INDONESIA Law and Practice Contributed by: Ira A. Eddymurthy, A. Charlie R. Malessy, A. Ramadinan Saptara and Medita F. Siregar, SSEK Law Firm
5.3 Incorporation and Registration All companies in Indonesia are registered with the MOL. Registration with the MOL is essential, as under the Company Law, a company is deemed established upon the issuance of a MOL decree approving its establishment. The MOL maintains the company reg - istry through its website , known as the General Legal Administration System ( Sistem Administrasi Hukum Umum – “Sistem AHU”). This company registry is pub - licly available and allows the public to obtain general information on companies established and registered with the MOL. Companies are required to make certain mandatory filings with the MOL through Sistem AHU, includ - ing changes to the composition of the BOD or BOC, amendments to the articles of association and the commencement of corporate actions such as merg - ers, acquisitions, spin-offs and liquidations. As the authority responsible for maintaining the company registry, the MOL also exercises supervisory pow - ers over companies in Indonesia through monitoring, evaluation and the imposition of administrative sanc - tions. 5.4 Global Anti-Money Laundering AML obligations in Indonesia are governed by Law No 8 of 2010 regarding the Prevention and Eradication of Money Laundering Crime (the “AML Law”), as amend - ed. The implementation of AML obligations is gener - ally supervised by the Indonesian Financial Transac - tion Reports and Analysis Center ( Pusat Pelaporan dan Analisis Transaksi Keuangan – PPATK). The AML Law stipulates reporting requirements for companies in Indonesia, in particular for financial ser - vice providers and goods and/or services providers (referred to under the AML Law as “Reporting Par - ties”), for the purpose of preventing money launder - ing. These reporting requirements are triggered on an ad hoc incidental basis. The AML Law sets out cer - tain events that give rise to reporting obligations for Reporting Parties. Pursuant to the AML Law and its implementing regula - tions, financial service providers are required to sub - mit reports to the PPATK in the event of:
requirements apply on various reporting cycles, rang - ing from monthly to annual submissions. In general, companies are subject to the requirements of the MOL under Minister of Law Regulation No 49 of 2025 regarding the Requirements and Procedures for the Establishment, Amendment, and Dissolution of a Limited Liability Company, which require compa - nies to submit the GMS approval of the BOD’s annual report to the MOL. This requirement results in the submission of the company’s financial statements to the MOL, as the financial statements form part of the BOD’s annual report that is approved by the GMS. In addition to the foregoing, certain reporting obliga - tions involving the submission of financial information apply only to companies in specific sectors. For exam - ple, companies in the insurance sector are required to submit periodical reports to the OJK, while companies in the banking sector are required to submit periodic reports to Bank Indonesia and the OJK. These report - ing requirements obligate such companies to disclose and submit financial information, including their finan - cial statements. 5.2 Corporate Governance Arrangement Disclosure Companies in Indonesia are required to disclose their corporate governance arrangements. In addition, companies must report any changes to the composi - tion of the BOD and BOC to the MOL. Failure to do so may result in the relevant appointment not being recorded in the MOL’s database, with the conse - quence that any applications submitted to the MOL on behalf of the company by such members may be rejected. Notwithstanding the foregoing, there is a reporting requirement applicable to all companies that requires extensive disclosure of corporate governance arrange - ments, namely the submission to the MOL of the GMS approval of the BOD’s annual report, as described previously. This submission requires disclosure of the company’s activities, the supervisory duties per - formed by the BOC, and the salaries and allowances of the BOD and BOC for the relevant financial year.
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