the year 2027. Expansion to subsequential sectors is contingent upon cross-institutional coordination and infrastructure readiness.

Expanded Scope

The regulation significantly expands the classification of entities required to submit financial statements through the FSRW. The obligation now extends not only to traditional financial service institutions, but also to special financial institutions, mandatory public fund management bodies, and businesses supporting the nation’s financial infrastructure.

Furthermore, reporting requirements apply to parties with direct exposure to the financial system, including banking and financing debtors as well as issuers in the capital and money markets. This expansion underscores the government’s intent to enforce uniform competency and reporting standards across the entire ecosystem.

To ensure the reporting integrity, financial statements must be prepared by professionals with adequate competence. While companies may appoint qualified in-house personnel, entities lacking such resources or capacity are required to engage certified external professionals, particularly licensed public accountants.

Compliance Implications

The obligation to engage external experts inevitably increases operational demands and may elevate compliance costs, especially for businesses lacking robust internal accounting functions. While this may create additional administrative complexity, the requirement is essential to ensure financial statements submitted through the FSRW meet the accuracy, consistency and governance standards mandated by law. Non-compliance carries material consequences, ranging from the rejection of reports to more severe administrative sanctions.

At a systemic level, the FRSW mandate is expected to elevate the credibility, comparability and reliability of Indonesia’s financial reporting landscape. At the operational level, however, its success will depend on the ability of businesses to adapt to the heightened competency requirements and evolving cost structures. Ultimately, while transparency remains the overarching objective, the effectiveness of this reform will hinge on the readiness of both the supporting infrastructure and the human capital tasked with implementing it. (Shintya)