UNAIR NEWS – Early March 2018, the Government issued Presidential Regulation (Perpres) No.13 of 2018 on Principles Application of Recognizing the Beneficiaries of Corporations in the Framework of Prevention and Eradication of Money Laundering and Terrorism Financing. In essence, the Presidential Regulation required each corporation to identify and disclose the actual beneficial owner (BO).

As a response, the Center for Law and Human Rights Studies (HRLS) Faculty of Law, Universitas Airlangga, held a public discussion on “Open Beneficial Ownership”. The discussion was held in Gondowardojo Room on Thursday, March 22.

The discussion led by Dian Purnama Anugrah as secretary of Notary master’s program FH UNAIR, presented two speakers, Dadang Trisasongko as General Secretary of Indonesian Transparency International and Iman Prihandono Ph.D., as Business and Human Rights Expert. There wasalso by several lecturers, students, and notaries who were also enthusiastic during the discussion took place.

Dadang Trisasongko, in his presentation, explained about the transparency of beneficial ownership and global anti-corruption commitments. Dadang also acknowledged that this form of corruption was done by someone who had a high position. For example, procurement of goods and services and licensing in in forestry, mining, oil and gas business.

“Behind that, the actors are a politician, a high-ranking bureaucrat, and a businessman. Our regulatory system tends to give them immunity and cannot reach these people. Aside from that, another example of massive corruption is e-ID card. The corruption of e-ID was even started from budgeting and planning,” he said.

Furthermore, as the second speaker, Iman said that the presidential regulation was a new breakthrough that can be a way for corporations and other business actors to comply. Limited corporate liability sometimes creates problems.

“The challenge is whether the Presidential Regulation can reach people or Legal Entities outside Indonesia so that Indonesia can apprehend them as the Presidential Regulation is voluntary so it must be identified and verified by itself, “said Iman.

At the end, the discussion moderator concluded that Presidential Regulation No.13 of 2018 was not sufficient for the public interest, so the community should review the regulation.

Author: Pradita Desyanti

Editor: Nuri Hermawan