KPK Stresses Asset Recovery Must Be Top Priority for Law Enforcement
The Corruption Eradication Commission (KPK) has stressed that tracing and recovering assets from criminal proceeds must be a vital part of corruption eradication. This step is crucial so that enforcement does not stop merely at convicting the perpetrators.
KPK Deputy Chairman Fitroh Rohcahyanto stated that law enforcement officials need to trace the flow of funds, uncover asset concealment, and ensure that the proceeds of crime are returned to the state treasury.
“Corruption eradication is not enough with proving the criminal act and convicting the perpetrator, but also tracing the flow of criminal proceeds, uncovering asset concealment, and ensuring that assets resulting from corruption are returned to the state,” Fitroh said in an official statement on Monday (31/8).
According to Fitroh, the modus operandi of corruption perpetrators is increasingly evolving. Criminal proceeds are often disguised or transferred through various financial instruments and complex transactions to erase the trace of the origin of the wealth.
Therefore, handling money laundering offences (TPPU) is key to dismantling the framework of asset concealment while strengthening the financial crime prevention system.
He explained that the national risk assessment (NRA) prepared by the Financial Transaction Reports and Analysis Centre (PPATK) serves as the main navigation instrument in mapping the threats, vulnerabilities, and impact of money laundering in the country.
“A risk-based approach is an important element in the FATF standards. Indonesia has understood the risks and developed mitigation policies and strategies. However, strengthening is still needed, particularly in recovering assets, risk-based supervision, and implementing proportional sanctions with a deterrent effect,” he explained.
Fitroh also highlighted the urgency of asset pursuit, which is considered increasingly pressing. Based on the 2023 Mutual Evaluation Review (MER) of the Financial Action Task Force (FATF), corruption still dominates as one of the main sources of money laundering risk in Indonesia, along with narcotics offences, taxation, and forestry crimes.
Ahead of the next MER on-site assessment in November 2029 and the plenary session in June 2030, Indonesia is required to demonstrate the effectiveness of law enforcement, not merely administrative compliance.
“It is more important to build a track record of effectiveness by improving the quality of case handling, uncovering fund flows, confiscation and asset recovery, strengthening inter-agency coordination, and risk-based prevention,” Fitroh asserted.
PPATK Head Ivan Yustiavandana emphasised that strengthening the anti-money laundering regime, the criminal offence of terrorism financing, and the financing of proliferation of weapons of mass destruction is the collective responsibility of all ministries and agencies.
PPATK recorded that throughout 2025 it has produced 373 financial intelligence products with the value of analysed transactions reaching Rp180.87 trillion. One notable finding includes the analysis of transactions worth Rp22.53 trillion converted into crypto assets related to cybercrime and digital fraud.
Ivan stressed that Indonesia’s reputation and level of compliance in the eyes of the international community depend heavily on the validity of enforcement data in the field.
“Indonesia’s compliance achievements cannot be built merely through administrative fulfilment, but must be supported by valid, measurable, and accountable data,” Ivan said.