Announcement

Ditjen AHU Introduces Inactive Corporation Status and Strengthens Beneficial Ownership Reporting Obligations

Author
Administrator
Waruwu & Partners
18 Jun 2026
On 11 February 2026, the Directorate General of General Legal Administration of the Ministry of Law of the Republic of Indonesia (Direktorat Jenderal Administrasi Hukum Umum Kementerian Hukum Republik Indonesia - "Ditjen AHU") issued Circular Letter No. AHU-AH.01-36 of 2026 concerning the Administrative Designation of Inactive Corporations and Beneficial Ownership Reporting and Verification Obligations ("Circular Letter").

Through this Circular Letter, Ditjen AHU introduced a mechanism for the administrative designation of inactive corporations and reaffirming the obligation of corporations to update their administrative data and submit beneficial ownership information through the legal entity administration system managed by Ditjen AHU. This policy applies towards the limited liability companies, foundations, and associations.

These provisions warrant attention as corporations that fail to update their data or comply with beneficial ownership reporting obligations may be subject to administrative sanctions and restrictions on access to legal entity administration services.