Abdul Khalik, Jakarta – The Indonesian financial intelligence unit has warned of financial violations and money politics during next year's legislative and presidential elections unless monitoring efforts are enhanced.
The Financial Transaction Reports Analysis Center (PPATK) said over the weekend that the number of suspicious transactions jumped by 30 percent in six months, from around 12,000 early this year to some 16,000 in June.
PPATK chairman Yunus Hussein said his office received some 25 to 30 reports of suspicious transactions per day from banks and non-bank financial institutions this year, up from only 10 to 16 transactions per day last year. The financial unit monitors only bank transactions of at least Rp 500 million in value.
Yunus said the transactions, which involved domestic and foreign transfers, totaled millions of dollars.
"We don't know yet whether the transactions involve politicians and political parties as we have yet to check them out. But of course, the sharp increase has something to do with the elections, which are drawing near," Yunus said.
The sharp increase in suspicious transactions has been visible for some time, with PPATK reports suggesting that such transactions at banks and non-bank financial institutions almost tripled from 2,055 in 2005 to some 5,831 in early 2007.
A transaction is considered suspicious if it involves, among other things, a sudden transfer of money without clear explanation about the sender or the purpose of the funds.
The election law limits donation from individuals at Rp 1 billion per candidate and from groups or companies at Rp 5 billion. Political parties and presidential candidates are banned from receiving foreign donations.
Violations carry a maximum punishment of one-year in jail and/or a fine amounting to twice the amount of money received.
The PPATK also said the number of cash transactions filed by financial institutions more than tripled from 1.5 million in 2006 to more than 5 million this year.
Yunus said he did not rule out the possibility that the cash transactions were connected to politicians and political parties.
He urged the General Elections Commission and the Election Monitoring Body to sign a memorandum of understanding with his office on specific joint measures to monitor financial contributions for political parties and politicians.
Election Monitoring Body chairman Nur Hidayat Sardini recognized the need to join forces with the PPTAK to strengthen the monitoring of money channeled to political parties and politicians.
"We will sign an MOU with the PPATK to trace money that goes to parties or politicians. This is crucial to determine whether there are violations of the law," he said.
The legislative election will take place on July 9, 2009, with the first round of the presidential election to take place about three months later. The campaign period for the legislative election will begin on Saturday and conclude on April 5 next year.