Director General of AHU at Ministry of Law Reveals 823,000 Corporations Yet to Report Beneficial Owners

JAKARTA, investortrust.id - The Ministry of Law (Kemenkum) records that there are currently 3.5 million corporations registered as legal entities. However, from that number, around 823,000 corporations have yet to report their true beneficial owners.

This was revealed by the Director General of General Legal Administration (Dirjen AHU) of the Ministry of Law, Widodo, at the office of the Directorate General of AHU of the Ministry of Law in Jakarta on Thursday (23/4/2026).

“All business entities and legal entities, totalling over 3 million, surprisingly around 800,000 have not reported their BO (beneficial owner) across Indonesia,” said Widodo.

Widodo stated that the large number of corporations yet to report beneficial owners remains a key task for the Directorate General of AHU. He added that the Directorate General of AHU, together with the Investment Coordinating Board (BKPM), is continuously raising awareness among corporations to report beneficial owners.

“Alhamdulillah, we have received appreciation from other ministries and agencies because reporting has increased this year, and our cooperation with BKPM will also be enhanced going forward,” he said.

Widodo explained that the Directorate General of AHU is also continuously monitoring corporate activities. He stated that the Directorate General of AHU will temporarily deactivate or place in dormant status corporations that do not conduct activities for a certain period. This is to prevent corporations from being used solely for participating in goods and services procurement tenders.

“So, if in the past we heard the term dormant foundation, it is not impossible that there will be dormant PTs that are formed but inactive. This will become apparent through the screening mechanism. If the BO has not responded to correspondence for more than six months or a year, it might be that the PT is fictitious, used only as a partner in procurement tenders. That’s the only purpose,” he elaborated.

In addition to beneficial owner reporting, screening mechanisms are also conducted during annual corporate reports. Widodo said that these annual reports can better ensure corporate activities, as they cannot be self-assessed. Annual reports must be submitted before a notary and involve payment of non-tax state revenue (PNBP).

“This is our effort to realise good corporate governance,” he said.

Widodo noted that these mechanisms have been well-received by business actors, as they ensure a fairer business climate. He added that the Directorate General of AHU is preparing to allow business actors access to view their reporting in the Directorate General of AHU database.

“So they can monitor if there are changes, for example, in shareholder names, share owners, or company leadership such as directors and commissioners,” he said.