Yusril Reveals Prabowo’s Position on Defining State Losses in Corruption Cases

Coordinating Minister for Legal Affairs, Human Rights, Immigration and Corrections Yusril Ihza Mahendra said President Prabowo Subianto continues to stress that state losses must remain an element of corruption offences.

He made the remarks amid discussion of redefining corruption, following comments by National Economic Council chair Luhut Binsar Pandjaitan several weeks ago.

“He remains of the view that the element of state losses must not be overlooked. So, of course, we need to make adjustments and improvements,” Yusril said after meeting Prabowo at the Presidential Palace in Jakarta on Monday (26 October).

Yusril said the urgent issue was how to define state finances. Under Indonesia’s current laws, he said, the term has many different meanings.

“For example, does state wealth that has been separated to establish a state-owned enterprise (SOE), or an SOE’s subsidiary, still count as state money?” he said.

He cited a state-owned bank that manages public deposits. Some of those funds may be lent out and subsequently become non-performing loans.

“Would the bank’s management be charged with corruption? That is the problem. Is the money lent out state money, or is it public money held by the bank?” he said.

Yusril also said he had explained to Prabowo that corruption under the United Nations Convention against Corruption (UNCAC) does not mean bribery alone. The convention also covers other offences, including money laundering and fraud.

“UNCAC provides guidance for countries to formulate clearer and more precise definitions of corruption, set out how to combat it, and regulate international cooperation between countries in fighting corruption,” he said.

Yusril therefore called for revisions to Law No. 31 of 1999, as amended by Law No. 20 of 2001, on corruption. He said changes were increasingly necessary alongside revisions to Indonesia’s Criminal Code and Criminal Procedure Code.

A bill on asset forfeiture is also being discussed, he said, making it necessary to harmonise the existing corruption law with the other legislation.

He also stressed the importance of aligning the corruption law with UNCAC. Indonesia’s law has not been revised since 2001, while the convention was ratified through Law No. 7 of 2006.

Yusril said the meeting with Prabowo also touched on issues such as under-invoicing by businesses in the mining sector and illegal fishing, which he said cost the country hundreds of trillions of rupiah each year.