Indonesia is set to become a full member of the Financial Action Task Force in June 2023, following the completion of priority action plans. Membership is expected to have a positive impact on Indonesia’s financial system and investment climate.

Indonesia’s Finance Minister, Sri Mulyani Indrawati, and the President of the Financial Action Task Force (FATF), Raja Kumar, discussed Indonesia’s full membership in the organisation at the IMF-World Bank Spring Meetings in Washington. Indrawati indicated that full membership in FATF would improve perceptions of Indonesia’s financial system and improve the investment climate in the country. FATF recently completed its Mutual Evaluation Review of Indonesia, assessing its fitness to join the task force as a full member. The FATF promotion proposal was submitted by the Ministry of Finance in 2017 and awaits approval expected in June 2023. Coordinating Minister for Political, Legal, and Security Affairs Mahfud MD is optimistic that Indonesia is close to becoming a full member, with prioritised action plans for the country’s anti-money laundering (AML) and Terrorist Financing Prevention (TPPU) legislation set to complete by 21 April.