Agriculture & Plantation

Supporting transparent financial reporting and stronger controls across farms and plantations — from biological asset valuation to supply-chain traceability. Our audit and advisory services help agribusinesses manage risk, improve performance, and meet stakeholder expectations.

Introduction

Agriculture and plantation businesses are vital to Indonesia’s economy and operate within complex, capital- and resource-intensive environments. Accurate financial statements and sound audit practices are essential to reflect true performance, comply with reporting standards, and support financing, governance, and strategic decisions. Special attention is required for biological assets and harvest accounting, where judgement and estimation play a central role.

Why audits matter for agribusinesses

Audits provide independent assurance that financial records fairly represent operations and that controls are effective. For agriculture and plantation companies, audits also help ensure correct classification and measurement of biological assets and produce, validate cost capitalisation and inventory practices, and identify operational risks that affect profitability and sustainability.

Key areas of audit focus

Classification and recognition

Assess whether items are biological assets, agricultural produce at harvest, or inventories, and confirm the applicable accounting treatment and disclosures.

Valuation of biological assets

Evaluate management’s choice of measurement basis (fair value less costs to sell versus cost), and review the reliability of fair value inputs and valuation techniques in line with IFRS 13 guidance.

Revenue, grants and subsidies

Verify recognition and presentation of sales, government grants, and other industry-specific funding in accordance with applicable standards.

Inventory and harvest controls

Test stock-count procedures, traceability of harvested produce, identification of obsolete or slow-moving items, and accuracy of inventory records.

Cost capitalisation and project accounting

Review capitalisation of cultivation, breeding, maintenance, and borrowing costs prior to maturity or harvest to ensure appropriate treatment.

Supply chain and procurement

Examine procurement, storage, logistics and vendor controls for financial completeness and loss prevention.

Typical audit procedures for agribusinesses

Observe physical counts of livestock, orchards or plantation yields and test reconciliation to records.
Inspect supporting documentation for additions, disposals and derecognition of biological assets.
Test assumptions, models and expert valuations used to determine fair value measurements.
Review management judgments where fair value is deemed unreliable at initial recognition and cost-based measurement is applied.
Evaluate disclosures for biological assets and agricultural produce against reporting framework requirements.
Enquire about subsequent events that may affect asset values or disclosures.

Audit benefits and outcomes

Greater confidence for lenders, investors and stakeholders through reliable financial statements.
Better inventory and asset management, reducing waste and improving working capital.
Stronger internal controls and governance across multi-site operations.
Identification of cost drivers, inefficiencies and opportunities for process improvements.
Enhanced readiness for financing, grants, or transactions requiring audited financials.

Audit scope clarification

Our audits focus exclusively on financial statement accuracy, internal controls and operational processes relevant to financial reporting. We do not perform food safety, hygiene, or technical quality inspections. Audit procedures are tailored to each client’s size, structure and risk profile.

Consult your needs with us

KAP Eddy Hutarso & Satria deliver specialist audit and advisory services for agriculture and plantation businesses—combining technical accounting knowledge with sector experience to provide practical, evidence-based insights. Contact us to discuss an audit or tailored review for your agribusiness.