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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.
1. Department of Finance
2. Accounting Association
- 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
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.
- 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].
- 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....