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Illicit funds are flowing into election campaigns for the 2024 general elections, as the Financial Transactions Reporting and Analysis Center (PPATK) recently discovered that funds from abroad were flowing into the accounts of 21 anonymous political parties. there is a possibility. The total amount was 195 billion rupiah (US$12.4 million), with 30 percent of the funds said to have come from shell companies.
PPATK announced the discovery following the disclosure of a report on suspicious transactions from the short list of candidates (DCT) for the 2024 general election earlier this month. Further findings from the center show that foreign funds, or funds channeled through foreign entities or individuals, will be transferred to the accounts of party treasurers before being distributed to party executives and parliamentary candidates in 2023. The total amount exceeded the record high. 83 billion rupiah in 2022.
While 70% of the $1 million in funds came from individuals, the remaining 30% is believed to come from shell companies because they are domiciled in tax haven countries. Other countries where shell companies are reportedly based include the United States, Singapore, and the Philippines.
A closer look at shell companies reveals that there are legitimate reasons for their establishment, including business purposes such as holding shares in other entities and facilitating business mergers, as well as security purposes such as protecting trade secrets. . However, opaque ownership and vague structures have led to frequent illegal activities such as money laundering and tax evasion, allowing wealthy individuals to hide undeclared assets from local tax authorities.
So far, details such as the name of the shell company, which political party received the money, and how much of the money was used for campaign financing have not been disclosed. PPATK said only that it was still investigating these details and had reported the results to the Election Supervisory Authority (Bawaslu). However, the recipients of the funds were also reportedly recorded as shareholders in the shell company.
Although details about the shell companies were not disclosed, PPATK also said that the foreign funds are suspected to come primarily from the wildlife trade, as well as drug trafficking, gambling and illegal mining.
every Thursday
Observers say high political costs, lax campaign finance reporting regulations and weak law enforcement are the root causes of a massive wave of suspicious transactions in the run-up to the 2024 general election. After that, businessmen, who were most likely to donate large amounts of money, became the main target group. These businessmen have an interest in participating in the success of legislative candidates in order to continue their business.
In addition to foreign funds, PPATK also recorded large amounts of foreign exchange transactions that were allegedly used to fund political campaigns. According to reports, about 177 parliamentary candidates from 18 political parties who participated in the February elections withdrew up to Rp764 billion in foreign currency, while 75 candidates from 15 political parties deposited a total of Rp272 billion.
Besides,
The government aims to achieve its electric motorcycle conversion target, and efforts are underway to promote the spread of electric vehicles in the country.
Recently, President Joko “Jokowi” Widodo revealed that Vietnamese electric car maker VinFast will invest $1.2 billion to build an EV factory in Indonesia. The initial phase of construction of the factory will cost $200 million and is expected to begin this year.
Production is targeted for 2026, with the plant’s annual production capacity ranging from 30,000 to 50,000 units and the number of employees from 1,000 to 3,000.
According to the Ministry of Industry, which is promoting VinFast’s investment plans in Indonesia, VinFast plans to cooperate with local companies in the production process of electric vehicles. Additionally, the company plans to work with transportation companies and technology service providers to expand electric taxis.
In addition to VinFast, Chinese electric car maker BYD is also reportedly planning to invest in Indonesia. Although details of the investment amount have not yet been disclosed, BYD is poised to enter the Indonesian car market with the launch of Atto 3, Seal and Dolphin models this month.
BYD is actively searching for the best location for the factory, with construction expected to begin this year, said Nurul Yichuan of the Ministry of Investment’s Investment Promotion Department. Furthermore, Nurul pointed out that since BYD uses non-nickel-based lithium iron phosphate (LFP) batteries, the factory may not include a battery factory and focus solely on EVs.
what we heard
Auto industry insiders say VinFast and BYD’s plans to enter Indonesia are causing anxiety for Hyundai and Wuling. “Especially for BYD, they are ready for whatever the government proposes,” the official said.
BYD is aiming for a global sales target of 6 million units and is expanding into potential countries including Indonesia. Globally, it is considered a rival to Tesla. In China, BYD is the number one automaker by car sales, with sales reaching approximately 3 million vehicles.
It is also rumored to have a highly potential electric vehicle ecosystem provided by the IKN project, including not just electric cars, but electric buses, trains, and even a solar panel power plant.
In Indonesia, both Bluebird Group and Bakri Business Group are already using BYD electric vehicles.
Unlike other manufacturers that are planning to build battery factories as part of the electric vehicle ecosystem, BYD will first work with local partners to build more charging stations.
BYD reportedly has no plans to build a battery factory because its batteries do not use nickel as a raw material. BYD has developed lithium iron phosphate battery technology known as Blade Battery.
In contrast to BYD, Vinfast plans to sell vehicles in the range of Rp 300 million per unit. However, this does not mean that more expensive options do not exist. The market is reported to be even wider, especially considering Indonesia’s large market potential. Therefore, VinFast will only set up an assembly plant, but is ready to build a battery factory.
Vinfast is rumored to be launched at IIMS. According to other sources, the opening of the dealership in Jakarta indicates that it is ready to start selling. The number of retailers is expected to increase in the future.
Disclaimer
This content is provided in collaboration with Tenggara Strategics. jakarta post We provide the latest comprehensive and authoritative analysis of the political and business landscape in Indonesia. Visit the latest edition of Tenggar Backgrounder and read the articles listed below.
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business and economy
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