Contracts Disclosure and beneficial ownership transparency are two transparency instruments of corporations that are very important in efforts to prevent corruption, money laundering, tax compliance and other criminal acts. As an EITI member country that will apply contract disclosure standards and also as a member of the FATF which also applies the beneficial ownership transparency clause, Indonesia plays an important role. Moreover, Indonesia already has a Presidential Decree which mandates the implementation of these two initiatives.

This policy brief examines how contracts disclosure of beneficial ownership transparency in the extractive industry sector in efforts to prevent corruption, money laundering, and other forms of crime, including tax crimes. This brief also examines how Indonesia should implement both instruments to save state revenues through preventing tax avoidance practices by corporations. As well as seeing the effectiveness of the two instruments, it can be encouraged, both in terms of policies, practices, and improving standards in the future.