Beneficial Ownership Indonesia: A Handy Guide for You

A Handy Guide to Beneficial Ownership in Indonesia

Beneficial ownership in Indonesia has several definitions in different areas:

  • Banks: individuals who own funds or control the customers’ transactions
  • Payment systems: individuals who own funds or control the service users’ transactions
  • Non-bank financial services: individuals who own funds, control or authorise the customers’ transactions
  • Capital market sector: individuals who are entitled to certain benefits from the sector, control or authorise the customers’ transactions, or is the funds’ real owners

Who can be a Beneficial Owner in Indonesia?

As per the Presidential Regulation on beneficial ownership in Indonesia, every corporate in the country must have at least one beneficial owner.

The beneficial owners must meet the following requirements depending on the type of the legal entity:

1. Limited Liability Companies

  • Own more than 25% of the company’s shares
  • Have more than 25% of the company’s voting right
  • Have more than 25% of the company’s annual profits
  • Authorised to discharge, replace, or appoint commissioners or directors
  • Earn benefits from the company
  • Own the power to control or influence the company without acquiring other parties’ authorisation
  • The real owner(s) of the company’s shares

2. Associations

  • Own more than 25% of the association’s funding source
  • Receive more than 25% of the association’s annual profits
  • Authorised to discharge, replace, or appoint supervisors or executives
  • Own the power to control or influence the association without acquiring other parties’ authorisation
  • The real owner(s) of the funding source
  • Earn benefits from the association

3. Foundations

  • Own more than 25% of the foundation’s initial assets
  • Authorised to discharge, replace, or appoint supervisors or executives
  • Own the power to control or influence the foundation without acquiring other parties’ authorisation
  • The real owner(s) of the investment funds or other assets
  • Earn benefits from the foundation

What Are the Required Documents to Appoint a Beneficial Owner?

Businesses that wish to implement the beneficial ownership in Indonesia submit required documents regarding the beneficial ownership to relevant authorities for identification and verification.

The company shall submit all documents via the Corporation Administration Service System, or Sistem Pelayanan Administrasi Korporasi in the Indonesian language.

  • Full name(s) of beneficial owner(s)
  • Date of birth and place of birth
  • Citizenship
  • Passport, identity number, or driving license
  • Country of origin
  • Address of residency must be the same as on the identity card
  • Tax identification number
  • The relationship between the beneficial owner and the business

What is the Process of Appointing a Beneficial Owner?

1. A corporation or a relevant authority can set the corporation’s beneficial owner(s) based on the information acquired below:

  • Article of association
  • Authorities’ information
  • The business’ obligation documents
  • Documents of decisions of the general meeting of shareholders, the meeting of the board, the meeting of foundation organ, and the meeting of members
  • Private institutions’ information in regards to benefits provided to beneficial owners or fund transfer and placement
  • Results from the audit of the corporation conducted by authorities
  • Other documents including the proof of the true owners of funds, assets, or investments of the corporation

2. The company then determines the beneficial owners’ categories based on the obtained documents and information. The categories are as follows:

  • Beneficial ownership identified
  • Beneficial ownership not identified
  • Beneficial ownership not verified

How Cekindo can Assist

Establishing your beneficial ownership in Indonesia is just one call away with Cekindo. Our experts with a wide range of business and legal knowledge and experiences will take care of every requirement with your minimum involvement.

We make the whole process of your beneficial ownership in Indonesia simpler and faster for you. Let Cekindo help you in bringing your business ventures to life.

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