Accountability Instrument

This component will encourage the creation of sufficient disclosure of financial report from Department of Forestry, District/provincial forest services, Timber producer/consumer companies, forest Area user companies (i.e. palm oil and coal industries) and other actors involved in timber production, timber sales, timber processing and wood-based products (sawn lumber, plywood and pulp). 

In the long run, the Unit in Accountability Instrument would issue a financial accounting standard (for private and state owned enterprises) and a government accounting standard requiring disclosure information on natural resources extraction and utilization.

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The Actors:

1. Department of Finance

2. Accounting Association

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The Instruments:

• Government Accounting Standard (SAP)

  In 2005, Indonesia established a government accounting standard to improve the quality of government financial reporting which has so far only covered realisation of income and expenditur . The Government Accounting Standard [SAP] is a reform of the Indonesian government on transparency of the government responsibility to Indonesian people SAP was stimulated by the issuance of 4 Acts i.e. Act No 17/2003 on State Financial; Act No 1/ 2004 on State Treasury; Act No 32/2004 on Regional Government and Act No 15/2004 on Audit of State Financial Management and Accountability.

  SAP is published by an independent commission, the Committee on Government Accounting Standard [KSAP] and is enacted by Government Regulation No. 24/2005 on Government Accounting Standard [SAP]. The government accounting standard consists of 1  conceptual framework and 11 standard statements. The material ranges from techniques on bookkeeping of income and expenditures to technique of financial report making.

  Download SAP
   

• Statement of Financial Accounting Standard [PSAK]
  

  PSAK is the used accounting standard Until November 2005, there are 59 PSAK and 7 interpretations over PSAK. As for forestry business it is regulated in PSAK 32.A. Standar Akuntansi Pemerintah [SAP].
  
  IAI, more....
   

• The Global Compact
  

  The 'Global Compact' was formally launched 26 July 2000 by a network comprising the Global Compact Office and six UN agencies: the Office of the High Commissioner for Human Rights; the United Nations Environment Programme; the International Labor Organization; the United Nations Development Programme; the United Nations Industrial Development Organization and the United Nations Office on Drugs and Crime. It is a framework for the business world who have concerned on aligning it business with so called corporate citizenship values. The Global Compact consist of nine principle in the area of human right, labour and environment. On 24 June 2004, after having considerable consultations with companies, global business associations, trade unions and civil society, the 10th principle on anti corruption formally announced during the Global Compact Leaders Summit.

  The Global Compact is a wholly voluntary initiative which currently has no monitoring or enforcement mechanism and no sanction for companies which breach its commitments and its standards also are unclear. Yet, many government and NGOs such as The Amnesty International, Human Right Watch initially welcomed the Global Compact Initiative.
  
  UN-Global Compact Initiative, more....