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Feb

01

The Blocking of Corporations that Have Not Reported Their Beneficial Ownership in Indonesia

According to Presidential Regulation No. 13 of 2018 regarding the Implementation of the Principles of Recognizing Beneficial Ownership of Corporations to Prevent and Eradicate the Criminal Acts of Money Laundering and Terrorism Financing (“PR 13/2018”), each corporation is required to determine the Beneficial Ownership (“BO”) of the corporation. A corporation is an organized group of people and/or assets, a legal entity or a non-legal entity, which includes a limited company, foundation, association, cooperative, limited partnership, firm, and other forms of corporations. Furthermore, the beneficiary is an individual, whether an Indonesian citizen or foreigner, who can appoint or dismiss directors, commissioners, administrators or supervisors in the corporation, has the ability to control the corporation, is entitled to and/or receives benefits from the corporation whether directly or indirectly, is the owner of the funds or shares of the corporation and/or meets the criteria as referred to in the PR 13/2018 and the applicable regulation in Indonesia.

The detailed requirements of BO criteria for a limited company as governed in Article 4(1) PR 13/2018, are:

  1. owns more than 25% of shares in a limited liability company as stated in its articles of association;
  2. owns voting rights of more than 25% in limited liability companies as stated in its articles of association;
  3. receive a profit of more than 25% of the annual profits earned by the limited liability company;
  4. possess the authority to appoint, replace, or dismiss members of the board of directors and members of the board of commissioners;
  5. possess the authority or power to influence or control a limited liability company without having to obtain authorization from any party;
  6. receive benefits from a limited liability company; and/or
  7. is the actual owner of the funds for the ownership of limited liability company shares.

Aside from determining its BO as stated in Article 3 PR 13/2018, a corporation is also obligated to:

  1. Appoint its employee(s) to implement the principles of recognizing its BO and to provide relevant information regarding the BO to the authorized institution (Article 14).
  2. Provide the authorized institution with the accurate information about the BO accompanied by a statement letter by the corporation indicating that the information is correct (Article 18).
  3. Update the information regarding the BO on an annual basis (Article 21).
  4. Administer documents related to the BO within a minimum period of five years from the corporation's date of establishment (Article 22).

By failing to fulfill these obligations, a corporation is subject to sanctions under the provisions of the laws and regulations, as governed by Article 24 PR 13/2018. As for now, the only apparent penalty is, according to the Directorate General of Public Legal Administration (Direktorat Jenderal Administrasi Hukum Umum/Ditjen AHU), a corporation that has not provided its BO data is subject to temporary access blockage to the Legal Entity Administration System (Sistem Administrasi Badan Hukum) until the corporation fills in its BO data through the website https://bo.ahu.go.id/site/login.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled a lot of similar matters, with many experienced and professional corporate lawyers and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us atinfo@schinderlawfirm.com for further consultation.

Author: Dewi Susanti

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Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.