President University
Internship Report for
PT. XX Indonesia
Ario Seto Sarwoko
Accounting Study Program – Taxation 2015 008201500006
June, 2019
LETTER OF APPROVAL
Hereby declare that internship report which written by Ario Seto Sarwoko during period internship in Finance Department, period January 3th until June 28th, 2019, all of the contents have been reviewed and it doesn’t consist of PT. XX Indonesia confidential matter.
This internship report can be used as public document.
Cikarang, June 28th, 2019
Approved by, Acknowledge by,
HR Representative Supervisor
ASH ADR
Manager HR Services Associate Tax Manager
Preface
First of all, I would like to express my sincerest gratitude to The Almighty God due to all of the blessings I have received during the internship program and which I am able to finish this internship report as the evidence of my internship program accountability. In writing this report, there are some parties involved in helping me in the process of deepening of myself work experience. For that with respect, I would like to thank:
• The Almighty God for all of the blessings.
• My family who always supports me in undergoing all the activities.
• Mr. ADR as the On-site Mentor and Supervisor of Taxation Division in Finance Department for all the guidance and direction during the internship program in PT.
XX Indonesia.
• All employees in Finance Department in PT. XX Indonesia for all the supports.
The internship report is written as the summary of the author’s activities during conducting internship program in PT. XX Indonesia period January – June 2019. This report is written to fulfill the requirements of completing internship program in PT. XX Indonesia. Hopefully, the report can satisfy the completion of internship program in PT. XX Indonesia and be fully beneficial for the public use.
Cikarang, June 2019
Ario Seto Sarwoko Author
CHAPTER I INTRODUCTION
1.1. Background of Internship
Internship program is a learning program designed for students to experience a real-life work environment to implement their insights and knowledge that they have learned in their schools or university, exploring the connection between academic life with the working environment in a company. Internship also might develop students before they come to the company and become the real employee. Skill, behavior, attitude, and diversity of company may change their life during internship.
The students will become well-prepared to join a company after they become fresh graduate. Benefit of the internship is one of the value of internship program in a university. The benefits are developing students such as skill, attitude, behavior, and relationship who join the company, help the students to be well-prepared with the real working activities, find their goal/ interest/ target during internship program and giving them experience before start working.
In the concern of the company side, internship program will be able to help them to look for high skilled labor with minimum cost by providing cooperation with the universities. During the internship program, the company through its appointed mentor and supervisor, not only can assess and examine the students’ competencies in order to fulfill universities’ requirement on evaluation score, but also be able to evaluate their capability to reach the working standard of the company itself.
1.2. Purpose and Objectives
• Purpose of Internship: The primary purpose of an internship is to provide a student with real-life work experiences related to the program study.
In general, an internship is a program which bridges the gap between the academic environment and future work environment. In the real working environment, students will figure out problems by themselves and exercise to solve the problems
using all skills and knowledge they had studied before. Hence, it will develop an understanding of an organization's various management and technical skills, the communications techniques and the decision-making processes. Besides, many companies prefer students who have previous work experience and the internship provides that. Students that participate in an internship are generally more confident and more qualified when seeking future employment.
• Objectives of Internship: In general, the objectives of internship program are to develop students’ abilities to achieve performance goals based on the responsibilities and duties, to experience real working within a group or team, to enhance the cooperation between university and related company/ organization to educate and produce good quality graduates, to initiate decision-making and problem-solving skills through the formulation and evaluation of alternative solutions to the problems and approaches to issues appropriately, and gain an understanding of the overall organizational structure and the company’s management philosophy and culture as well as their relative position to other local, national, or global competitions in the market.
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CHAPTER II COMPANY PROFILE
2.1. History of PT. XX Indonesia
PT. XX Indonesia is one of facility of XX Inc. Based in El Segundo USA, XX Inc. is the largest toy manufacturer in the world. XX was formed in 1945, doing a range of wood products such as picture frame. The company name came out from the abbreviation of the founders; HM and E and RH. By the time E also did his side job;
creating dolls from wood scraps. Not long time then, HM sold out to his partner and the company has emphasized to toys production.
XX sold toys including wood and musical toys in 1950. Through television advertising, they expertly market their products starting in 1955. In 1959, XX produced “B” doll, a three-dimensional doll inspired by RH’s daughter name. “B” doll was really a breakthrough in the industry that fascinated the young girls as it led XX to forefront of the toy industry up to now.
XX Inc. became a publicly owned company in 1960 which then 3 years later XX Inc.
had its common stock listed on the New York and Pacific Coast Stock Exchange. ”B”
doll was not enough to make company thriving. XX Inc. entered the educational preschool market in 1965 and three years later, “HW” the toy marketed for boys, was firstly produced. That was another spectacular success making XX Inc. the world’s largest toy company by the end of the decade. Gradually, XX Inc. never stops to introduce innovations through new various products.
