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StAR

We commit to strengthen the Stolen Asset Recovery Initiative (StAR) in support of countries’ efforts to recover and return stolen assets.

Country: Indonesia

Status: ongoing

Themes: Asset recovery

Last updated: December 2020

Classification:

Concrete: Other | New: Other | Ambitious: Other

  • 11 Evidence:

    Evaluation of prevention action and corruption eradication related to asset recovery

    Indonesia profile in the StAR Database

    Indonesia’s asset recovery activities

    Attorney General's Office Forms a Team for Tracking and Restoring the Jiwasraya Assets

    Anticorruption Clearing House

    The difficulty for the AGO to hunt down suspect assets abroad

    Money Laundering Law 8/2010

    The Role of Asset Recovery Center in Indonesia

    The Attorney General's Office to Lobby the Swiss Government to Block ECW Neloe's Assets

    Maria’s extradition ‘cover up’ for failure to arrest other fugitives, experts say

    KPK Records History of Recovery of Corruption Proceeds from Abroad

  • 3 Notes:

    The information on Indonesia's involvement on the StAR Initiative's profile page is quite outdated, the last time being updated on 21 October 2020. Besides, in a case that has become public information, there is almost no update on the asset recovery process status in the StAR Asset Recovery Database channel. There are only 5 cases in the StAR database, including Soeharto (1998), Hendra Rahardja (in two jurisdictions: Australia and Hong Kong), Haji Ahmad Thahir in PT Pertamina Case (1977), and Tommy Soeharto (2002) - all of which are not updated. Apart from the database, the results of coordination with the KPK team also found that Indonesia had never requested technical assistance through the StAR Initiatives scheme.

    The training or assistance program in handling an asset recovery case is not yet the main focus. Various previous cases show that law enforcers in Indonesia need increased capacity to carry out investigations, detain, and seize the proceeds of corruption. The Asset Recovery Center (Pusat Pengembalian Aset/PPA), established by the Attorney General's Office (AGO), has limited human resource capacity. The officials often lack the relevant knowledge to effectively gather intelligence, analyze data, trace assets, and conduct financial investigations. The public cannot access information about their asset recovery works, including the status of confiscated assets, because there is no specific website that displays this information. The progress of the work of the asset hunting team formed, for example, in the Jiwasraya case, is also not accessible to the public.

    Existing forums such as the UNCAC Working Group on Asset Recovery, the OECD Working Group on Anti-Bribery, or CARIN and other similar networks also seem to have not been fully utilized to discuss asset recovery and exchange of lessons learned. This lack of capacity was proven in the case of the 10-year convict of the loan disbursement to PT Cipta Graha Nusantara, Eduardus Cornelis William Neloe. The former President Director of Bank Mandiri has the US $ 5.2 million in assets at Bank Swiss. The Indonesian government managed to ask Switzerland to freeze Eduardus' assets before finally reopening it at Deutsche Bank. The Swiss government considers the suspension to have no legal basis, even though Eduardus has been convicted.

    Another recent case example is related to Maria Pauline Lumowa, a fugitive in the case of burglary of BNI 46 cash worth IDR1.7 trillion, and was finally arrested after having fled abroad since 2003. Maria was arrested in Beograd, Serbia, and returned to Indonesia on July 9. When picking up directly to Serbia, Minister of Law and Human Rights, Yasonna Laoly promised to hunt down Maria's assets scattered in various countries. Based on the provisional investigation, the National Police has only succeeded in confiscating Rp134 billion in money belonging to Maria, suspected of being the result of corruption. Apart from that, the police also seized several movable and immovable assets belonging to the woman who was a Dutch citizen.

    To capture Maria and trace her assets resulting from corruption, the police have now used the articles in Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering. It seems that from various data, efforts to recover corrupted assets are still weak. This can be seen at least from the "scarcity" of use of TPPU articles in trapping corruption perpetrators and the lack of replacement money that can be returned to the state via court decisions.

    The Corruption Eradication Commission (KPK), in this case, also needs to put a greater focus on the aspect of asset recovery, mostly because since its establishment, the KPK has only succeeded one time in returning assets from abroad as the result of corruption. The return of these assets was related to the SGD200 thousand concerning the bribery case of the former Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Rudi Rubiandini. The return of assets in cash worth SGD200 thousand from Singapore to Indonesia was carried out on June 17, 2019. Thanks to the collaboration between the KPK and the Corrupt Practices Investigation Bureau (CPIB) Singapore, the triumphant return of these assets was thanks to the partnership. The money that was successfully returned was put into the state treasury as Non-Tax State Revenue (PNBP).

    Updated: October 31, 2020

    Since 2016, the Finance Ministry collaboration with the CEC and other Law Enforcement Agency coordinate with each other about duty and function of each branch on recovery and return of stolen assets. As for the StAR initiative, while Indonesia's profile is outdated, the Star country profile scores Indonesia well including saying that there is transparency in information sharing. To improve the transparency and accountability of asset disclosure system, the KPK provides public access to compliance percentage reports on its website (www.kpk.go.id) and on the Anti-corruption Clearing House (http://acch.kpk.go.id/en/home). These reports compare the number of Obligated Public Officials and the number of submitted Asset Declaration Forms. The KPK also provides public access to the database of the summary of wealth reports for registered visitors at the Anti-corruption Clearing House website.

    Peer reviewer: 1

    Updated: April 30, 2020

    No change since 2017. Strategy 2012-2025 on page 6.

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