TAXES
LAW
2
issuers to record the float fund in the account of immediate
liabilities or other liabilities and to place not less than 30% of
Float Fund in cash, or in the form of commercial banks based
on business activities BUKU 4 for electronic money issuers. In
case of other issuers, another option is to place it in giro with a
Bank classified in BUKU 4. A maximum of 70% of the Float Fund
must be placed in commercial papers/financial instruments by
the government/Bank of Indonesia, or in an account with the
Bank of Indonesia.
Schulz Noack Bärwinkel
9
th
Edition | June 2018
Corporate Law
New Regulation on Electronic Money
Indonesia Introduces Know-Your-Beneficial-Owner-
Principle for Corporations
W
ith the intention to prevent and eradicate criminal
activities related to money laundering and/or terrorism
financing through corporations, the government issued
Presidential Regulation No. 13 of 2018 on 1 March 2018 bringing
alongadeadlineof 05March2019 tocomplywith it. One important
aspect of the new regulation is that now corporations, including
foreign investment companies, are required to identify, verify and
report their Beneficial Owner(s) in accordance with the Principle
and procedure provided in the new regulation. In this context,
one major aspect is that the regulation defines the Beneficial
Owner as an individual with the effect that it aims to penetrate
several layers of any shareholding structure or arrangements to
eventually identify and verify a certain individual as the “ultimate
beneficial owner” of a corporation. This could especially have
an impact in case a corporation has one or several so-called
“nominee” shareholders. In this context, it is also important to
point out that the information of a Beneficial Owner will be made
publicly available if they are not protected under the Residence
Administration Law 2006.
W
ith effect as of 4 May 2018, Regulation of BI No. 20/06/
PBO/2018, brings some changes regarding Electronic
money. In this regulation, electronic money is classified
based on the scope of its administration into closed loop and
open loop electronic money, and based on the value storage
media into server based and chip based electronic money,
as well as based on the recording of identity of its users into
unregistered and registered electronic money. One major aspect
especially for foreign investors might be that 51% of shares of
an electronic money issuer must be owned by domestic parties
while foreign parties are only allowed to own a maximum of 49%
of the shares. Please also note that in case there is any foreign
ownership portion, the calculation of such foreign ownership
portion shall include direct and indirect ownership pursuant to
the assessment by Bank Indonesia.
Once a license as Electronic Money Operator was obtained, it is
valid for a period of 5 years. It can be renewed upon application
which must have been submitted by no later than 6 months
prior to its expiry. The new regulation requires electronic money
Banking and Finance
Milena Strathmann
Associate
+84 8 6258 4949
It is expected that corresponding implementing regulations will
be issued shortly for further guidance especially on the specific
procedures. We advise you to monitor the current developments
and are happy to assist you with this.
Milena Strathmann
Associate
+84 8 6258 4949
