Operating Segment Reporting Compliance under PSAK 108: A Case Study of PT Waskita Karya

Abstract

Operating segment disclosure plays a fundamental role in improving financial reporting transparency by providing stakeholders with information regarding the financial performance of individual business units within diversified companies. This study aims to evaluate the compliance of PT Waskita Karya (Persero) Tbk with Statement of Financial Accounting Standards (PSAK) 108 concerning Operating Segments. A descriptive qualitative approach using document analysis was employed, utilizing the company's 2025 Annual Report and audited consolidated financial statements as the primary data sources. Compliance was assessed through the systematic application of the three quantitative materiality criteria prescribed by PSAK 108, namely the 10% revenue test, 10% profit or loss test, and 10% asset test. The findings reveal that the Construction and Toll Road segments satisfied both the revenue and profit criteria, contributing 76.7% and 13.1% of total segment revenue, and 46.1% and 41.0% of total segment profit, respectively. Under the asset criterion, only the Toll Road segment qualified as a reportable operating segment, representing 45.5% of total identifiable segment assets. Meanwhile, the Precast, Readymix & Quarry, Property & Hotel, Other Infrastructure, and Building Rental segments failed to satisfy the prescribed quantitative thresholds and therefore were not individually reportable. Overall, the findings indicate that PT Waskita Karya generally complies with the quantitative materiality requirements established under PSAK 108. This study contributes empirical evidence regarding operating segment reporting practices within Indonesia's infrastructure sector and provides practical implications for improving financial reporting transparency, corporate governance, and decision-making among investors, regulators, and corporate management.