Indonesia Country Summary

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 2025. According to that Evaluation, Indonesia was deemed Compliant for 6 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.

Indonesia continues to grapple with significant challenges related to crime and corruption, despite government efforts to combat these issues through various strategies and agencies. Corruption remains deeply entrenched, with political interference undermining the effectiveness of the Corruption Eradication Commission, while human trafficking, illegal logging, and drug trafficking persist as major criminal concerns exacerbated by weak governance and inadequate law enforcement resources.

Indonesia, with a population of 276 million and a USD 1.2 trillion economy, presents a compelling opportunity for U.S. investors due to its growing middle class and rich natural resources. However, challenges persist, including bureaucratic inefficiencies, regulatory uncertainties, and corruption, which complicate the investment landscape despite recent reforms like the 2023 Omnibus Law aimed at enhancing competitiveness and foreign investment. The Indonesian government is actively pursuing infrastructure development and economic growth through initiatives such as the Comprehensive Strategic Partnership with the U.S., while also addressing environmental concerns and labor rights, indicating a complex but potentially rewarding investment climate for foreign businesses.