SOEs prepare for 2026 ICOFR audit, PwC Indonesia emphasises importance of audit readiness

Jakarta, 18 June 2026 – PwC Indonesia, together with state-owned enterprise (SOE) stakeholders, hosted a forum on “Audit-ready ICOFR: Ensuring SOE ICOFR audit readiness by external practitioners in line with ICOFR technical guidelines”, as part of efforts to strengthen readiness for the mandatory implementation of Internal Control over Financial Reporting (ICOFR).

The forum highlighted the urgency of ICOFR audit readiness, particularly as external practitioners prepare to begin the assurance phase for the 2026 financial statements of Tier 1 SOEs, in line with the roadmap set by the Ministry of SOEs.

Sahala Situmorang, Managing Director of Finance at Danantara Asset Management, in his opening remarks emphasised that ICOFR implementation serves as a critical foundation in strengthening SOE governance amid increasingly complex business dynamics. “ICOFR implementation is a strategic step in reinforcing governance foundations and enhancing trust in SOEs. Going forward, ICOFR audit readiness is not merely about fulfilling regulatory requirements, but also a key enabler in ensuring the quality of decision-making and the sustainability of corporate performance.”

PwC Indonesia noted that the ICOFR implementation journey involves comprehensive stages, ranging from design and implementation to continuous monitoring, management assessment, and external assurance. Each phase requires consistent execution discipline as well as cross-functional support within the organisation.

ICOFR audit readiness is further supported by SOEs’ growing focus on strengthening fundamental aspects of implementation, particularly the consistency of internal control execution, quality of evidence, and integration of cross-functional processes. In addition, enhancing human capital capabilities, optimising Control Self-Assessment (CSA), and stabilising IT controls (ITGC and ITAC) remain key strategic priorities to ensure internal control processes are robust and ready for external audit testing.

Yuliana Sudjonno, PwC Indonesia Risk Assurance Partner and Sustainability Leader, stated, “ICOFR implementation is not solely about compliance; it also delivers tangible value to organisations, including improved reliability of financial reporting, increased process efficiency, and smoother financial closing. Furthermore, it strengthens governance that supports overall operations. As 2026 approaches, SOEs need to shift their focus from implementation to comprehensive audit readiness. Based on our experience, the greatest challenges typically lie not in framework design, but in consistency of execution, quality of documentation, and the availability of audit-ready evidence that can be relied upon by external auditors.”

In a broader context, SOEs are also navigating increasingly complex external dynamics—ranging from macroeconomic conditions and exchange rate volatility to climate-related risks—which further underscore the importance of strong internal controls as the foundation of reliable financial reporting.