If you only hold minority shares in a company, can you be
considered a beneficial owner of that company from an Indonesian
regulatory perspective? If the answer is "yes," should
your name be reported to the Indonesian authorities? Up to what
level of ownership is a company required to disclose the identity
of its owners? And what are the sanctions for not complying with
beneficial ownership disclosure and reporting obligations?
These may well be your questions when asked to complete a
disclosure letter identifying the beneficial owners of Indonesian
companies.
In an April 2018 bulletin we discussed some of the key
provisions of Presidential Regulation No. 13 of 2018
("PR 13/2018"), including the test to
identify a beneficial owner of a corporation. In this bulletin we
discuss two 2019 regulations of Indonesia's Ministry of Law and
Human Rights ("MOLHR") that relate to PR
13/2018:
