The new Government of Indonesia (the “GOI”) began implementing its anti-corruption policy in 2015. However, there have been many developments that have tested and defined this policy starting as early as January 2015.

Indonesia’s Corruption Eradication Commission (Komisi Pemberantasan Korupsi or “KPK”) lists on its official website that as of September 30, 2015, it has carried out examinations (penyelidikan) of 67 cases, investigations (penyidikan) of 31 cases and prosecution of 47 cases. Twenty-five cases have been finalized and the judgments are final and legally binding. Enforcement of the judicial decisions (i.e., execution) has been carried out in 25 cases. It should be noted that this data does not constitute all of the GOI’s anti-corruption eradication efforts, as the KPK still shares some of its corruption-related authority with the Indonesian National Police and the Attorney General’s Office, whose efforts cannot be as easily accessed.

In a nutshell, anti-corruption policies, regulations and events can be summarized as follows.

Notable New Regulations

Amendment of the KPK Law: On February 18, 2015, the GOI issued Government Regulation in Lieu of Law No. 1 of 2015 regarding the Amendment of Law No. 30 of 2002 regarding the Commission for the Eradication of Criminal Acts of Corruption (“GR 1/2015”), which was later enacted into law as Law No. 10 of 2015 regarding the Stipulation of GR 1/2015 (May 25, 2015) (“Law 10/2015”).

GR 1/2015 and Law 10/2015 added two new articles to Law No. 30 of 2002 regarding the Commission for the Eradication of Criminal Acts of Corruption (the “KPK Law”), being Article 33A and Article 33B.

  • Article 33A provides that in the event there is a vacancy that results in the KPK having fewer than three chairmen, the President shall appoint temporary chairmen to fill such vacancies.
  • Article 33B clarifies that the term of office of such temporary members shall terminate (a) when one of the KPK chairmen who was replaced due to a temporary termination under the KPK Law is reactivated, or (b) after new KPK chairmen appointed through the process under Article 33, paragraph (2) of the KPK Law are sworn in.

Other Regulatory Changes

  • Presidential Instruction:  Presidential Instruction No. 7 of 2015 regarding 2015 Corruption Prevention and Eradication Actions (May 6, 2015) (“PI 7/2015”) was issued to various state bodies and officials, including ministers, the attorney general, the Indonesian National Police and governors, and contains action plans to be taken for the prevention and eradication of corruption in 2015.
  • Other Authorities’ Regulations:  Supreme Court Regulation No. 5 of 2014 regarding Additional Penalties of Compensation Money in Corruption Criminal Acts (December 31, 2014) (“SC Reg. 5/2014”) provides that the maximum amount of money a person convicted of a criminal act of corruption may be required to repay is equal to the amount the person obtained from the corrupt act and is not limited to the financial loss incurred by the state. The regulation does not address the question of what amount must be paid if the state loss exceeds such amount. Several other ministries and state institutions (i.e., the Minister of Industry and the Indonesian Investment Coordinating Board or “BKPM”) have issued various regulations in support of anti-corruption actions.

What to Expect in 2016

The GOI has a large number of laws waiting enactment. The revision of the Corruption Law (Law No. 31 of 1999 regarding the Eradication of Criminal Acts of Corruption, as amended by Law No. 20 of 2001) is included in the National Legislation Program (Prolegnas) for 2015-19. Revisions to the Indonesian Criminal Code (“KUHP”) and the Indonesian Criminal Procedural Code (“KUHAP”) also are scheduled. Some observers have indicated that the essential revisions to the KUHP and KUHAP are part of a process in the DPR to weaken the eradication of corruption in Indonesia. It is uncertain whether such laws and regulations will be issued in 2016.