Much-Awaited House Hearing on Money Laundering Scandal Turns Personal
Jakarta. Chief Security and Legal Affairs Minister Mohammad Mahfud MD is supposed to shed light on bombshell allegations of Rp 349 trillion ($23 billion) money laundering at the Finance Ministry during a hearing with lawmakers on Wednesday afternoon, but he spent much of his precious time countering verbal attacks from politicians, most notably Arteria Dahlan.
The much-anticipated hearing gained national attention amid a string of scandals involving Finance Ministry high-ranking officials who flexed wealth on social media platforms. The public outrage at the ministry culminated after Mahfud revealed a fantastic amount of laundered money in the past decade involving many ministry officials and outsiders.
But not many explanations can be heard from the hearing which lasted almost eight hours as Mahfud and lawmakers traded arguments and accusations.
Mahfud was angered by an earlier statement from Arteria implying that the Financial Transaction Reports and Analysis Center, or PPATK, was wrong when it supplied the minister with money laundering data because the agency should report directly to the president.
Mahfud underlined that he is also the president’s appointee to lead the Committee on Money Laundering Prevention which depends on the PPATK for data and information.
He said the National Intelligence Agency (BIN) led by Budi Gunawan also regularly briefs his office with the latest intelligence information. The minister dared Arteria to stop the intelligence boss from supplying information to Mahfud’s office.
"Do you, Mr. Arteria, have the courage to say the same thing to BIN Head Budi Gunawan? He also reports to the president but every week the agency submits intelligence information to my office. This is a crucial thing because I work on intelligence information," Mahfud said during the hearing with the House committee on legal affairs.
Read More:
‘I’m Not Joking’: Top Official to Reveal Alleged $19.5b Money Laundering in Finance MinistryArteria, a politician with the ruling Indonesian Democratic Party of Struggle (PDI-P), suggested that Mahfud could have violated the law by leaking intelligence information to the public.
According to Mahfud, such a statement could add complication to the money laundering scandal and he was in fact reported to the police by a group of anti-corruption activists.
"I was appointed by the president to lead [the committee on money laundering]. What’s the point of my leadership if the PPATK cannot report to me? If I’m not allowed to know anything?” Mahfud said.
"Don't try to bluff me because I can do the same to you," he told Arteria.
At one point of the hearing, Mahfud alleged that behind strong and harsh statements from lawmakers, there is the interest of a “broker”.
“House members are strange. Sometimes they are angry at something but it turns out they actually act as a middleman. They are furious at the attorney general but then they come to his office brokering a [legal] case,” he said to an angry response from lawmakers.
“I demand that you retract this statement or I will make my case of this,” Arteria said.
Tags: Keywords:Related Articles
Indonesia Boosts Ministry Spending by $516 M as Budget Room Stays Tight
Indonesia raises ministry spending by Rp9.1 trillion in 2027 as officials stress the need to prioritize limited fiscal resources.BI Sets Timetable With Finance Ministry for Government Fund Flows
Bank Indonesia and the Finance Ministry have set a timetable for government fund placements and withdrawals to keep banking liquidity stablePurbaya Says MBG Spending Could Fall Below $11.3 Billion
Purbaya says the 2027 MBG budget could fall below Rp 200 trillion through greater efficiency, technology, and tighter oversight.Purbaya Says Ineffective Spending Drove Cuts to Regional Transfers
Finance Minister Purbaya said ineffective and misallocated local spending prompted Jakarta to cut direct transfers to regional governments.Patriot Bond Rules Could Put Indonesia’s FATF Membership at Risk, Mahfud Warns
Mahfud warns that legal protections for Patriot Bonds could weaken Indonesia’s anti-money laundering regime and jeopardize its FATF standing.Indonesia Sets Rp 650 T for Debt Interest Payments in 2027
Indonesia will allocate Rp650.3 trillion for debt interest payments in 2027, up 11.7% from the 2026 outlook.Indonesia Sees Surge in Online Gambling Deposits During 2026 World Cup
Indonesia Sees Surge in Online Gambling Deposits During 2026 World CupIndonesia Collects $3.05 Billion in Digital Economy Taxes Through June
Indonesia collected Rp 54.7 trillion in digital economy taxes through June, led by Rp 42.01 trillion in VAT on e-commerce.Purbaya Dismisses Debt Concerns as Indonesia's External Borrowing Reaches $444.4 B
Indonesia's external debt rose to $444.4 billion in May, but Finance Minister Purbaya says the country's fiscal position remains sound.No Tax Hikes as Indonesia Faces Revenue Shortfall: Purbaya
Purbaya says Indonesia will boost tax revenue by expanding the tax base through digitalization instead of raising tax rates.The Latest
Court Hears of $5,000 Fee for Expedited Hajj Slots in 2023
A former Religious Affairs Ministry staffer testified that 181 pilgrims paid $5,000 each for expedited hajj departures in 2023.Five Journalists Reported Missing While Covering Anak Krakatau Eruption
Five journalists and two boat crew members are missing after losing contact while covering the Anak Krakatau eruption off Banten.Trump Tariffs Cripple EU Firms’ Confidence in ASEAN
As many as 81% of the surveyed European businesses admit that the US tariffs had weakened their confidence in ASEAN.Rupiah Strengthens to Rp17,632 on Reserve Boost
The rupiah rose 0.05% to Rp17,632 as higher foreign exchange reserves offset geopolitical risks and US inflation concerns.Stocks Climb 1% as Indonesia’s Reserves, Airport Operations Recover
Indonesian stocks rose 1% as stronger foreign reserves and airport reopenings lifted domestic market sentiment.Most Popular
