Kontan Online

FINANCIAL SERVICE AGENCY/FSA

OJK to summon EY Indonesia

Tuesday, 14 February 2017 | Hasyim Ashari, Laurensius Marshall Sautlan Sitanggang

JAKARTA. OJK (Financial Service Authority or FSA) will summon Public Accountant Office (KAP) Purwantono, Sungkoro & Surja, which is the partner of Ernst & Young in Indonesia. The KAP or EY Indonesia will have to answer questions related to the imposition of sanction by the US’ Public Company Accounting Oversight Board (PCAOB).

Chief Executive of Stock Exchange Supervisory at OJK Nurhaida said that the clarifications would be the reference for the OJK in imposing sanctions against EY Indonesia.  

Washington-based PCAOB on Thursday (9/2), fined US$ 1 million to EY Indonesia, US$ 20,000 plus a five-year practice ban to a public accountant Roy Iman Wirahardja, who is the partner of EY Indonesia.

Meanwhile, former Director of EY Asia Pacific James Randall Leali will be fined US$ 10,000 and be imposed of one-year ban practice.

PCAOB punished EY-Indonesia for failing to present supporting evidences for the calculation of the leasing of 4,000 mobile towers in the 2011 financial statements of PT Indosat Tbk (ISAT). In this case, EY-Indonesia has granted ‘unqualified opinion’ (WTP) to the financial statements, whereas the calculation and analysis related to the statements had not yet been completed.

President Director of Indonesia Stock Exchange (IDX or BEI) Tito Sulistio said that the IDX has delivered letter for asking for clarification to ISAT. “We will look through and review (the explanation),” Tito told KONTAN, Monday (13/2).

KONTAN has not yet received confirmation from EY Indonesia related to the sanction of PCAOB.

Meanwhile, Group Head Corporate Communications of ISAT Deva Rachman said that during the financial year, which was expired on 31 December 2012, ISAT had evaluated the relevant accounting policies of the company, as well as improving the internal controls over financial reporting (ICFR). "We had also delivered 2011 financial statements, again,” said Deva in an official statement.

Chief Research of Erdhika Elit Sekuritas Wilson Sofan estimates, the case of EY Indonesia may affect to ISAT. “This issuer has to re-audit its financial statements,” Wilson said. (Muhammad Farid/Translator)

Reporter: Hasyim Ashari, Laurensius Marshall Sautlan Sitanggang
Editor: Sanny Cicilia
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