The Urgency to Prevent Illicit Political Party Fundraising Through the Anti-Money Laundering Regime in Indonesia
Abstract
An election is a democratic process, which is both costly and cumbersome for anyone who wishes to participate. Existing practices, precisely in Indonesia, show that both political parties as well as candidates often need to raise funds to finance their campaign and/or their programs, as well as to ensure the sustainability of their political parties. The Indonesian law states various financial resources in which a political party can raise. Nevertheless, it does not set the limitations and restrictions, particularly on ways to identify and monitor where funds come from. Hence, there has been a fear that political parties may use this loophole to conduct money laundering. It is argued that while the money laundry regime can be used to prevent conspicuous practices related to political financing, a legal framework has yet to be designed and implemented.
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Adjie, Moch. Fiqih P. “Indonesia Needs to Increase Transparency in Political Parties Over Funding NGO. https://www.thejakartapost.com/news/2020/05/30/indonesia-needs- to-increase-transparency-in-political-parties-over-funding-ngo.html
Amrani, Hanafi. The Development of Anti-Money Laundering Regime: Challenging issues to sovereignty, jurisdiction, law enforcement, and their implications on the effectiveness in countering money laundering. (2012).
Arliman, Laurensius. “Keterbukaan Keuangan Partai Politik Terhadap Praktik Pencucian Uang Dari Hasil Tindak Pidana Korupsi”. Jurnal Cita Hukum Volume 4, no. 2 (2016).
Arnone, Marco., and Leonardo Borlini. “International Anti-Money Laundering Programs: Empirical Assessment and Issues in Criminal Regulation”. Journal of Money Laundering Control Vol.13 No.3 (July, 2010).
Beims, Piers., and James Messerschmidt. Criminology, Second Edition. (Harcourt Brage College Publishers, 1995).
Boister, Neil. An Introduction to Transnational Criminal Law, (Oxford University Press, 2012).
Budiardjo, Miriam. Dasar-Dasar Ilmu Politik. (Jakarta: Gramedia Pustaka Utama, 2008).
Campbell, Enid., E.J. Glasson, and Ann Lahore. Legal Research: Material and Methods: 2nd Edition (Law Company Book Limited, 1979).
Canestri, Daniele. “Politically Exposed Entities: How to Tailor PEP Requirements to PEP owned legal entities”. Journal of Money Laundering Control. Vol. 22 No.2 (2019).
Casas-Zamora, Kevin. Paying for democracy: political finance and state funding for parties. ECPR Press, 2005.
Choo, Kim-Kwang Raymond. “Politically Exposed Persons (PEPs): Risk and Mitigation.” Journal of Money Laundering Control. Vol. 11 No.4. (2008).
Esther, July. “Rekonstruksi Sistem Pemidanaan Tindak Pidana Korupsi dan Pencucian Uang dalam Pendanaan Pemilihan Umum.” Jurnal Hukum Samudera Keadilan, Volume 15 no. 1 (2020): 151-170
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Gilmore, William C. Dirty Money: The Evolution of International Measures to Counter Money Laundering and the Financing of Terrorism, 3rd ed.rev. (Council of Europe Publishing 2004).
Gracia, Javier. “International Measures to Fight Money Laundering”. Journal of Money Laundering Vol 4 No. 3 (1999).
Indrayana, Denny. “Money politicss in a More Democratic Indonesia: An Overview”. Australian Journal of Asian Law, Vol. 18. No. 2, (2017).
J. Mayron Jacobstein, Roy M. Mersky, and Donald J. Dunn. Fundamentals of Legal Research, 6th Edition (the Foundation Press INC, 1994).
Lai, Brian., and Ruth Melkonian-Hoover. “Democratic Progress and Regress: the Effect of Parties on the Transitions of States to and Away from Democracy.” Political Research Quarterly Volume 58, Number 4 (2005): 551-564.
Law No. 2 Year 2008 about Political Party
Law No. 2 Year 2011 jo Law No. 2 Year 2008 about Political Party.
Liddick, Donald R. “Campaign Fund-Raising Abuses and Money Laundering in Recent U.S. Elections: Criminal Networks in Action”. Crime, Law and Social Change, Vol. 34. (2000).
Manthovani, Reda., and R. Narendra Jatna. Rezim Anti Pencucian Uang dan Perolehan Hasil Kejahatan di Indonesia. (Malibu, 2012).
Mendilow, Jonathan, and Eric Phélippeau, eds. Handbook of political party funding. (Edward Elgar Publishing, 2018).
Mietzner, Marcus. “Indonesia’s Direct Elections: Empowering the Electorate or Entrenching the New Order Oligarchy.” Soeharto’s New Order and Its Legacy (2010): 173.
Muhtadi, Burhanuddin “Indonesia’s Open-list Voting System Opens the door to Vote Buying”, East Asia forum, (August).
