Indonesia: Insurers want IFRS17 implementation to be deferred till 2025
Source: Asia Insurance Review | Nov 2019
The Indonesian insurance industry has asked for the implementation of IFRS17 to be postponed until 2025 because insurers are not ready to implement it.
Indonesian Life Insurance Association executive director Togar Pasaribu said that life insurance industry players in principle view IFRS17 as a positive thing. Nevertheless, he said, “Considering IFRS17 is not something that is easy to implement, it even requires huge costs for IT and HR systems, the life insurance industry is not ready to implement IFRS17 in the near future. We ask that the implementation be postponed to 2025.”
Indonesian General Insurance Association executive director Dody Dalimunthe echoed the same view. According to him, AAUI is still coordinating with the task force team that has been formed to identify potential problems in implementing IFRS17 and to formulate solutions to them.
“AAUI and AAJI have submitted a letter to the Indonesian Financial Accounting Standards Board (DSAK IAI) and the Financial Services Authority (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 timing of adoption of IFRS17 in Indonesia, even though the adoption draft has been issued. Last month, a group of international insurance associations globally called on the International Accounting Standards Board to delay the implementation date of IFRS 17 to January 2023. The current implementation date is set for January 2022. A