Twelve Cooperatives Involved in Money Laundering Worth Rp 500 Trillion
The PPATK found indications that 12 savings and loan cooperatives were allegedly involved in money laundering worth Rp 500 trillion (US$32.89 billion). The House has asked law enforcers to seriously investigate the case
By
NIKOLAUS HARBOWO, BENEDIKTUS KRISNA YOGATAMA
·5 minutes read
REBIYYAH SALASAH
The victims of the Indosurya Savings and Loans Cooperative default case show posters during a press conference, in Jakarta, Sunday (18/12/2022). They demanded that the panel of judges decide that the defendant's confiscated assets be returned to them.
JAKARTA, KOMPAS — The Financial Transaction Reports and Analysis Center (PPATK) has found allegations of money laundering in 12 savings and loan cooperatives with a total value of Rp 500 trillion (US$32.89 billion). The findings have been reported to law enforcement officials for further investigation.
In one case related to savings and loan cooperative KSP Indosurya, the PPATK also found that there was a flow of funds abroad.
In his remarks at a hearing with the Commission III of the House of Representatives at the Senayan Complex, Jakarta, on Tuesday (14/2/2023), PPATK head Ivan Yustiavandana said that during 2020-2022 period, the PPATK had investigated alleged money laundering practices (TPPU) in cooperatives. Based on the results of analysis, the PPATK found 12 savings and loan cooperatives suspected of committing money laundering practice, one of which being KSP Indosurya.
“The total amount of funds could exceed Rp 500 trillion when talking about cases that have been handled by cooperatives. So, it means, the funds raised by cooperatives that commit money laundering practices are quite large," he said.
The PPATK has reported its findings about KSP Indosurya several times to the Attorney General's Office. Ivan has also reported to the cooperatives and small and medium Enterprises (SME) minister regarding a ponzi scheme being run by Indosurya.
Ponzi schemes are fraudulent schemes under the guise of investment by offering large returns to customers. However, the source of funds for providing the returns is actually not from investment results, but from subsequent customer funds.
The PPATK also found that Indosurya's customer funds were channeled abroad through affiliated companies. The funds were then used for business transactions that should not be carried out by cooperatives, including the purchase of a jet and cosmetic surgery pocedures.
Eleven cooperatives
Regarding the 11 other cooperatives involved in money laundering, Ivan said he had reported them to law enforcement officials. Thus, the alleged irregularities can be traced further. "We have already reported them to the National Police and to the prosecutor's office and all law enforcement agencies," he said.
The PPATK also continues to make preventive efforts, such as working with the Social Affairs Ministry and the Cooperatives and SMEs Ministry. The PPATK also terminated the transactions. "In the process of analysis, we have already started to stop transactions to avoid bigger losses to the public," said Ivan.
ARSIP KEMENTERIAN KOPERASI DAN UKM
The Indosurya Cipta Building is one of the assets of the Indosurya Cipta Savings and Loans Cooperative (KSP). This KSP became one of the cooperatives that was subject to the PKPU homologation sanction.
However, Ivan said, it would be impossible to fully prevent community losses, as people's financial literacy is still weak. As a result, he said, people were easily tempted by the big profits offered by actors with bad intentions in cooperatives. This then encouraged the customers to provide funds for risky investments.
“This is very unfortunate because many people do not know and do not understand the existence of these ponzi schemes. In the end, they suffered a loss of a large amount of money, "said Ivan.
A member of House Commission III from the Gerindra Party faction, Siti Nurizka Puteri Jaya, asked that law enforcement officials to fully disclose the problem of the cooperatives. According to her, in addition to the victims, the troubled cooperatives had caused a loss to many parties amounting to trillions of rupiah.
Nurizka expressed her anger because Henry Surya, the accused in the alleged fraud and embezzlement of Indosurya funds, was acquitted at the cassation level. This caused great disappointment for the company’s victims.
In response, the National Police's Criminal Investigation Agency has again opened a new investigation into KSP Indosurya's administrators. The investigation has been carried out in parallel with the appeal to be made by the prosecutor’s office against the acquittal of KSP Indosurya’s chairman Henry Surya in the case of alleged fraud and embezzlement of KSP Indosurya’s funds (Kompas.id, 1/2/2023).
Arrears
The amount of money that has been returned by troubled cooperatives to their members is still low. Based on document from the Task Force (Satgas) for Handling Problematic Cooperatives, there are eight problematic cooperatives that have failed to return the money of their customers or members. The eight cooperatives are KSP Sejahtera Bersama, KSP Intidana, KSP Pracico Inti Sejahtera, KSP Pracico Inti Utama Sharia Savings and Credit Cooperative, KSP Indosurya, KSP Timur Pratama Indonesia, KSP Lima Garuda and KSP Jasa Berkah Wahana Sentosa.
The total funds that must be paid to the customers of the eight cooperatives is Rp 26.11 trillion. However, the money that has been returned has only reached Rp 2.66 trillion, or 10.21 percent of the total. The deadlines for the cooperatives to settle all their obligations have been set for 2024, 2025 and 2026.
Cooperatives and SMEs Minister Teten Masduki said efforts to pay off their financial obligation to their members included the sales of the cooperatives’ assets. However, the process would not run smoothly due to a number of obstacles.
Teten explained that the obstacles included, among other things, that the assets that would be auctioned did not apparently belong to the cooperatives, so they could not be liquidated. Another obstacle was the ongoing criminal law process, which requires the police to confiscate assets, so that the assets could not be sold.
This article was translated by Hendarsyah Tarmizi.
