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  • Indonesia to Give More Power to Anti-corruption Agency

    Published on August 29, 2010

    Indonesian Lawmakers drafting an amendment to the 2003 Money Laundering Law have agreed with the government about giving new powers to the Corruption Eradication Commission (KPK) to investigate suspicious financial transactions, local media reported Saturday.

    The agreement was reached during a closed-door meeting on Friday between the team from the House of Representatives and the government, represented by the leaders of the antigraft agency, also known as the KPK, the Financial Transaction Reports Analysis Center (PPATK) and National Legal Development Agency (BPHN).

    As part of the agreement, the KPK is set to gain the right to investigate suspect finances, which is currently only permitted to the police, Attorney General’s Office, customs office, National Narcotics Agency (BNN) and tax office.

    The pending amendment will give the KPK high-level access to PPATK reports in order to conduct investigations.

    The agreement came amid public concern that some House factions were opposed to expanding powers for the KPK and PPATK, and accusations that some lawmakers in the special committee deliberating the bill had even received bribes to block the amendment.

    “This is proof that there is no intention to limit antigraft efforts, including limiting the KPK’s access to suspicious financial reports,” Ahmad Ramli, head of the BPHN, was quoted by the Jakarta Globe as saying.

    However, Ramli said the KPK, BNN and tax and customs offices would still need to coordinate with the police and AGO before launching their own probes into a suspicious transaction.

    At the meeting, the parties also agreed to drop a proposed article of the law that would have also given the PPATK the authority to initiate investigations of transactions and bank accounts.

    PPATK chairman Yunus Husein confirmed that it had only been agreed that the agency would retain its current right to identify, clarify and provide analysis to the six institutions that would then investigate the transactions. “And we can accept that,” Yunus said.

    Bambang Soesatyo, a special committee member from the Golkar Party, said lawmakers would only grant the PPATK the authority to investigate suspicious transactions if it agreed to be more independent.

    Some lawmakers have aired fears of potential manipulation by the government if the PPATK was given such rights, because the institution was still technically under the president, he said.

    “It won’t be independent,” Bambang said. “Just look at how the head of the PPATK is also a member of the Judicial Mafia Eradication Task Force, which is also part of the president’s special team.”

    Chairman of the special committee Edison Betaubun, who is also from Golkar, said the consensus over the matter had shown that lawmakers were not trying to curb the authority of the KPK and PPATK.

    KPK Deputy Chairman Chandra M Hamzah, meanwhile, applauded the decision to allow the agency to investigate and follow up on PPATK reports.

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