In 1992, XX Inc. established their subsidiary in Indonesia named PT. XX Indonesia to fulfill market demand from whole world. PT. XX Indonesia is located in Jababeka Industrial Estate, Cikarang. They have 1 plant to support operation, East Plant. East Plant is the center of management and the main operations and also costumes and accessories which was included after they shut down the West Plant. PT. XX Indonesia is the largest facility for dolls manufacturing of XX Inc. PT. XX employs more than 25,000 people in 36 countries and sells products in more than 150 nations throughout the world.
2.2. Objectives of PT. XX Indonesia
• Purpose: “We inspire wonder in the next generation to shape a brighter tomorrow.”
• Promise: “We create the experiences that capture kid’s hearts, open their minds and unlock their potential through play.”
• Values:
•
W
: What if? Why not?•
O
: One team.•
N
: Nimble.•
D
: Driven.•
E
: Entrepreneurial.•
R
: Respectful.2.3. Organizational Structure
As chart shown above, Finance and IT Department of the company has their own director.
Finance is divided into 3 divisions which are:
PRESIDENT DIRECTOR
FASHION DOLLS MANUFACTURING SENIOR DIRECTOR
QUALITY MANAGER IN CHARGE
MATERIALS AND LEAN DIRECTOR
FINANCE & IT DIRECTOR
ENGINEERING DIRECTOR
HUMAN RESOURCES DIRECTOR
EHS & CA MANAGER
DIE CAST MANUFACTURING
DIRECTOR
• General Accounting: This division is responsible to control and maintain the activity of trading and also the flow of cash that company has. The sub-divisions are Payroll, Taxation, Account Payable, and Fixed Asset.
• Cost Accounting: This division is responsible to analyze the inventory of financial activity that is happening in the company and also prepare the report of sales budgeting for the upcoming months and upcoming year.
• Information and Technology (IT): This division is responsible to maintain the accounting system that company has.
2.4. Core Organization Activity
XX Inc. core activities are in the manufacture premium toys, this company is one of the world’s largest toys company. XX Inc. designs, manufactures, markets, and distributes a wide variety of toy products in 150 countries. The company's toys are produced in company-owned manufacturing facilities in China, Indonesia, Malaysia, Mexico, and Thailand, as well as through independent contractors located in the United States, Europe, Mexico, the Far East, and Australia.
XX Core business focused on toys in the first XX entered the picture frame business using scrap plastic and wood. With the leftover wood slats and plastic, and designed dollhouse furniture the founder formed a simple sales organization, and the company was off to a winning start. In 1959 founder made toy industry history with the introduction of the B doll. Y marketed B as an insatiable consumer of clothes and accessories, which were sold separately. Next the company provided her with a boyfriend, the K doll.
XX's spread their business not only focused in B and emphasis on other core brands, such as HW die-cast vehicles, large dolls, and See 'N Say educational preschool toys, provided a string of continuous hits. XX also pushed aggressively into other areas of the toy business, including plush toys, games, boys' action figures, and activity toys, which comprised 46 percent of the total toy market.
PT. XX Indonesia is just responsible to manufacture the toys and all the finished goods will be exported to XX trading company that responsible for the sales and distribution of the toys. Although PT. XX Indonesia manufacture the toys in Indonesia but PT. XX Indonesia cannot directly sell the finished goods to the market in Indonesia. It is because PT. XX Indonesia is subcontractor (jasa maklon) of XX Inc. PT. XX Indonesia just have a license from the government to 100% export their products, not for local sales purposes. All the products sold in Indonesian market is imported overseas.
2.5. Product
PT. XX Indonesia produces Fashion Dolls for B dolls and the accessories. Overall, the company’s products include a number of core toy lines, including B dolls, clothing, and accessories; HW toy die cast vehicles; WB merchandises, including HP, Bt, S, and LT products; the AG Collection of Books, dolls, clothing, and accessories; F-P infant and preschool toys, including LG figures and play sets and toys based on various licensed characters from sources such as SS; and games such as S and U.
CHAPTER III
INTERNSHIP ACTIVITIES
The author was conducting the internship activities at PT. XX Indonesia which is addressed at Jalan Industri Utama, Blok SS, Kav. 1–3, Cikarang, Bekasi. The internship period is from January until June 2019. The author was placed in Finance Department, specifically in Taxation Division.
The author (intern) worked every Monday until Friday, from 08:00 a.m. - 05:00 p.m. These are the summary of daily activities done in PT. XX Indonesia during the internship program:
• Invoice Collection: PT. XX Indonesia receives invoice every day. There are two types of invoice which are NPPO (Non Production Purchase Order) and PPO (Production Purchase Order). PPO is all the direct materials that directly related to the production of the toys, example: String, plastic seeds, fabric, and all the materials that being subcontracted. While, NPPO is all the indirect materials or service that not directly related to the production of the toys but support all the operational activities in the plant, example: The employees’ uniform, electricity, stationaries, machine, computer hardware, etc. Every invoice that comes must be separated into NPPO and PPO, and then it will be input in box file alphabetically. Also, tax invoice can be registered no longer than 3 months, after the 3 months of the date of invoice they will have to be revoked.
