A Guide to Understanding BeneficialOwnership and Corporate Ownership Mapping for Communities

Beneficial Ownership transparency is a significant breakthrough in preventing various criminal activities, such as money laundering, terrorism, and corruption. In general, the transparency of Beneficial Ownership aims to reveal the identities of individuals who control a corporation and simultaneously plays a role in promoting the improvement of corporate governance.

The legal framework for the implementation of Beneficial Ownership in Indonesia was established in March 2018 through Presidential Regulation (Perpres) Number 13 of 2018 on the Implementation of Principles for Recognizing the Beneficial Owners of Corporations in the Prevention and Eradication of Money Laundering and Terrorism Financing Crimes. This regulation defines Beneficial Ownership, the duties and authorities of parties in implementing Beneficial Ownership disclosure, and the development of Beneficial Ownership data and information systems.

One year later, the Ministry of Law and Human Rights (Kemenkumham) issued Ministerial Regulation of Law and Human Rights (Permenkumham) Number 14 of 2019 on the Endorsement of Cooperatives; Permenkumham Number 15 of 2019 on the Procedures for Implementing the Principles of Recognizing Beneficial Owners of Corporations; and Permenkumham Number 21 of 2019 on the Procedures for Supervising the Implementation of Principles for Recognizing Beneficial Owners and Corporations.

The development of this Guide aims to provide a learning resource and knowledge for the wider community to get to know and understand Beneficial Ownership and its benefits. It also guides the analysis, mapping, and monitoring of corporate ownership in Indonesia. This Guide can be used by anyone, especially communities that will conduct research and monitoring of Beneficial Ownership. It can also serve as a reference in understanding the basic concepts of Beneficial Ownership. The Guide is accessible to all as it is written in simple language. The material in this Guide can be used in whole or part, depending on the needs.