Issue :

Beneficial Owner Principle in Indonesia

On January 30, 2020 Ministry of Law and Human Rights announced related to the obligation to filling
the data of Beneficial Owner.

Legal Basis

Concerning this matter we refer the regulation of President Number 13 year 2018 (Perpres
13/2018)about Implementation of Principle of corporate Beneficiary and regulation of Ministry of
Law and Human Rights Number 15 year 2019 (PerMenkumham 15/2019) about the procedure for
implementing the principle of recognizing the beneficial owners of the corporation

According to Perpres 13/2018, accordance with international standards on prevention and

eradication of money laundering and terrorism financing criminal acts, it requires a firm regulation
and mechanism to identify beneficiaries of a corporation in order to obtain accurate, current, and
public information on a corporat beneficiaries. And as Article 3 Paragraph 1 Perpres 13/2018
regulate that a Corporation shall determine its Beneficiaries.

As PerMenkumham 15/2019 Corporation shall with right submit their Beneficial Owner to Ministry.
The Information about Beneficial owner shall submit when the corporation apply their petition for
establishment, registration and/or ratification of corporation.

As article 1 paragraph 2 Perpres 13/2018, A Beneficiary shall mean an individual who is entitled to
appoint or terminate the board of directors, board of commissioners, management, or supervisor on
a Corporation, entitled to control the Corporation, receive the direct and indirect benefits from the
Corporation, and the actual owner of the Corporation fund or shares, and/or an individual who
meets the criteria set in this Presidential Regulation.

Corporate Beneficiaries shall include at least 1 (one) personnel who meets the relevant criteria in
accordance with the type of the Corporation. As article 4 Paragraph 1 Perpres 13/2018, the criteria
of Beneficial Owner for company are follows:

a. owns more than 25% (twenty five percent) shares in the limited liability company as
contained in the articles of associations of the Corporation;
b. owns more than 25% (twenty five percent) voting right in the limited liability company as
contained in the articles of associations of the Corporation;
c. receives more than 25% (twenty five percent) of the annual profit obtained by the
Corporation;
d. is entitled to appoint, replace, or terminate members of the board of directors, and
members of the board of commissioners;
e. is authorized or entitled to influence or control the limited liability company without any
prior authorization from any party whatsoever;
f. receive benefits from the limited liability company; and/or
g. is the actual owner of the share ownership fund of the limited liability company.
For the number a to d is an individual who listed in the AoA. (Legal Owner) and for number e to g
is individual who not listed in AoA (Ultimate Beneficial Owner).

Summary

The Corporation shall submit the Information about their Beneficial owner. The corporation can
submit their information when submit when the corporation apply their petition for
establishment, registration and/or ratification of corporation. About this matter there still have
not any sanction if the corporation not submit this information. But maybe it will effect when
the corporation want to apply their application for amendment of AoA or other litigation related
to registration in Ministry of Law and Human Rights.

And for submit the information company shall filling this application:
So if the Beneficial owner is also company then to filling this data we should know and write the
Beneficial owner or shareholder of that company.

Example: