Calculating Illicit Financial Flows to and from Indonesia: a Trade Data Analysis, 2001–2014

Illicit Financial Flows (IFF), a term that is broadly defined as funds or money, capital, funds or assets “received, transferred or used illegally” cross state borders has been a contested topic within the international community due to the magnitude of its size compare to a country’s economy. Sluggish global economic growth, in the developed and developing countries alike has led countries to search for more revenues for financing development for their citizens such as for health and education, energy and other social expenditures that are at risk of being reduced. In the Third International Conference on Financing for Development Action Agenda in Addis Ababa in July 2015, all nations have adopted and pledged themselves to double the effort to substantially decrease the illicit financial flows in 2030. Curbing IFF is also a target under Goal 16 of the Sustainable Development Goals (SDGs).

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