In a strategic move to enhance compliance and data accuracy, Indonesia has introduced New Regulation* on the supervision of beneficial ownership identification. This New Regulation, effective 4 February 2025, is a part of the government’s broader efforts to combat money laundering and terrorism financing.

Under the New Regulation, Corporation** must implement the beneficial ownership identification principle through three key stages, by conducting identification and verification, determining the Corporation’s beneficial owner, and submitting the relevant information to the Minister of Law (Minister).

The New Regulation also expands the scope of entities subject to beneficial ownership reporting by including civil partnerships (persekutuan perdata). Additionally, Corporation are now required to update their beneficial ownership information to the Minister at least once a year.

A key distinction from the previous regulations is that the Minister now has the authority to determine a different beneficial owner than the one reported by the Corporation, based on verification findings and data analysis.

Given these obligations, it is essential for Corporation to determine and report their beneficial owners periodically with accurate information. Failure to comply may result in administrative sanctions imposed by the Minister, including warnings, blacklisting, and the restriction of access to the general legal administration online system.

*Regulation of the Minister of Law Number 2 of 2025 on Verification and Supervision of Beneficial Owners of Corporation

**Corporation means Limited Liability Company, Foundation, Association, Cooperative, Limited Partnership, General Partnership and Civil Partnership