Financial Crime World

The Complex Web of Organized Crime in Indonesia

Organized crime is a pervasive issue in Indonesia, with far-reaching consequences for the country’s economic, social, and political landscape. From drug trafficking to money laundering, corruption to civil society concerns, this article will delve into the various aspects of organized crime in Indonesia.

Key Challenges in Combating Organized Crime

  • Drug Trafficking: Despite the police mandate to combat organized crime, there is a lack of specific units dedicated to tackling it. Prisons are overcrowded and harsh conditions allow drug networks to operate freely inside them.
  • Money Laundering: Indonesia has implemented legislation and adopted international recommendations to combat money laundering, but tangible outcomes in disclosing beneficial ownership have yet to be seen.
  • Corruption: Corruption at all levels of government hinders law enforcement efforts to address criminal markets. The police are accused of being politicized with weak horizontal accountability.

Economic Environment: A Double-Edged Sword

On the one hand, Indonesia has made significant strides in improving its economic competitiveness and accelerating post-pandemic economic recovery. New legislation aims to lower corporate taxes, simplify business licenses, reform labor laws, and reduce bureaucratic and regulatory barriers. However, this economic growth also creates an environment conducive to organized crime.

Supporting Victims and Witnesses: A Mixed Bag

Indonesia has implemented measures to support victims of and witnesses to crimes, including human trafficking and drug-related crimes. However, there have been allegations that the witness and victim protection agency has had slow response times and been oppositional to witnesses.

Government Efforts to Combat Organized Crime

The Indonesian government has established prevention strategies to combat organized crime, including human trafficking, forced labor, and drug abuse. NGOs have raised concerns about the effectiveness of the government’s ban on Indonesian fishermen working aboard Chinese-flagged vessels to prevent trafficking for forced labor.

Conclusion

Indonesia faces significant challenges in addressing organized crime. Corruption, lack of resources, and inadequate legislation hinder efforts to combat this pervasive issue. While there are initiatives to improve economic competitiveness and support victims, more needs to be done to address the root causes of organized crime.