We commit to participate in the second review cycle of the implementation of Chapter V on Asset Recovery of the United Nations Convention Against Corruption.
Themes: Asset recovery
Last updated: December 2020
Concrete: Other | New: Other | Ambitious: Other
Indonesia shares progress towards UNCAC implementation
UN Office on Drugs and Crime Indonesia Summary Page
Evaluation of Prevention action and Corruption Eradication related to Asset Recovery
Indonesia’s Commitment Report to UNCAC and G20 (April 20, 2020)
Law No. 1/2006 MLA on Criminal Matters
Law No. 5/2020 MLA Indonesia with Swiss Confederation
The Corruption Eradication Commission (KPK) and the Ministry of Foreign Affairs hosted the second round of peer review mechanism (2016-2019) on the implementation of the UNCAC reviewed by Yemen and Ghana. During the monitoring period, a range of multi-stakeholder state agencies attended the evaluation agendas, including the Attorney General's Office, Ministry of Law and Human Rights, Ministry of Foreign Affairs, Supreme Court, Financial Service Authority, National Police, and Financial Transaction Reports and Analysis Centre.
This review cycle covered Chapter II on Prevention (article 5-14) and Chapter V on Asset Recovery (article 52-59). Of all the articles reviewed in chapter V, almost all have been declared as compliant. However, Article 54 (1a, 1c) related to mechanisms for recovery of property through international cooperation in confiscation, still is considered as only partially complied, and Article 57 (3c) related to returns and disposal of assets declared have not complied.
The recovery of assets in Indonesia is not yet a priority for Government policy. The country shows it does not have specific laws that regulate the return of assets as mandated in Article 57 UNCAC and the low quality of resources and expertise of the Asset Recovery Centre at the Attorney General's Office. The central authority and related law enforcers also act passively to settle cases by just waiting for reciprocal legal assistance requests.
There is minimal effort to strengthen preventive mechanisms to protect the financial system as recommended by the FATF. Financial Transaction Reports and Analysis Centre (PPATK) and Financial Service Authority (OJK) efforts to require financial institutions to conduct due diligence, identify and monitor Politically Exposed Person (PEP), as well as to collect and to provide information on beneficial ownership is not optimal. Due to this situation, currently, the responsible authorities have not carried out adequate supervision to enforce these requirements. They have not published the measures that have been taken.
At present, the asset recovery option appears to depend only on the international cooperation through MLAs or agent-to-agent relationship. Recovery strategy through confiscation without conviction (NCB), orders/stipulations related to obscene wealth, and legal remedies in the civil sector have not yet appeared even though there has been dialogue.
Updated: October 31, 2020
The Corruption Eradication Commission (KPK) and the Ministry of Foreign Affairs hosted the second round of review on the implementation of the United Nations Convention Against Corruption (UNCAC). Two countries drawn to be the reviewers for Indonesia were Yemen and Ghana. Indonesia has been reviewed twice. The first one was in 2011/12 by the United Kingdom and Uzbekistan, about Chapter III on Legal Punishment and Enforcement and Chapter IV on International Cooperation. The second review, in 2017/18, covered Chapter II on Prevention and Chapter V on Asset Recovery.
Peer reviewer: 1
Updated: April 30, 2020
No change since 2017. Strategy 2012-2025 on page 6.