DEN Leadership Recommends Refinements to Corruption Eradication Law

JAKARTA, KOMPAS.com - The National Economic Council (DEN) has recommended revising Articles 2 and 3 of the Corruption Eradication Law (Tipikor), as well as Articles 603 and 604 of Law No. 1 of 2023 regarding the Criminal Code (KUHP).

This improvement of the Tipikor law is one of four recommendations put forth by DEN Chairman Luhut Binsar Pandjaitan to President Prabowo Subianto.

According to an official statement from DEN quoted from its official website on Thursday (22/10/2026), the revisions pertain specifically to, "the wording of Articles 2 and 3 of the Tipikor Law and Articles 603 and 604 of the KUHP."

It is noted that in Article 2, paragraph (1) of the Tipikor Law, an act of corruption is defined as unlawful behavior intended to enrich oneself or a corporation to the detriment of state finances.

"Every person who unlawfully enriches themselves or others or a corporation, which can harm state finances or the economy of the country," reads the excerpt from Article 2, paragraph (1) of the Tipikor Law.

Furthermore, Article 3 of the Tipikor Law addresses acts of corruption related to abuse of authority.

"Every person who, with the intent to benefit themselves or others or a corporation, abuses their authority, opportunity, or resources available to them by virtue of their position or role, which can harm state finances or the economy of the country, shall be punished by life imprisonment or a minimum of 1 (one) year and a maximum of 20 (twenty) years in prison and/or a fine of at least Rp. 50,000,000.00 (fifty million rupiah) and at most Rp. 1,000,000,000.00 (one billion rupiah)," states Article 3 of the Tipikor Law.

The second recommendation from DEN is the addition of a policy judgment rule or business judgment rule.

This addition aims to ensure that business decisions made in good faith and in accordance with procedures receive protection as per international practice.

The third recommendation involves adopting offenses covered by the United Nations Convention against Corruption (UNCAC) that are not yet included in national law, such as bribery of foreign public officials.

The final recommendation is the drafting of an omnibus law on state finance to provide certainty regarding the status of state assets.

Clarification on State Financial Losses

In the official statement, Luhut emphasized that state financial losses are not being removed from the definition of corruption.

This clarification comes following comments about the potential removal of state financial losses from the definition of corruption.

"State financial losses remain an element in the Tipikor Law, and misappropriated state funds must still be returned. What we are proposing is that the burden of proof be clear and objective, so that perpetrators of corruption do not escape, yet someone who makes decisions or actions in good faith is not penalized without basis. At the same time, we propose adding new offenses to broaden the scope of corruption eradication," Luhut stated.

DEN maintains that Articles 2 and 3 of the Tipikor Law, as well as Articles 603 and 604 of the KUHP, should remain unchanged.

Moreover, criminal accountability and restitution for state financial losses will continue to apply.

What is being refined is the method of proving the elements of the criminal offenses, not the existence of state financial loss.

Additionally, the scope of corruption eradication will be expanded through the incorporation of UNCAC offenses not yet covered by national law, including bribery of foreign public officials.

Luhut explained that legal certainty is an essential prerequisite in the government's efforts to accelerate investment and maintain growth momentum.

DEN cites the 2025 Freedom and Prosperity Indexes, which shows that the application of the rule of law has the strongest correlation with prosperity and long-term economic growth.

ANTARA FOTO/Dhemas Reviyanto Officials arranging evidence in the form of confiscated money post-press conference on the handling of alleged Money Laundering (TPPU) and Corruption (TPK) cases related to palm oil plantation activities of PT Duta Palma Group at the Attorney General's Office, Jakarta, Thursday (8/5/2025). The Attorney General's Office seized Rp479 billion from two subsidiaries of PT Darmex Plantations related to TPPU allegations connected to the corruption case of PT Duta Palma Group.

On the other hand, Luhut noted that the enforcement of anticorruption measures currently remains uncertain and not fully effective.

In recent years, several corruption cases have sparked public debate and attracted international scrutiny.

Indonesia ratified UNCAC through Law No. 7 of 2006, yet the adoption of the convention's standards into national law has not been comprehensive.

One example is the lack of regulation concerning bribery of foreign public officials.

Additionally, the refinement of the Tipikor Law is also a follow-up to the Constitutional Court (MK) Decisions No. 142/PUU-XXII/2024 and No. 28/PUU-XXIV/2026.

In its rulings, MK assessed that the application of Articles 2 and 3 of the Tipikor Law is currently generating inconsistencies for law enforcement officials and requested lawmakers prioritize a comprehensive review and consider remaking these two articles.

"Legal certainty is one of the main prerequisites for economic growth, and cross-country data over the past three decades consistently demonstrates this. The refinement of the Tipikor Law is not intended to weaken anticorruption efforts, but rather to ensure its enforcement is certain, just, and aligned with international standards," Luhut asserted.