Indonesian Political, Business & Finance News

Constitutional Court Orders Review of Pension Benefits for DPR Members and Senior State Officials

| | Source: KOMPAS Translated from Indonesian | Legal
Constitutional Court Orders Review of Pension Benefits for DPR Members and Senior State Officials
Image: KOMPAS

Jakarta — The Constitutional Court (MK) has requested that lawmakers amend Law No. 12 of 1980 concerning the financial and administrative rights of DPR members, leaders of high state institutions, and their predecessors in a more proportional manner.

This directive was issued by the MK in Decision No. 191/PUU-XXIII/2025, read during a plenary court session in Jakarta on 16 March 2026.

Constitutional Court Judge Saldi Isra stated that Law 12/1980 is deemed no longer relevant to maintain and therefore a new law must be enacted governing the financial rights of DPR pensioners and other senior state institution leaders.

“First, the substance of the law regarding financial and administrative rights must be formulated according to the character of state institutions, based on either general election results (elected officials) or competency-based selection (selected officials), with the possibility for lawmakers to expand to include state officials appointed through designation (appointed officials), such as ministerial positions,” Saldi stated during the hearing.

“Second, the regulations must consider the principle of independence of state institutions, namely that officials performing strategic state functions must be protected from pressures that could affect their integrity and objectivity.

“Fourth, the regulations must consider whether pension rights should be maintained or whether an alternative model should be sought in the form of an honorarium paid only once after the term of office ends.”

In this context, the length of tenure, including the service period for elected, selected, and appointed officials, becomes a determining factor.

After these parameters were stated, Chief Justice Suhartoyo reiterated that the petition regarding DPR pensions was partially accepted, declaring that the law “has no binding force conditionally insofar as it is not replaced by a new law within a maximum of two years from the date this decision is pronounced.”

Suhartoyo also emphasised that the government and DPR must enact a new law regarding the financial rights of DPR leaders and members, and leaders of high state institutions.

Should lawmakers fail to comply with this directive, the law regarding pension funds shall remain declared to have no binding force permanently.

The petitioners objected because, as taxpayers, they felt the benefits were inappropriately used to pay pensions for DPR members who work for only five years.

“This loss is both actual and potential and will certainly occur in the future as it affects the effectiveness of fund allocation that should meet the basic needs and rights of citizens guaranteed by the 1945 Constitution,” the petitioners stated.

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