Jakarta, CNN Indonesia – The Ministry of Energy and Mineral Resources (ESDM) confirmed that it would reject all investment plans in the mining sector if the proposed beneficial ownership were unclear.
The signs of rejection will be regulated in provisions related to beneficial ownership in the form of a Presidential Regulation, which will be issued at the end of this year. Hopefully, this rule of the game can facilitate investment in the Energy and Mineral Resources sector.
Energy and Mineral Resources Minister Ignasius Jonan said the government has the right to refuse investment plans from companies. “We do not receive unclear beneficial ownership,” he said, quoting a press release, Tuesday (24/10).
The openness of beneficial ownership is also claimed to be able to prevent tax evasion efforts, financing terrorism, and money laundering practices.
Beneficial ownership is the owner who receives direct benefits from an investment, who does not act as an agent, does not just borrow a name, and is not an intermediary company.
In fact, the Ministry of Energy and Mineral Resources has arranged business supervision of the Energy and Mineral Resource sector through the Minister of Energy and Mineral Resources Regulation Number 48 of 2017.
The regulation stated that oil and gas contractors or mining business licenses (IUP) wishing to take over the participating rights in the management of natural resources must conduct beneficial ownership disclosure.
The Presidential Decree on beneficial ownership disclosure will later improve Law Number 4 of 2009 concerning Mineral and Coal Mining, as well as Government Regulation (PP) Number 35 of 2004 concerning Upstream Oil and Natural Business Activities.
According to Jonan, the two provisions above do not yet regulate the transparency of extractive business ownership and licensing.
Jonan hopes that the synergy with the Directorate General of Taxes at the Ministry of Finance will be established for the benefit of the transparency of the beneficial ownership of the Energy and Mineral sector.
“To carry out beneficial ownership clearance, one of which must include a tax identification number in the administrative document so that all data is connected,” he added.
Previously, Minister of National Planning and Development (PPN/ Bappenas) Bambang Brodjonegoro said Indonesia was required to publish all beneficial owners in the mining sector or extractive industrial areas in 2020.
Bambang explained that some of the data that are required to be published are information regarding the name, domicile, and nationality of the person or group of parties controlling extractive industry companies. This will be published in the Extractive Industries Transparency Initiatives (EITI) report. (bir)