PDI-P Opposes Luhut’s Proposal to Exclude State Losses from Corruption Offences
PDI-P Secretary-General Hasto Kristiyanto responded to National Economic Council (DEN) chairman Luhut Binsar Pandjaitan’s proposal that state losses should not be classified as a corruption offence. Hasto said he disagreed.
“That statement oversimplifies the problem of corruption and runs counter to what the public wants. What is needed is a comprehensive effort from start to finish, beginning with prevention, establishing the rule of law and fostering a culture in which corruption does not occur,” Hasto told reporters at the PDI-P School in South Jakarta on Wednesday (21 October 2026).
Hasto then referred to the construction of the Whoosh high-speed railway during the presidency of Indonesia’s seventh president, Joko Widodo (Jokowi). He said the decision had also been rushed and had not prioritised the public’s needs for education and decent employment.
“Decisions are made hastily, without an in-depth sociological study, such as the decision to move the capital. And what if that funding were used, for example, to create jobs for farmers? Would that also be allowed?” he said.
Hasto said Luhut should address the problem of corruption. He said the proposal ran counter to public expectations.
“He should make statements that also address the various problems of corruption. So we strongly disagree with the statement made by Mr Luhut,” he added.
Hasto said Luhut should have set out an agenda for preventing and eradicating corruption. He said he regretted the proposal.
“He should have set out the agenda for preventing and eradicating corruption, and explained how to respond to allegations of collusion and manipulation in the stock market,” he said.
“This includes, for example, the takeover of Bayan Resources, where alleged manoeuvres and conflicts of interest have been linked to interference by those in power, undermining market confidence. That is what should be addressed, rather than changing the definition of corruption,” he concluded.
Luhut previously proposed a review of the definition of corruption offences in Indonesia. He said he had presented the proposal directly to President Prabowo Subianto.
“The President also agreed with the review prepared by the National Economic Council team on the definition of corruption,” Luhut said at the Merdeka Palace in Central Jakarta on Tuesday (20 October).
His proposal is that state losses should not constitute a corruption offence. He said this was consistent with the United Nations Convention against Corruption (UNCAC), which the government has ratified.
“We refer to the UN Convention chapter on the definition of corruption. The definition in the UN Convention, which the government ratified 20 years ago, concerns bribery; it does not refer to state losses,” Luhut said.
He said Indonesia was the only country to treat state losses as a form of corruption. In his view, this placed a burden on the operations of state businesses and state-owned enterprises, including Danantara’s ability to undertake corporate actions.
“Indonesia is the only country that applies the issue of state losses in this way. This makes it difficult for entities such as Danantara to conduct business, when every business activity inevitably involves risk. That is why I think this is important,” Luhut said.