Indonesian stakeholder viewpoints of Indonesia's anti‐money laundering legislation
| DOI | https://doi.org/10.1108/13685200810889407 |
| Published date | 08 August 2008 |
| Date | 08 August 2008 |
| Pages | 261-268 |
| Author | Rusmin Rusmin,Alistair M. Brown |
| Subject Matter | Accounting & finance |
Indonesian stakeholder
viewpoints of Indonesia’s
anti-money laundering legislation
Rusmin Rusmin and Alistair M. Brown
School of Accounting, Curtin University of Technology, Perth, Australia
Abstract
Purpose – The purpose of this paper is to gather Indonesian stakeholders’ viewpoints of issues
arising from Indonesia’s recent anti-money laundering (AML) legislation.
Design/methodology/approach – Semi-structured interviews are conducted to elicit viewpoints
about issues raised by Law No. 15 of 2002 on Money Laundering Crimes (as amended by Law No. 25
of 2003).
Findings – Although there are teething problems with the application of Indonesian AML
legislation, many respondents consider the Act as essential in driving out Indonesia’s money
laundering. The implications for Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK) is that
by encouraging more training and providing more feedback on suspicious reporting transactions,
many Indonesian organizations may be encouraged to join PPATK in stamping out AML practices.
Originality/value – The report is piquant given Indonesia’s recent record on corruption and
cronyism, external pressure on Indonesia to stamp out money laundering practices, and the apparent
success of the PPATK on securing co-chair of the Asia-Pacific Group in AML. By considering
Indonesian stakeholder viewpoints of Indonesian legislation, authorities are better able to gauge how
limited resources may be spent to fulfill the ambit of that legislation.
Keywords Money laundering,Indonesia, Stakeholder analysis,Legislation
Paper type Research paper
Introduction
This paper considers Indonesian stakeholder viewpoints towards Indonesia’s recent
anti-money laundering (AML) legislation. It adds to the literature on the AML regime
of Indonesia (Eddy, 2005; Goodbody, 2005) by considering some of the issues raised in
implementing AML legislation and the viewpoints by key Indonesian stakeholder
groups of those issues. Specifically, this paper examines the following research
question:
RQ1. What are the viewpoints of key Indonesian stakeholders to issues raised by
Indonesia’s Law No. 15 of 2002 on Money Laundering Crimes (as amended by
Law No. 25 of 2003).
Indonesia’s AML legislation Law 15 (2002) (as amended by Law 25 (2003)) represents
part of Indonesia’s effort to join other countries in eradicating transnational organized
crime, such as money laundering and terrorist financing (Arthur Allens Robinson,
2007). Before Indonesia’s AML was introduced, Indonesia was blacklisted as a
jurisdiction of primary concern by the Financial Action Task Force (FATF), an
international regulatory AML body (FATF, 2007). However, by February 2005,
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Sponsored by the Executive Dean’s Curtin Business School Special Project Fund 2007.
Indonesia’s
anti-money
laundering
261
Journal of Money Laundering Control
Vol. 11 No. 3, 2008
pp. 261-268
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685200810889407
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