Indonesia Country Summary
Medium Risk
View full Ratings TableSanctions
Lower Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Higher Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Indonesia was removed from the FATF List of Countries that have been identified as having strategic AML deficiencies on 26 June 2015.
Compliance with FATF Recommendations
The last follow- up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Indonesia was undertaken in 2026. According to that Evaluation, Indonesia was deemed Compliant for 7 and Largely Compliant for 30 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are currently no international sanctions in force against Indonesia.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | NA |
Corruption in Indonesia significantly hampers investment and governance, with the Corruption Eradication Commission (KPK) facing challenges to its independence and effectiveness due to political interference. The country grapples with various criminal activities, including human trafficking, illegal logging, and drug trafficking, exacerbated by a lack of resources and training within law enforcement agencies, while civil society organizations strive to hold the government accountable despite facing increasing threats.
Economy
Indonesia presents a compelling investment landscape characterized by a large population of 283 million and a stable economy valued at $1.4 trillion, bolstered by a growing middle class and rich natural resources. The government has enacted reforms, notably the 2020 Omnibus Law on Job Creation, aimed at enhancing competitiveness by reducing corporate taxes and regulatory barriers, although challenges such as bureaucratic inefficiencies, legal uncertainties, and corruption persist. Despite these hurdles, foreign investment remains robust, particularly in sectors like digital technology and renewable energy, with Indonesia's strategic initiatives to "downstream" its natural resources and expand infrastructure further enhancing its appeal as a destination for U.S. investors.
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