The Financial Action Task Force has published Indonesia’s third enhanced follow-up report and re-rated the country from Partially Compliant to Compliant on Recommendation 6, which covers targeted financial sanctions related to terrorism and terrorist financing. The report finds that Indonesia has made progress in addressing the technical compliance deficiencies identified in its 2023 mutual evaluation. Indonesia now has 7 Recommendations rated Compliant, 30 rated Largely Compliant, and 3 rated Partially Compliant. The report does not assess progress on effectiveness. The upgrade reflects changes to Indonesia’s framework for proposing terrorist designations and implementing asset-freezing measures. FATF found that Indonesia introduced an explicit reasonable basis standard for designation proposals, required prompt determinations on proposed designees, and provided evidence that these decisions take an average of two days. Amendments in 2025 also created a general obligation for all natural and legal persons to freeze funds and other assets without delay and without prior notice, with the listing and dissemination process required to be completed within 24 hours. The revised rules also broadened the prohibition on making funds or financial services available to designated persons, strengthened dissemination to financial institutions and designated non-financial businesses and professions, improved delisting and unfreezing procedures, and added procedures for exemptions covering basic and extraordinary expenses. Because Indonesia now has three Recommendations rated Partially Compliant, it will not report back to the FATF Plenary under its fourth-round follow-up process in line with paragraph 88 of the FATF procedures.
Financial Action Task Force2026-06-03
Financial Action Task Force upgrades Indonesia to compliant on Recommendation 6 for targeted terrorist financing sanctions
The Financial Action Task Force published Indonesia’s third enhanced follow-up report and upgraded its rating on Recommendation 6 (targeted financial sanctions related to terrorism and terrorist financing) from Partially Compliant to Compliant, reflecting progress on technical compliance deficiencies identified in 2023. The upgrade follows 2025 amendments that clarified designation standards and timelines, imposed a general obligation to freeze assets without delay, broadened prohibitions on making funds or services available to designated persons, and strengthened related procedures. Indonesia now has 7 Recommendations rated Compliant, 30 Largely Compliant and 3 Partially Compliant, and will not report back to the FATF Plenary under the fourth-round follow-up process.