KPK Chief Rejects Luhut’s Proposal: Other Issues Are More Urgent

Jakarta — Corruption Eradication Commission (KPK) chief Setyo Budiyanto has rejected a proposal by National Economic Council (DEN) head Luhut Binsar Pandjaitan concerning the definition of corruption.

Setyo stressed that the phrase “state losses” should remain part of the definition of criminal corruption offences in Indonesia.

Luhut had previously asked President Prabowo Subianto to remove the element, citing international standards. Setyo responded that Indonesia has specific circumstances in its handling of corruption that cannot simply be equated with global rules.

He pointed to the complexity and sophistication of white-collar crime methods in Indonesia as the main reason for retaining criminal liability based on state losses. According to him, anti-corruption efforts require an approach tailored to the country’s legal realities and the methods commonly used in practice.

While acknowledging differences in interpretation between Indonesian law and the United Nations Convention against Corruption (UNCAC), Setyo cautioned the government against selectively adopting international standards.

He said that if the government makes UNCAC—which Indonesia ratified through Law No. 7 of 2006—its main reference, several other offences are more urgent candidates for inclusion in the Corruption Eradication Law.

“Indeed, the state-loss requirement in UNCAC is interpreted differently from Articles 2 and 3, but it must also be recognised that Indonesia’s specific circumstances should be considered, particularly the methods that have commonly occurred,” he said.

Setyo said four types of crime should be prioritised if the government wants Indonesian law to align with international standards.

“If UNCAC is the reference, it would be more appropriate to amend the Corruption Eradication Law to criminalise foreign bribery, trading in influence, bribery in the private sector and illicit enrichment. If UNCAC is used as the benchmark, there are more urgent offences that have not yet been criminalised in the law,” he said.

The KPK also urged that the position of the state-loss element be strengthened.