Indonesia: Insurers ask for IFRS17 to be deferred to 2025
Source: Asia Insurance Review | Oct 2019
Insurance industry players have asked for the implementation of the International Financial Reporting Standard (IFRS) 17 to be postponed until 2025 because they are not ready to apply the standard.
Indonesian Life Insurance Association (AAJI) executive director Togar Pasaribu said that life insurers in principle view IFRS17 as a positive thing, so they fully support its implementation.
Nevertheless, he said, “Considering that IFRS17 is not something that is easy to implement – it even requires huge costs for IT & HR systems – the life insurance industry is not ready to implement IFRS17 in the near future.”
The same view was expressed by the Indonesian General Insurance Association (AAUI) executive director Dody AS Dalimunthe. According to him, AAUI is still coordinating the task force that has been formed to identify potential problems in implementing IFRS17 and formulate solutions, reported Bisnis.
“Previously AAUI and AAJI had submitted a letter to the Indonesian Financial Accounting Standards Board (DSAK IAI) and OJK proposing that IFRS17 be implemented in 2025 assuming the insurance industry would be ready then,” he said.
DSAK IAI has not yet decided the deadline for the adoption of IFRS17 in Indonesia. Globally, the International Accounting Standards Board has indicated that the new standard is to be implemented with effect from 1 January 2022.
PwC Indonesia financial services advisor David Wake said that the lack of technical capability and resources is seen as the biggest difficulty in implementing the new standard. A