Implementation of Beneficial Ownership Data Disclosure (ID0136)

Brief Description of the Commitment

This commitment seeks to provide up-to-date beneficial ownership data through verification and utilization of beneficial ownership data

Problem Definition

1. What problem does the commitment aim to address? Indonesia has carried out beneficial Ownership Data Disclosure with the presence of Presidential Regulation Number 13 of 2018 concerning Beneficial Ownership. Through this regulation, the government seeks to reduce or suppress the value of corruption, money laundering, and criminal acts of terrorism funding, by opening a list of information on the beneficial owner of a Ministry/Institution. Efforts to open Beneficial Ownership data in Indonesia face challenges with accountability and accuracy of data reported as beneficiaries. This makes the objective of implementing beneficial ownership to eradicate corruption, money laundering, and criminal acts of terrorism funding not maximized. Through this commitment, data governance and accountability of beneficial ownership data will try to be resolved utilizing a mechanism for verifying and utilizing beneficial ownership data.

2. What are the causes of the problem? • The ministries/agencies responsible for beneficial ownership actions do not yet have a BO database and regulations that require BO declarations during the licensing process. • The obligation to declare BO has not been screened in the licensing process. • Administrative constraints (MoU or PKS between Ministries/Institutions) as well as technical constraints (related to the data exchange process) that are still being faced by Ministries/Institutions • Low corporate compliance due to the absence of sanctions for not reporting beneficial ownership • The data verification mechanism declared by the corporation has not yet worked which has an impact on data quality • The minimal involvement of civil society in the process of encouraging the emergence of beneficial ownership data

Commitment Description

1. What has been done so far to solve the problem? The Ministry of Law and Human Rights (Kemenkumham) has opened beneficial ownership data which the public can access through the public portal http://www.bo.ahu.go.id which presents beneficial ownership data that has been received by the Ministries/Technical Institutions to the Ministry of Law and Human Rights. Civil Society has also taken a role by completing studies related to beneficial ownership and conducting outreach regarding the importance of finding beneficial ownership data and the accuracy of this data which functions to tackle problems of corruption, money laundering, and financing for terrorism.

2. What solution are you proposing? Strive to strengthen and utilize beneficial ownership data through a more accountable verification process and utilize beneficial ownership data by relevant Ministries/Institutions to address issues of corruption, money laundering, and financing of terrorism crimes

3. What results do we want to achieve by implementing this commitment? Availability of Clean and Clear beneficial ownership data that has been verified by applicable regulations and utilization of beneficial ownership data by the relevant Ministries/Institutions.

Commitment Analysis

1. How will the commitment promote transparency? Through the transparency of beneficial ownership data, individuals are identified as the ultimate beneficiary and have a poor track record or are considered to be at high risk of committing a crime, particularly corruption, money laundering, or terrorism, so steps to mitigate the risk of corporate abuse can be implemented.

2. How will the commitment help foster accountability? This commitment will produce clean and clear beneficial ownership data that civil society and law enforcement officials can utilize to monitor corporate abuse for corruption, money laundering, and terrorism financing.

3. How will the commitment improve citizen participation in defining, implementing, and monitoring solutions? Through tracking beneficial ownership, the public can assess the accountability of a public official committed as a public servant.

Commitment Planning (Milestones | Expected Outputs | Expected Completion Date)

Availability of an accountable, verified and standardized | Beneficial Ownership Data Availability of accountabl e Beneficial Ownership data | 2024

Action Plan Review

Commitment 2. Beneficial ownership data disclosure

• Verifiable: Yes
• Does it have an open government lens? Yes
• Potential for results: Unclear