Draft Economic Emergency Law: Prosecutors' Authority Deemed Excessively Broad
The founder of the Haidar Alwi Institute, R. Haidar Alwi, has assessed that the draft Government Regulation in Lieu of Law (Perpu) on combating economic crimes grants prosecutors excessively broad authority in handling economic offences.
“Rather than serving as an instrument of economic recovery, this perpu risks creating economic law enforcement that is too strong, too expansive, and subject to minimal oversight,” Haidar stated in a written statement on Tuesday, 17 March 2026.
He highlighted Article 2 of the draft perpu, which expands the definition of economic crimes to encompass nearly all economic activities, ranging from taxation, banking, and trade to electronic transactions. Cybercriminal activities, market manipulation, and capital flight are also included.
Given such an extensive scope, Haidar argued, prosecutors possess enormous interpretive discretion in determining whether an action constitutes an economic crime.
The draft perpu was indeed formulated to respond to the increasing complexity, systematic organisation, and cross-border nature of economic crimes. The government therefore wishes to introduce a new, faster, and more integrated approach, including through the establishment of specialist task forces.
However, Haidar cautioned that this approach resembles the economic emergency law model commonly used in crisis situations. Such a model, if not balanced by stringent oversight, risks destabilising the equilibrium within the criminal justice system.
He argued that the draft perpu does not merely strengthen law enforcement but has the potential to fundamentally alter the architecture of Indonesia’s national criminal law. Several provisions within the draft perpu, he contended, exceed principles established under both the Indonesian Criminal Code (KUHP) and the Indonesian Criminal Procedure Code (KUHAP).
“This perpu risks creating a parallel legal framework for economic crimes,” said the Vice-Chairman of the Board of Advisors of the Indonesian Institute of Technology Bandung Alumni Association.
He also questioned the compelling urgency requirement as a condition for issuing the perpu. According to him, Indonesia already possesses various laws regulating the economic sector, and therefore a pressing legal vacuum may not necessarily exist.
Furthermore, Haidar cautioned about potential negative impacts on the investment climate. He argued that the expansive definition of economic crimes and broad prosecutorial authority could generate legal uncertainty for business actors.
Haidar added that without transparent and accountable oversight, the regulation risks becoming an instrument of excessive governmental power within the legal system. “Whilst accelerating economic recovery on one hand, it opens avenues for abuse of authority on the other,” he said.