Financial Crime World

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Indonesia’s Asset Recovery Process: A Step-by-Step Guide

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In the midst of a global crackdown on financial crimes, Indonesia has established a robust system for recovering assets linked to criminal activities. In this article, we will delve into the intricacies of Indonesia’s asset recovery process and provide insights on how foreign investigators can navigate this complex legal landscape.

Seizure and Confiscation

The Indonesian authorities have made it clear that anyone suspected of committing financial crimes will be pursued relentlessly. To facilitate this pursuit, Supreme Court Regulation No. 1 of 2013 provides the framework for seizing, restraining, or confiscating assets linked to criminal activities.

Requirements for Seizure and Confiscation

  • Foreign investigators seeking to seize or confiscate assets in Indonesia must submit a Mutual Legal Assistance (MLA) request, which includes:
    • Required documentation
    • A seizure warrant issued by the relevant authorities in their country
  • The MLA request should be submitted to the Indonesian Central Authority

Execution of Foreign Confiscation Orders

Indonesia is committed to upholding its international obligations, including those related to asset recovery. As such, foreign investigators can request Indonesia’s assistance in executing confiscation orders, imposing penalties, or paying compensation through an MLA.

Requirements for Execution of Foreign Confiscation Orders

  • The Requesting Party must provide:
    • A detailed description of the assets
    • Their location
    • Proof of ownership
  • The Requesting Party should submit the required documents to the Indonesian Central Authority

Court Decisions

Once all requirements are met, the Indonesian Attorney General Office (AGO) will seek a court decision on confiscation. The owners of the confiscated assets may object to the court decision within three months of notification, while third parties may file an objection or challenge the court issuing the seizure warrant within six months.

Timeline for Court Decisions

  • Three months: Owners of confiscated assets may object to the court decision
  • Six months: Third parties may file an objection or challenge the court issuing the seizure warrant

Disposal and Return of Assets

The Indonesian Central Authority will notify the Requesting Party regarding the progress of the seizure. Any disputes arising from the disposal or return of assets will be resolved through further negotiation or agreement between Indonesia and the requesting country.

Dispute Resolution

  • Disputes may arise from the disposal or return of assets
  • These disputes will be resolved through further negotiation or agreement between Indonesia and the requesting country

Reporting Parties and Beneficial Owners

In an effort to combat money laundering, the Financial Transaction Reports Analysis Center (INTRAC) has implemented regulations requiring certain professionals to identify beneficial owners. These reporting parties include:

Reporting Parties

  • Real estate agents
  • Motor vehicle traders
  • Diamond and art dealers
  • Notaries
  • Land title registrars
  • Accountants
  • Public accountants
  • Financial planners

Asset Recovery Agencies

The Indonesian Ministry of Law and Human Rights serves as the central authority for asset recovery processes. Documents and letters requesting MLA under the MLA law may be submitted to:

Contact Information

H.E. Minister for Law and Human Rights Directorate General of Legal Administrative Affairs Jl. H.R. Rasuna Said Kav. X-6 Jakarta 12940 Indonesia

Additional References

Foreign investigators seeking guidance on making asset recovery requests to Indonesia are encouraged to visit the Directorate General of Legal Administrative Affairs website at https://centralauthority.kemenkumham.go.id/.