700,000 Business Entities Blocked for Beneficial Ownership
JAKARTA, DDTCNews - The Ministry of Law continues to block around 700,000 business entities and foundations that have yet to report their ultimate beneficial owners (BO).
Minister of Law, Supratman Andi Agtas, said this figure represents the remainder of nearly 2 million business entities and foundations that were blocked last year. To date, around 700,000 entities have still not fulfilled their beneficial ownership reporting obligation.
"Beneficial ownership is important for identifying the ultimate beneficial owner of a business entity is, including its affiliates," he said, as quoted on Tuesday (27/10/2026).
According to Supratman, the lack of progress in beneficial ownership reporting by hundreds of thousands of entities has given rise to suspicion that some business entities are no longer active.
Based on the foregoing, the Ministry of Law plans to place the relevant business entities on an inactive business entity list. This step forms part of efforts to reform the administrative governance of business entities within the Ministry of Law.
"It may well be that these 700,000 business entities, although they are registered with the AHU, are, in fact, no longer operating," he said.
The beneficial ownership reporting obligation is linked to the government's efforts to strengthen transparency in corporate ownership. Such information is required to identify the parties that truly benefit from a business entity, including parties with connections to it.
Regulation of beneficial ownership has also undergone amendments through the Minister of Law. Reg. 2/2025 on the Verification and Supervision of
JAKARTA, DDTCNews - The Ministry of Law continues to block around 700,000 business entities and foundations that have yet to report their ultimate beneficial owners (BO).
Minister of Law, Supratman Andi Agtas, said this figure represents the remainder of nearly 2 million business entities and foundations that were blocked last year. To date, around 700,000 entities have still not fulfilled their beneficial ownership reporting obligation.
"Beneficial ownership is important for identifying the ultimate beneficial owner of a business entity is, including its affiliates," he said, as quoted on Tuesday (27/10/2026).
According to Supratman, the lack of progress in beneficial ownership reporting by hundreds of thousands of entities has given rise to suspicion that some business entities are no longer active.
Based on the foregoing, the Ministry of Law plans to place the relevant business entities on an inactive business entity list. This step forms part of efforts to reform the administrative governance of business entities within the Ministry of Law.
"It may well be that these 700,000 business entities, although they are registered with the AHU, are, in fact, no longer operating," he said.
The beneficial ownership reporting obligation is linked to the government's efforts to strengthen transparency in corporate ownership. Such information is required to identify the parties that truly benefit from a business entity, including parties with connections to it.
Regulation of beneficial ownership has also undergone amendments through the Minister of Law. Reg. 2/2025 on the Beneficial Owners of Corporations. This regulation strengthens the verification and supervision mechanism for corporate beneficial owner data. See: Beneficial Ownership Rules Revised, All Corporations Now Required to Report
Supratman emphasised that the restructuring of business entity data forms part of governance reforms at the Ministry of Law, particularly within the Directorate General of General Legal Administration (Administrasi Hukum Umum/AHU in Indonesian). (dik)
. This regulation strengthens the verification and supervision mechanism for corporate beneficial owner data. See: Beneficial Ownership Rules Revised, All Corporations Now Required to Report
Supratman emphasised that the restructuring of business entity data forms part of governance reforms at the Ministry of Law, particularly within the Directorate General of General Legal Administration (Administrasi Hukum Umum/AHU in Indonesian). (dik)