Financial Crimes Investigations in Indonesia: OJK’s New Powers and Procedures
Indonesia’s financial regulator, the Otoritas Jasa Keuangan (OJK), has been granted new powers to investigate crimes in the financial sector under Regulation 16/2023. This regulation gives OJK the authority to investigate a wide range of financial crimes, including those committed by banks, carbon exchanges, capital market companies, and other financial institutions.
Investigation Team
The investigation team is a joint agency appointed by OJK’s board of commissioners, consisting of officials from:
- The Indonesian Police
- The Ministry of Law and Human Rights
- OJK itself
This team is responsible for:
- Receiving reports and complaints of financial crimes
- Summoning witnesses
- Examining documents
- Conducting searches and confiscations
Investigation Process
Under the new regulation, OJK can launch an inquiry into suspected crimes based on a report or complaint. If necessary, they can proceed with a full-scale investigation. During the investigation, OJK will work with the police to gather evidence and build a case before handing over all evidence to the public prosecutor for further prosecution.
Public Involvement
The public is free to report any suspicion of financial crimes to OJK without restriction. Once an investigation has been launched, the public can request updates on the development of the case.
Alternative Settlement Process
Those suspected of criminal activity in the financial sector may propose an alternative settlement process by submitting a petition outlining proposed reparations and commitments to improve business practices. OJK will inspect petitions using three criteria:
- The rehabilitative effect
- The value proposed
- The impact on the financial services industry
If approved, the petition will be formalized into an agreement between OJK and the suspect, incorporating terms of reparation and any corrective actions deemed necessary.
Money Laundering Investigations
In addition to its new powers, OJK is also authorized to investigate money laundering cases related to financial crimes. The regulator can:
- Request information from financial institutions
- Instruct them to block accounts owned or related to suspects
- Impose sanctions on non-compliant institutions under prevailing laws
Conclusion
The new regulation aims to strengthen OJK’s ability to detect and prevent financial crimes in Indonesia, while also providing an alternative settlement process for those suspected of wrongdoing.