Intellectual Capital Reporting Disclosures of Technology-Driven Companies: Evidence from Indonesia

This exploratory study on the Intellectual Capital (IC) disclosures of the top 22 largest Indonesian technology-driven companies during 2002–2004 found that first, the technology-driven companies in Indonesia do have IC assets. Second, there is an increasing trend of IC disclosures. Third, the top three IC components disclosed are: customers (23.00%) from the relational capital category, employees (11.48%) from the human capital category and networks (10.99%) from the organisational capital category. Fourth, there is a significant and positive correlation between market capitalisation and the level of IC disclosures, as well as between the number of annual reports' pages and the level of IC disclosures. Fifth, there is no significant correlation between the company's age and the level of IC disclosures. Sixth, the industry category seems to influence the extent of IC disclosures. Seventh, the majority of the IC components identified are in qualitative format. Eighth, the IC identified and reported is inconsistent, as no framework is available yet for reporting the IC assets.