Financial Crime World

Title: PPATK Uncovers IDR 1 Trillion in Green Financial Crime Funds Channelled to Indonesian Political Parties

The Financial Transaction Reports and Analysis Center (PPATK) has revealed alarming allegations of green financial crime funds being transferred to Indonesian political parties.

Green Financial Crime: A Threat to the Environment and Global Order

According to PPATK’s data, the value of green financial crime reached an astounding IDR 4.8 trillion in 2022. Ivan Yustiavandana, Chairman of PPATK, described green financial crime as an environmental destruction crime benefiting a select few, instead of for the people’s welfare. He emphasized the severity of this issue, stating:

“Green financial crime is detrimental to the world including Indonesia as it disrupts global order and threatens environmental sustainability.”

Approximately IDR 1 Trillion Worth of Green Financial Crime Funds Transferred to Political Parties

PPATK’s investigation exposed that approximately IDR 1 trillion worth of green financial crime funds were transferred to political parties. Ivan disclosed this information on August 8, 2023. PPATK is intensively investigating green financial crimes and suspects that none of the election participants are exempt from these illicit activities.

Money Laundering Risks in Several Indonesian Provinces

PPATK identified a heightened risk of money laundering in campaign funds in several Indonesian provinces: East Java, DKI Jakarta, West Sumatra, West Java, Papua, South Sulawesi, and North Sumatra.

Preventing Money Laundering and Ensuring Transparency

To mitigate money laundering risks and provide transparency, parties are urged to establish special accounts for campaign funds as per Law Number 7 of 2017 concerning Elections. The purpose is to:

  • Facilitate supervision
  • Ensure transparency and accountability
  • Deter fraud

The separate campaign account system applies to all political parties and intends to prevent criminal funds from entering political contestation.

PPATK’s Collaboration with KPU and BAWASLU

Natsir Kongah, a PPATK spokesperson, confirmed that his organization is collaborating with the General Elections Commission (KPU) and the General Election Supervisory Agency (BAWASLU) regarding reports of suspect funds. Further details on the implicated parties were not disclosed.

In conclusion, PPATK is actively uncovering green financial crimes and addressing the risks of money laundering in campaign funds to ensure a fair and transparent electoral process in Indonesia.