Indonesian Political, Business & Finance News

Constitutional Court Orders Revision of Parliamentary Pension Rules under Law 12/1980

| | Source: KOMPAS Translated from Indonesian | Legal
Constitutional Court Orders Revision of Parliamentary Pension Rules under Law 12/1980
Image: KOMPAS

JAKARTA — The Constitutional Court has declared Law Number 12 of 1980 concerning the Financial and Administrative Rights of Leaders and Members of the Highest and High State Institutions, as well as Former Leaders and Members of High State Institutions, conditionally unconstitutional with respect to the 1945 Constitution.

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

The Constitutional Court has requested that the legislature, specifically the Government and the House of Representatives, enact new legislation pertaining to the financial rights of senior state leaders and former leaders of high state institutions within a two-year timeframe.

The Court has also stipulated that the existing law concerning pensions for leaders, House members, and other high state institution members shall remain in effect until new legislation is enacted, with a maximum period of two years from the date of this ruling.

Under Article 1 of Law 12/1980, the highest state institution is defined as the People’s Consultative Assembly (MPR). The high state institutions include the Supreme Advisory Council, the House of Representatives (DPR), the Audit Board (BPK), and the Supreme Court (MA).

The leaders of the highest state institution are the Chair and Deputy Chair of the MPR. The leaders of high state institutions comprise the Chairs and Deputy Chairs of the Supreme Advisory Council; Chairs and Deputy Chairs of the House of Representatives; Chairs and Deputy Chairs of the Audit Board; and the Chair, Deputy Chair, and Senior Deputy of the Supreme Court.

Parliamentary member pensions are regulated under Chapter VI of Law 12/1980. Under Article 13(1), pensions are determined based on length of service. Article 13(2) specifies that the monthly basic pension shall be 1 per cent of the pension base for each month of service, with the basic pension ranging from a minimum of 6 per cent to a maximum of 75 per cent of the pension base.

Under Article 14(1), pensions for leaders and members of high state institutions are granted by Presidential Decree.

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