Constitutional Court Orders Revision of State Officials' Pension Law, These Are the 5 Points to Consider
JAKARTA — The Constitutional Court (MK) has ruled that Law No. 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, is conditionally unconstitutional against the 1945 Constitution.
The ruling was announced by Constitutional Court Chairman Suhartoyo during the reading of case number 191/PUU-XXIII/2025.
The Court requested that the legislature, namely the Government and the House of Representatives, create new legislation regarding the financial rights of top state leaders and former high state institution leaders within a two-year period.
The Constitutional Court also stated that the existing law governing pension payments for leaders, members of parliament and other high state institutions shall remain in force until new legislation is enacted, for a maximum period of two years from the date this ruling is delivered.
In the Court’s legal reasoning, Deputy Constitutional Court Chairman Saldi Isra explained that in constitutional-based state practice, the regulation of financial and administrative rights of state institution leaders or members, including pension rights, must be placed within a comprehensive design of state institutions.
To achieve this, the understanding of financial and administrative rights of state institution leaders or members must begin with a comprehensive analysis of the concept of public office in state administration.
“In practice, Law 12/1980 is no longer relevant to maintain, therefore it is important to create new legislation that can accommodate the needs of regulating the financial and administrative rights of state institution leaders or members,” Saldi stated.
In drafting new legislation concerning the financial rights of high state institution leaders, the Constitutional Court has provided five points that the House of Representatives and government must consider.