Information collection, sharing, availability
We commit to improving the transparency of the beneficial ownership of legal persons and legal arrangements to prevent misuse of these entities and arrangements for corruption, tax evasion, terrorist financing and money laundering.
Themes: Beneficial ownership
Last updated: December 2020
Concrete: Other | New: Other | Ambitious: Other
Ministry of Energy and Mineral Resources Decree 1796 K/30/MEM/2018 on Guidelines for implementation of application, evaluation, and issuing of licenses in mineral and coal mining
Beneficial Ownership Section within the Indonesian National Strategy on Corruption Prevention 2019
Presidential Regulation Number 13/2018: Implementation of Know your beneficial owner principle by corporations to prevent and eradicate money laundering and financing of terrorism
Indonesia has committed to implement the G20 high-level principles on beneficial ownership transparency, to improve national regulations to establish comprehensive legislation on beneficial ownership (BO), enhance compliance with BO disclosure, and integrate databases. In 2018, the government strengthened its commitment to full disclosure of company ownership through the issuance of Presidential Regulation 13/2018 and the Ministry of Energy and Mineral Resources Decree 1796 K/30/MEM/2018.
Under these regulations, companies are required to report their beneficial owners to the Ministry of Law, through the company register and their license application procedures. Beneficial ownership disclosure is also part of the 2018 National Strategy to Prevent Corruption. BO transparency is stated as being a vital aspect of the country's Open Government Partnership objectives. Currently, BO is also being used to avoid monopoly and prevent conflict of interest in the ownership of public resources, such as in Mining Business License (IUP) ownership.
Several problems have surfaced in the development of BO transparency. The issues include the difficulty of integrating beneficial ownership data between related Ministries and the online AHU system (Ministry of Law and Human Rights) company registration system and establish a verification mechanism and sanctions on the registration of the beneficial ownership. There are also still different perceptions between companies about disclosure of BO data that should be stated on the document, such as BO define as a shareholder and not the real beneficiary owner.
Civil society groups and the National Corruption Joint Secretariat are also currently encouraging the Ministry of Law and Human Rights to design a registration bank for BO data that can be accessed by the public. Nevertheless, until now, these efforts still get political and bureaucratic obstacles. The BO database needs to be developed to accommodate the BO's transparency system, which should not be separated from the register of business entities owned by the AHU Director-General. Also, the Government needs to hold more massive outreach about the importance of BO information transparency because it is still low.
Updated: October 31, 2020
To prevent and eradicate corruption, specifically the crime of money laundering and terrorism financing, the government has issued the Presidential Regulation Number 13 of 2018, which includes the Implementation of Know your Beneficial Owner Principle by all Indonesian corporations. In the Regulation 13/2018, every corporation is required to disclose its beneficial owner. The KPK has also provided a strategy for the next steps in relation to this thematic are, which can be found in the evidence section. Specifically, from page 7 to 11, the KPK states all that still needs to be done to enforce a strong BOT system, including strengthening and utilization of BO database, public access to BO database, and corporate compliance.
Peer reviewer: 1
Updated: April 30, 2020
"To prevent and eradicate corruption, specifically the crime of money laundering and terrorism financing, the government has issued Presidential Regulation Number 13 of 2018 on the Implementation of Know your Beneficial Owner Principle Regulation Number 13 of 2018 on the Implementation of Know Your Beneficial Owner Principle by Corporations to Prevent and Eradicate Money Laundering and Financing of Terrorism (Regulation 13/2018). In Regulation 13/2018, every corporation is required to disclose its beneficial owner. "