Justification for a Single Source Selection

of

Exchange Program (Internship) in International Accounting Standards Committee
Foundation (IASC Foundation), London, United Kingdom
ASEM TF 53347

Enhancing Disclosure of Information and Supervision through Electronic Reporting
and Implementation of XBRL


Background

Electronic reporting is in the spotlight today more than ever before. This is especially true in
the capital markets point of view. All public companies and others stakeholders in capital
market are required to submit any information regarding their activities that can influence
investors decision. Although the primary focus of electronic reporting has been on what
should be reported, there is another side that is also important, how information is being
delivered. With the development of technology especially the use of Internet, manual
submission of reporting is considered slow and cumbersome.

The development of a new Internet technology, XBRL, is geared toward usability of business
information. Financial information will be served as computer data, which is stored in
database, and can be retrieved by everyone who has access. These information can then be
used to help parties relating to the information in decision making process. Information in
XBRL can be used in business analysis, decision making, business reporting and countless
other advantages.

The development of a new Internet technology, XBRL, is likely to fundamentally transform
how businesses provide information to investors, markets and regulators, and how each of
these stakeholder groups make more informed decision. BAPEPAM-LK as regulator in capital
market and financial institutions plays a very important role in reporting as many parties are
obliged to submit report to BAPEPAM-LK. By implementing electronic reporting using Internet
technology and XBRL, BAPEPAM-LK can enhance its role position as a source of information
for public.

The implementation of electronic reporting in Indonesia Capital Market is clearly stated in its
Capital Market Master Plan 2005-2009 and it should be implemented in 2006.

Objectives

BAPEPAM-LK considers that providing the internship related to Electronic Reporting for the
selected staffs is a sound foundation to enhance its role in public disclosure and superivision.
The internship is expected to accelerate the learning curve and enhance the comprehensive
knowledge as well as share experiences and gain insight from other international best
practices regarding electronic reporting. In addition, BAPEPAM-LK believes that providing the
staffs to participate in the internship as a team will be beneficial to the organization. The team
will have opportunities to discuss among themselves and establish a common perspective and
understanding in order to create an appropriate platform for BAPEPAM-LK to enhance its role
in providing public information regarding capital market.

By having knowledge of XBRL implementation of reporting systems, BAPEPAM-LK will have a
chance to improve current reporting systems, and develop an integrated reporting system
between regulator and market participants, such as SROs, stock exchange. These will enhance
the monitoring function of BAPEPAM-LK, and also increase usability of data exchanges.

The objectives of the internship is to enhance the effectiveness of those involved in Electronic
Reporting by providing a forum which provides opportunities to learn from, and debate with
experienced leaders in Electronic Reporting based on XBRL; and to share experiences and
extend network of contacts.

BAPEPAM-LK has selected to have this internship in IASC Foundation (International
Accounting Standards Committee Foundation), London, UK, which has already introduced a
taxonomy for financial reporting (International Financial Reporting Standards/IFRS) that based
on XBRL technology.

Plan

In the end of the internship, the team is expected to be able to present the advantage of
Electronic Reporting in UK capital market. The team is also expected to be able to present a
model of electronic reporting in a simulated computer application, to represent the usefulness
of electronic reporting for public companies disclosure. Hopefully, the team is also expected
to be influencer of XBRL imeplementor in capital market industry.

This four weeks internship will be in IASC Foundation (International Accounting Standar
Committee), especially regarding with International Financial Reporting Standards (IFRS)
and XBRL internship. It will commence at July 18, 2006 until August 15, 2006.

Venue

International Accounting Standards Committee (IASC) Foundation

First Floor
30 Cannon Street
London EC4M 6XH
United Kingdom
Fax: +44 (0)20 7332 2749









List participants

1. Mr. Hudiyanto, SE, MM
NIP 060091612
Head of IT Maintenance Sub Division

He has background on Corporate Finance. He received his MM
(Magister of Management) from University of Indonesia. He
currently works as the Head of IT & System Maintenance Sub
Divison of BAPEPAM-LK, with the responsibility, among other
things, to maintain and develop system and application in the
office. Some of his latest projects is listed co. reporting system
and mutual fund monitoring.


2. Mr. Sidi Darmawan,
SST, MBA
NIP 060086563
Staff, IT Maintenance Sub Division

He has background on Accounting. After finishing studies from
State Academy of Accounting, he continued further education
in Yokohama National University, Japan and received MBA
degree. Ever since, he works in IT department of Bapepam-LK,
developing applications regarding companies reporting system
and mutual fund monitoring.