Financial transactions raise serious concerns over funding of 2024 Election campaigns in Indonesia

INDONESIA: The Indonesian General Election Commission (KPU) recently disclosed that the commission had received a letter from the Financial Transaction Reports and Analysis Center (PPATK) concerning suspicious transactions linked to the 2024 election campaign.

Idham Holik, the Commissioner of the KPU, said the PPATK’s findings have unveiled potential irregularities in the flow of funds, casting a shadow over the financing of political activities in the upcoming elections.

Idham elaborated on the situation, emphasizing that the KPU’s involvement could only occur if the suspicious transactions highlighted by the PPATK were connected to the special campaign fund accounts (RKDK) of election participants.

It is worth noting that the KPU is specifically responsible for handling transactions related to these campaign fund accounts during the election process.

However, the PPATK’s report to the KPU lacked crucial details, leaving unanswered questions about whether the suspicious transactions originated from RKDK or the bank accounts of political parties.

Idham expressed frustration, stating that the PPATK provided limited information, indicating substantial sums of money flowing in and out of political party treasurer accounts, exceeding half a trillion.

According to the PPATK, these funds could be used for election campaigning or political bribery.

Idham pointed out that if the suspicious transactions were traced back to political party accounts, the KPU and the Election Supervisory Agency (Bawaslu) would have the authority to take appropriate action.

However, if the transactions occurred within party accounts, they would be subject to the provisions of the Political Parties Law rather than the Election Organizer Law.

In response to the PPATK’s alarming findings, the KPU has announced plans to intensify awareness campaigns among political parties participating in the 2024 elections.

The aim is to ensure strict compliance with legal regulations, as the Election Law explicitly sets limits on campaign donation acceptance for all election participants. Violators may face criminal sanctions as outlined in the law.

Earlier unveiled suspicious transactions linked to illegal mining and environmental offences

It is crucial to highlight that this is not the first time the PPATK has flagged concerns related to the 2024 election campaigns.

Previously, the agency had uncovered suspicious transactions associated with illegal mining and other environmental crimes, indicating a potential channelling of funds into the upcoming elections.

Ivan Yustiavandana, the Head of PPATK, revealed that these findings demonstrated a substantial increase of over 100% in suspicious transactions linked to the imminent elections.

In response to the PPATK’s revelations, Bawaslu has asserted its commitment to investigating possible criminal activities linked to the unusual flow of funds from election participants, as highlighted in the PPATK’s letter.

Bawaslu’s authority, as delineated by the Election Law, is primarily focused on overseeing campaign funds.

If indications of electoral offences are discovered, Bawaslu has pledged to promptly forward the information to law enforcement agencies, including the police and the prosecutor’s office.

Moreover, Bawaslu clarified its collaboration with the PPATK, emphasizing that it involves sharing information relevant to RKDK or election fund accounts.

Matters related to political parties, non-campaign funds, or other issues fall outside Bawaslu’s jurisdiction.

In such cases, the information will be forwarded to the Corruption Eradication Commission (KPK), police, and the prosecutor’s office.

It is imperative to approach the information contained in the PPATK’s letter with caution, as it is classified as “highly confidential.”

A disclaimer found in the correspondence underscores that the data cannot be disclosed to the public or used as legal evidence.

Bawaslu has stressed the need to handle this sensitive information with care, respecting its confidential status and acknowledging the potential legal implications of its disclosure.