THE IMPLEMENTATION OF PSAK NO.65: A SURVEY TOWARDS FAMILY BUSINESS DOMINATION IN INDONESIA

Pertiwi, Eka Putri
Rahardja, Liana

Indonesian Journal of Accounting and Governance
Vol. 1 No. 2 (2017): DECEMBER

This study examines the factor to assess control over an investee as the implementation of PSAK No.65. The research scope is level of share ownership as assessment of rights that give an investor powerover an investee. Since most companies in Indonesia are family business, so the implementation of PSAK65 is facing the challenge to be effective or not. The research sample used is 147 companies listed inIDX as of year 2015. We measure assessing control over an investee by the fulfillment of criterionwhether shareholders either majority or minority have direct activities and controlled an investee as aboard of management. The result shows tendency of bias in implementing PSAK 65 due to Indonesia’sbusiness nature. It is found that 68% companies are heldby 11 closed related families. Still, theremaining 4 families are also “interrelated” that means far related families.