Sukarjito, Jakarta – The Financial Transaction Reports and Analysis Center (PPATK) has raised alarms over the growing threat of green financial crime (GFC), a form of financial wrongdoing linked to environmental destruction. Officials warn that the crimes increasingly target the country's natural resources, which are meant to be protected.
PPATK head Ivan Yustiavandana revealed that since 2020, the estimated flow of funds linked to GFC has reached around Rp 1,700 trillion ($102 billion), a sharp increase from Rp 992 trillion reported by the agency in 2025. The illicit funds originate from a range of environmental crimes, including illegal mining and forest exploitation.
"This is not just a number," Ivan said during a parliamentary working meeting with Commission III of the House of Representatives on Tuesday. "From this data, we can predict further impacts, including potential environmental disasters. High-risk areas have been mapped, from Sumatra to other regions."
Ivan emphasized that GFC represents a serious warning, as projects branded as "environmentally friendly" are increasingly used as a front for financial crimes.
In response, Commission III urged the government to strengthen PPATK's authority. Beyond freezing accounts, the agency should be equipped with the legal mandate and technological tools to track the flow of funds generated from GFC. "PPATK must be empowered to prevent perpetrators of money laundering," the commission concluded.
In its official report, PPATK defines green financial crime as financial wrongdoing related to natural resources and the environment – legal or illegal – that causes environmental damage and state losses. These practices are closely linked to money laundering from environmental crimes.
Last month, sovereign wealth fund Danantara took control of land reclaimed from 28 companies whose permits were revoked over deforestation in Sumatra, which authorities say worsened flooding disasters that killed more than 1,000 people.
The floods and landslides that struck Aceh, West Sumatra, and North Sumatra last November claimed at least 1,100 lives and caused widespread destruction of infrastructure, homes, and public facilities, according to government data. Thousands of residents were forced to flee to temporary shelters, while many schools remained closed for weeks after sustaining structural damage.
Officials said environmental degradation – including illegal forest clearing and encroachment – was a major factor behind the severity of the disasters. The next phase will focus on managing the reclaimed assets while minimizing economic and social fallout.
Also in January, President Prabowo Subianto announced that the Attorney General's Office will seize an additional 4 million to 5 million hectares of illegally controlled palm oil plantations in 2026, stepping up a sweeping crackdown on corruption and unlawful exploitation of forest land.
"We have already taken control of and seized 4 million hectares of palm oil plantations that violated the law," Prabowo said while speaking at a harvest event in Karawang, West Java, on Jan. 7. "In 2026, we will seize another 4 to 5 million hectares."