Coordinating Minister for Political, Legal and Security Affairs (Menko Polhukam) Mahfud MD again touched on the draft law on limiting cash. Mahfud, proposed by the government, aims to prevent corruption.
"It's good, yes, if the cash expenditure money is limited by the provisions. For example, whoever wants to make a transaction, if it reaches Rp. 100 million, it must be between banks, taken from which bank, sent to which bank," Mahfud said in Jakarta, Wednesday, February 1.
"People can't be corrupt then," he continued.
Mahfud also said that the limitation of cash could also prevent corruption related to projects. This is because payments are made through banks.
However, this restriction cannot be declared because the underlying law turns out to be rejected by the DPR RI.
"We can't afford the DPR, we submit it, well, we don't want to say it. Why? Political activities need cash. Well, openly you know (the rejection, ed)," said the former Chief Justice of the Constitutional Court (MK).
Mahfud admitted that he was surprised by the rejection and reasons given by the DPR to reject the draft.
"Can cash be used for example for a day (used up to, red) IDR 100 million," he said.
For information, the government has indeed encouraged the issuance of laws related to restrictions on cash transactions. However, the DPR RI actually considers this step to be difficult for political practices that require cash.
Meanwhile, the Financial Transaction Reports and Analysis Center (PPATK) assesses that restrictions on cash transactions must be carried out. This step is considered to prevent the risk of money laundering (TPPU).
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