JAKARTA: President Joko Widodo signed the Presidential Decree No. 13/2018 on beneficial ownership, which enables authorities to identify the beneficial owners of firms and cooperatives, among other institutions.
The decree will help to curb money laundering and terrorism funding practices.
Experts have said it will also provide a legal basis for the tax authority to obtain additional data in its pursuit of recalcitrant taxpayers who benefit from their ownerships of corporations.
The new rule will require institutions like corporations, foundations, cooperatives, limited partnerships and firm federations to submit the identities of their respective beneficial owners to the authorities. They will also be required to update this information annually.
The deputy chairman of the Financial Transaction Reports and Analysis Center (PPATK) Dian Ediana Rae has said that the decree is also part of Indonesia’s efforts to join the Automatic Exchange of Information (AEOI), a global initiative to fight tax evasion and tax avoidance.
Before the issuance of the decree, Dian said the PPATK had only been able to identify the beneficial owners of companies through numerous investigation processes. Now, those who directly and indirectly receive benefits from corporations will be known from the start.
