Banking sector required to apply international accountancy standards by 2010

Jakarta (ANTARA News) - Deputy Governor of Bank of Indonesia Siti Fadjrijah said the central bank would see that International Accountancy Standards (IAS) 39 and 32 are applied to all financial institutions, including banks, by 2010 to create a stable financial system.

"If the IAS has been completed in 2009, the banks which have prepared themselves can start applying the standards in stages. But this would be a must by 2010. So for the time being, let us see the development of the completion of the IAS," she added.

She said the central bank would also prepare Indonesian Banking Accountancy Guidelines (PAPI) after IAS has been adopted by the Association of Indonesian Accountants (IAI).

"We will cooperate with IAI to establish the PAPI which would make a fair value assessment once the guidelines are implemented," she said.

Siti added that the bank wants to make sure that the standard imposed on the banking sector could serve as a basis of an effective financial calculation and improvement in market discipline through a transparent financial report.

She also reminded that the system that might improve the stability as a standard which is suitable to safe risk management and to make a risk projection and increase the market confidence and corporate management.