KPK Chairman Responds to Luhut's Proposal on State Losses Not Being Corruption

JAKARTA, KOMPAS.com - The Chairman of the Corruption Eradication Commission (KPK), Setyo Budiyanto, responded to the suggestion by the Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, that state losses should not be classified as part of the definition of corruption.

The proposal refers to the United Nations Convention Against Corruption (UNCAC), ratified by Indonesia through Law Number 7 of 2006.

Setyo explained that the interpretation of state losses in UNCAC and Article 2 and Article 3 of the Anti-Corruption Law (UU Tipikor) differs.

He noted that corruption cases associated with state losses in Indonesia require special attention due to their unique modus operandi.

“Indeed, the requirements for state losses in UNCAC have a different interpretation compared to Articles 2 and 3, but it must also be noted that the particularities in Indonesia should be taken into account, especially the modus operandi that frequently occurs,” Setyo stated when contacted by Kompas.com on Wednesday (21/10/2026).

He added that if the UNCAC is the point of reference, it would be more ideal to amend the Anti-Corruption Law to broaden the efforts against corruption related to private sector bribery and illicit enrichment.

“If we refer to UNCAC, it would be more ideal to amend the Anti-Corruption Law to criminalize foreign bribery, trading in influence, private sector bribery, and illicit enrichment,” he remarked.

Previously, Luhut Binsar Pandjaitan proposed to President Prabowo Subianto that state losses should not be included in the definition of corruption.

This is part of a study by DEN referencing the United Nations Convention Against Corruption (UNCAC), ratified by Indonesia through Law Number 7 of 2006.

“Yes, we refer to the UN Charter regarding the definition of corruption, where the definition of corruption in the UN Charter ratified by Indonesia 20 years ago is bribery,” Luhut said at the Merdeka Palace, Jakarta, on Wednesday (21/10/2026). “So it's not about state losses,” he added.

“The President also agreed with the study presented by the National Economic Council team regarding the definition of corruption. It is important so that the handling of corruption issues in Indonesia can meet international standards,” he explained.

Luhut pointed out that Indonesia has been the only country applying state losses as a definition of corruption.

“Because Indonesia is the only country that applies the issue of state losses, and this indeed burdens businesses, making it difficult for local firms like Danantara to operate, as every business comes with its own risks,” he articulated.

On the same occasion, Luhut also reported several data points to President Prabowo.

He emphasized the need for future decision-making to be data-driven.

“I reported to the President that we will provide him with accurate data so that his decision-making process will be based more on data. Because with data, I believe the decision-making process will be much more accurate,” he stated.

Therefore, DEN has also committed to providing more thorough information to President Prabowo.

“This way, especially amid the current global economic situation, the President is updated with what data is truly current,” he concluded.