IFAC-IAI Indonesia Education workshop

1. AFA IFAC SMO Workshop 2
SMO 2: International Education Standards
November 8, 2021
Professor Sidharta Utama PhD CA CFA
Council Member, IAI

2. OVERVIEW
• Action plan objective: To ensure IAI’s professional accountancy education requirements comply with
the requirements of SMO 2.
• Current SMO status: Review and Improve.
• Current IES adoption status per 2020: Fully adopted in CA syllabus and in accounting education
curriculum.
• Shared responsibility: IAI shared the responsibility of setting up pre and post qualification
requirements for professional accountants in Indonesia, together with key stakeholders in Indonesia
(e.g., Ministry of Finance, Ministry of Education, Culture, Research & Technology, and IAPI):
• Ministry of Education, Culture, Research & Technology as the ultimate regulator approves the qualification
requirements (overall in line with IES).
• IAI, through its Certification Board for Professional Accountants performs the functions—ensure quality of
the certification for professional accountants, assess and monitor the education and practical experience.
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3. BECOMING AN ACCOUNTANT IN INDONESIA
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PTN: State University PTS: Private University
PPAk: Professional Accountancy Education Program
ACCOUNTANT
2014 – NOW
2002 – 2014
CA EXAM
PRACTICAL
EXPERIENCE
PPAk
PTN/PTS
IAI MEMBER
PTN/PTS
2002 – 2014
• Academic-based pathway. Curriculum of PPAk was not
compliant with IES 2-4.
• No CA: No working experience & CPD requirements.
• Assessment conducted by individual universities.
2014 – NOW
• Based on IES requirements.

4. MOF Rule 25
(2014)
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State Registered
Accountant
• Education
background
• Examination
• Professional
experience
• CPD requirement
• Membership with a
recognised PAO
CA INDONESIA
PROFESSIONAL LEVEL
CHARTERED ACCOUNTANT (CA) IAI
PROFESSIONAL EXPERIENCE 3 YEARS
Corporate
Reporting
Strategic
Management
& Leadership
Audit &
Assurance
Adv.
Management
Accounting
Management
Taxation
Adv. Financial
Management
Information
System & Internal
Control
STATE REGISTER ACCOUNTANT
FOUNDATION LEVEL
CERTIFICATE IN ACCOUNTING, FINANCE & BUSINESS (CAFB) IAI
Financial
Accounting
Cost Accounting
and
Management
Business
Law and Tax
Assurans &
Information
System
Financial
Management
Business &
Economy

