Discount Rate Sensitivity of Employee Benefit Obligations In Indonesian State - Owned Conventional Banks

Abstract

This study examines the comparability of discount rate sensitivity disclosures for employee benefit obligations under Indonesian Financial Accounting Standard 219. It covers the four listed conventional members of Indonesia’s state-owned bank association: Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, and Bank Tabungan Negara. The descriptive analysis uses eight bank-year observations for 2024 and 2025. Data were extracted from the employee benefit notes to the 2025 consolidated financial statements, except for Bank Mandiri’s 2024 sensitivity, which was taken from its 2024 statements. The analysis traces each scenario to the disclosed plan and reporting entity, compares the magnitude of responses to one-percentage-point changes in discount rates, and scales the effects where the gross obligation can be matched to the scenario. A rate decrease increased the obligation by more than an equivalent increase reduced it in every observation. Asymmetry in 2025 ranged from 13.8% to 21.2%. The nominal effect of a rate decrease grew at all four banks. At Bank Negara Indonesia, the effect relative to the matched gross pension obligation increased from 11.08% in 2024 to 11.54% in 2025. The principal contribution is a disclosure-based procedure for distinguishing comparable scenario movements from amounts that reflect different plan or entity boundaries. The findings help readers interpret reported sensitivities alongside recognised liabilities and remeasurements.