, Jakarta The government encourages transparency of beneficiary company ownership (Beneficial ownership/BO). It is to prevent money laundering and corruption eradication.

Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro said that the government has a high commitment to preventing and eradicating corruption, the crime of money laundering. One manifestation of this global commitment is to combat the abuse of companies’ roles and their trusts as a means of corruption and increase the transparency of companies that receive economic activities.

“Transparency is a very strategic and cross-sectoral issue, especially related to the prevention and eradication of corruption, money laundering, terrorism funding, state revenue, extractive industries, and investment,” said Bambang, when opening the Global Conference on Beneficial Ownership, In the Senayan area, Jakarta, Monday (23/10/2017).

According to Bambang, to encourage Beneficial ownership transparency in Indonesia, the collaboration of various stakeholders is essential. A series of meetings involving National Development Planning Agency (Bappenas), the Coordinating Ministry for Economic Affairs, the Ministry of Finance, the Ministry of Energy and Mineral Resources, the Ministry of Law and Human Rights, the Ministry of Foreign Affairs, the Office of the Resident Staff, the Reporting Center and Financial Transaction Analysis, Corruption Eradication Commission (KPK), Financial Services Authority, Bank Indonesia, academics, professional organizations, Publish What You Pay Indonesia, Transparency International Indonesia, and the Natural Resource Governance Institute to discuss the importance of Beneficial Ownership has been done.

“The progress of implementing Beneficial Ownership transparency in Indonesia has received appreciation from the Extractive Industries Transparency Initiatives (EITI) International, a global standard for transparency in the extractive sector,” he explained.

Bambang continued, Beneficial Ownership disclosure is part of the anti-Revenue Scouring and Profit Transfer principle framework, known as Base Erosion and Profit Shifting (BEPS). The push for information disclosure occurs almost worldwide, especially in developed countries, to catch taxpayers who place and transfer their tax obligations in tax havens.

“The global trend is changing, so all countries agree to fight against the practice of tax evasion and mostly practiced in tax havens. The same is done by Indonesia, which has committed to the automatic exchange of information (AEoI) starting in September 2018 and will continue to be committed to supporting and participating in the program. Furthermore, in a movement driven by global forums related to taxation interests, “he said.

Indonesia was also appointed as the host for the Global Conference on Beneficial Ownership because of the various advances the government has made in promoting Beneficial Ownership transparency. This eighth global conference was held on 23-24 October 2017 at the Fairmont Hotel, Jakarta. Participants of this conference were delegates from 52 EITI member countries, Ministries of institutions, State-Owned Enterprises, local governments, academics, development partners, international organizations, professional organizations, civil society organizations, and the mass media.

As the host of the global conference, Indonesia has the opportunity to learn and take advantage of Beneficial Ownership practices in various other countries and share the obstacles and challenges it faces, primarily related to strengthening the required regulations.

“This conference is part of a broader corruption eradication agenda and part of the national economic development priorities. Indonesia is also preparing to become a member country of The Financial ActionTask Force, and there will be a Mutual Evaluation Review by the Asia Pacific Group on Money Laundering, “concluded Bambang