TEMPO.CO, Jakarta - The civil society coalition Danantara Monitor has written to the Financial Action Task Force (FATF) Secretariat, requesting a formal review of Indonesia's full membership. The letter, sent on Wednesday, July 1, 2026, highlighted an article on Danantara's special debt securities in the Financial Sector Development and Strengthening Law (P2SK Law), which the coalition argues poses a risk of creating legal loopholes for money laundering.
Previously, Article 50A of Law Number 4 of 2026 on the revision of the P2SK Law introducing Patriot Bonds and Merah Putih Bonds faced heavy scrutiny. "In our view, the amendment was passed to provide comprehensive legal protection to Danantara, the newly established Sovereign Wealth Fund, and to the way the institution raises financial capital," an excerpt from the letter reads.
The coalition argues that the provisions in the new P2SK Law breach Indonesia's commitments as a full FATF member. The FATF operates as an intergovernmental body that sets global standards to combat money laundering, terrorist financing, and other threats to the international financial system.
Indonesia became the 40th member of the organization in 2023. This membership entails a commitment to implementing FATF recommendations alongside undergoing regular evaluations to fortify the nation's anti-money laundering and counter-terrorism financing framework.
According to the coalition, the FATF demands that its members actively detect, investigate, and penalize money laundering practices, rather than simply maintaining formal regulations on paper.
"Meanwhile, Law Number 4 of 2026 not only weakens due diligence but also has the potential to provide legal channels for criminals to launder their illicit proceeds," Danantara Monitor stated in a press release.
The Danantara Monitor coalition comprises CELIOS, ICW, CERAH, Trend Asia, Enter Nusantara, and Climate Rangers.
Article 50A of Law Number 4 of 2026 establishes the purchase of Danantara’s special bonds as a legally valid transaction. The article stipulates that the Indonesian government guarantees and immunizes the purchase of these special bonds against general criminal prosecution, special criminal prosecution (including tax offenses), and civil lawsuits.
Furthermore, the coalition raised alarms over clauses stating that data and information disclosed during the bond purchases cannot be a basis for tax assessments or be admitted as evidence in a court of law.
The Head of the Financial Transaction Reports and Analysis Center (PPATK), Ivan Yustiavandana, weighed in on the coalition's appeal to the international watchdog. The PPATK maintains that the enactment of Article 50A of the P2SK Law should not be automatically viewed as an escalation of money laundering risks in the country.
"The Financial Transaction Reports and Analysis Center (PPATK) does not interpret Article 50A as weakening the enforcement capacity of Indonesia's anti-money laundering regime or increasing the risk of money laundering (TPPU) in Indonesia," Ivan told Tempo when contacted on Thursday, July 2, 2026.
Nevertheless, the PPATK expressed appreciation to the Danantara Monitor Coalition for its active role in supporting Indonesia's anti-money laundering agenda. "This communication effort with the FATF can be seen as evidence of the significant attention our colleagues at Danantara Monitor have paid to TPPU prevention and eradication efforts," he said.
Previously, Finance Minister Purbaya Yudhi Sadewa clarified that only the direct capital entering these instruments is shielded from legal scrutiny. "The correct translation is that the source of the money used to purchase Patriot Bonds will not be tampered with. But if they (the buyers) have other businesses, they can still be pursued (by law enforcement)," Purbaya stated in Tanjung Priok, North Jakarta, on Tuesday, June 23, 2026.
Read: Are Patriot Bond Buyers Legally Immune? Here's What Purbaya Says
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