Ministry of Law Revises Regulation on Corporate Beneficial Ownership

The Ministry of Law, through the Directorate General of Legal Administrative Affairs (“Ditjen AHU”), is currently preparing amendment to Presidential Regulation No. 13 of 2018 (“Perpres 13/2018”) on the Implementation of Know-Your-Beneficial Owner Principle by Corporations for the Prevention and Eradication of Money Laundering Crimes (“TPPU”) and Terrorism Financing Crimes (“TPPT”). Ultimately, the concept of Beneficial Ownership (“BO”) will be expanded not only to address issues related to TPPU and TPPT, but also to other sectors such as taxation and licensing.

“Because its scope is broader than that of Regulation of the Minister of Law No. 2 of 2025 on the Verification and Supervision of Corporate Beneficial Owners (“Permenkum 2/2025”), it could potentially be elevated to the level of a Law or Government Regulation, as the proposal has already been included in the 2026 regulatory drafting program (Progsun),” said Adi Kurniawan, Head of the Individual Corporation and Beneficial Ownership Working Team at Ditjen AHU, to Hukumonline.

In addition to changes to the BO concept, other provisions that will be discussed relate to the use of beneficial ownership data for law enforcement purposes. This also includes the leading sector for BO, given that beneficial ownership is currently limited to the scope of each respective agency.

“So, there are many aspects that need to be changed, including how the verification mechanism will work. Then there’s also the matter of sanctions, which have not yet been clearly defined,” he explained.