Constitutional Court Rules Law on Pension Payments for Senior State Officials Unconstitutional, Including Members of Parliament

Jakarta — The Constitutional Court (MK) has called on the government and parliament, as legislators, to revise the law pertaining to the financial rights of state officials, noting that the existing law is no longer relevant. One particular focus of the Court is the lifetime pension allowance for former Members of Parliament.

Through Decision No. 191/PUU-XXIII/2025, the Constitutional Court declared Law No. 12 of 1980 on the Financial and Administrative Rights of Leaders and Members of the Highest and High State Institutions, and Former Leaders and Members of the Highest and High State Institutions unconstitutional unless amended within two years.

Deputy Chairman of the Constitutional Court, Saldi Isra, whilst reading the legal considerations during the Plenary Session of the Constitutional Court in Jakarta on Monday (16 March 2026), outlined at least five key points that the government must consider in revising the aforementioned law.

“The arrangement of the amount and its mechanism must still consider the principle of proportionality that is fair and accountable, and must take into account the socio-economic conditions of Indonesian society,” he stated, reading one of the points.

Another point emphasised by the Court is that the substance or content of the law on financial or administrative rights of state officials needs to be formulated in accordance with the character of the state institution in which the official serves.

In this regard, the Constitutional Court drew attention to the distinction between state officials based on their selection method, such as officials elected through general elections (elected officials) and officials selected based on competence (selected officials).

“There is also the possibility for legislators to expand by including state officials whose positions are filled through appointment (appointed officials), such as ministerial positions,” said Saldi.

Furthermore, the Court stated that the new arrangement must consider the principle of independence of state institutions. Officials who carry out strategic state functions must be protected from pressure that could affect their integrity and objectivity.

The arrangement, Saldi continued, must also consider whether the right to a pension should be maintained or whether an alternative model should be sought in the form of “honour remuneration” that is provided only once after the term of office ends.

“In this context, the length of the term of office, including the term period for elected officials, selected officials, and appointed officials becomes a factor in its determination,” he said.

The final point emphasised by the Court is that the legislation must involve parties interested in state finances, including civil society groups, in accordance with the principle of meaningful public participation.