T

he Financial Service Authority (OJK) has enabled companies to make various reports online, ranging from financial reports to shareholders'€™ meeting announcements and results.

The digital system was adopted from the Indonesia Stock Exchange (IDX) following the signing of an asset-transfer agreement between the financial authority and the bourse.

OJK commissioner for capital market supervision, Nurhaida, told reporters on Thursday that the move made it easier for publicly listed companies to submit their reports to the authority.

'€œBy applying such a mechanism, we hope it will facilitate interaction between the OJK and companies. The electronic reporting mechanism is expected to commence early in June,'€ Nurhaida said after the signing event with IDX president director Ito Warsito.

The system is accessible at spe.ojk.go.id.

Nurhaida said that while the mechanism would allow companies to submit their digital financial reports online, it would not relieve them of the obligation to also file the hard copy.

However, she said, the system would facilitate the timely submission of reports.

'€œWhether a company meets its deadline to submit its reports or not will be decided by the report that arrives first: electronic or printed,'€ Nurhaida explained.

The digital system was expected to minimize warnings or fines of up to Rp 1 million (US$88) a day for late financial reports, according to her.

If there are any differences between the printed and digital reports, Nurhaida said, the OJK would only consider the details contained in the printed report as valid.

Besides financial reports, the digital reporting system will also allow companies to report changes in shares ownership as well as shareholders meeting announcements and their results.

It will also cover reports concerning bankruptcy, initial public offering (IPO) funds usage, shares buy back, affiliated transactions and any other public information disclosures that is currently contained in the bourse'€™s electronic reporting.

'€œThe difference between the system applied by the bourse and the OJK'€™s is that ours will also include public companies that are not listed on the stock market,'€ Nurhaida said.

She explained that currently, there are 489 publicly listed companies and six companies that had gone public but had not registered their shares on the bourse.

Besides the new reporting system, the OJK and the IDX have also deliberated the use of an electronic registration system for companies hoping to go public.

As previously reported, the OJK and the IDX are mulling an electronic registration procedure system, which will enable firms to apply for an IPO electronically, which is expected to cut costs and simplify procedures.

The IDX is also expecting to roll out Extensible Business Reporting Language (XBRL)-based financial reporting at the beginning of 2015, which will ease the investment decisionmaking process as investors and shareholders could access data more quickly and accurately.

XBRL is an electronic communication language used universally for business information exchanges and transmissions and is a standardized method used in many countries for reporting processes in various sectors including banking, insurance, taxation as well as stock market regulators and data providers.