5. OVERALL APPROACH
• Strategy: In year 2020, IAI established its 6.1 Initiative, which includes a focus on “Updating the
accounting education and professional education curriculum to accommodate technological
developments and business disruptions”.
• Legal backup and recognition: IAI actively coordinating with relevant regulators to ensure accounting
education in Indonesia is in line with international standards and best practices.
• Stakeholders’ support and awareness: IAI recognised the importance of building stakeholders’
awareness towards the importance of adopting IES and secure their support (buy-in). This is done
through coordination, information sharing, and collaboration on events and activities.
• Focus on accounting students: IAI recognises the importance of promoting and encouraging entry into the profession and
introduced the following initiatives:
 Aspiring Professional Accountant Festival (APA Fest) since 2017, the largest and most prestigious annual festival for IAI Student
Members and outstanding accounting students in Indonesia.
 Affiliated Campus program, a collaborative program that facilitates (among others) updating of accounting education curriculum and
syllabus development.
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6. OVERALL APPROACH
• Organisational infrastructure: IAI established the following infrastructures to focus on strengthening
of accounting education in Indonesia (and contribute to adoption of IES):
 IAI Accounting Educators Compartment, an important platform to promote IES to accounting educators.
 Certification Board for Professional Accountants, to ensure quality of certification for professional
accountants, and assess and monitor their education and practical experience.
 Management restructuring that includes establishment of a Member and Partnership Division (functions
include IPD and CPD assessment and monitor compliance) and Certification and Development of
Competence Division (functions include adoption of IES into syllabus and curriculum).
• Supporting infrastructures and resources: IAI actively built and update supporting infrastructures and
resources for the CA qualification, including but not limited to periodical update of curriculum and
syllabus, and references and textbooks, preparation of a pool of trainers (i.e., train-the-trainer
activities), and socialisation of the professional accounting education based on IES.
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7. OVERALL APPROACH
• Leverage technology: Technology can provide cost-effective and efficient platform(s) to facilitate IPD,
CPD, and other initiatives to support implementation of IES. IAI developed its e-Knowledge Center to:
 Facilitate IPD and CPD activities.
 Assess members’ professional competence and monitor their CPD compliance.
 Provide access to self-study module, computer-based exams, and training and education materials (all
prepared according to IES).
• International benchmarking: IAI actively exploring collaboration with international partners to
conduct benchmarking and comparative study of accounting curriculum and education best practices.
IAI signed an MRA or MOU with (among others) ACCA, CIMA, CPA Australia, and ICAEW. IAI is also an
Associate Member of the Chartered Accountants Worldwide (CAW).
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8. Entry Requirements to Professional Accounting Education Programs
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IES 1
• CA Indonesia: The CA requirements, syllabus and curriculum are adopting IES. Entry
requirements for the CA program is as follows (in line with IES 1):
 having at least Diploma (D-IV) or bachelor’s degree (S-1) in the field of accounting from an Indonesian
higher education provider, or overseas higher education provider;
 master’s degree (S-2) or doctorate (S-3) graduates that emphasises the practices of accounting
application from an Indonesian higher education provider, or overseas higher education provider;
 taking the professional accounting education program; or
 having a certificate of level 6 (six) accounting technician based on the framework of the Indonesian
national qualification.
Foundation level: IAI introduced the Certificate in Accounting, Finance & Business (CAFB) IAI as a
foundation level for the CA program. This also serves as a pathway for non-accountants to enter
the profession.
INTERNAL

9. IAI 2021 9
• IAI through its Accounting Educators Compartment is working with relevant stakeholders to
update the learning outcomes for the CA, Bachelor and Diploma (accounting) degree syllabus and
curriculum to be in line with IES 2-4.
• Maintain quality: IAI together with the Indonesian Bachelor of Economics Association and the Economics
and Business Faculties Association established the Indonesian Accreditation Board of Economic, Business
Management, and Accountancy Education to monitor quality of accounting higher education. This includes
incorporation of IES into IPD requirements in the accounting education syllabus and curriculum.
INTERNAL
EXTERNAL
Initial Professional Development: Technical Competence, Professional Skills, and Professional
Values, Ethics, and Attitudes
IES 2 – 4

10. IAI 2021 10
• Assessment:
• IAI through its Certification Board for Professional Accountants is conducting assessment for both
practical experience and professional competence.
• IAI in coordination with its Accounting Educators Compartment to include assessment of IES 2-4 at the
Professional Accounting Education Program and at the Bachelor degree level.
• IAI is working towards implementing workplace assessment of competence by employers
and review of a portfolio of evidence on completion of workplace activities.
• Practical experience: IAI established the Corporate Partner initiative, among of which includes
mentoring opportunity to gain relevant (and monitored) practical experience.
INTERNAL
EXTERNAL
Initial Professional Development: Practical Experience and Assessment of Professional
Competence
IES 5 - 6

11. IAI 2021 11
• Facilitate CPD activities: IAI facilitates members’ CPD through:
 A combination of commercial, complimentary, virtual, and/or face-to-face CPD activities (e.g., webinars,
workshops, seminars, etc).
 Its 5 Knowledge Centers and 34 Branch Offices.
• Pool resources: Identify trainers and resources and/or leverage partners’ network and resources
(through collaboration) to deliver CPD activities.
INTERNAL
Continuing Professional Development
IES 7

12. IAI 2021 12
• Legal recognition: Mandatory CPD is required under the Minister of Finance Regulation Number
216/PMK.01/2017 on Registered Accountants (PMK).
• Work with key stakeholders: IAI maintains close coordination with key stakeholders such as:
 The Ministry of Finance, IAPI and IAMI to regularly assess CPD requirements for Practicing Accountants
in Indonesia.
 International PAOs (members of IFAC) to organise CPD activities aim to update IAI members with the
latest international development.
• Contribute to (and leverage) relevant stakeholders’ initiative: IAI as part of its collaboration with
IAPI and IAMI actively contributes to the Ministry of Finance e-Learning Center, developed to
facilitate CPD activities and monitor Practicing Accountants’ CPD compliance.
EXTERNAL
Continuing Professional Development
IES 7

