XBRL-Indonesia Community Site
Hello there, it’s been awhile since my last article. I am happy to let you know that in Indonesia, there are more regulator which has been interested on using XBRL for integrating their financial reporting.
As i am now involved in OJK’s Project (OJK is Financial Institutions Authority of Indonesia), i hope that i could share you more about some case on using XBRL for Integrated Financial Reporting System. But don’t worry, if you still have some question about Bank Indonesia’s LSMK, i would be really happy to connect you with my colleague there.
As the authority, OJK needs to supervise variant of Financial Institutions in Indonesia. They divide Financial Institution into 3 compartment, Banking compartment , non-Banking compartment, and Capital Market compartment. For each of compartment, has variant of business that needs to be supervised.
In order to help them supervised Financial Industry in Indonesia, OJK needs to gather report from every industry involved in Financial sector. Currently, each industry report to OJK into different systems and different format from other industry. Even, one kind of industry needs to report more than one kind of report with different format and technology needs from other. For example a Bank needs to report Banking reporting into SID, LBU, LBBU, LHBU, LKPBU, etc for Banking supervision, and as the Bank is Public Listed Company, they need to also report the Annual and Mid Year Financial Report for Capital Market Supervision. Each report of this Bank need to be reported in the different way and also need to be handled with different systems. This case happened both in the Bank and in the Regulator side.
To decrease the variant, size, and complexity of reporting for Financial Industry to OJK, there is a need to Integrating Financial Reporting into one Reporting System. So, the Bank, like in the example above, doesn’t need to report as much as before, and they also only need to maintain one system for regulatory reporting.
In Indonesia, our dream is to integrating the reporting system like this for the whole regulator. So, the industry only need to report into single reporting system to fulfill all regulator needs of data. I hope this project could be one step to reach that dream :).