As Indonesia strengthens its fight against corruption and money laundering, companies are being called to play a bigger role in ensuring transparency through Beneficial Ownership (BO) reporting. On 16 September 2025, UN Global Compact Network Indonesia (IGCN), through the Business Ethics and Governance Working Group, discussed the latest developments in BO disclosure, following the issuance of Ministry of Law Regulation (Permenkum) No. 2/2025.
Published: 2025-09-17
The new regulation marks a significant shift from one-time reporting toward a more dynamic and continuous disclosure mechanism. This change reflects Indonesia’s commitment to international standards while addressing local compliance gaps. For businesses, it represents both a regulatory challenge and an opportunity to strengthen governance, investor confidence, and reputation. The session was formally opened by Y. W. Junardy, President of IGCN, who emphasized the role of the Working Group as part of IGCN’s effort to advance the 10th Principle of the UN Global Compact and SDGs 16 and 17. He also highlighted the significance of the new regulation, noting its alignment with governance standards expected in Indonesia’s OECD accession process.
Following the opening, Ferdian Yazid, Program Manager for Natural Resources and Economics Governance at Transparency International Indonesia, highlighted the role of BO disclosure in advancing transparency and integrity to prevent corruption and illicit practices. Dr. Andi Taletting Langi, Director of the Business Entity, Directorate General of Legal Administration at the Ministry of Law, presented the key changes under Regulation No. 2/2025, outlining the shift toward corporate accountability, the legal and reputational implications of non-compliance, and the government’s expectations of proactive corporate governance.
Key Issues Raised