Client Alert · Corporate Law · Prasetyo Law Office · 2026
Legal Basis
- Presidential Regulation No. 13 of 2018 (Perpres 13/2018)
- Minister of Law Regulation No. 2 of 2025 (Permenkum 2/2025)
- Financial Services Authority Regulation No. 8 of 2023 (POJK 8/2023)
Introduction
The concept of Beneficial Owner (BO) has become increasingly significant in Indonesia’s legal and financial landscape. Driven by FATF international recommendations, identifying and disclosing beneficial ownership is now a key instrument in preventing money laundering and terrorism financing.
Definition of Beneficial Owner
FATF defines a beneficial owner as the natural person who ultimately owns or controls a customer, or on whose behalf a transaction is conducted — encompassing ultimate effective control.
Under Perpres 13/2018 (Article 1(2)), a Beneficial Owner is a natural person who can appoint or dismiss directors/commissioners; has ability to control the corporation; receives benefits from the corporation directly or indirectly; or is the actual owner of funds invested in the corporation.
Corporations Subject to BO Obligations
Under Perpres 13/2018, obligations apply to: PT, Yayasan, Perkumpulan, CV, Firma, Cooperatives, and other business entities.
Criteria for Identifying a Beneficial Owner
A natural person qualifies as BO if they meet one or more of the following:
- Owns shares of 25% or more (direct or indirect)
- Holds voting rights of 25% or more
- Receives 25% or more of profits or assets upon dissolution
- Has authority to appoint or dismiss directors/commissioners
- Has ability to control the corporation
- Receives benefits from corporate activities
- Is the actual owner of funds invested
Practical Implications and Corporate Obligations
Under Permenkum 2/2025, the approach shifts from self-declaration to active verification and ongoing monitoring. Key obligations:
- Identification — identify BO at establishment and update upon any structural change
- Reporting — submit BO information to Ministry of Law via AHU Online
- Documentation — maintain complete supporting documentation
- Access — provide authorized parties access to BO information
Sanctions for Non-Compliance
Failure to fulfill BO obligations may result in: written warnings, suspension of licensing activities, revocation of business licenses, and criminal sanctions for intentional concealment.
Conclusion
The BO framework under Perpres 13/2018, Permenkum 2/2025, and POJK 8/2023 establishes comprehensive corporate transparency requirements. For PT PMA, understanding beneficial ownership at establishment is a fundamental aspect of legal certainty in Indonesia.
This article is for general legal information and educational purposes only.
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