Presentasi ini disampaikan dalam Global Conference on Beneficial Ownership Transparency, 23-24 October 2017

1. GLOBAL CONFERENCE ON BENEFICIAL OWNERSHIP
JAKARTA, 23 October 2017
COORDINATING MINISTRY FOR ECONOMIC AFFAIRS OF THE
REPUBLIC OF INDONESIA

2. NINE PRIORITIES IN NAWACITA PROGRAM
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• The Government of Indonesia is currently strengthening its legal reform effort as one of the top priorities of the nine
development priorities known as "Nawacita" identified by President Jokowi. Substantive legal reform refers to improved
regulatory reform, strengthening law enforcement accountability and enhancing the effectiveness of corruption
prevention and eradication.
Encouraging transparency and accountability in the extractive industries sector is important for the Government of Indonesia, and
the Government has declared its commitment to encourage the transparency on Beneficial Ownership particularly in the extractive
industries
STRENGTHENING ANTI-CORRUPTION
STRENGTHEN THE ROLE OF
THE STATE
STRENGTHEN PUBLIC
SERVICES
TRANSFER TO REGION AND
VILLAGE
INCREASE PRODUCTIVITY
ECONOMICS BASED ON
DOMESTIC STRATEGIC
COMMODITIES
MAINTAINING THE QUALITY
OF PEOPLE'S LIFE
NATION'S CHARACTER
REVOLUTION
STRENGTHEN OF BHINNEKA
TUNGGAL IKA

3. • For Indonesia, the transparency initiative related to Beneficial Ownership is not a new issue, since this has already been initiated
and implemented in certain sectors such as the banking sector, capital markets and taxation.
• The Governor of Bank Indonesia has issued a Bank Indonesia Regulation concerning the implementation of anti-money laundering
and terrorism financing prevention programs for commercial banks. In the financial and capital market sectors, regulation
regarding the principle of knowing customers by financial services providers has been introduced . While in the taxation sector,
the Director General of Tax has issued regulations designed to prevent misuse through the avoidance of double taxation.
BENEFICIAL OWNERSHIP ON BANKING SECTOR, CAPITAL MARKET, AND TAXATION
The regulation of Bank
Indonesia Number
14/27/PBI/2012
IMPLEMENTATION OF ANTI
MONEY LAUNDERING AND
COMBATING THE
FINANCING OF TERRORISM
PROGRAM FOR
COMMERCIAL BANK
The Regulation of
Financial Services
Authority No.
22/POJK.04 2014
THE PRINCIPLE OF
KNOWING CUSTOMERS
BY FINANCIAL SERVICES
PROVIDERS IN THE
CAPITAL MARKET
SECTOR.
The Regulation of
Director General of
Taxation No. Per-
62/PJ./2009
PREVENTION OF DOUBLE
TAX AVOIDANCE
AGREEMENTS ABUSE
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The experience from these three sectors shows that the introduction of Beneficial Ownership can be very effective in dealing with
corruption , money laundering, terrorism financing, hidden monopolies , and loss of potential state revenue from taxation.

4. THE ROLE OF EXTRACTIVE INDUSTRIES IN INDONESIA IS STILL SEEN AS BEING OF HIGH IMPORTANCE
Oil and Gas
341
Trillion Rupiah
Mineral and Coal
155
Trillion Rupiah
OIL AND GAS REVENUE MAP IN INDONESIA
Source : ESDM, 2010 & Handbook of Energy & Economic Statistic of Indonesia 2015
GAS
Proven = 108.40 TSCF
Potential = 48.74 TSCF
TOTAL = 157.14 TSCF
OIL
Proven = 3692.50
MMSTB
Potential = 3857.51
MMSTB
TOTAL = 7549.81
MMSTB
NAD
5.74 TCF
150.68
MMSTB
SUMATERA
UTARA
1.29 TCF
110.67
MMSTB
SUMATERA
TENGAH
10.35 TCF
3386.87
MMSTB
NATUNA
51.46 TCF
373.23
MMSTB
SUMATERA
SELATAN
16.11 TCF
1005.34
MMSTB
JAWA
BARAT
3.79 TCF
494.89
MMSTB
JAWA
TIMUR
6.40 TCF
1312.03
MMSTB
KALIMANTA
N
19.76 TCF
573.50
MMSTB
SULAWESI
2.80 TCF
51.87
MMSTB
MALUKU
15.22 TCF
24.96
MMSTB
PAPUA
24.32 TCF
65.97
MMSTB
Gas Revenue
Oil Revenue
STATE INCOME OIL
AND GAS SECTORS
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• The strategic nature of extractive industries in Indonesia is evident from the high contribution this sector makes to state revenues,
which in 2014 accounted for 32 percent of total state revenues. Although in the past two years the contribution of state revenues
from extractive industries has declined largely as a result of the decline in global oil prices and global mineral prices, the role of
extractive industries in Indonesia is still seen as being of high importance.

