During a speech last Wednesday at the 22nd Anniversary of the National Movement for Anti-Money Laundering and Terrorism Financing Prevention at the State Palace, Jakarta, Indonesian President Joko Widodo urged the Financial Transaction Reports and Analysis Centre (PPATK) to enhance surveillance on cryptocurrency and non-fungible token (NFT) transactions to thwart potential money laundering activities.
Referring to data from the 2022 Crypto Crime Report by Chainalysis, President Widodo noted indications of substantial money laundering through crypto assets in 2021, amounting to approximately $8.6 billion (139 trillion IDR) globally.
“This amount, equivalent to Rp 139 trillion globally, is not just large – it is extremely large,” Widodo emphasized during his address. “We must move quickly and stay ahead of them. Otherwise, we will continually fall behind,” he added.
President Widodo also highlighted the importance of monitoring other potential avenues for money laundering, including virtual assets, marketplace activities, electronic money, and AI-driven transactions.
In response to the president’s directive, Mahendra Siregar, chairman of the Board of Commissioners of the Financial Services Authority (OJK), assured that his agency would address these concerns as crypto regulation transitions to the OJK next year.
“In due course, as members of the Anti-Money Laundering and Terror Financing Prevention Team, we will have the authority to monitor these issues, including whether their use overlaps with services from other financial institutions,” Mahendra stated during a press conference.
Currently, crypto assets in Indonesia are classified as commodities and regulated by the Commodity Futures Trading Regulatory Agency (Bappebti). However, according to Law Number 4 of 2023, oversight of crypto assets will shift to the Financial Services Authority (OJK) in January 2025.
In the realm of government support, Indonesia’s newly elected leadership demonstrates a clear stance on crypto. In the February 2024 elections, the newly elected president and vice president, Prabowo Subianto and Gibran Rakabuming Raka, expressed a strong interest in crypto.
Gibran, the son of President Widodo, emphasized the necessity of blockchain and crypto experts to advance the country’s technological sector during the election campaign. Additionally, Prabowo and Gibran’s National Campaign Deputy Chairman, Erwin Aksa, highlighted their commitment to improving tax compliance supervision for crypto assets.
The official inauguration of Prabowo and Gibran is scheduled for October 20, 2024.
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