We commit to exploring the establishment of public central registers of company beneficial ownership information.
Themes: Beneficial ownership
Last updated: December 2020
Concrete: Other | New: Other | Ambitious: Other
BO portal register
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 Plan within the Indonesian Strategy of 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
Currently, the Ministry of Law maintains a BO portal (https://ahu.go.id/pencarian/profil-pt) where company information, including their legal ownership, can be accessed. Until June 2020, the BO portal can only be accessed by Ministries / Agencies and corporations that already have accounts in the system, while the public at large cannot yet access.
Utilization of the BO database by the Ministry of Energy and Natural Resources, Ministry of Agriculture, Ministry of Agrarian Affairs and Spatial Planning / National Land Agency, and Ministry of Finance has also not been implemented because data is not integrated into each of these agencies with the BO system. At present, the utilization of BO data has only been running in PPATK, where from June 2019 to April 2020, a total of 2,009 information has been accessed by PPATK, with the use of 33 data.
The implementation of BO has still hindered because there are still a minimum number of companies that report its BO. This situation is mainly due to the BO's information disclosure data, which is still self-reporting, which has not been accompanied by a precise corporate compliance mechanism and data verification mechanism.
Even though the Article 19 of the Presidential Regulation on BO requires that BO be reported no later than 7 (seven) working days after the Corporation receives a business permit/registered mark from the authorized agency/institution, the IT systems are still halting to encourage the company compliance to report BO information.
Moreover, there has not been a particular government agency that collects BO for foreign companies until now. BO information from foreign companies operating in Indonesia should be recorded in the BO portal register because foreign companies operating in Indonesia are usually or required to form legal entities in Indonesia. Hence, it is automatically covered by the Presidential Regulation on BO’s obligations. The centralized registration process managed by the Ministry of Law and Human Rights is also considered ineffective because the data collected is only limited to 1 layer of corporate ownership so that the ultimate owner of the company cannot be found.
Updated: October 31, 2020
In the Presidential Decree 13/2018, every corporation is required to disclose its beneficial owner. Article 29 outlines that everyone can make a request for information about the beneficial owners of corporations to the authorities/law enforcement agencies. In Indonesia, a Beneficial Owner is an individual who can appoint or dismiss directors, boards of commissioners, management, coaches, or supervisors of a corporation, has the ability to control a corporation, is entitled to and / or receives benefits from a corporation, directly or indirectly, is the true owner from corporate funds or shares and / or meet the criteria referred to in this Presidential Regulation. While there is a definition of BO, the information is being collected and shared only upon request, there is still no public register. Also the KPK marks this under the "to do" tab, so we hope to see this happening in the future.
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." Article 29 outlines that everyone can make a request for information about the beneficial owners of corporations to the authorities/law enforcement agencies.