5. 5
INDONESIA'S EXTRACTIVE INDUSTRY GOVERNANCE WAS RANKED ELEVENTH OUT OF EIGHTY-NINE COUNTRIES
• Based on the assessment of the Resource Governance Index 2017 issued by the Natural Resource Governance Institute
(NRGI), Indonesia's extractive industry governance was ranked eleventh out of eighty-nine countries.
• Although not the best, this relatively high ranking for Indonesia will encourage the Indonesian government to continue
to make further improvements

6. Mainstreamed implementation of BO database,
Data assurance activities, Incentive system for
companies based on objective, measurable
outcomes, Routine monitoring and evaluation
on BO transparency program, increase in
disclosure of accurate BO information by
companies
Defining Beneficial Owners in
Indonesian Context
Developing Institutional and
Regulatory Framework of
Beneficial Ownership Strategy
Implementation of Transparency of
Beneficial Ownership in Extractive
Industries.
outcome outcome outcome
National definition of beneficial
ownership, Measurable outcomes of
beneficial ownership transparency,
Tailor-made concept of PEP and its
obligations, Clarity on information level
of beneficial ownership that will be
disclosed.
Creation of institutional framework on BO
transparency , Harmonized law products that
promotes BO transparency, Harmonized law
products that encourage inter-institutional
cooperation and information sharing, Robust
monitoring and evaluation system
Year
2017
Year
2017-2018
Year
2019
ROADMAP OF BENEFICIAL OWNERSHIP TRANSPARANCY
• Indonesia as a member country of EITI has published a Roadmap of Beneficial Ownership transparency at the end of 2016 which
is one of the requirements to meet the EITI Standard 2016.
• The Roadmap is the beginning of a major agenda of Beneficial Ownership transparency through which starting from January 1,
2020, the EITI implementing country must open beneficial ownership data that includes the name, nationality and country of
origin of the beneficiaries of the oil, gas and mineral industries.

7. • Transparency Beneficial Ownership initiative is part of the framework principle of Base
Erosion and Profit Shifting, and is also implemented through the Automatic Exchange of
Information (AEOI).
• The impetus for improving information disclosure through AEOI is being applied all over
the world, especially in developed countries, who are now pursuing their taxpayers who
seek to reduce their tax liabilities through transferring funds into tax haven countries.
• Indonesia's commitment to support the automatically exchange of financial information
for taxation purposes is conducted jointly by 101 other jurisdictions, and will be
implemented starting September 2018.
• In implementing this commitment, Indonesia has issued Interim Government Regulation
(PERPU) No.1 Year 2017 on the Access to Financial Information for Taxation and has been
enacted with Law No. 9 of 2017.
• The role of AEOI is very important for Indonesia in preventing tax avoidance and tax
evasion which has become the main cause for the erosion of the tax base in jurisdictions
that apply relatively high tax rates, as well as the practice of transferring operating income
to jurisdictions with lower tax rates (low tax jurisdictions)..
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AUTOMATIC EXCHANGE OF INFORMATION - AEOI

8. • On behalf of the Government of Indonesia, I would like to thank the EITI International
Secretariat for choosing Indonesia to host this conference. I hope this conference can
become an opportunity to exchange knowledge, experiences and ideas and to encourage
the development of information disclosure of Beneficial Ownership in various countries.
• As the host, we welcome the presence of all participants, who we see as being Indonesia’s
friends , especially in our collective effort to improve the governance of extractive
industries.
• We are also honored by the presence of the Vice President of Nigeria, a country which
Indonesia sees as being one of its best friends in the African continent, and which is also
one of Indonesia’s top trading partners in the oil and gas sector.
• Finally, as directed by the President of the Republic of Indonesia, Mr. Joko Widodo, the
Global Conference on Beneficial Ownership, is officially declared opened.
CLOSING
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9. THANK YOU