Indonesia as part of the International community has a high commitment in the prevention and eradication of corruption as well as efforts to eradicate the crime of money laundering. One manifestation of this global commitment is to combat the misuse of the role of companies and their trusts as a means of corruption and to increase the transparency of the ownership of companies beneficiaries (Beneficial Owners) from economic activities.
In a press release with Bappenas, the Coordinating Ministry for the Economy, KPK, EITI and PWYP received by KlikLegal, it was stated that beneficial ownership transparency (BO) is a very strategic and cross-sectoral issue. The prevention and eradication of corruption, money laundering, terrorism financing, and strengthening state revenues from extractive industry taxation and investment are clearly related sectors.
As a member of the G20, Indonesia has agreed on High-Level Principles on Beneficial Ownership Transparency which emphasizes the importance of transparency and the availability of BO information that is accurate and can be accessed by authorized institutions. Since 2015, KPK as the focal point for the G20 Anti-Corruption Working Group (ACWG) has coordinated the relevant Ministries / Institutions and produced written plans that have been submitted at the 2015 G20 ACWG. Furthermore, in 2016-2017, KPK conducted a study on transparency of beneficial ownership .
BO’s openness is part of the principle framework for anti-revenue scouring and profit transfer, also known as Base Erosion and Profit Shifting (BEPS). The encouragement of information disclosure is happening almost all over the world, especially in developed countries to pursue taxpayers who put and transfer their tax obligations in tax haven countries. Global trends are changing so that all countries agree against the practice of tax evasion and embezzlement that is mostly practiced in tax havens. The same thing is also done in Indonesia, where previously it was committed in the automatic exchange of information (Automatic Exchange of Information / AEoI) starting in September 2018 and will continue to be committed to supporting and participating in global forum-driven movements related to taxation interests.
In extractive industries, there is a global standard for transparency of state revenue from the extractive sector, known as the Extractive Industries Transparency Initiative (EITI). In Indonesia, this initiative of transparency of state revenue from extractive industries began in 2007 when it expressed support for EITI. Presidential Regulation on Transparency of State Revenues and Regional Revenues obtained from extractive industries was signed in 2010.
As an EITI member country, Indonesia published the BO transparency Roadmap in early 2017. The publication was carried out to meet the requirements of the 2016 EITI Standard which obliged implementing countries to publish the BO Roadmap at the end of 2016. The next stage is the implementation of BO disclosure steps starting in 2017. In 2020, Indonesia must be able to publish the name, domicile, and citizenship of the person or group of people who control extractive industry companies in the EITI Report.
BO transparency is also very closely related to investment. Investor confidence in financial markets is very dependent on the availability of accurate data that provides transparency regarding BO and the control structure of a publicly listed company. The importance of transparency is not only for listed companies, but also for closed companies, especially when dealing with foreign companies that have compliance standards regarding transparency of information about BO from their partners.
However, the existence of BO and large voting rights have an incentive to regulate company assets and strengths for the benefit of certain investors. BO transparency is not only related to company development but more is in the context of law enforcement.
Government efforts to encourage investment ease while growing trust for investors must be accompanied by efforts to bring investments with integrity and quality. Do not let the convenience of investing be used as a space for corruptors to take personal advantage. One of the efforts made is to encourage disclosure of who is the real owner of a company that will invest. Beneficial Ownership transparency can provide further benefits for companies operating in Indonesia, including reducing financial risk.
In an effort to encourage BO transparency in Indonesia, collaboration between various multi-stakeholders is needed. A series of meetings were held involving the Coordinating Ministry for Economic Affairs, Bappenas, Ministry of Finance, Ministry of Energy and Mineral Resources, Ministry of Law and Human Rights, Ministry of Foreign Affairs, Presidential Staff Office, PPATK, KPK, OJK, BI, academics, professional organizations, Publish What You Pay ( PWYP) Indonesia, Transparency International-Indonesia (TII), and Natural Resource Governance Institute (NRGI).
The progress of implementing BO transparency in Indonesia has received appreciation from EITI International. EITI International requested the Government of Indonesia to host its first BO global conference. The Global Conference was held October 23-24 2017 at the Fairmont Hotel, Jakarta. Participants in the conference were delegates from 52 EITI member countries, Ministries / Institutions, SOEs (BUMN), Regional Governments, academics, development partners, international organizations, professional organizations, civil society organizations, and mass media.
As host of the Global Conference, Indonesia has the opportunity to learn and take advantage of BO practices in various other countries, sharing obstacles and challenges faced, especially strengthening the necessary regulations, while strengthening commitments to regulate BO through a strong regulatory protection that covers all sector. Extractive industries are the first sector.
In his remarks, Minister of National Development Planning / Head of Bappenas, Bambang Brodjonegoro, said that BO’s openness was important to support the Government of Indonesia’s programs, including AEoI. Bambang said that as one of the 15 largest economies in the world in terms of GDP, Indonesia’s tax ratio is still very low and BO’s transparency can help increase the level of the ratio.
“Our tax ratio is only slightly above 11 percent, very low. Even when compared to our neighbors in ASEAN, let alone OECD member countries, “said Bambang, Monday (10/23).
“And one of the reasons for the low tax ratio is because we [Indonesia] cannot pursue assets that are stored in many places around the world,” Bambang added.
However, Bambang also stated that global commitment is very important so that the effort to open BO information can be successful. “I think global commitment is very important. And not only for the majority of countries, but must be supported and followed by all countries in the world, “he said.
“If not […] there will be a number of countries that are not committed and take personal advantage of all this,” Bambang concluded.
Sumber: Kliklegal