Economic Policy Model Based on Asset Revaluation: an Empirical Evidence on Banking and Financial Sector in Indonesia
- Keywords
- Assets Revaluation, Economic Policy, Banking and Financial Institution
- Abstract
In October 2015 issued Minister of Finance Regulation (PMK) number 191 / PMK.010 / 2015 on the revaluation of fixed assets for tax purposes and December 2015 made changes through the PMK 233 / PMK.03 / 2015. On the other hand, the International Financial Reporting Standards (IFRS) have regulated fair value-based valuations and are fully adopted in Indonesia since 2012. This study aims to provide empirical evidence of the effectiveness of economic policies based on asset revaluation in the financial and banking industries listed in Indonesia. Empirical evidences examine the difference in the amount and value of asset revaluation in the period 2012 to December 2015. The sample is all the firms that are classified in the financial industry and banking and the data can be accessed completely. The results show that there is a significant increase in the number of issuers and the value of asset revaluation in the financial industry as a whole, especially banking. The results of this study at once prove that the economic policy based on revaluation of assets is effective in the financial industry and banking. Future research can also provide empirical evidence of economic and non-economic motivation related to corporate revaluation policies and their consequences both in the financial industry and banking and other industries. The results of the study are expected to contribute to the making of similar policies by the government, for example by extending the period of tax discounts or other economic policies. In October 2015 issued Minister of Finance Regulation (PMK) number 191 / PMK.010 / 2015 on the revaluation of fixed assets for tax purposes and December 2015 made changes through the PMK 233 / PMK.03 / 2015. On the other hand, the International Financial Reporting Standards (IFRS) have regulated fair value-based valuations and are fully adopted in Indonesia since 2012. This study aims to provide empirical evidence of the effectiveness of economic policies based on asset revaluation in the financial and banking industries listed in Indonesia. Empirical evidences examine the difference in the amount and value of asset revaluation in the period 2012 to December 2015. The sample is all the firms that are classified in the financial industry and banking and the data can be accessed completely. The results show that there is a significant increase in the number of issuers and the value of asset revaluation in the financial industry as a whole, especially banking. The results of this study at once prove that the economic policy based on revaluation of assets is effective in the financial industry and banking. Future research can also provide empirical evidence of economic and non-economic motivation related to corporate revaluation policies and their consequences both in the financial industry and banking and other industries. The results of the study are expected to contribute to the making of similar policies by the government, for example by extending the period of tax discounts or other economic policies.
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Nurmala Ahmar AU - M. Nadjib Usman AU - Pujiati Diyah PY - 2018/12 DA - 2018/12 TI - Economic Policy Model Based on Asset Revaluation: an Empirical Evidence on Banking and Financial Sector in Indonesia BT - Proceedings of International Conference on Issues in Social and Education Research (ICISER 2017) PB - Atlantis Press SP - 74 EP - 77 SN - 2352-5398 UR - https://www.atlantis-press.com/article/55910569 ID - Ahmar2018/12 ER -