- President Widodo highlighted the critical need to monitor crypto and NFT transactions to combat money laundering.
- He mentioned a significant $8.6 billion from crypto-related money laundering activities in 2021.
- Widodo called for swift action to stay ahead of financial crimes involving emerging technologies.
Indonesian President Joko Widodo cautioned the Financial Transaction Reports and Analysis Centre (PPATK) to vigilantly oversee cryptocurrency and non-fungible token transactions for potential money laundering activities.
This directive was given during his address at the 22nd Anniversary of the National Movement for Anti-Money Laundering and Terrorism Financing Prevention held at the State Palace in Jakarta last Wednesday. President Widodo noted that he is aware of potential money laundering involving crypto assets totaling $8.6 billion (139 trillion IDR) in 2021, citing figures from the 2022 Crypto Crime Report by Chainalysis.
This amount, equivalent to Rp 139 trillion globally, is not just large – it is extremely large. We must move quickly and stay ahead of them. Otherwise, we will continually fall behind.”
Indonesian President Joko Widodo
In addition to cryptocurrencies and NFTs, President Joko Widodo, commonly referred to as “Jokowi,” emphasized the importance of monitoring other potential avenues for money laundering such as virtual assets, online marketplace transactions, electronic money, and AI-driven financial activities. He made these remarks during a speech at the 22nd Anniversary of the National Movement for Anti-Money Laundering and Terrorism Financing Prevention at the State Palace in Jakarta.
Following the president’s instructions, Mahendra Siregar, the chairman of the Board of Commissioners of the Financial Services Authority (OJK), declared that his organization would take responsibility for these concerns when the regulation of cryptocurrencies is handed over to the OJK next year. “As we eventually join the Anti-Money Laundering and Terror Financing Prevention Team, we will gain the authority to oversee these matters, including any overlaps with services from other financial institutions,” Mahendra stated in a press conference on Wednesday.
At present, in Indonesia, cryptocurrency assets are classified as commodities and come under the regulatory purview of the Commodity Futures Trading Regulatory Agency (Bappebti). According to Law Number 4 of 2023, oversight of these assets will shift to the Financial Services Authority (OJK) in January 2025.
The new leadership in Indonesia, as evidenced in the February 2024 elections, has taken a definitive stance on cryptocurrency. Prabowo Subianto and Gibran Rakabuming Raka, the president-elect and vice president-elect, respectively, have shown a pronounced interest in the sector. Gibran, who is the son of the current President Joko Widodo, strongly advocated for the recruitment of blockchain and crypto experts to propel the nation’s technological advancements during his election campaign.
