Corporate Seizure Related to Corruption and Money Laundering in Indonesia: Issues and Problems in Law Enforcement

This publication analyzes the confiscation of business assets associated with money laundering offenses in Indonesia, emphasizing the challenges and opportunities in enforcement. Money laundering (TPPU) constitutes a grave offence that jeopardises the state's finances, undermines economic stability, and compromises the integrity of the financial system. Corporations frequently act as facilitators or agents in money laundering, rendering corporate asset confiscation a crucial tool in law enforcement initiatives. This study, informed by recent academic literature, concludes that although Indonesia possesses legal frameworks for asset seizure, their execution is obstructed by numerous hurdles, including regulatory, institutional, and inter-agency coordination issues. The asset recovery rate from corruption prosecutions is significantly low in relation to total state losses. This paper advocates for the fortification of regulations via the enactment of the Asset Forfeiture Bill, the augmentation of law enforcement capabilities, the establishment of specialised agencies, and the implementation of Non-Conviction Based Forfeiture (NCBF) mechanisms with suitable protections