An advocate, Muhammad Hafidz, has filed a judicial review with the\nConstitutional Court challenging provisions in the Financial Sector\nDevelopment and Strengthening Law (UU P2SK) that grant legal protection\nto buyers of special debt instruments, namely Patriot Bonds and Merah\nPutih Bonds. The petition, registered under Number 253\/PUU-XXIV\/2026,\nscrutinises a phrase in Article 50A paragraph (5) of the UU P2SK, which\nstates the state guarantees and protects the purchase of these special\ndebt instruments from general criminal prosecution, specific criminal\nprosecution including tax crimes, and civil lawsuits.<\/p>\n
According to Hafidz, the protection granted by the state to buyers of\nthese special debt instruments could potentially eliminate legal\naccountability without clear boundaries. He argued the provision could\ncreate legal immunity, even if the transactions were conducted using\nfunds derived from criminal acts or unlawful conduct.<\/p>\n
\u201cArticle 1 point 72 of the UU P2SK, which guarantees and protects the\npurchase of special debt instruments from legal entanglement, is a\nprotection that eliminates the possibility of legal accountability\nwithout clear limits,\u201d Hafidz stated before the panel of judges at a\npreliminary hearing on Wednesday, 8 July 2026.<\/p>\n
Furthermore, the petitioner contends the rule contradicts Article 28D\nparagraph (1) of the 1945 Constitution because it closes off access to\nlegal mechanisms that advocates use to fight for their clients\u2019 rights.\nHe explained that when a law shuts down all avenues of law enforcement\nagainst a particular legal subject, advocates lose the space to provide\nlegal aid, file legal remedies, and oversee a fair legal process.<\/p>\n
\u201cAs a result of this norm, the Petitioner loses the opportunity to\nperform his profession optimally when providing legal assistance to the\npublic who have legal interests in Patriot Bond or Merah Putih Bond\ntransactions,\u201d Hafidz said.<\/p>\n
Based on this argument, the petitioner requested the Court declare\nthe phrase unconstitutional and conditionally unenforceable. The\npetitioner proposed that legal protection should only apply if the\npurchase of Patriot Bonds or Merah Putih Bonds was made in good faith in\naccordance with laws and regulations, and the funds used did not\noriginate from criminal acts, unlawful acts, or actions causing state\nlosses.<\/p>\n
During the preliminary hearing, Constitutional Court Justice Arsul\nSani asked the petitioner to strengthen his argument. He suggested\nincluding a claim that the article under review could potentially foster\nmoney laundering crimes. \u201cThe formulation of Article 50A paragraph (5),\nquote unquote, in my words, could foster or encourage money laundering\ncrimes, even though money laundering is something the state intends to\neradicate, hence the existence of the Anti-Money Laundering Law,\u201d Arsul\nsaid. \u201cSo, there is a potential for a conflict of rules with the\nAnti-Money Laundering Law,\u201d he added.<\/p>\n
Previously, Finance Minister Purbaya stated that the protection given\nto buyers of Patriot Bonds and Merah Putih Bonds should not be\ninterpreted as granting legal immunity to investors. He clarified that\nthe protection in these special debt instruments only applies to the\nfunds placed in the bonds, not to the investors\u2019 overall business\nactivities or legal obligations. However, the former Chairman of the\nIndonesia Deposit Insurance Corporation acknowledged the policy carries\na risk of being exploited for money laundering. Nonetheless, he argued\nthat the repatriated funds could be used for development purposes.\n\u201cRather than the money staying abroad, let it enter the system, even if\nthere is a slight downside. But I think the money enters our economy,\u201d\nhe said on Tuesday, 23 June 2026.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/constitutional-court-challenged-over-legal-immunity-for-patriot-bond-investors-1783576488", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }