Only a Study Approved, Not a Law Revision
JAKARTA — President Prabowo Subianto has approved a study by the National Economic Council (DEN, Dewan Ekonomi Nasional) regarding a review of the definition of corruption crimes in Indonesia. This was conveyed by DEN Chairman Luhut Binsar Pandjaitan following a limited cabinet meeting at the Merdeka Palace complex, Jakarta, on Tuesday (10/20/2026).
"Earlier, the President also agreed with the study prepared by the team from the National Economic Council regarding the definition of corruption. Because that is important so that corruption eradication in Indonesia meets international standards," Luhut stated.
It should be noted: what Prabowo approved was DEN's study for further review — not an announcement that the definition of corruption in the law has been officially amended. The study must still undergo applicable legal and policy procedures before affecting the Corruption Law (UU Tipikor, Undang-Undang Tindak Pidana Korupsi).
Shifting Focus: From State Losses to Bribery
According to Luhut, the DEN team's study shifts the interpretation of corruption away from the issue of state financial losses toward acts of bribery. The reference cited is the United Nations Convention Against Corruption (UNCAC), which Indonesia ratified roughly 20 years ago via Law Number 7 of 2006.
"The definition of corruption in the convention ratified by Indonesia 20 years ago is bribery — so it does not discuss state losses," said Luhut.
Luhut assessed that Indonesia has so far remained one of the countries that continues to define corruption based on state financial losses, whereas international standards position bribery as the core offense of corruption.
Luhut's Rationale: Legal Certainty for the Business World
Luhut assessed that the element of state losses in handling corruption cases creates challenges for the business community. Every business decision carries risk, and risks that result in losses should not automatically be treated as criminal offenses.
"Every business certainly has risks," Luhut emphasized. He specifically cited the Daya Anagata Nusantara Investment Management Agency (Danantara, Badan Pengelola Investasi Daya Anagata Nusantara), which he argued needs legal certainty to take strategic business measures without fearing entanglement in corruption charges.
This proposal emerged from assessments that articles in Law Number 31 of 1999, as amended by Law Number 20 of 2001, are frequently used to entrap officials or business executives who take business decisions in good faith that ultimately result in losses.
Critical Notes: UNCAC Goes Beyond Bribery
Despite citing UNCAC, it is important to note that the UN convention does not exclusively address bribery. UNCAC also covers various other forms of corrupt offenses — so discussions on altering the definition cannot simply be reduced to equating 'corruption solely with bribery'.
Prabowo's approval of the DEN study marks the beginning of deliberations that could potentially reshape the anti-corruption landscape in the country. However, until the study is followed up through formal legislative and policy mechanisms, the definition in the Corruption Law (UU Tipikor) remains in effect as is.
Debate among law enforcement officials, academics, and civil society is expected to accompany subsequent stages of this study — particularly regarding the line between reasonable business risk and abuse of power resulting in state losses.
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