Cash Restrictions in Elections: Can They Effectively Stop Money Politics?

JAKARTA, KOMPAS.com - The Corruption Eradication Commission (KPK) is pushing for regulations governing the limitation of cash or physical currency usage during the stages of general elections or Pemilu.

This step was conveyed by the KPK following the results of a study by the KPK’s Directorate of Monitoring in 2025 regarding the identification of corruption potential in the conduct of Pemilu.

“This condition is assessed to increase the opportunities for vote buying, or money politics, which has long been a classic problem in electoral democracy,” said Budi to journalists in Jakarta on Saturday (25/4/2026).

“Four groups of informants, namely representatives of parliamentary and non-parliamentary political parties, election organisers, electoral experts or observers, and academics,” he stated.

According to Budi, the study has been reported by the KPK to President Prabowo Subianto and the Chair of the DPR RI, Puan Maharani.

First, making regulatory changes to Law No. 7 of 2017 on Elections and Law No. 10 of 2016 on Regional Elections, particularly in aspects of recruiting Pemilu organisers, campaign methods, voting methods, vote counting and recapitulation, as well as strengthening sanction articles.

Second, making regulatory changes to Law No. 2 of 2008 on Political Parties as amended by Law No. 2 of 2011, by adding scope for standardising political education, cadre development, and reporting of political party finances.

Third, the KPK is urging the government together with the DPR to immediately conduct substantive discussions on the Draft Law on Cash Restrictions as an important instrument in preventing money politics practices.

Budi said this phenomenon is considered one of the entry points for recurring and difficult-to-monitor political corruption.

“Therefore, limiting cash transactions is seen as one strategic step in corruption prevention efforts,” he stated.

In response, the Chair of the Central Executive Board (DPP) of the Indonesian Democratic Party of Struggle (PDI-P), Ganjar Pranowo, opined that restricting cash usage in election stages is not the main solution to prevent money politics practices.

“The proposal to limit cash usage can be one way to prevent money politics, but it is not the main solution,” Ganjar told Kompas.com on Sunday (26/4/2026).