Muhtadi, Burhanudin. “Riset Tunjukkan Sepertiga Pemilih Indonesia Terima Suap Saat Pemilu.” https://theconversation.com/riset-tunjukkan-sepertiga-pemilih-indonesia-terima- suap-saat-pemilu-100317. Accessed on 26th November 2020.
Nichter, Simeon. “Vote Buying or Turnout Buying? Machine Politics and the Secret Ballot. The American Political Science Review. Vol. 102, No. 1 (Feb. 2008):19-31 Doi:10.1017/ S0003055408080106
Nye, Joseph S. “Corruption and Political Development: A Cost-Benefit Analysis.” The American Political Science Review. Vol. 61, (Jun. 1967): 417-427.
Pieth, Mark and Gemma Aiolfi. A Comparative Guide to Anti-Money Laundering, A Critical Analysis of systems in Singapore, Switzerland, The UK and The USA. (Edward Elgar Publishing, 2
Pinilih, Sekar Anggun Gading. “Mendorong Transparansi dan Akuntabilitas Pengaturan Keuangan Partai Politik.” Mimbar Hukum-Fakultas Hukum Universitas Gadjah Mada 29, no. 1 (2017).
Purnamasari, Deti Mega. “Survei Lipi: Masyarakat Memandang Politik Uang Bagian dari Pemilu, Tidak Dilarang.” https://nasional.kompas.com/read/2019/08/29/05213291/survei- lipi-masyarakat-memandang-politik-uang-bagian-dari-pemilu-tidak?page=all. Accessed on 26th November 2020.
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Rizki, Mochammad Januar. “Awasi TPPU Hingga Dana Kampanye Pilkada, PPATK Gandeng Direktur Kepatuhan BANK” https://www.hukumonline.com/berita/baca/lt5f864e5ba5a16/ awasi-tppu-hingga-dana-kampanye-pilkada--ppatk-gandeng-direktur-kepatuhan-bank. Accessed 28 Januari 2021.
Rowe, Suzanne R. “Legal Researach, Legal Writing, and Legal Analysis.” 29 stetson Law Review. (1999-2000).
Savona, Ernesto. Responding to Money Laundering. (Routledge, 2005).
Sinaga, Fransiska Adelina. “Bentuk-Bentuk Korupsi Politik.” Jurnal Legislasi Indonesia 16, no. 1 (2019).
Stessens, Guy. Money laundering: a new international law enforcement model. Vol. 15. (Cambridge
Strauss, David A. “Corruption, equality, and campaign finance reform.” Columbia Law Review 94, no. 4 (1994)
Suryowati, Estu. “Mengapa jumlah Partai yang Mendaftar Sebagai Calon Peserta Pemilu 2019 Menurun?” https://nasional.kompas.com/read/2017/10/17/13175921/mengapa- jumlah-partai-yang-mendaftar-sebagai-calon-peserta-pemilu-2019?page=all. Accessed 27 November 2020.
Susanto, Mei. “Model Alternatif Pendanaan Partai Politik.” Kajian 22, no. 3 (2019).
Teh, Yik Koon. “Money politicss in Malaysia.” Journal of Contemporary Asia, Vol. 32:3. (2002). 338-345. DOI: 10.1080/0047233028000231
The Finacial Service authority (OJK) Regulation No 12/POJK.01/2017 as amended by OJK regulation No. 23/POJK.01/2019 on The Implementation on Anti Money Laundering and Terrorist Financing in Financial Services Sector.
The Preparation team of NRA Update of Indonesia, The Updated 2015 Indonesia’s Risk Assessment on Money Laundering Crime, May 2019, Available at https://www.ppatk.go.id/backend/ assets/uploads/20200219102802.pdf , Accessed 28 January 2021
The regulation of the Head of The Financial Transaction Report and Analysis Center, No. Per- 02/1.02/PPAT/02/15. Tentang Kategori Pengguna Jasa yang Berpotensi Melakukan Tindak Pidana Pencucian Uang.
Thompson, Dennis F. “Two concepts of Corruption.” Edmond J. Safra Working Papers 16 (2013).
Tsingou, Eleni. “Who Governs and Why? The Making of the Global Anti-Money Laundering Regime.” Global Financial Integration Thirty Years On: From Reform to Crisis (Cambridge: Cambridge University Press, 2010) (2010).
Ufen, Andreas. “Political part and party system institutionalization in Southeast Asia: Lesson for democratic consolidation in Indonesia, the Philippines and Thailand”. Pacific Review, Volume 21, Number 3, (2008): 327-350.
University Press, 2000).
Walecki, Marcin. “Political Money and Political Corruption: Considerations for Nigeria.” INEC- Civil Society Forum, Seminar on Agenda for Electoral Reform. (2003).
Authors
Naibaho, N., Rinwigati, P., & Ghozi, A. (2021). The Urgency to Prevent Illicit Political Party Fundraising Through the Anti-Money Laundering Regime in Indonesia. Asia-Pacific Journal of Elections and Democracy, 1(01), 19–34. https://doi.org/10.54490/apjed.v1i01.8
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