Confiscation of Corruptor’s Assets Needs State's Commitment

KOMPAS/RADITYA HELABUMI

Corruption Eradication Commission (KPK) investigators display Rp 110 million in cash at a press conference on the results of a sting operation on bribery allegations related to a waterway project in Yogyakarta at the KPK building in South Jakarta on Aug. 20. (20/8/2019).

The government and the House of Representatives (DPR) has never deliberated the Draft Law on the Confiscation of Assets Derived from Criminal Activity. Law enforcement has not used the articles on money laundering to charge criminals.

JAKARTA, KOMPAS — President Joko Widodo wants the Draft Law on the Confiscation of Assets Derived from Criminal Activity to be passed next year. Before it is passed into law, law enforcement officials are asked to do their best to recover stolen state funds by using the provisions on anti-money laundering to charge the perpetrators. The confiscation of state assets from corruptors requires commitment from both legislators and law enforcement.

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“We are all aware that corruption is an extraordinary crime that has an extraordinary impact. Therefore, it must be handled in an extraordinary manner," President Jokowi said in a speech to commemorate World Anti-Corruption Day 2021 at the Corruption Eradication Commission (KPK) headquarters in Jakarta on Thursday (9/12/2021). The event also saw the attendance of a number of ministers of the Indonesia Onward Cabinet as well as the KPK leadership.

As part of this “extraordinary manner”, the means for eradicating corruption must continue to be improved. One of these was the the Draft Law (RUU) on the Confiscation of Assets Derived from Criminal Activity, as the President cited. "This is also very important and we continue to encourage it and we hope that next year, God willing, it will be [finalized]," he said.

This strategy would also secure strict criminal sanctions against corruptors while creating a deterrent effect.

The President encouraged all law enforcement officials to bring as many money laundering charges as possible in every corruption case before the bill is passed into law. Thus, taking simultanaeous action against corruptors can save state losses from corruption. This strategy would also secure strict criminal sanctions against corruptors while creating a deterrent effect.

KOMPAS/HERU SRI KUMORO

President Joko Widodo (seventh right) smiles during a discussion on Thursday (26/9/2019) with a group of professionals at Merdeka Palace in Jakarta. The meeting covered current issues including Papua, the Sumatra and Kalimantan forest fires and the recent student demonstrations over the contentious Corruption Eradication Commission (KPK) Law and the Draft Criminal Code Bill (RKUHP).

As an example, the President pointed to the seriousness of state officials in eradicating corruption in the case against PT Asuransi Jiwasraya. The Attorney General’s Office (AGO) has punished the convicts, two of whom were sentenced to life in prison. Authorities have also recovered Rp 18 trillion in stolen assets and returned it to the state.

In addition, in the corruption case of PT Asabri, seven defendants faced sentence demands ranging from 10 years in prison to the death penalty. The prosecution also demanded the defendants to pay compensation for state losses that amounted to trillions of rupiah.

"However, law enforcement officers should not become complacent just yet, because the public deems that the efforts to eradicate corruption is still not good enough," said the President.

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Regarding the Criminal Assets Confiscation Bill, KPK chairman Firli Bahuri, also urged the government and the House to ratify it immediately. The Criminal Asset Confiscation Law would be an important legal instrument in maximizing the efforts to eradicate corruption, especially in seizing stolen state assets from corruptors.

"If the Criminal Assets Confiscation Law is implemented soon, of course the assets of any individuals that have resulted from illegal activities, especially [...] criminal acts, whether it be corruption, will certainly be confiscated," said Firli.

In limbo since 2008

The Criminal Assets Confiscation Bill was initiated by the Financial Transaction Reports and Analysis Center (PPATK) in 2008 and the draft was completed in 2012. The bill is included in the 2015-2019 medium-term National Legislation Program (Prolegnas). However, every time the annual Prolegnas is discussed, the bill always loses out to other bills.

During discussions on the 2020-2024 mid-term Prolegnas, the bill was again raised for inclusion on the priority list, but it has not been included in the annual Prolegnas so far. The bill must be included in the annual Prolegnas for deliberation until it is ratified by the government and the House.

ABBA GABRILLIN/KOMPAS.COM

Taufik Basari, a  member of the House Legislative Body (Baleg) from the Nasdem Party faction.

Taufik Basari, a member of the House Legislative Body (Baleg) from the Nasdem Party faction, said that the Criminal Assets Confiscation Bill was a government initiative. Therefore, if the government wants the bill to be ratified immediately, the government should propose its inclusion in the annual Prolegnas and submit the draft bill to the House.

The problem was that the government had not submitted the bill until the preparation of the latest annual Prolegnas on Monday, namely the 2022 Prolegnas. "So we asked the government why it was not submitted," he said.

If the bill was proposed for inclusion in the annual Prolegnas, Taufik was certain that there would be no resistance from the House. Likewise, the discussion of the bill had the potential to run smoothly.

"Usually, if there is a [proposed bill] from the government, there will be no rejection from the House, all are accepted," he said.

Not serious yet

Transparency International Indonesia (TII) researcher Alvin Nicola said that the ongoing talks on the Criminal Assets Confiscation Bill and the fact that it was never included in the annual Prolegnas showed that lawmakers were not serious about fighting corruption. Without the Criminal Assets Confiscation Law as a legal umbrella, Indonesia cannot be said to be serious about fighting corruption as an extraordinary crime.

"The law will make it easier for law enforcement to trace criminal assets, especially those hidden abroad," said Alvin.

Assets in criminal cases that cannot be brought to trial or cases that carry a guilty verdict issued by a court that is permanent and binding can also be confiscated in order to recover state losses.

The Criminal Assets Confiscation Bill contains at least two critical provisions. Assets that are not in compliance with the additional wealth policy and cannot be proven to have been obtained legally can be confiscated. Assets in criminal cases that cannot be brought to trial or cases that carry a guilty verdict issued by a court that is permanent and binding can also be confiscated in order to recover state losses.

However, that the Criminal Assets Confiscation Bill has not been finalized does not mean that state officials cannot maximize their efforts to recover state losses, especially those that resulted from corruption. For example, officials can issue indictments or prosecute corruption cases on money laundering charges.

KOMPAS/RADITYA HELABUMI

Activists and volunteers join the 602nd Kamisan protest in front of Merdeka Palace in Jakarta on Thursday, (19/9/2019). Besides calling on the government to settle past cases of human rights abuse, they also criticized the government and the House of Representatives over the revision of the Corruption Eradication Law and called for the postponement of the planned revision of the Criminal Code, arguing that the bill contained several controversial stipulations that threaten the freedom of speech.

This had not been seen in many corruption cases, said Alvin. According to data from Indonesia Corruption Watch (ICW), for example, of the 394 corruption cases handled by the prosecutor's office and the KPK in 2020, only three cases involved money laundering charges. (WKM/BOW/DEA)

(This article was translated by Kurniawan Siswoko)