Jakarta (ANTARA) - Indonesia's membership of the Financial Action Task Force (FATF) will have a positive impact on the country's economic credibility, according to Finance Minister Sri Mulyani Indrawati.

"Indonesia's membership of the FATF can increase positive perceptions of the Indonesian financial system, which will have an impact on rapid economic growth through investment, both domestic and foreign," she explained here on Thursday.

Indrawati informed that her ministry will strengthen the budget side to support Indonesia's leadership role in the FATF as well as bolster supervisory human resources and supervision of the accounting profession, especially concerning money laundering and terror financing.

In addition, the ministry will carry out mutual legal assistance (MLA) with other countries.

This will be pursued in order to reduce the chance of tax avoidance and increase the number and quality of assessors and reviewers from Indonesia who can join and play an active role in the FATF mutual evaluation review (MER) team.

Indonesia's membership of the FATF was announced by the task force's president during the closing of a plenary meeting in Paris on October 27, 2023.

FATF is an international organization that focuses on global efforts to eradicate money laundering, terror funding, and the financing of the proliferation of weapons of mass destruction.

Indonesia obtained its membership after a series of tests, which included an on-site MER by an FATF team in July–August 2020 and a review carried out at an FATF plenary meeting in June 2023.

It is hoped that as a full member, Indonesia will make a broad contribution to determining global strategic policies to check money laundering and prevent terror funding as well as the financing of the proliferation of weapons of mass destruction.

This contribution could further emphasize Indonesia's position as a country with integrity that is capable of making an active contribution on the international stage.

The achievement of the FATF membership is a first step for Indonesia in continuing to improve the framework to curb money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction.

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Translator: Imamatul Silfia, Raka Adji
Editor: Azis Kurmala
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