UGM Academic Proposes Establishment of Institution for Managing Confiscated Assets
A lecturer from Gadjah Mada University’s Faculty of Law, Oce Madril, assesses that institutional aspects regarding asset management need to be restructured in line with law enforcement in the draft Asset Confiscation Law. According to him, one measure that can be taken is by establishing an institution to manage confiscated assets.
“The authority granted to this management institution should cover the entire process, from storage, maintenance, and utilisation of confiscated assets,” he said during a Public Hearing with the DPR’s Commission III on Monday, 6 April 2026.
Madril believes that state assets confiscated from corruptors should have their economic value preserved. Because, according to him, well-managed confiscated assets have a positive impact on public interests.
“So, how these assets are managed to provide added value to the state, the economy, and the public,” stated the Chairman of the FH UGM Anti-Corruption Study Centre.
He explained that currently, assets confiscated by the state from corruptors are handled by the Storage House for Seized and State Goods, as well as the Directorate General of State Assets of the Ministry of Finance. According to him, in the future, a special institution is needed that truly functions to regulate the management of these confiscated assets.
Because, in the current governance, he said there are differences in data on the results of asset confiscations between the Attorney General’s Office and the Corruption Eradication Commission. Based on the data he presented, the total assets seized by the KPK from 2020 to 2024 reached Rp 2.5 trillion.
Meanwhile, at the Attorney General’s Office, the total value reaches Rp 800 trillion. The seized assets include land, property, buildings, shares, and mining concessions.
Madril suspects that assets from corruption crimes that can be seized by the state could increase due to the enactment of this Asset Confiscation Bill. Therefore, greater institutional capacity and strong authority are required, compared to what has been implemented so far.
“I propose that it would be better if the (new) institution is under the President,” he said.
The Asset Confiscation Bill has been progressing and is being discussed by the DPR’s Commission III. The interim draft of the Asset Confiscation Bill prepared by the DPR’s Expertise Agency consists of 8 chapters and 62 articles. The draft covers general provisions, scope, assets from criminal acts that can be confiscated, asset confiscation procedural law, international cooperation, funding, and closing provisions.