Suspicious Financial Transaction Reports Surge 50.04% to July 2023

The Indonesian Financial Transaction Reports and Analysis Centre (PPATK) revealed that the number of suspicious financial transaction reports from January to July 2023 reached 76,376. This figure surged by 50.04% year-on-year (YoY) compared to the 50,904 reports in the same period of the previous year.

On a month-to-month (MoM) basis, the number increased by 15.20% from 11,495 reports in June 2023.

February 2023 recorded the highest number of reports at 14,707, followed by July 2023 with 13,242 reports.

The lowest number of suspicious transaction reports this year occurred in January (6,162 reports) and April (7,511 reports).

Based on the reporting group, non-bank institutions were the largest reporters, submitting 8,261 reports in July 2023 alone. This was followed by commodity futures trading companies with 6,635 reports and general banks with 4,948 reports in July 2023.

Suspicious Transactions Ahead of the 2024 General Election

Citing *Kaltim Today*, PPATK Head Ivan Yustiavandana stated that suspicious financial transactions often spike before general elections.

In the 2019 General Election, the highest number of suspicious financial transactions occurred in DKI Jakarta, exceeding Rp540 trillion, followed by East Java with Rp367 trillion. Overall, the total value of suspicious transactions across the 34 provinces reached Rp1,147 trillion.

"When the campaign period begins, transactions become more active with significant fund flows. The peak of transactions occurs during the quiet period," said Ivan in an integrated law enforcement center discussion forum reported on Friday, August 11, 2023.

The modus operandi of vote buying is identified from the surge in demand for Rp50,000 and Rp100,000 banknotes during the quiet period, or three days before election day. This is evident from the special campaign fund accounts (RKDK) of election contestants.

Ivan also revealed that the modus operandi of vote buying is clearly visible in the channeling of election operational funds through the personal accounts of election organizers or supervisors. In addition, there are campaign donations from regional business entities and businesses that have indications of involvement in money laundering.