Collaborative Governance in Anti-Money Laundering: Inter-Agency Coordination and Money Laundering Control in Indonesia

Anti-Money Laundering (AML) has become a key component of global financial governance, aimed at preventing the flow of illicit funds and safeguarding the integrity of the financial system. Although a formal AML framework has been established, challenges remain in achieving effective coordination among regulatory and law enforcement agencies. This study aims to examine how collaborative governance is implemented in the prevention and combat of money laundering, with a focus on inter-agency coordination and its implications for the control of financial crime in Indonesia. This study employs a qualitative case study approach. Data were collected through in-depth interviews and focus group discussions (FGDs) with representatives from regulatory and law enforcement bodies. The data were analysed using thematic coding to identify patterns of interaction, coordination and institutional dynamics. The findings indicate that collaborative governance plays a key role in enhancing the effectiveness of anti-money laundering (AML) measures by facilitating information exchange, strengthening monitoring systems, and improving the reporting of suspicious transactions. However, this study also identified several significant challenges, including institutional fragmentation, regulatory uncertainty, limited technological integration, and disparities in human resource capacity. These constraints hinder smooth coordination and reduce the overall effectiveness of AML enforcement. The research concludes that the effectiveness of AML enforcement depends heavily on the quality of inter-agency cooperation and institutional alignment. These findings have practical implications for regulators and law enforcement agencies seeking to improve coordination mechanisms and strengthen the integrity of the financial system.