Why Luhut Wants the Corruption Eradication Law Revised and Passed Soon

National Economic Council (DEN) chair Luhut Binsar Pandjaitan met Coordinating Minister for Law, Human Rights, Immigration and Corrections Yusril Ihza Mahendra. Luhut said he was urging a revision of the Corruption Eradication Law (UU Tipikor).

Luhut said his discussion with Yusril focused on legal certainty in Indonesia, which he said often makes investors hesitant to invest in the country.

“From the study and the points presented to Mr Yusril, it is clear that legal certainty is extremely important to all investors,” Luhut said at the DEN office in Central Jakarta on Tuesday (27 October 2026).

Luhut outlined the government’s plans to establish a family office in Bali. He said the project also requires clear legal certainty if its economic targets are to be achieved.

“We also link this directly to the International Financial Centre, which the President has recommended. We have been advised and directed to pursue it, possibly in Bali in the near future, perhaps within the next few months. There would also be a family office there. This, too, requires legal certainty,” Luhut said.

He urged that deliberations on revising the Corruption Eradication Law begin and be completed soon. Luhut pointed to the current uncertainty in the global economy, saying investors need legal certainty as a guarantee when placing their money in Indonesia.

“We hope it happens sooner, but we are also considering a worst-case scenario in which oil prices remain high, as do prices of its derivative products. Once again, this comes back to legal certainty. People who feel unsafe in the Middle East because of wars between countries are looking for the safest place to put their money,” Luhut said.

According to Luhut, many foreign investors have said they are ready to invest in Indonesia. Some, however, have subsequently changed their minds because they consider the country’s legal system unclear.

Luhut added that revising the Corruption Eradication Law is expected to address investors’ concerns about legal certainty in Indonesia.

“Many wealthy people I have met, including people from the Middle East, are seriously considering investing in Indonesia. They specifically mention Bali because of security concerns. But they always ask: ‘What about legal certainty?’ That is a question that keeps coming up,” Luhut said.

Yusril says revision will not remove state-loss element from definition of corruption

Coordinating Minister for Law, Human Rights, Immigration and Corrections Yusril Ihza Mahendra has called for the Corruption Eradication Law to be revised to broaden the definition of corruption. He stressed that the proposed revision would not remove state losses as an element in the definition.

Yusril made the remarks after meeting DEN chair Luhut Binsar Pandjaitan to receive the council’s study on improving the Corruption Eradication Law at the DEN office in Central Jakarta. He said the discussion continued earlier talks on Articles 2 and 3 of the law. The central issue is the act of enriching oneself, another person or a corporation, resulting in losses to state finances and the national economy.

“The focus of corruption offences is to enrich oneself, another person or a corporation unlawfully, resulting in losses to state finances and the national economy,” Yusril said.

Yusril said the articles are broad in their interpretation, functioning as a catch-all provision. They are used to cover all aspects involving losses to state finances and the national economy that are classified as a single corruption offence.

He stressed that, from the outset of discussions, the government had no intention of removing state losses from the definition of corruption. Instead, the element of state losses as a corruption offence needs to be clarified in the law.

“Previous discussions had established a shared understanding that we are not seeking to remove the element of state losses, which is now widely misunderstood by the public. Rather, we want to clarify what is meant by losses to state finances,” he said.

“There was no intention in those discussions to remove the words ‘causing losses to state finances’,” he added.

Yusril said the revision would not weaken efforts to eradicate corruption. The law is being refined so that it is stricter, clearer and more certain.

“It is called an improvement. Improving it means making it stricter, clearer and more certain, which will make things better. No one should have to be unsure or fear being accused of corruption. Once it is clear what constitutes corruption and what does not, everything will be clearer,” he said.