Jakarta, CNBC Indonesia \u2013 Coordinating Minister for Law, Human\nRights, Immigration and Corrections Yusril Ihza Mahendra said many forms\nof manipulation are not currently classified as corruption under\nIndonesian law. One example is the frequently occurring practice of\nmanipulating transaction values, or under-invoicing.<\/p>\n
He said this needed to be aligned with the Corruption Eradication\nLaw, particularly by broadening the definition of losses to the national\neconomy caused by practices such as under-invoicing and smuggling.<\/p>\n
Under-invoicing also drains the country\u2019s wealth because the reported\nvalue or volume of exports is lower than the actual amount. This harms\nthe national economy and allows certain parties to profit from\ntransaction manipulation.<\/p>\n
Yusril also said that many definitions of corruption are inconsistent\nbetween the Corruption Eradication Law and the UN Convention against\nCorruption (UNCAC).<\/p>\n
\u201cActivities such as under-invoicing and stealing fish from our seas\nshould not be forgotten; they also drain our nation\u2019s wealth,\u201d Yusril\nsaid after meeting President Prabowo Subianto at the State Palace on\nMonday (26 October 2026).<\/p>\n
He therefore proposed that the meaning of losses to the national\neconomy be included in discussions on improving the Corruption\nEradication Law.<\/p>\n
\u201cIn my view, the current Corruption Eradication Law has two elements:\nlosses to the state, and losses to the national economy. The latter has\nnot been developed sufficiently. If someone steals fish or engages in\nunder-invoicing in the mining sector, they clearly harm the national\neconomy; that should also constitute corruption,\u201d he said.<\/p>\n
Yusril added that many actions causing losses to the state are not\nyet classified as corruption. He cited under-invoicing, smuggling and\ntax fraud as examples.<\/p>\n
The National Economic Council (DEN) previously clarified remarks\nconcerning its review of possible changes to the definition of\ncorruption. In an official statement, it said its recommendations to\namend the Corruption Eradication Law would not remove state financial\nlosses from the definition of corruption. Articles 2 and 3 of the law,\ncorresponding to Articles 603 and 604 of the Criminal Code, would remain\nin place.<\/p>\n
The DEN\u2019s recommendations focus on two areas. First, clarifying the\nelements of proof to make law enforcement more certain, objective and\nconsistent. Second, broadening the scope of anti-corruption efforts by\nadopting offences in UNCAC that are not yet covered by national law.<\/p>\n
The recommendations were submitted to President Prabowo Subianto at\nMerdeka Palace in Jakarta on 20 October 2026, with the aim of providing\nlegal certainty, strengthening the effectiveness of anti-corruption\nefforts and promoting sustainable economic growth.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/yusril-proposes-classifying-under-invoicing-and-illegal-fishing-as-corruption-1793065847", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }