Indonesia\u2019s Constitutional Court (MK) has instructed the government\nand parliament, as legislators, to reformulate legislation concerning\nthe financial rights of state officials, noting that the existing old\nlaw is no longer relevant.<\/p>\n
Through decision number 191\/PUU-XXIII\/2025, the Constitutional Court\ndeclared Law Number 12 of 1980 concerning Financial and Administrative\nRights of Leaders and Members of the Highest and High State\nInstitutions, as well as Former Leaders of the Highest and High State\nInstitutions and Former Members of High State Institutions,\nunconstitutional unless amended within two years.<\/p>\n
Deputy Chief of the Constitutional Court Saldi Isra, whilst\npresenting the legal reasoning in the Court\u2019s Plenary Session Room in\nJakarta on Monday, outlined at least five key points that the government\nmust consider when reformulating the legislation.<\/p>\n
\u201cThe arrangement of the amount and mechanism must continue to\nconsider the principle of proportionality that is fair and accountable,\nas well as take into account the social and economic conditions of\nIndonesian society,\u201d he said, reading one of the points.<\/p>\n
Another point highlighted by the Court is that the substance or\ncontent of the law concerning financial or administrative rights of\nstate officials must be formulated in accordance with the character of\nthe state institution in which the official serves.<\/p>\n
The Court emphasised the distinction between state officials based on\ntheir selection method, such as officials resulting from general\nelections (elected officials) and officials resulting from\ncompetency-based selection (selected officials).<\/p>\n
\u201cThere is also the possibility that the legislature may expand by\nincluding state officials appointed through appointment or designation\n(appointed officials), such as ministerial positions,\u201d Saldi stated.<\/p>\n
Furthermore, the Court stated that the new arrangement must consider\nthe principle of institutional independence. Officials performing\nstrategic state functions must be protected from pressure that could\naffect their integrity and objectivity.<\/p>\n
The arrangement, Saldi continued, must also consider whether the\nright to pensions should be retained or alternatively replaced with a\ndifferent model consisting of \u201chonour payments\u201d that are made only once\nupon the conclusion of service.<\/p>\n
\u201cIn this context, the length of service, including the tenure period\nfor elected officials, selected officials, and appointed officials,\nbecomes a determining factor,\u201d he said.<\/p>\n
The final point highlighted by the Court was that the formulation of\nthe law must involve those with an interest in state finances, including\ncivil society groups, in accordance with the principle of meaningful\npublic participation.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/constitutional-court-orders-amendment-of-law-on-former-officials-pensions-1773716071", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }