Financial Crime World

Indonesia’s Fight Against Organized Crime Under Scrutiny

Jakarta - As Indonesia continues to grapple with organized criminal activities, concerns are growing over the potential weakening of its state capacities to tackle corruption.

Concerns Over the Potential Weakening of State Capacities

The government’s aim to improve the country’s fight against crime is being questioned by critics who worry that projected changes in the penal code will allow authoritarian action against certain minorities. The lack of specific units within Indonesia’s judicial system to deal with organized crime, and corruption and fraud persisting throughout all state spheres, gives criminals a means to interfere with prosecutions.

Insufficient Law Enforcement Capacities

Indonesia’s law enforcement agencies lack specific units dedicated to tackling organized crime, and many believe that current capacities remain insufficient, particularly due to a lack of training in controlling Indonesia’s maritime boundary. Corruption at all levels of government impedes law enforcement efforts to address criminal markets, with the police having a reputation for corruption.

Vulnerabilities to Transnational Organized Crime

Indonesia’s vast number of remote areas and weak border infrastructure make it particularly vulnerable to transnational organized crime. Efforts to combat drug trafficking have been hampered by poor border management and lack of necessary infrastructure.

Challenges in Combating Financial Crimes

The country’s financial intelligence agency is responsible for preventing money laundering, managing data and information, supervising compliance and investigating financial transactions. However, critics argue that the lack of tangible outcomes from disclosing beneficial ownership has hindered efforts to combat financial crimes such as illegal logging and environmental corruption.

Economic Recovery Efforts

Indonesia’s government is also working to improve the country’s economic competitiveness and accelerate post-pandemic economic recovery. New legislation includes provisions to lower corporate taxes, simplify business licenses, reform labor laws and reduce bureaucratic and regulatory investment barriers. However, some experts question the ability of the new laws to guarantee economic regulatory capacity or sustainable growth.

Role of Civil Society Organizations

Civil society organizations are playing a crucial role in supplementing government services for victims of and witnesses to crimes, including human trafficking and drug-related crimes. NGOs have established rehabilitation centers for drug users and victims of drug-related crimes. However, concerns remain over the effectiveness of the government’s ban on Indonesian fishermen working aboard Chinese-flagged vessels to prevent trafficking for forced labor.

Press Freedom Concerns

The government has also faced criticism for failing to grant press freedom, with a rise in attacks on journalists, particularly those covering the environment and natural resources. The shrinking space for civil society is another major concern, with NGOs and other non-governmental groups facing harassment from government and religious groups.

Conclusion

As Indonesia navigates its complex fight against organized crime, experts warn that the country must prioritize strengthening its judicial system, improving law enforcement capacities, and protecting press freedom and civil society.