One of the Largest Banks in Indonesia Successfully Processes Over Seven Million Accounts in Seven Hours with Automated IFRS Solution
Wolters Kluwer Financial Services, a leading worldwide provider of risk management, compliance, finance and audit solutions, announced today that one of the largest banks in Indonesia, Bank Rakyat Indonesia (BRI), has successfully implemented its financial risk management solution to adhere to International Financial Reporting Standards (IFRS) and Indonesian accounting standards (PSAK 50, 55).
BRI conducted a thorough evaluation of IFRS solutions on the market in order to adhere to IFRS and PSAK 50, 55. The bank selected Wolters Kluwer Financial Services’ solution following the system’s strong benchmarking results.
“As one of the largest banks in Indonesia we naturally have considerable volumes to process so finding a solution that is technically sound and could process these volumes quickly and efficiently was a key requirement for us,” said Achmad Baiquni, Director of Bank Rakyat Indonesia. “With the Wolters Kluwer Financial Services’ IFRS solution we can now successfully process more than seven million accounts in seven hours. We are very pleased with our decision to work with Wolters Kluwer Financial Services.”
With the Wolters Kluwer Financial Services’ IFRS solution, the bank can also benefit from calculation and reporting functionalities to cover the amortized cost and fair value accounting, effective interest rate, impairment assessments (collective and individual), hedge accounting (cash flow, fair value and net investment in foreign currency) as well as hedge effectiveness testing models encompassing both the balance sheet and off-balance sheet positions.
“At the beginning of 2012, the Central Bank of Republic of Indonesia, Bank Indonesia, announced a new set of eXtensible Business Reporting Language (XBRL) regulatory reports for all banks in Indonesia which will see the culmination of financial, operational and risk reporting into one platform. With our expertise and knowledge in regulatory and risk solutions, we are well placed to provide support to firms such as BRI around this new requirement,” said Steve Thurley, VP Asia Pacific and Japan at Wolters Kluwer Financial Services. “We view Indonesia as a key country for
Wolters Kluwer Financial Services’ Asia Pacific expansion and business development plan and so we are very pleased to be working with one of the largest banks in this region.”
By combining both the economic view (IFRS standards) and statutory view (local generally accepted accounting principles - GAAP); Wolters Kluwer Financial Services’ IFRS solution means financial institutions can review and report the same balance sheet positions captured from its data. It will also allow for combined accounting calculations in line with Indonesian accounting standards PSAK (50 & 55).
“We are delighted to be partnering with Wolters Kluwer Financial Services on providing risk management services including IFRS solution to banks in Indonesia. Banks in Indonesia such as BRI are looking for a comprehensive solution from a leader in its field and Wolters Kluwer Financial Services fits this requirement effectively. Best of all, their solution architecture is an ideal solution for Indonesian accounting standards (PSAK 50, 55), a challenge faced by most large banks in this region,” said Handoko Komaruddin, Director of PT Nexia Indonesia Advisory Services, which specializes in IFRS and risk management services in Indonesia and is working with Wolters Kluwer Financial Services in this market.