Jakarta, CNBC Indonesia \u2013 National Economic Council (DEN) chair Luhut\nBinsar Pandjaitan has stressed that recommendations to improve the\nAnti-Corruption Law are not intended to remove state financial loss as\nan element of corruption offences.<\/p>\n
Luhut said Articles 2 and 3 of the law, corresponding to Articles 603\nand 604 of the Criminal Code, would be retained. The DEN\u2019s proposals\nfocus on clarifying the evidentiary requirements and broadening the\nscope of corruption offences.<\/p>\n
\u201cState financial loss remains an element of the Anti-Corruption Law,\nand misappropriated public money must still be returned. What we propose\nis clear and objective proof, so that perpetrators of corruption cannot\nescape prosecution and people who make decisions or take action in good\nfaith are not punished without grounds,\u201d Luhut said in an official DEN\nstatement.<\/p>\n
The DEN has also proposed adding new offences to broaden Indonesia\u2019s\nanti-corruption efforts and bring them into line with international\nstandards, he said.<\/p>\n
The recommendations were submitted to President Prabowo Subianto at\nthe Merdeka Palace in Jakarta on 20 October 2026.<\/p>\n
The DEN said Luhut\u2019s comments on the United Nations Convention\nagainst Corruption (UNCAC)\u2014which does not make state losses an element\nof an offence\u2014were an explanation of international standards, not a\nproposal to remove state losses from Indonesian law.<\/p>\n
Four DEN recommendations<\/strong><\/p>\n The DEN has proposed four main steps to improve the Anti-Corruption\nLaw. First, it recommends revising Articles 2 and 3 of the law, along\nwith Articles 603 and 604 of the Criminal Code, to clarify the elements\nof offences and how they must be proved.<\/p>\n Second, it proposes adding a policy judgment rule, or business\njudgment rule. This would protect decision-makers who act in good faith,\nfollow procedures and have no conflict of interest.<\/p>\n The DEN stressed that this protection would not apply to\nmisappropriation, bribery or actions taken for personal gain.<\/p>\n Third, it proposes adopting UNCAC offences that are not yet fully\ncovered by national law, including bribery of foreign public\nofficials.<\/p>\n Fourth, it proposes drafting an omnibus law on state finances to\nprovide certainty about the status of state assets.<\/p>\n Indonesia ratified UNCAC through Law No.\u00a07 of 2006. However, the DEN\nsaid the convention\u2019s provisions have not yet been fully incorporated\ninto national law.<\/p>\n Legal certainty and investment<\/strong><\/p>\n The DEN considers improvements to anti-corruption rules to be linked\nto the government\u2019s efforts to encourage investment and sustain economic\ngrowth.<\/p>\n Luhut said legal certainty was a prerequisite for economic growth.\nLaw enforcement therefore needed to be certain, fair and consistent,\nwithout reducing the effectiveness of anti-corruption efforts.<\/p>\n \u201cLegal certainty is one of the main prerequisites for economic\ngrowth, and cross-country data over three decades consistently show\nthis. Improving the Anti-Corruption Law is not about weakening the fight\nagainst corruption, but about ensuring enforcement is certain, fair and\nin line with international standards,\u201d he said.<\/p>\n The DEN also highlighted the need to reform the legal framework for\ncombating corruption amid concerns that enforcement continues to create\nuncertainty. Indonesia\u2019s Corruption Perceptions Index was also described\nas having tended to stagnate.<\/p>\n According to the DEN, the proposed revisions would follow up on\nConstitutional Court rulings No.\u00a0142\/PUU-XXII\/2024 and\nNo.\u00a028\/PUU-XXIV\/2026. In its statement, the council said the rulings\nhighlighted inconsistent application of Articles 2 and 3 of the\nAnti-Corruption Law and the need for a comprehensive review of both\nprovisions.<\/p>\n The DEN said its recommendations were based on studies and\ndiscussions with various parties, including representatives of the\nMinistry of Law, the Attorney General\u2019s Office, the Corruption\nEradication Commission (KPK), the Indonesian National Police, academics\nfrom the University of Indonesia\u2019s Faculty of Law and anti-corruption\nfigures, including former KPK leaders.<\/p>\n The council said it would continue monitoring the issue and submit\nfollow-up recommendations to the President. Its aim is to make\nanti-corruption enforcement more effective while ensuring fair legal\ncertainty for the public and businesses.<\/p>",
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