Money Laundering in Bali, following main real estate projects such as Teluk Benoa

August 5th, 2013 - BP
Excessive investments
Bali has become a target for money laundering
Denpasar (Bali Post) –Bali has become an easy target for international investors as local ones.
 Easy investment rhythm enters Bali without any  efficient filter, selection and control and sadly that’s used as a mean for money laundering. Moreover, the government is deemed not enough selective towards investments, whose impact are negative for Bali, and which may ruin the social order of the Balinese society.

That was the conclusions of a discussion, whose theme was “negative investments and Bali has become the target for money laundering”, in Denpasar, Thursday (2/8). This discussion involved economy observers as bankers, such as Viraguna Bagoes Oka, rector of the Fakultas Ekonomi Universitas Udayana (Unud) Dr. Ida Bagus Putu Purbadharmaja, S.E., M.E. dan Desi Apriliani, S.E., M.Si., Ketua LPPM Universitas Warmadewa Dr. Ir. I Gusti Bagus Udayana, M.Si. and observers of the real estate sector and of entrepreneurs A.A. Ngurah Wirawan.

Viraguna Bagoes Oka said that Bali has become a kind of heaven for investors to invest their capital and get a profit from Bali. Unfortunately, the government is not enough selective in its control of each investment made in the island. Even, these investments in Bali tend to be negative and ruin the social order of the Balinese society. “Indeed, we can’t forbid the investors to invest in Bali, as the island needs investors. But it does not mean that all investments must be allowed. Investments made in Bali must take into account the social order in Bali and the local wisdom, that point must be watched thoroughly,” he said.

He took as example the plan of investments subject to reclamations in Teluk Benoa in order to make an island resistant to tsunamis, and this plan must be fully scrutinized. This investment plan and claims, which does not respect law and regulations, must be abandoned right away.

Moreover, he advises the population to be careful and examine project framework organized by the government, such as highways up to water (JDP) and authorizations which are given by the Pemprov Bali, like the SK authorization to operate in the mangrove or the SK authorization for Teluk Benoa. “We must watch carefully and study the status of these projects. Why should there be a highway and extension of the Ngurah Rai airport. Previously there were the authorization Tahura and the claim authorization of Teluk Benoa. That’s a huge investment, which needs accurate infrastructure. Thus, everything must be checked carefully. It seems that it’s a vast design with all that gets with it,” he said.

About the problem of investments made in Bali, Viraguna explains that there are four types of investments, namely the economic investments, which is based on the short and long term, speculating investment, money laundering investment and prestigious investment. Behind that, which is signaled as clear and disturbing in Bali is money laundering investment. Practically, money laundering investment is made by purchasing property, houses as land, as property investment is highly profitable in Bali. “Bali has become a target for speculation investment and money laundering investment or transactions made by the underground world. This explains that Bali has become a magnet, everybody is happy to invest in Bali. Nevertheless without filter or selection and control from government or authorities,” said the previous BI leader in Denpasar.

The same problem was presented by Desi Apriliani, S.E., M.Si. She said, seeing the investments in Bali and the weaknesses in the selection and control of investment, Bali has become a place, which is good for money laundering. Because of that, she thinks that the government and authorities should enact additional means to fight money laundering, and to browse investments whose funds are signaled as money coming from criminal activities.

All the money launderers are eager to invest their funds until their criminal money becomes legal. According to her, money laundering is a transnational crime, which is very difficult to track. Nevertheless, during the process of money laundering, it’s possible to anticipate by fixing limits to any cash transactions. “This is a way to avoid money laundering. Limiting cash transactions need to be efficient optimally and consistently. The role of PPATK must be optimized,”  she highlighted.