Trakindo gets full picture of its lease operations and achieves IFRS 16 compliance with Nakisa's lease accounting software.

Trakindo is a leading provider of heavy equipment solutions in Indonesia, serving industries such as mining, construction, forestry, and agriculture. As the official dealer of Caterpillar products in the region, Trakindo offers a wide range of machinery, engines, and after-sales support services to help clients optimize their operations. With a commitment to excellence, the company is dedicated to delivering innovative solutions that enhance productivity, reliability, and sustainability. Trakindo leverages Nakisa's Lease Accounting software (NLA) to streamline lease accounting and ensure IFRS 16 compliance for its portfolio of 2,000+ real estate and equipment leases.

Our previous system of using Excel to monitor and track our leases would make compliance to IFRS 16 impossible, so implementation of a solution was essential for us. Knowing that Nakisa Lease Administration natively integrated with our existing SAP ERP was a huge gain.

Jdini Hadiyanti

Senior Specialist for Business Systems at Trakindo

Challenges before Nakisa: accounting compliance and operational efficiency

When IFRS 16 compliance requirements were announced, Trakindo was managing all their leases in Excel and then manually updating their SAP ERP. Leased assets were not capitalized under IAS 17, instead all the related leasing costs were expensed. This implied that to be compliant with the new standards, not only would they need a tool going forward, but they would also need to backdate the requirements in their financial statements. Relying on Excel for an organization of this size meant that many users were creating contracts with no central repository for tracking. Disparate data and the absence of a consolidated view of the organization's operations led to inefficient business processes.

Trakindo was unable to track contract maturity to proactively engage lessors in discussions around renewals and negotiations, which meant they were working with asset information that wasn’t always complete, or up to date. What’s more, without the ability to schedule reports, do mass modifications and mass uploads, or batch postings, they had to spend hours every month doing it all manually in Excel.

The requirements: cloud-native and future-proof lease accounting software

To effectively address Trakindo’s evolving lease accounting and IFRS 16 needs, the software needed to meet the following requirements:

• Seamless bi-directional integration with SAP ERP
• Rapid deployment that ensures timely compliance with the standards
• Software that has the capability to scale at the same pace as the business
• An easy solution to use and navigate with minimum training
• Day two accounting features to streamline operation

It was important to us that the exchange of information was seamless, without any additional hardware or software needed, and that it covered specifics such as cost centers, business units and vendor information. As we continue to grow, the software is required to be able to work with an increase of contract volume and complexity, as well as support multiple currencies. Nakisa Lease Administration ticks all these boxes.

Pujo Harsono

Senior Specialist for Business Systems at Trakindo

The solution: Nakisa’s lease accounting software (NLA)

Trakindo's transition to Nakisa's lease accounting software was smooth, with the implementation taking less than 30 days from start to finish. “We started to see improvements even before the solution went live,” says Adam Maulana Akbar, who works on fixed asset management for Trakindo's Accounting and Tax Division.

“We eliminated human error and streamlined the correct categorization of assets. For the first time, the team had a full view of all the properties and equipment being leased. Things became more transparent and consistent.”

By improving this visibility, Trakindo is now able to better understand its operational priorities and take action that has a meaningful impact on the business, as well as ensure compliance through proper tracking.

Akbar stated “Nakisa is a true trusted business partner. We look forward to continuing our journey with them over the coming years.”

I want to thank the Nakisa team for all the support, effort and co-operation throughout. Our recommendation to other enterprises that are still on-prem is to upgrade to the cloud version. Like us they’ll be able to benefit from a solution that is user-friendly, easy to maintain and improve their business operations with continuous innovation and solution advancements.

Dini Hadiyanti

Senior Specialist for Business Systems at Trakindo

Looking for an enterprise-grade lease accounting solution?

Nakisa’s lease accounting software is designed to meet the complex needs of global enterprises. This comprehensive solution supports parallel compliance with IFRS 16, ASC 842, and local GAAP standards, ensuring that your organization remains in line with the latest accounting regulations. It offers robust functionality for managing lease data across various jurisdictions, simplifying the consolidation and reporting processes. With Nakisa's user-friendly interface, advanced analytics, and native bidirectional integrations with SAP ECC, SAP S4/HANA, and Oracle, large organizations can streamline and simplify their lease accounting operations, enhance transparency, and make more informed financial decisions. Whether you are handling real estate, equipment, land, or fleet leases, Nakisa provides the flexibility and scalability required to support your global lease portfolio. Discover more about Nakisa's lease accounting solution here, or request a demo tailored to your specific business requirements.