• Scrap sales: Besides producing toys, PT. XX Indonesia is also doing sales of their scrap. The invoice of scrap sales are coming from Export – Import division to Finance Department. The scrap sales will be recorded in the end of the month. To record scrap sales data I have to reconcile with the PIB data that Export – Import division has.
• Vat Out: Vat out is a continuation of scrap sales. In every sales of the scrap will be include 10% of vat. As the seller PT. XX Indonesia has to issue the tax invoice for the buyer. The tax invoice can be created through Tax Authority program named E-Tax Invoice App. This program is online connected with General Directorate of Tax’s server.
• PEB–PEJ: PEB or Notifications of export of goods. It is a kind of document which an evidence of export transaction of PT. XX Indonesia. To make PEB we need to reconcile the export data from Export – Import division then create the form that already given by the tax authority. If there is an audit from the tax office regarding the export transaction, the PEB need to be matched with the PEJ document or Notifications of export of services.
• PPH 22: PPH 22 or Income Tax Article 22 regarding import. Every early month I have to record PPH 22 from sales of PT. XX Indonesia. It required two documents, Billing code and BPN or Evidence of State Receipts. The total amount of PPH 22 has to match with the general ledger.
• PPH 23: PPH 23 or Income Tax Article 23 is a tax withheld on income derived from capital, delivery of services, or gifts and rewards. The author has to process and manage the delivery of PPH 23 SPT (Bukti Potong) periodically (monthly) to be sent to related PT. XX Indonesia’s vendors.
• Vat In: Almost in every purchasing of transactions of PT. XX Indonesia whether it is goods or services there is amount of vat on it which is called as vat in. In the invoice there are some documents which one of them is tax invoice. There are several kinds of tax invoice, differentiated by the number of tax invoices, which are 01 or 04 and 07 or 08. Number 01 or 04 is creditable but 07 and 08 is un-creditable. To record the tax invoice can use scanner that connected with E-Faktur App. The tax invoice can be recorded maximum 3 months after the date of issuance.
CHAPTER IV POINTS LEARNED
During internship, the author (intern) can develop skills in the application of theory to practical work situations. In PT. XX Indonesia, the intern learned directly how the theory is implemented, it helps intern to gain better understanding about the theory. By the existence of
this internship program, the intern is really prepared to enter into full-time employment. The intern also gains better comprehension about manufacturing industry. It helps intern to know how a manufacturing company manage and control their financial flow, especially in taxation area.
Realizing that one of the purposes of internship is to obtain key learning/ lesson learned by experiencing the real working experience through internship, here are some points learned that has been successfully obtained by the author:
• Internship program has been very valuable experiences. From the internship program, the author has learned how real working experience is and to implement the entire course given from my university. With the assist from an advisor professionally, the author is able to get career experience and self-development and motivation.
• The author can practice the applicable knowledge from related courses from university during internship to get the job done well in the workplace.
• The author has increasingly knowledge and experiences in communication skills with people from various levels, and also about the hospitality and task management.
• The author has knowledge for personal strength and weakness for how it might affect author’s performance, how to overcome weaknesses, and how to enhance strengths appropriately in the workplace.
• The author learned how to adapt in the working environment, how to communicate and behave to colleagues with different characters and levels, how to develop self- management, be discipline, and take responsibility of the duty well.
CHAPTER V
CONCLUSION AND RECOMMENDATION
5.1. Conclusion
The goal of internship program is to introduce the students and allow them to experience the real working environment by involving directly in some business
projects in the related company. It is very beneficial to prepare the students improve their skills and discipline, such as time management, self-development, teamwork, and communication skills, for future career.
I have very kind and humble mentor and supervisor which they always give me valuable advice and guidance to get the job done well. Also, other colleagues in Finance Department are always helpful and supportive during the period of my internship which we have good relation in the office. The working culture in workplace is very good, in which we treat each other like our own family and always be helpful to one another. PT. XX Indonesia is a very good company for having internship experience there due to the potential tasks and responsibility that we will have, and also for the significant increase of knowledge and skills during the internship program which is very useful for facing the real working challenges and having better future job career.
5.2. Recommendation
It is recommended for PT. XX Indonesia that it will better if PT. XX Indonesia, specifically in Finance Department, to give more opportunity to the intern to have internship experience not only dominantly in Taxation Division, but also in Cost Accounting, Payroll, or Account Payable Division. And also, it is suggested that the intern needs to be explained about the company’s business cycle and financial cash flow, so that the intern can properly understand how the business or system worked in the company, especially in Finance Department.
