Constitutional Court Rejects Challenge to 'State Financial Loss' Clause in New Criminal Code

The Constitutional Court (MK) has rejected all requests for a judicial review concerning the provisions on corruption that regulate the element of ‘causing state financial loss’ in case Number 148/PUU-XXIV/2026. ‘The petitioner’s request is rejected in its entirety,’ said Chief Justice Suhartoyo at the MK building in Jakarta on Wednesday (17/6).

The petitioner had asked the MK to limit the meaning of the phrase ‘causing state financial loss’ in Articles 603 and 604 of Law Number 1 of 2023 concerning the Criminal Code (KUHP), which adopts the substance of Articles 2 and 3 of the Corruption Eradication Law. The petitioner argued that these provisions could be interpreted too broadly by law enforcement officials, potentially leading to criminalisation.

However, the MK assessed that such a request would actually narrow the scope of corruption eradication. ‘Such an interpretation would actually narrow the scope of the norm’s application, thereby reducing the anticipatory reach of legal norms related to corruption offences,’ said Constitutional Justice Adies Kadir.

The court emphasised that the increasingly sophisticated and complex modus operandi of corruption requires legal formulations capable of addressing various forms of corruption. ‘With the increasingly advanced and complex modus operandi of corruption offences, what is actually needed is a formulation of legal norms that can better reach the various modus operandi and complexities of corruption offences,’ he stated.

MK also stated that the issue of applying the articles in concrete cases is a matter of authority for judges and law enforcement officials, not a question of the constitutionality of norms. Furthermore, the court noted that the issue of interpreting the element of state loss has been repeatedly decided in previous cases. ‘To date, the Court has no strong and fundamental reason to shift from its previous legal stance,’ Adies said.

Based on these considerations, the MK concluded that all of the petitioner’s arguments were legally unfounded. This ruling ensures that the provisions regarding the element of ‘causing state financial loss’ in corruption offences remain in force as regulated in the new Criminal Code and the Corruption Eradication Law.