The provisions regarding records and depository of Company’s Document is set under Law Number 8 of 1997 on Company’s Document (“Law No.8/1997”). One of the considerations to form Law No.8/1997 is to guarantee that the company’s operation isefective and efficient, which is one of the basis of national development policy in the field of economy.
The company’s document is the data, records, and/or statement which are made and/or accepted by company in order to perform its activity, whether in writing on the paper or other facility as well as recorded in the form of any patterns that can be seen, read, or listened (“Company’s Document”). The Company’s Document consists of financial document and other documents. Additionally, the financial document consists of records, bookkeeping evidence, and administrative supporting financial data, which are the proof of rights and obligations as well as the business activity of the company (“Financial Document”). In contrast, the other documents consist of data or any writing that contains valuable information to the company although it is not directly related to the financial document (“Other Document”).
The Making of Company’s Records
Each company has an obligation to set the records in accordance with the Company’s needs. The records of company consist of annual balance sheet, calculation of annual income, account, journal of daily transaction, or any writing which contains the information regarding rights and obligations as well as other matters with regards to the business activity of company (“Company’s Records”). The Company’s Records shall be made by using Latin or Roman alphabet, Arabic numerals, Rupiah currency, and compiled in Indonesian language. The Company’s Records, however, may be compiled in foreign language, if there is a permit from the Financial Minister regarding certain purposes in accordance with the laws and regulations of taxation.
Company’s Record in the form of annual balance sheet, calculation of annual income, or other writings that describe the balance sheet and income, shall be signed by the head of company or the appointed officials in the company’s area and shall be made on paper. If the laws and regulations which directly related to company’s activity in a certain field do not stipulate otherwise, then Company’s Record shall be made within no later than 6 (six) months as of the end of company’s financial year. Company’s Records in a form of account, journal of daily transaction, or any writing which contains information regarding rights and obligations as well as other matters that related to the business activity of company can be made on paper or in other means. The other means is explained as tools that are used for processing the setup of Company’s Document, which from the beginning is not made on paper, such as using of magnetic tape or floppy disk.
The Depository of Company’s Document
A Company shall conduct the depository of Company’s Document. In addition, Article 11 letter (1) of Law No.8/1997 regulates that (i) Company’s Records, (ii) bookkeeping evidence which consist of letters as the basis of bookkeeping that affect the changes of assets, debt, and capital (“Bookkeeping”), as well as (iii) financial administrative supporting data, which is the part of bookkeeping evidence (“Supporting Data”), shall be kept for 10 (ten) years calculated as of the end of Company’s financial year. Supporting Data that is not the part of bookkeeping evidence, shall be depositedin compliance with the company’s purposes.
The other documents consist of data or any writing which contains valuable information to the company although it is not directly related to the financial document,is deposited in the period based on the useful-value of such documents. The determination of the useful-value of such documentis based on the purpose of document in supporting the implementation of company’s activity. Based on the useful-value of documents, then the depository period may be set less than 10 (ten) years or more than 10 (ten) years. Supporting Data is compiled by the company in retention schedule, which set by the head of company. The provisions regarding the depository obligation does not eliminate the document function as an evidence in accordance with the purposes as set forth in the provision on expiry of claim as set out in the prevailing laws and regulations, or for other legal interests.
Deby Selina Panjaitan