Exploring the Benefits of XBRL to Enhance Electronic Reporting System in Indonesia Capital Market Industry

One of the main responsibilities for financial regulators around the world nowadays is to enhance their monitoring system with electronic reporting and make sure that the institutions under their supervision are submitting accurate and correct data. This responsibility is mostly based on the growing demand of business user for easier access to business data and information, which will support business decision-making processes.

To address these challenges, regulators worldwide are increasingly considering how they can improve their data capture and reporting processes as well as accuracy, and relevance of the reports they collect. Some regulators have already been evaluating web-based standard languages which are designed to improve value of the reported information. XBRL (eXtensible Business Reporting Language) is introduced to support this matter.

The Indonesia Capital Market and Financial Institution Supervisory Agency (BAPEPAM-LK), as a regulator, plays a very important role in business reporting supply chain, as various entities are obliged to submit their business reports to the Institution. By implementing electronic reporting using Internet technology and XBRL, BAPEPAM-LK can reinforce its position as a key source of  information for business. The requirement of implementation of electronic reporting in Indonesia Capital Market  is clearly stated in its Capital Market Master Plan 2005-2009 and it should be achieved in 2006.

To investigate XBRL's capabilities, BAPEPAM-LK has made contact with the International Accounting Standards Committee Foundation (IASCF) XBRL Team , London, UK, to conduct one-month observation program for two BAPEPAM-LKs representatives. The observation is expected to enhance the comprehensive knowledge as well as share experience regarding implementation of XBRL in electronic reporting systems. The observation conducted from July 18, 2006 until August 15, 2006.

This XBRL Initiative Program website is dedicated to present the outcome of the IASCF observation program. In particular it aims to present an XBRL show case project developed by the BAPEPAM-LK representatives in cooperation with the IASC Foundation XBRL Team. Besides, this initiative will show what XBRL can do to enhance implementation of electronic reporting system in Indonesia capital market industry.