Access to the Legal Entity Administration System: New Regulations

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Indonesia’s Minister for Law and Human Rights has recently issued Regulation No. 29/2022 (the New Regulation).1 This regulation came into force on 19 December 2022 and replaced Regulation No. 24/20122.

The legal entity administration system (LEAS) is the government’s central [online] hub for the administration of limited liability companies. Access to LEAS is only available for those limited liability companies that have been incorporated in accordance with Indonesian law. Blocking access to LEAS is one of the sanctions that the government can impose if a limited liability company has breached its statutory obligations.

Companies that have their access to LEAS blocked will not be able to carry out their statutory obligation in relation to their governance and will be effectively stopped from continuing to legally operate. The government can unblock the access restriction in circumstances where the limited liability company complies with any direction or regulatory requirement.

The New Regulation aims to streamline the process of blocking and unblocking access to LEAS by introducing the implementation of electronic submission. If you have any questions or concerns, our lawyers are available to help with your compliance.

1 Regulation of the Minister for Law and Human Rights of the Republic of Indonesia Number 29 of 2022 on the Blocking and Unblocking of Access of Limited Liability Companies to the Legal Entity Administration System.

2 Regulation of the Minister for Law and Human Rights of the Republic of Indonesia Number 24 of 2012 as amended by Regulation of the Minister for Law and Human Rights of the Republic of Indonesia Number Regulation for the Minister of Law and Human Rights of the Republic of Indonesia Number 19 of 2017.