Throughout history, radical Islamic movements have always been present in Indonesia and form a big threat to the country. On various occasions, terrorist attacks in Indonesia made headlines around the globe, in particular when the lives of foreigners were lost. However, in recent years, terrorist attacks seem to be more directed towards symbols of the Indonesian state (such as police officers, police stations and politicians).

The new law aims at freezing bank assets of people that are suspected of funding terrorist organizations. It requires good cooperation with the country's financial institutions. Also, foreign governments can request the freezing of assets of foreigners that have bank accounts in Indonesia.