Indonesian Political, Business & Finance News

Constitutional Court Deems 1980 Law 12 Irrelevant; Rules on Honourarium Payments for MPR Members

| | Source: KOMPAS Translated from Indonesian | Legal
Constitutional Court Deems 1980 Law 12 Irrelevant; Rules on Honourarium Payments for MPR Members
Image: KOMPAS

JAKARTA — The Constitutional Court (MK) has declared Law Number 12 of 1980 on the Financial and Administrative Rights of Leaders and Members of the Highest and High State Institutions as conditionally unconstitutional against the 1945 Constitution.

The ruling was announced by Constitutional Court Chief Justice Suhartoyo during the reading of petition number 191/PUU-XXIII/2025.

The Court has requested that the legislature, comprising the Government and the House of Representatives (DPR), enact new legislation concerning the financial rights of high-level state leaders and former leaders of high state institutions within a two-year timeframe.

The Constitutional Court also stated that the existing legislation regarding pension payments for leaders, DPR members, and other high state institution members shall remain in force until new legislation is enacted, with a maximum duration of two years from the issuance of the Court’s ruling.

Regarding the provision in Article 4, paragraph (1) of Law 12/1980 which stipulates: “Monthly honourarium payments shall be provided to Members of the People’s Consultative Assembly (MPR) who are not Members of the House of Representatives,” the Court determined that this provision must be evaluated against the amended constitution.

In its legal reasoning, the Constitutional Court found that Article 4, paragraph (1) of Law 12/1980 has lost its constitutional basis following changes to the composition of MPR members.

With the MPR now composed solely of members from the House of Representatives and the Regional Representative Council (DPD), Article 4, paragraph (1) of Law 12/1980 has become irrelevant.

“Given the transformation in the structure of state institutions under the amended constitution, one of the legal foundations for Law 12/1980 has been declared inapplicable, and in practice portions of its content no longer align with current developments in regulating the financial and administrative rights of state institution leaders and members. Therefore, the petitioners’ argument that Law 12/1980 has lost its relevance and is outdated is well-founded,” stated Court Justice Saldi.

The highest state institutions referenced include the People’s Consultative Assembly (MPR), whilst high state institutions comprise the Supreme Advisory Council, the House of Representatives (DPR), the Financial Audit Board (BPK), and the Supreme Court (MA).

The leaders of the highest state institutions are the MPR Chairperson and Vice-Chairperson, whilst members of the highest state institution are MPR members.

Article 4, paragraph (1) of Law 12/1980 states: “Monthly honourarium payments shall be provided to Members of the People’s Consultative Assembly who are not Members of the House of Representatives.”

Article 4, paragraph (2) of Law 12/1980 provides: “The amount of honourarium payments as intended in paragraph (1) shall be determined by Government Regulation.”

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