Financial Crimes Investigation Agencies in Indonesia Under Scrutiny

Judicial Review Hearing Raises Questions about Role of Financial Crimes Investigation Agencies

Jakarta, Indonesia - The ongoing judicial review hearing of Law No. 4 of 2023 on Financial Sector Development and Reinforcement has sparked a debate about the role of financial crimes investigation agencies in Indonesia.

Testimonies from Relevant Parties

The hearing, which took place on Monday, saw Viktor T. Sihombing from the National Police and Rizal Ramadhani, Deputy Commissioner for Law and Investigation at the Financial Services Authority (OJK), testify as relevant parties. The case is being heard by the Constitutional Court, with seven justices presiding over the plenary courtroom.

Investigations into Financial Crimes

Sihombing revealed that investigations into financial crimes are carried out under the supervision of the Police, citing Article 7 paragraph (2) of the Criminal Procedure Code. He explained that special criminal law enforcement is necessary to respond to various developments of criminal acts in society and that the Police has formed an investigation team authorized to investigate financial cases.

OJK’s Authority in Financial Services Sector

Ramadhani testified that the OJK’s authority in performing investigations in the financial service sector is regulated by Law No. 4 of 2023, which does not annul the Police’s authority. Certain investigative employees in the OJK are also investigators in the financial service sector due to their duty and function as supervisors, employee rotation supports special investigative skills, experience, and capability in supervising the financial service sector.

Petition Filed by Several Parties

The hearing was sparked by a petition filed by several parties, including Asuransi Jiwa Bersama (AJB) Bumiputera 1912, I Made Widia, Ida Bagus Made Sedana, and Endang Sri Siti Kusuma Hendariwati. The petitioners argue that the P2SK Law has consequences for constitutional issues in terms of certain employee investigators of the OJK.

Concerns about Sole Investigation Authority

The petitioners claim that under the P2SK Law, sole investigation of criminal acts in the financial services sector is potentially carried out by certain employee investigators of the OJK, which would have a direct impact on the legal interests of members. They also argue that the granting of sole authority to OJK investigators has resulted in the rejection of their criminal reports and reflects legal uncertainty in the law enforcement process.

Implications for Financial Crimes Investigation Agencies

The Court is expected to make a decision on the petition soon, which could have significant implications for financial crimes investigation agencies in Indonesia. The outcome may affect the roles and authorities of the National Police and the OJK, as well as the legal interests of members in the financial services sector.

What’s Next?

The Constitutional Court will continue to deliberate on the petition and is expected to make a decision soon. The implications of this decision could have far-reaching consequences for financial crimes investigation agencies in Indonesia.