EXCLUSIVE | Indonesia seeks to modernize Corruption Law

By Monsi A. Serrano

Indonesia is seeking to update its decades-old Corruption Law to align with its international commitments, evolving legal framework, and the need for greater legal certainty, Coordinating Minister for Law, Human Rights, Immigration and Corrections Yusril Ihza Mahendra said.

In an interview with THEPHILBIZNEWS, Yusril said the existing Law No. 31 of 1999 on the Eradication of Criminal Acts of Corruption, as amended by Law No. 20 of 2001, needs to be reassessed in light of developments since its enactment.

“The current Law on the Eradication of Corruption Crimes was enacted in 1999 and subsequently revised in 2001 during my tenure as Minister of Justice,” Yusril said.

“In 2003, Indonesia became a party to the United Nations Convention against Corruption (UNCAC), which was later ratified in 2006. That same year, I also proposed a bill to establish the Corruption Eradication Commission (KPK), granting it extraordinary powers to combat corruption.”

Yusril said the existing legislation has become outdated and should be reviewed not only to bring it into greater conformity with the UNCAC but also to strengthen justice and legal certainty.

“However, we recognize that the existing legislation is now outdated and requires revision — not only to align with the UNCAC but also to better ensure justice and legal certainty,” he said.

He also pointed to Indonesia’s adoption of a new national Penal Code, which replaced the country’s colonial-era criminal code and introduced a different philosophy toward criminal offenses.

“Furthermore, Indonesia has replaced its colonial-era Penal Code with a new, national Penal Code, which adopts a different philosophy toward addressing criminal offenses,” Yusril said.

Asked by THEPHILBIZNEWS what specific changes are being considered and how the amendments would strengthen rather than weaken the country’s fight against corruption, Yusril identified the definition of corruption as one of the principal areas requiring clarification.

“The specific change we wish to propose concerns the very definition of corruption, which we believe is subject to such a wide range of interpretations that it runs counter to the principles of justice and legal certainty,” he said.

Yusril said the current definition places considerable emphasis on “financial loss to the state,” a concept that can be subject to differing interpretations.

“We intend to clarify and refine this definition,” he said.

Yusril also raised the possibility of expanding the law’s coverage to include corruption within the private sector, which he said is not adequately addressed under the existing legislation.

“Furthermore, corruption within the private sector is not yet addressed under existing legislation,” he said.

He also proposed considering whether certain illegal economic activities that cause substantial losses to the state should be classified as corruption.

“We also propose that illegal activities—such as unauthorized mining and illegal fishing, which cause significant financial loss to the state—should be classified as acts of corruption,” Yusril said.

The proposed changes remain subject to further study as the Indonesian government considers how the Corruption Law should be harmonized with the UNCAC, the country’s new Penal Code and other related legislation.

The review raises a broader question about how Indonesia should define corruption in an economy where losses to the state and national wealth can arise not only from traditional bribery and abuse of public office, but also from illicit activities involving natural resources and private-sector transactions.

For Yusril, the challenge is to strengthen Indonesia’s anti-corruption framework while ensuring that its definitions and enforcement remain consistent with justice and legal certainty.