AI Skill Report Card
Conducting Indonesian Business Valuations
YAML--- name: conducting-indonesian-business-valuations description: Conducts professional business valuations following Indonesian accounting standards and regulations. Use when needing to value companies, assets, or securities for M&A, financial reporting, tax compliance, or legal proceedings in Indonesia. ---
Indonesian Business Valuation
Quick Start13 / 15
VALUATION REPORT STRUCTURE:
1. Executive Summary
2. Company Overview & Industry Analysis
3. Financial Analysis (3-5 years historical)
4. Valuation Approaches:
- Asset Approach (Book Value/Liquidation)
- Market Approach (Comparable Companies/Transactions)
- Income Approach (DCF/Capitalization)
5. Valuation Conclusion
6. Appendices (Financial Statements, Market Data)
Recommendation▾
Add specific Indonesian regulatory requirements, OJK guidelines, and required certifications/qualifications for conducting valuations
Workflow13 / 15
Progress:
- Engagement setup and scope definition
- Document collection and due diligence
- Financial statement analysis and normalization
- Industry and economic analysis
- Apply valuation methodologies
- Reconcile values and conclude
- Prepare formal valuation report
- Quality review and sign-off
Key Steps:
- Analyze financial statements - Review 3-5 years of audited financials, normalize for non-operating items, one-time expenses
- Market research - Identify comparable public companies and recent transactions in Indonesia/Southeast Asia
- Build DCF model - Project cash flows, determine WACC using Indonesian risk-free rate + market risk premium
- Apply discounts/premiums - Consider marketability, control, country risk adjustments
- Triangulate approaches - Weight asset, market, and income approaches based on purpose and available data
Recommendation▾
Include actual valuation report templates, financial model structures, and specific PSAK accounting adjustments commonly needed
Examples15 / 20
Example 1 - Manufacturing Company DCF: Input: PT ABC Manufacturing, Rp 50B revenue, 15% EBITDA margin, stable growth Output:
- WACC: 12% (Risk-free 6% + Beta 1.2 × Market premium 5%)
- Terminal growth: 4% (Indonesian GDP trend)
- Enterprise Value: Rp 420B
- Equity Value: Rp 380B (net of debt)
Example 2 - Market Approach: Input: Private tech startup, recurring revenue model Output:
- Comparable public companies: EV/Revenue multiples 3-8x
- Recent private transactions: 4-6x revenue
- Applied multiple: 4.5x (discount for size, liquidity)
Recommendation▾
Provide more detailed methodology for determining appropriate discount rates, country risk premiums, and marketability discounts specific to Indonesian market conditions
Best Practices
- Use Indonesian standards - Follow PSAK (Indonesian GAAP) and consider tax implications under Indonesian law
- Local market data - Priority on Indonesian/ASEAN comparables over global peers
- Currency considerations - Use Rupiah throughout, note FX impact on international businesses
- Regulatory compliance - Ensure compliance with OJK regulations for securities valuations
- Industry expertise - Deep dive into sector-specific metrics and risks
- Documentation - Maintain detailed working papers for audit trail
Common Pitfalls
- Using outdated risk-free rates or market data
- Ignoring Indonesian-specific regulatory risks
- Over-relying on global comparables without local adjustments
- Failing to normalize for controlling vs. minority interest
- Inadequate consideration of liquidity/marketability discounts
- Not adjusting for differences in accounting standards between comparables