Maintain Transparency, Issuers Asked Not To Do Window Dressing

IAPI press conference related to Jiwasraya. (Didi Kurniawan / VOI)

JAKARTA - The Center for Indonesia Taxation Analysis (CITA) hopes that the Financial Services Authority (OJK) and PT Bursa Efek Indonesia (BEI) can stop the practice of window dressing which aims to polish the financial statements of issuers to make them look better than the actual conditions.

According to the Executive Director of CITA, Yustinus Prastowo, the behavior of some companies listed on the IDX at the end of the year often perform window dressing on financial reports, this activity is no different as an effort to manipulate financial performance to make it look better.

"Window dressing is the same as making changes to financial statements or plastic surgery on the face. So that the company looks more beautiful. What should be the loss becomes profit and the small profit becomes bigger," said Yustinus in a discussion. Public "in Jakarta, Monday 13 January.

He hopes that the competent authorities in the capital market can ask issuers not to apply window dressing. "However, in the case of financial statement engineering at Jiwasraya Insurance, the Financial Services Authority (OJK) said that this is not the same as window dressing," said Yustinus.

Furthermore, Yustinus said, the report from the Supreme Audit Agency (BPK) stated that the Jiwasraya Insurance financial report in 2017 received an adverse opinion, due to a shortage of technical reserves of IDR 7 trillion.

Thus, Asuransi Jiwasraya's profit in 2017 which was reported by the board of directors was IDR 360 billion, which should have recorded a loss of IDR 7 trillion. "After the Jiwasraya Insurance case, where have the authorities been and why don't they arrest him now?" said Justin.