Financial audits and advisory for Indonesian mining companies — from exploration and development to production, processing and closure. We focus on reserves & stockpile accounting, capex and cost accounting, royalty and tax compliance, and transparent financial reporting across coal, nickel, bauxite and other commodities.
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Mining in Indonesia involves exploration, development, extraction, processing and site rehabilitation across diverse commodities. The sector is capital‑intensive and highly regulated, with significant judgment areas (reserves, fair value, impairment, rehab liabilities) and complex fiscal obligations. Robust financial audits and sector‑aware advisory ensure reliable financial statements, regulatory compliance and clear governance for stakeholders.
Reconcile physical surveys, assay/grade data and mass/grade to accounting records; review measurement methods for stockpiles and concentrate.
Assess capitalisation criteria, transitional points to development, impairment indicators and disclosure under PSAK/IFRS.
Review capex recognition, budget vs actual, contract change orders and capitalization controls.
Evaluate classification of pre‑production and production stripping, allocation methods and unit‑of‑production depletion calculations.
Test sales cut‑off, provisional pricing mechanisms, price adjustments, off‑take and concentrate settlement processes.
Verify royalty calculations, PPh, VAT/PPN treatments, withholding taxes, and compliance with sector fiscal rules.
Review assumptions, timing, discount rates and adequacy of rehabilitation and closure provisions.
Assess useful lives, impairment indicators, and valuation of mining plant, equipment and mobile assets.
Test controls over contractor payments, procurement approvals, payroll and site disbursements.
Evaluate competence and assumptions of geologists, mining engineers and valuers engaged by management.
Map licences, JV arrangements, material sites, and high‑risk accounting areas.
Attend stockpile surveys, production reconciliations and capex inspections.
Involve specialists for reserve validation, resource models and valuation opinions where needed.
Test production-to-sale reconciliation, royalty filings, capex roll‑ups and depletion calculations.
Review procurement, contractor oversight, payroll and segregation of duties at remote operations.
deliver findings, required adjustments, recommended control improvements and enhanced disclosures.
Our mining audits focus on financial statement accuracy, internal controls and compliance with applicable accounting standards and Indonesian fiscal/regulatory requirements. We coordinate with technical experts for reserve, valuation and environmental liability matters as needed. We do not perform technical feasibility studies, environmental impact assessments or safety/operational audits unless separately engaged.
KAP Eddy Hutarso & Satria provides specialist audit and advisory services for Indonesian mining companies across commodities. Contact us to arrange a site visit, reserve review or customised audit plan.
