Definition and Validity Period of a Valuation Report
Definition and Validity Period of a Valuation Report
The output or product of a valuation is a Value Opinion. This value opinion is presented in a Valuation Report.
According to SPI/Indonesian Valuation Standards 105 (2018), a Valuation Report is a document that includes the engagement instructions, the purpose and basis of value, and the analytical results that produce a value opinion. A valuation report may also explain the analytical process undertaken during the valuation and disclose key information used in the analysis.
Valuation reports may be oral or written. The type, content, and length of the report can vary depending on the intended user, legal requirements, the type of property, and the nature and complexity of the assignment.
Validity Period
The Indonesian Valuation Standards (SPI) do not regulate a specific validity period for Valuation Reports. This is related to the concept of the Valuation Date, which, under SPI, is defined as the date on which the valuation is stated and becomes effective. Therefore, in practice, a valuation report remains valid as long as there are no significant changes in the factors that affect the property’s value.
However, for certain valuation purposes, the validity period of the Valuation Report is governed by specific regulations, such as:
1. Valuation for Auction Purposes
Regulation of the Minister of Finance No. 213/PMK.06/2020 on the Guidelines for Auction Implementation Article 52:
The validity period of a valuation or appraisal report used as the basis for determining the Reserve Price is a maximum of 12 (twelve) months from the valuation date to the auction date.
Exceptions to the above validity period: a. If the seller believes there is a significant change in conditions, the valuation report may have a shorter validity period than 12 months. b. For Non-Executive Auctions of State/Regional-Owned Assets, the validity period follows the applicable regulations on State/Regional Asset Management.
2. Valuation for Capital Market Purposes
OJK Regulation (POJK) No. 28/POJK.04/2021 on Property Valuation and Valuation Report Presentation in the Capital Market Article 3:
A Property Valuation Report is valid for 6 (six) months from the Valuation Date.
If within those 6 months there is a factor that affects the value conclusion by more than 5%, the Property Valuation Report becomes invalid.
Ni Luh Asti Widyahari, S.T., M.T., MAPPI (Cert)., is an experienced property valuer and advisor based in Jakarta, Indonesia, with extensive expertise in property valuation and property consultancy. She is the founder of Penilaian.id and CekNilai.id. Asti is also an active speaker at international conferences, promoting the property valuation profession and professional development in the sector.
Tentang Asti WidyahariNi Luh Asti Widyahari, S.T., M.T., MAPPI (Cert)., adalah Penilai dan Advisor Properti berpengalaman yang berbasis di Jakarta, Indonesia, dengan keahlian dalam penilaian properti dan konsultasi properti. Ia adalah pendiri Penilaian.id dan CekNilai.id. Asti juga aktif sebagai pembicara di konferensi internasional, mempromosikan profesi Penilai dan pengembangan profesional di sektor ini.
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