Transnational Terrorism Financing in the Context of State Crisis and Its Implications for Indonesia: A Case Study of Venezuela

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Jakarta – Transnational Terrorism Financing in the Context of State Crisis and Its Implications for Indonesia: A Case Study of Venezuela. This research was conducted by Hendri Puja Kusuma, Rudy Sutanto, and Agus Hasan S. Reksoprodjo from the Asymmetric Warfare Study Program, Defense University of the Republic of Indonesia, in a scientific article published in the International Journal of Scientific Multidisciplinary Research (IJSMR) Vol. 4 No. 2 of 2026.

Research conducted by  Hendri Puja Kusuma, Rudy Sutanto, and Agus Hasan S. Reksoprodjo revealed that the state crisis is not only a domestic economic or political problem. As institutions weaken, financial supervision is loose, and the informal economy grows uncontrollable, space opens up for organized crime networks and terrorist groups to take advantage of these loopholes. In an interconnected global context, the impact can spread to other countries, including Indonesia.

Terrorism financing as a non-military threat

This research shows that terrorism financing is not just an ordinary illegal activity. Funds are the main foundation for terrorist group operations, ranging from recruitment, training, logistics, propaganda, to the implementation of actions. The sources are also diverse, not only from narcotics trafficking or money laundering, but can also infiltrate through legal channels such as donations, charitable foundations, and digital transactions.

The research team found that in countries experiencing prolonged crises, the function of financial supervision is significantly weakened. Law enforcement agencies lose optimal capacity, interagency coordination declines, and the informal economy grows without effective controls. This creates a favorable ecosystem for cross-border organized crime.

The approach used in this study is normative legal research combined with conceptual analysis and case studies. National and international legal documents were analyzed to see how regulatory frameworks work in the face of the threat of terrorism financing

Venezuela: a multidimensional crisis and a financial gap

Venezuela is a concrete example of how the state crisis intersects with the dynamics of transnational terrorism financing. The prolonged economic crisis, hyperinflation, and a weakening banking system are driving a major shift to the informal sector. The state loses the optimal ability to monitor the flow of transactions.

The study noted several key patterns:

  1. The weakening of the financial supervision system due to the institutional crisis.
  2. Increase in illegal economic activity and organized crime.
  3. The low effectiveness of international cooperation in financial investigations.
  4. The formation of a symbiotic relationship between criminal networks and terrorism financing.

In this context, terrorism financing no longer stands alone. It is integrated with narcotics trafficking, smuggling, and money laundering networks that operate across borders. The study emphasizes that these threats are asymmetrical. There is no direct military invasion, but economic stability and the credibility of the financial system could be slowly eroded.

Direct implications for Indonesia

As a country with an open financial system and high global connectivity, Indonesia is not completely immune to the spillover of risks from other countries' crises. Cross-border transaction flows, developments in financial technology, and the use of digital assets increase the complexity of supervision.

Indonesia already has a legal basis through Law Number 9 of 2013 concerning the Prevention and Eradication of Terrorism Financing Crimes. This regulation includes criminalization of the provision of funds, reporting suspicious transactions, freezing assets, and international cooperation.

However, this study reminds that the resilience of the system does not only depend on written regulations. Economic stability, governance transparency, and the capacity of supervisory institutions are key factors. Strengthening the role of institutions such as PPATK, financial services authorities, and central banks is an important part of the prevention strategy.

Strategies to strengthen the national system

The researchers recommend several strategic steps for Indonesia:

1.      Increased supervision capacity of the financial sector, including the non-bank sector and digital assets.

2.      Strengthening coordination between law enforcement agencies and financial intelligence agencies.

3.      Optimization of international cooperation in information exchange and mutual legal assistance.

4.      Increasing national economic resilience as part of the security strategy.

The proposed approach is comprehensive, combining security, economic, legal, and diplomatic aspects. Terrorism financing is positioned as a non-traditional security threat that requires a cross-sectoral response.

Global relevance and policy message

These findings confirm that state crises can trigger the birth of a transnational crime ecosystem that is difficult to control. For policymakers, the key message is clear: maintaining economic stability and financial system integrity is just as important as security operations.

For the banking and financial services sector, this research strengthens the urgency of applying the principle of prudence (know your customer), reporting suspicious transactions, and adapting to digital risks. In the context of Southeast Asia, lessons learned from Venezuela are an important reference to strengthen regional resilience to cross-border illicit fund flows.

Author Profile

1.      Hendri Puja Kusuma –Defense University of the Republic of Indonesia

2.      Rudy Sutanto –Defense University of the Republic of Indonesia.

3.      Agus Hasan S. Reksoprodjo  Defense University of the Republic of Indonesia.

Research Source

Kusuma, H. P., Sutanto, R., & Reksoprodjo, A. H. S. (2026). Transnational Terrorism Funding in the Context of State Crisis and Its Implications for Indonesia through a Case Study of Venezuela.

International Journal of Scientific Multidisciplinary Research (IJSMR), Vol. 4 No. 2

DOI: https://doi.org/10.55927/ijsmr.v4i2.3

Official URL : https://journalijsmr.my.id/index.php/ijsmr


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