UMJ Law Lecturer Discusses Foreign Loan Reformulation in Doctoral Programme

A permanent lecturer at the Faculty of Law, Muhammadiyah University Jakarta (FH UMJ), Merdian Papatungan, has graduated from the Doctor of Law Programme at the Faculty of Law, Universitas Brawijaya, Malang, on Wednesday (10/6/2026). The FH UMJ lecturer discussed the Reformulation of Foreign Loans in his dissertation examination. In the examination, Merdian presented a dissertation titled “Reformulation of Foreign Loan Regulations as a Source of State Budget Financing After the Amendment to the 1945 Constitution.” This research focuses on the regulation of foreign loans after the amendment to the 1945 Constitution, particularly concerning transparency, accountability, and the sustainability of the state budget. “The purpose of this research is to reveal the extent to which foreign loan regulations after the amendment to the 1945 Constitution have created transparent and accountable practices. This research also aims to assess its implications for the sustainability of the state budget,” said Merdian. He explained that this research uses a normative juridical legal research method. This method is applied through three approaches: the statute approach, the comparative approach, and the historical approach. Based on his research findings, Merdian found that the regulation and practice of foreign loans after the reform era have not fully created substantive transparency and accountability. According to him, foreign loans originally intended to support economic growth and national development can instead become a burden on the state budget. “My research findings reveal that the regulation and practice of foreign loans after the reform era only create pseudo-transparency and accountability,” he stated. Furthermore, Merdian conveyed that there are four main clusters of legal issues in the regulation of foreign loans. First, the juridical cluster, namely the existence of norm conflicts between the state finance legal regime and the international legal regime. Second, the philosophical cluster, where foreign loan policy regulations have not yet reflected the philosophical basis of their existence. Third, there are theoretical issues in the form of clashes between the state finance legal regime and the international legal regime at the doctrinal level. Additionally, he highlighted the error in qualifying the functions of each state institution in foreign loan policy. Fourth, practical issues related to the timing of DPR approval for loan agreements and the legal instruments expressing that approval. Merdian hopes this academic achievement will be a starting point to strengthen his contribution to the development of legal science, particularly state finance law. He emphasised that a doctoral degree is not the end of an academic process, but rather the beginning of greater responsibility. “I understand the doctoral degree I carry as a beginning, not an end,” he said. He also expressed his commitment to continue developing legal knowledge to provide wider benefits for society and the state. “I hope to be able to contribute more in developing legal science, not only academically, but also having a real impact on the wider community and for the country,” concluded Merdian.