Beneficial Owner Agreement Template for Indonesia

The Beneficial Owner Agreement is a crucial document in Indonesian corporate practice, particularly following the implementation of Presidential Regulation No. 13 of 2018 and related beneficial ownership disclosure requirements. This agreement is typically used when there is a need to formally document and regulate arrangements where the legal ownership of assets differs from the beneficial ownership. The document serves multiple purposes: ensuring regulatory compliance, protecting the interests of both legal and beneficial owners, and providing clarity on control and economic rights. It includes detailed provisions on reporting obligations, decision-making authority, profit distribution, and risk allocation. The agreement is particularly important in contexts involving foreign investment, complex corporate structures, or when enhanced transparency is required for regulatory compliance. The document must align with Indonesian corporate law, anti-money laundering regulations, and financial services authority requirements.

1. Parties: Identification of the legal owner(s) and beneficial owner(s), including complete details as required by Indonesian regulations

2. Background: Context of the agreement, relationship between parties, and purpose of the beneficial ownership arrangement

3. Definitions: Key terms including 'Beneficial Owner', 'Legal Owner', 'Shares', 'Company', and other relevant definitions as per Indonesian regulations

4. Declaration of Beneficial Ownership: Clear statement of beneficial ownership arrangement, including percentage of ownership and nature of benefits

5. Rights and Obligations of Legal Owner: Duties, responsibilities and limitations of the legal owner in managing the assets

6. Rights and Obligations of Beneficial Owner: Entitlements and responsibilities of the beneficial owner, including decision-making powers

7. Regulatory Compliance: Obligations regarding beneficial ownership reporting and compliance with Indonesian regulations

8. Financial Arrangements: Distribution of profits, handling of losses, and financial responsibilities

9. Confidentiality: Confidentiality obligations and permitted disclosures

10. Duration and Termination: Term of the agreement and circumstances for termination

11. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law provisions

12. General Provisions: Standard clauses including notices, amendments, and severability