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5. Financial Transparency
5.1 Market Stability
5.2 Independent Asset Valuers
5.3 Data Standards
In-Country Assessment Information

 

5. Financial Transparency

Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services

 

5.1 Market Stability (Strong)

Core Question: Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur?

Indonesia has attempted to tackle corruption with transparency as financial services are widely available. However, the insolvency process through commercial courts without alternative dispute resolution methods in place is an ongoing problem.

 

Financial Reporting (Strong)

5.1.1   What is the strength of the country’s auditing and reporting standards?

Ranked 72 out of 148; Score 4.6 out of 7

Financial Services (Strong)

5.1.2   Does the financial sector provide a wide variety of financial services to businesses?

Ranked 51 out of 148; Score 4.8 out of 7

Source: The Global Competitiveness Report 2013-214, World Economic Forum


Insolvency Process (Very Weak)

Ranked 144 out of 188; Trend ↓

5.1.3   What is the average time to complete bankruptcy proceedings?

4.5 years

5.1.4   What is the cost of bankruptcy proceedings as a percentage of the estate?

18%

5.1.5   What is the recovery rate of bankruptcy proceedings?

17.9 cents on the dollar

Source: Doing Business 2014 – Closing a Business

 

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5.2 Independent Asset Valuers (Strong)

Core Question: Do highly trained, independent and ethical valuers exist for or all types of assets?

Indonesia has several active measures in place to implement international valuation standards and educate their own people with quality training and ethics.

Survey Questions

Standards (Strong)

SQ 17  How easy is it to find a valuer who implements International Valuation Standards?

Indonesia is a member of the International Valuation Standards Council, classified as ‘Valuation Professional Organizations (‘VPO’). The Indonesian Society of Appraisers (ISA) has just issued a new valuation standard in 25 April 2013. The board claims that the standards adhere to the International Valuation Standard 2011 issued by IVSC in July 2011, and uses references from other standards around the world adjusted to the needs and condition of the valuation practice in Indonesia.

Civil Society Resource: International Valuation Standards Council www.ivsc.org

 

Training (Very Strong)

SQ 18  What is the level of training of valuers?

The Indonesia Society of Appraisers (ISA) has announced that new valuation standards have been put in place in 2013 and that International Valuation Standards from the Council will be followed. This is the fifth edition of the Indonesia Valuation Standards and is called KEPI and SPI (Standar Penilaian Indonesia). To obtain a license, the valuer submits a written application to the Head of the Center for Accountant and Valuer Service Development and must meet the following requirements: (a) ID Card and other proof; Bachelor’s Degree or higher with issued diploma; proven member of a Professional Association (MAPPI); Passed Valuer Certification Test (exams very difficult); and minimum working experience in Valuation and Tax Payer Identification Number (NPWP).

Civil Society Resource: Valuation Practices in Indonesia – Penilai Indonesia http://www.penilaiindonesia.com/penilaian-properti/artikel-penilaian-properti/54-valuation-practices-in-indonesia

 

Ethics (Strong)

SQ 19  Are opinions offered by valuers free of influence from parties to the transaction?

As member of IVSC, valuers are expected to follow the IVS Code of Conduct.


Civil Society Resource: International Valuation Standards Council
www.ivsc.org

 

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5.3 Data Standards (Strong)

Core Question: Is accurate property information available electronically in formats that are consistent with international standards?

Property information is available online provided the user has an ID number, description, sale price, etc. Ongoing dedicated sites are emerging.

Survey Question

Sales & Operating Data (Strong)

SQ 20  A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist?

Property listing services are in place and growing for all property types (house, land, condo, villa, etc.) and are available for all major cities and submarkets. Standard information about property includes: ID number, pictures, sales price, address, description, general operating information. International listings are available for popular vacation destinations such as Bali.

Sources: Situs Properti Terdepan di Indonesia
http://www.rumah.com

SQ 21  Do resources exist for obtaining building income and expense estimates?

Yes. However, consistency is based on the agent.

Civil Society Resource: Institute of Real Estate Management www.irem.org

 

Interchange Formats (Weak)

SQ 22  Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensible markup language)?

Electronic Data Interchange (EDI) is available through EDI Indonesia but real estate transactions are still transitioning from paper to electronic. EDI Indonesia has given numerous solutions to its customers via IT consulting, training, software development, and system integration and implementation. Technology based PDE services include the Value Added Network/VAN, EDI Over Internet, Web Services/SOA (Service Oriented Architecture), and Cloud Services. PT EDI Indonesia is now ISO 27001:2005 Certified. Throughout the years, they have facilitated domestic and international trade activities by using the Electronic Data Interchange 60 x 24 x 7

Civil Society Resource: EDI Indonesia (Member of IPC) http://www.edi-indonesia.co.id/index.php?act=about  

 

Technical Standards (Very Strong)

SQ 23  Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards?

Indonesia BOMA is in place with affiliation of AMPRI (Asosiasi Manajemem Properti Indonesia). Building codes and office building measurements conform to international standards.

Civil Society Resource: BOMA Indonesia http://www.bomaindonesia.org/

 

 

 

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