KPK chairman Setyo Budiyanto has responded to National Economic\nCouncil (DEN) chairman Luhut Binsar Pandjaitan\u2019s proposal that state\nlosses should not be classified as corruption. Setyo said there was\nindeed a difference in interpretation between the United Nations\nConvention Against Corruption (UNCAC) and Indonesia\u2019s Corruption\nLaw.<\/p>\n
\u201cThere is a difference in the interpretation of the state-loss\nrequirement in UNCAC and Articles 2 and 3 of the Corruption Law,\u201d Setyo\nsaid on Wednesday (21 October 2026), when asked about Luhut\u2019s\nproposal.<\/p>\n
Setyo explained that Indonesia has specific considerations in\nhandling corruption, based on the methods frequently used by\noffenders.<\/p>\n
\u201cBut it must also be recognised that Indonesia\u2019s particular\ncircumstances should be taken into account, especially the methods that\nhave commonly been used,\u201d Setyo said.<\/p>\n
Setyo said that if Luhut was using UNCAC as a reference, the more\nappropriate approach would be to amend the Corruption Law. He said\nadditional types of corruption should be included in the\nlegislation.<\/p>\n
\u201cIf UNCAC is the reference, it would be more appropriate to amend the\nCorruption Law to criminalise foreign bribery, trading in influence,\nbribery in the private sector and illicit enrichment,\u201d he said.<\/p>\n
Luhut had previously proposed a review of the definition of\ncorruption offences in Indonesia. He put the proposal directly to\nPresident Prabowo Subianto.<\/p>\n
The proposal was raised when Luhut and other DEN members met Prabowo\nat Merdeka Palace in Central Jakarta on Tuesday (20 October).<\/p>\n
\u201cThe President also agreed with the study prepared by the National\nEconomic Council team on the definition of corruption,\u201d Luhut said on\nWednesday (21 October).<\/p>\n
His proposal is that state losses should not constitute a corruption\noffence. He said this was consistent with UNCAC, which the government\nhas ratified.<\/p>\n
\u201cWe are referring to the UN Convention\u2019s chapter on the definition of\ncorruption. The definition in the UN Convention, which the government\nratified 20 years ago, is bribery; it does not discuss state losses,\u201d\nLuhut said.<\/p>\n
He said Indonesia was the only country to treat state losses as one\nof the forms of corruption. According to Luhut, this places a burden on\nthe business operations of state-owned enterprises, including\nDanantara\u2019s ability to undertake corporate actions.<\/p>\n
\u201cBecause Indonesia is the only country that applies the issue of\nstate losses, this makes it difficult for entities such as Danantara to\ndo business, when every business carries risks. That is why I think this\nis important,\u201d Luhut said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/kpk-responds-to-luhuts-proposal-to-exclude-state-losses-from-corruption-1792579953", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }