Finastra aims to solve Indonesian banks’ IFRS 9 woes

Finastra is bringing its IFRS 9 compliance services to Indonesia, via a local government-accredited data centre.

The centre will be used to aid in the preparing of reports for Instrumen-Keuangan-PSAK-71 (PSAK 71), Indonesia’s equivalent of IFRS 9.

According to Finastra, banks will be able to send relevant information to the data centre, hosted by Praweda Ciptakarsa Informatika (Praweda), who will classify the data, perform the necessary calculations and generate the relevant accounting metrics, balance sheets and reports, using Finastra’s Fusion Risk.

“Indonesia’s financial services sector sits amidst a fast-evolving regulatory landscape,” said Imad Abou Haidar, managing director for Asia-Pacific at Finastra.

“Often, smaller and medium-sized banks leave preparation late, underestimating how many tentacles IFRS 9 has and how far they reach. Our successful track record of using Fusion Risk to help clients around the world to build an IFRS 9 risk-compliant framework stands us in good stead as we support customers in Indonesia with PSAK 71.”

Finastra has also teamed up with PT Abhimata Persada (PTAP) which will provide client support servicing, and Neoflex Consulting (Neoflex), which will offer consultancy in recalibrating and building Probability of Default (PD), Loss Given Default (LD) and Exposure at Default (EAD) models.

Related Posts