PPATK Responds to Danantara Monitor's Letter to FATF
The Financial Transaction Reports and Analysis Centre (PPATK) has responded to a letter from the Danantara Monitor civil society coalition to the Financial Action Task Force (FATF) Secretariat regarding a regulation that grants legal immunity to buyers of special Danantara debt securities. PPATK has assured that the article contested by the coalition in the Financial Sector Development and Strengthening Law (UU P2SK) does not obstruct financial intelligence functions under the Anti-Money Laundering Law (TPPU).
On 1 July 2026, Danantara Monitor wrote to the FATF requesting a review of Indonesia’s membership due to Article 50A, which is deemed to provide legal immunity for buyers of special Danantara bonds. This article is considered to risk causing serious legal violations concerning funds originating from money laundering, including all assets obtained from such activities.
PPATK Head Ivan Yustiavandana expressed appreciation for the coalition’s support for anti-money laundering efforts. “This communication effort with the FATF can be viewed as evidence of the considerable attention our friends at Danantara Monitor pay to the prevention and eradication of money laundering,” he said when contacted on Thursday, 2 July 2026.
Nevertheless, Ivan explained that the issuance of Article 50A of the P2SK Law cannot simply be interpreted as increasing the risk of money laundering in Indonesia. According to PPATK’s interpretation, the article will not weaken the enforcement capability of Indonesia’s Anti-Money Laundering regime nor increase the risk of money laundering.
Ivan added that the article is in line with Anti-Money Laundering and Counter-Terrorism Financing (APU PPT) provisions in Indonesia and FATF standards. The provision also does not legalise or remove the status of funds originating from criminal acts. Article 50A only regulates legal protection within a specific scope and stages, rather than providing legitimacy to the proceeds of crime.
“PPATK continues to carry out all financial intelligence functions in accordance with the Anti-Money Laundering Law. PPATK can still obtain data, conduct analysis, compile analysis results, and submit them to law enforcement officials,” he said.
Indonesia has been a full member of the FATF since October 2023. Ivan recounted that the struggle to become a full member was a very long one, with Indonesia striving for more than 15 years to achieve this status. “A long effort to improve the standards of Indonesia’s APU PPT regime, where all requirements, procedures, and detailed matters were continuously improved,” he said.
He confirmed that PPATK and all relevant ministries and agencies are fully committed to ensuring that all national policies remain aligned with FATF standards and continue to strengthen the effectiveness of Indonesia’s APU PPT regime.
In their letter, Danantara Monitor requested that the FATF review the compatibility of the P2SK Law and the protections in Article 50A concerning Special Danantara Bonds in accordance with FATF Recommendations and Immediate Outcomes. They also requested clarification from the Indonesian Government on how due diligence, source of funds checks, suspicious transaction reporting, access to evidence, and law enforcement will be implemented in Patriot Bond and Merah Putih Bond transactions.
The coalition also asked for consideration on whether the law will be reviewed in the follow-up review process, peer monitoring, or compliance mechanisms of the FATF or the Asia-Pacific Group (APG). “As well as reviewing Indonesia’s membership status.”
Celios Executive Director Bhima Yudhistira, a member of the coalition, stated that this pressure will continue. In addition to writing to the FATF, the coalition also plans to challenge the problematic article through a Judicial Review at the Constitutional Court (MK). “We are currently drafting the lawsuit text together with the civil society and academic coalition so that the MK can annul Article 50A of the revised P2SK Law,” said Bhima when contacted on Thursday, 2 July 2026.