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Indonesia: Asset Recovery Legislation Proposed

(Feb. 22, 2017) Indonesia’s Commission on Eradication of Corruption (Komisi Pemberantasan Korupsi, or KPK) and its Financial Transaction Reports and Analysis Center (Pusat Pelaporan dan Analisi Transaki Keuangan, or PPATK) are advocating that the legislature pass several anti-corruption laws.  (Anti-Graft Agency Pushes for Long-Delayed Asset Recovery Bill, JAKARTA GLOBE (last visited Feb. 16, 2017).)  One of the proposals is legislation on recovery of criminal assets.  Although it is listed in the national legislative program on the legislature’s website, no action has as yet been taken on the proposed law.  (Id.; RUU Tentang Perampasan Aset Tindak Pidana [Proposed Law on Recovery of Criminal Assets], Program Legislasi Nasional, No. 44, Dewan Perwakilan Rakyat [House of Representatives] website (last visited Feb. 16, 2017).)  According to Ahmad Badaruddin, the Chairman of the PPATK, Indonesia’s President, Joko Widodo, has already approved the idea of the asset recovery legislation.  (Anti-Graft Agency Pushes for Long-Delayed Asset Recovery Bill, supra.)  The Chairman of the KPK, Laode M. Syarief, said that the proposed law “is crucial.  We need to have the authority to seize or take over assets from corruption or money laundering. … If the bill is passed into law, it will greatly help the police, prosecutors, KPK and PPATK.”  (Id.)

Background on the Institutions

According to the mission statement on its webpage, the KPK’s purpose is to improve the efficiency and effectiveness of law enforcement and reduce corruption in Indonesia through coordination, supervision, monitoring, prevention, and prosecution.  (Visi KPK 2015-2019 [Vision of the KPK for 2015-2019 ], KPK website (last visited Feb. 21, 2017).)  The KPK was established by Law No. 30 of 2002.  (Undang-Undang Republik Indonesia Nomor 30 Tahun 2002 Tentang Komisi Pemberantasan Tindak Pidana Korupsi [Law of the Republic of Indonesia No. 30, 2002, Concerning the Commission on Eradication of Corruption] (Dec. 27, 2002), House of Representatives website.)

The PPATK’s website notes that it “is the central institution … which coordinates the implementation of the prevention and eradication of money laundering in Indonesia.”  (Sambutan Kepala PPATK [Message from the Head of PPATK], PPATK website, (last visited Feb. 21, 2017).)  The institution is governed by Law No. 8 of 2010.  (Undang-Undang Republik Indonesia Nomor 8 Tahun 2010 Tentang Pencegahan Dan Pemberantasan Tindak Pidana Pencucian Uang [Law of the Republic of Indonesia No. 8, 2010, Concerning Crime Prevention and Suppression of Money Laundering] (Oct. 22, 2010), House of Representatives website.)