Constitutional Court Orders Revision of Law on DPR Members' Pension Benefits

The Constitutional Court (MK) has declared Law Number 12 of 1980 concerning financial and administrative rights of leaders and members of Indonesia’s highest state institutions unconstitutional with conditions, in contravention of the 1945 Constitution.

The court has ordered the government and parliament to draft new legislation concerning the financial rights of senior state officials and former senior state institution leaders within a two-year timeframe.

“We declare that Law Number 12 of 1980 concerning Financial/Administrative Rights of Leaders and Members of the Highest State Institutions, as well as Former Leaders of Highest/High State Institutions and Former Members of High State Institutions (State Gazette of the Republic of Indonesia Year 1980 Number 71, Additional State Gazette Number 3182) conflicts with the 1945 Constitution of the Republic of Indonesia and has no binding legal force conditionally insofar as it is not replaced with new legislation within a maximum of two years from the date this decision is pronounced,” said Constitutional Court Chief Suhartoyo during a plenary session at the Constitutional Court’s hearing room in Jakarta on Monday, 16 March.

The court also stated that the existing law concerning pension benefits for DPR and other state institution leaders and members shall remain in force until new legislation has been enacted within a maximum of two years from the date the decision is pronounced.

If this does not occur, the consequence will be that financial rights related to DPR pensions will no longer have legal force.

“We order the legislature to enact replacement legislation within a maximum of two years from the date this decision is pronounced,” he said.

The challenge was filed by law lecturers from the Islamic University of Indonesia Ahmad Sadzali and Anang Zubaidy, alongside UII students Muhammad Farhan Kamase, Zidan Patra Yudistira, Rayhan Madani, and Muhammad Fajar Rizki.

In their challenge, they objected on the grounds that as taxpayers they found it inappropriate to use public funds to pay lifetime pensions to DPR members who only serve five-year terms.

“This loss is both actual and potential and can be assured to occur in the future as it affects the effectiveness of budget allocation that should meet the basic needs and rights of citizens guaranteed by the 1945 Constitution of the Republic of Indonesia,” the petitioners stated in their submission.