Commitment to combat illicit financial flows or illicit financial flows has become a global commitment mandated in the target Sustainable Development Goals (SDGs). Illicit financial practices occur in various modes such as money laundering, transnational bribery, or tax evasion and evasion. The problem of illicit financial flows through tax avoidance and evasion is generally more common in developing countries, which are characterized by a lower ratio of tax revenues to GDP compared to developed countries (European Parliament, 2014). As a result, according Office of the United Nations High Commissioner for Human Rights (OHCHR) (2015) illicit financial flows, especially those that occur in developing countries and flow to developed countries, have the potential to exacerbate disparities between countries.
Study PRAKARSA (2019) shows that in the period 1989-2017 Indonesia experienced a loss of potential tax revenues of up to 11,1 billion USD from fraudulent practices. trade misinvoicing in six leading export commodities (coal, copper, palm oil, rubber, coffee and crustaceans). The biggest potential loss of revenue comes from coal, namely 5,32 billion USD. On the other hand, from year to year the potential value of lost tax revenue has increased from USD 36,8 thousand in 1989 to USD 897,8 thousand in 2017.
In 2022, PRAKARSA back to conducting research on illicit financial flows in the fisheries and coal sectors and their derivative products over the last 10 years. The findings from this research will be presented in the dissemination of research results which will be held in a hybrid manner on Tuesday (31/01/2023).
Offline activities are held at the Ashley Tanah Abang Hotel, Jakarta, while online events can be attended via Zoom Meeting. Activities can be attended by first registering on the following page bit.ly/iffprakarsa.
On this occasion there will also be Ibrahim Kholilul Rohman from the Faculty of Economics and Business, University of Indonesia, Denny Visaro from DDTC Indonesia, and Maliana Lumbantoruan as Deputy Director of PWYP Indonesia as responders to this discussion.