Indonesia Intensifies Oversight on Cooperatives Amid Financial Crime Concerns

Enhanced Monitoring of Large Transactions

The Indonesian Ministry of Cooperatives has stepped up its oversight of cooperatives, particularly those with transactions exceeding Rp500 million. This move comes as the ministry and the Financial Transaction Reports and Analysis Center (PPATK) work together to prevent cooperatives from being exploited for financial crimes such as money laundering and terrorism financing.

Coordination with Financial Watchdog

Deputy for Cooperative Supervision at the Ministry of Cooperatives, Herbert H.O Siagian, highlighted the ministry's efforts to monitor cooperatives that could be misused for illicit activities. The ministry has dedicated personnel tasked with keeping a close watch on cooperatives that show potential deviations, including those related to money laundering and terrorism financing.

Addressing Financial Crimes

The decision to increase scrutiny of cooperatives is driven by concerns that these entities could be targeted by individuals involved in financial crimes. By working closely with PPATK, the ministry aims to strengthen the integrity of cooperatives and prevent their misuse for illegal purposes.