Definition of Parent Entity

PER-29 provides the following clarification on the definition of parent entity, whether residing in Indonesia or outside Indonesia:

A parent entity residing in Indonesia (“domestic parent entity”):

1. an entity which owns either directly or indirectly the shares of one or more constituent entities within the group;
2. an entity which has the obligation to consolidate the financials of the constituent entities within the group in accordance with the Indonesian accounting standard and/or based on provisions binding on stock exchange issuers in Indonesia;
3. an entity whose shares are neither directly nor indirectly owned by other constituent entity(ies) within the group; and
4. an entity whose shares are owned either directly or indirectly by other constituent entity(ies), but the said constituent entity(ies) does not have the obligation to consolidate the financials of the said domestic parent entity.

A parent entity residing outside Indonesia (“overseas parent entity”):

1. an entity which owns either directly or indirectly the shares of one or more constituent entities within the group;
2. an entity which has the obligation to consolidate the financials of the constituent entities within the group in accordance with the applicable accounting standard in its country;
3. an entity whose shares are neither directly nor indirectly owned by other constituent entity(ies) within the group or, if its shares are owned either directly or indirectly by other constituent entity(ies), the said constituent entity(ies) does not have an obligation to consolidate the financials of the said overseas parent entity; and
4. an entity which has a consolidated gross revenue in the related year, at the least:
   • equivalent to € 750 million if the country/jurisdiction of an overseas parent entity does not require the filing of CbCR; or
   • equivalent to the amount as stipulated in the Law of the country / jurisdiction regarding the filing of CbCR.