13. IAI 2021 13
• CA syllabus update: IAI updated its CA syllabus in 2019 to:
 Introduce an Audit and Assurance module as a compulsory unit of the CA Professional level.
 Embed Ethics & Corporate Governance into (as part of their components) the seven CA subjects.
• Coordination with practitioners: IAI is working with the large firms and seek their inputs as part
of alignment of the CA curriculum and syllabus with IES 8. This also includes seeking practitioners’
contribution in developing examination resources (i.e., questions) for the CA audit and assurance
module.
Professional Competence for Engagement Partners Responsible for Audits of Financial Statements
IES 8
INTERNAL
EXTERNAL

14. KEY TAKEAWAYS
• Understand the requirements of the SMO: Engage with IFAC and/or your fellow PAO to understand
the requirements for compliance with the SMO.
• Know your stakeholders: Identify the key relevant stakeholders in your jurisdiction and their
respective role and authority in contributing to compliance of the SMO.
• Understand your responsibility: Assess whether you have a full, shared (with who?), or no direct
responsibility to comply with the SMO.
• Establish a clear action plan: Prepare a clear action plan with a clear objective (e.g., to move from
“execute” to “review and improve”), timeline, identification of resources needed, and measurable
deliverables. Consider alignment of the plan with your strategies, priorities, capacity, and resources.
• Ask for help: Do not hesitate to contact IFAC to seek clarification and/or your fellow PAO to share their
experience in dealing with common/similar challenges to comply with the SMO.
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15. IAI 2021 15
IKATAN AKUNTAN INDONESIA
Grha Akuntan, Jl. Sindanglaya No. 1
Menteng, Jakarta Pusat
Tel. 021-319 04232
Instagram:
@ikatanakuntanindonesia
Fan Page:
Ikatan Akuntan Indonesia
LinkedIn:
Ikatan Akuntan Indonesia
Twitter: @IAINews
Web: www.iaiglobal.or.id

16. Entry Requirements to Professional Accounting Education Programs
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IES 1
• Pathways: Pathways to become a professional accountant under CA Indonesia qualification
program are in line with the requirements of IES. It includes recognition of minimum level of
technical competence and professional skills through relevant education degree, abidance to
professional values, ethics and attitudes as prescribe under the different standards of the
profession issued by IAI, proven practical experience through self-assessment mechanism, and
assessment of professional competence by the institute. IAI continues to work on establishing
and/or recognising different pathways (that meet IES requirements) into the profession:
 Professional Accounting Education Program, updated to meet CA requirements (based on latest IES).
 Signing of MOUs with international partners (IES adopters) to establish CA as an internationally
recognised pathway into the profession, including with ACCA, CIMA, CPA Australia, and ICAEW. IAI is
also an Associate Member of the Chartered Accountants Worldwide (CAW).
EXTERNAL

17. IES 2: Broad Technical Competences
Financial Accounting & Reporting
Management Accounting
Audit and Assurance
Taxation
Information Technology
Finance and Financial Management
Governance, Risk Management and
Internal Control
Business Law and Regulations
Business and Organizational Environment
Economics
Business Strategy and Environment

18. IES 3: Comprehensive Professional Skills
Intellectual
• Evaluate information from a variety of sources and
perspectives
• Recommend solutions to unstructured multi-faceted
problems
Interpersonal and
Communication
• Demonstrate awareness of cultural and language
differences in all communication
Personal
• Demonstrate a commitment to lifelong learning
• Apply an open mind to new opportunities

19. IES 4: Far Reaching Professional Values, Ethics and Attitudes
Professional Values
• Identify and evaluate reasonableness alternatives to reach
well-reasoned conclusion based on all relevant facts and
alternatives.
Ethical Principles • Apply the fundamental ethical principles