The administration and the Financial Transaction Reports and Analysis Centre (PPATK) will cooperate to prevent money laundering and corruption among officials, civil servants and city councilors.

The administration is the first regional government to sign a memorandum of understanding (MoU) on the issue with the PPATK.

“We want to help Jakarta create a KKN [corruption, collusion and nepotism]-free administration. The administration has a high annual budget and we will help it to prevent and track those who attempt to misuse the budget, or those who already have,” PPATK chairman Muhammad Yusuf said at City Hall after the MoU signing on Wednesday.

According to the MoU, the PPATK and the administration will share information on irregularities found in transactions within the administration.

Both parties will train officials, civil servants and city councilors to better understand their functions and tasks. They will also conduct familiarization sessions regarding money laundering prevention and eradication. The administration and the PPATK will also conduct research to better understand the modus operandi in money laundering within the administration.

Yusuf also urged the creation of a cashless culture in the capital to prevent money laundering.

“Cash is more difficult to track. Therefore, we support Jakarta’s attempt to minimize cash use,” he said.

The administration has made efforts to create a cashless system, including fee payments from vendors in traditional markets, rent payments from tenants of low-cost apartments and electronic money on Transjakarta buses.

The Taxation Agency has also introduced an online system to boost tax collection from the hotel, restaurant and entertainment industry.

However, the number of taxpayers using the computerized online system is 40 percent, or approximately 10,000 individuals, meaning the remaining 60 percent or 12,000 rely on handwritten bills and calculators.

The administration also plans to apply an online system to burials, where residents can make payments online.

Yusuf said that this year, the PPATK had identified individuals in the administration suspected of money laundering, but refused to disclose the names as investigations were ongoing.

Meanwhile, Governor Basuki “Ahok” Tjahaja Purnama warned that his administration would not be afraid to take action against any officials, civil servants or city councilors suspected of corruption or money laundering.

“If we hear even rumors of money laundering, we will not be afraid to demote you [city officials]. And now, we have the PPATK to help us prove rumors and report you to the state prosecutor,” Ahok told dozens of civil servants before the MoU signing.

In 2013, the administration signed an MoU with the Corruption Eradication Commission (KPK).

Many of Jakarta’s officials have been implicated in corruption cases, including former Transportation Agency head Udar Pristono, who was named a suspect in case regarding faulty Transjakarta buses.

Last September, former Public Works Agency head Ery Basworo was also named a suspect regarding the alleged misuse of waste management funds in the 2012 and 2013 budget year.