DPR Opens Door for PPATK to Join Indonesian Financial Centre Advisory Board

The House of Representatives (DPR) has opened the possibility for the Financial Transaction Reports and Analysis Centre (PPATK) to join the advisory board of the Indonesian Financial Centre (PFII). Mohamad Hekal, Vice Chairman of Commission XI and Chair of the PFII Bill Working Committee, stated that the inclusion of PPATK would complement the board, which is primarily composed of members from the Financial System Stability Committee (KSSK). The KSSK includes the Minister of Finance, the Governor of Bank Indonesia (BI), the Chairman of the Board of Commissioners of the Financial Services Authority (OJK), and the Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS). Hekal noted that the final composition of the PFII Advisory Board would be left to the President’s discretion, but stressed the board’s crucial role in aligning PFII policies with Indonesia’s national interests. Previously, legal experts had urged the government and DPR to strengthen the PFII’s supervisory mechanisms. International law expert Professor Dewa Gede Sudika Mangku recommended a multi-layered oversight structure involving the PFII Advisory Board and existing authorities such as BI, OJK, LPS, PPATK, and the DPR. He argued that such layered supervision is essential to mitigate risks including money laundering, concealment of beneficial ownership, inter-agency overlap, capital flow volatility, and the perception of Indonesia as a tax haven.