Urged by Students to Issue Perppu, Government Claims Ready to Discuss Asset Confiscation Bill

JAKARTA, KOMPAS – Although both the government and the DPR consider the discussion of the Draft Law on the Confiscation of Assets from Criminal Acts important, they will not be discussing it in the near future. The government still needs time to consolidate its strength in the DPR, while the DPR claims it still needs time to review it.

The demand for the immediate introduction of the regulation became one of the students' demands during the "Dark Indonesia" demonstration in various regions on Monday (17/2/2025). In fact, to expedite the issuance of the regulation, the students demanded that President Prabowo issue a government regulation in lieu of law (perppu). They consider the regulation urgent to eradicate economic crimes and corruption.

In response to the demands, Minister of Law Supratman Andi Agtas, when met at the Parliament Complex, Jakarta, Tuesday (18/2/2025), explained that the confiscation of assets resulting from criminal acts, especially corruption, is the main focus of President Prabowo Subianto.

Without the Asset Confiscation Law, Supratman claimed that the government has been actively coordinating with law enforcement agencies, such as the Corruption Eradication Commission (KPK) and the Financial Transaction Reports and Analysis Center (PPATK), to ensure the recovery of assets from perpetrators of corruption.

The government's active involvement is due to the realization that eradicating corruption cannot merely be about imposing penalties, but also ensuring that asset recovery can be carried out to the fullest extent.

Therefore, the government stated that it is ready at any time to submit the draft Asset Seizure Bill to the DPR, and discuss it with the DPR. However, before taking that step, the government admitted that it still needs time. "We need sufficient time to consolidate all political party forces and factions in the DPR," he added.

When asked again whether the government would urge the DPR to discuss it immediately, Supratman stated that the government would strive and propose that the Asset Seizure Bill could be discussed together with the DPR as soon as possible. "Once again, a law is a political decision," said Supratman.

Supratman reminded that the government's commitment to discussing the Asset Confiscation Bill was clear.

During the preparation of the National Legislation Program (Prolegnas) for the 2025-2029 Medium-Term Bills and the 2025 Priority Bills Prolegnas, last November, the Asset Confiscation Bill was placed 5th out of 40 proposed Bills for the 2025-2029 Medium-Term Prolegnas. However, the government and the DPR agreed that the Asset Confiscation Bill was not included in the priority Prolegnas to be discussed in 2025.

Deputy Chairman of the DPR Legislative Body from the Golkar Faction, Ahmad Doli Kurnia, was reluctant to respond to the students' demands for the President to issue a Perppu.

However, he sees the Asset Confiscation Law as very much needed. Therefore, the Asset Confiscation Bill has been included in the 2025-2029 Prolegnas. However, to enter this year's Prolegnas, so that it can be immediately discussed and ratified by the government and the DPR, Doli said, his party still needs time to study it. He claims that an in-depth study is needed to see the suitability of the law with the Indonesian legal and political system.

"Because it has been included in the medium-term prolegnas, yes, currently there are still loose discussions that are happening. We hope that the government will also be like that. Later, if we agree on the contents, then there is an agreement with the government and the DPR when it will be discussed, that will be discussed further," added Doli.

The drafting of the Asset Confiscation Bill was initiated by the Financial Transaction Reports and Analysis Center (PPATK) in 2008 and was completed in 2012. This bill has repeatedly been included in the Priority National Legislation Program (Prolegnas), but has not yet been discussed.

For example, in the 2019-2024 period, the government sent a presidential letter (surpres) to discuss the Asset Confiscation Bill in May 2023. However, until the previous DPR term of office ended, the surpres was not followed up.

Previously, the Chairman of the DPR Baleg Bob Hasan who is also a member of Commission III of the DPR from the Gerindra Party Faction explained that the issue of the Asset Confiscation Bill had also been discussed in Commission III. DPR Based on the discussion in Commission III, the DPR agreed to return the draft to the government as the proposer.

One of the considerations, Bob continued, is related to the substance of the bill which is more related to the crime of money laundering. In fact, Indonesia already has Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering (TPPU). (Kompas, 10/29/2024).

For information, the demand for the Asset Confiscation Bill to be passed immediately has been conveyed by various parties. Not only civil society and academics, but also law enforcement agencies, such as PPATK and KPK.

Head of the Financial Transaction Reports and Analysis Center (PPATK) Ivan Yustiavandana once said that the Asset Confiscation Bill is intended for the interests of confiscation and seizure of assets originating from criminal acts. PPATK findings show that many perpetrators of money laundering hide behind wealth in the form of assets that cannot be returned to the state. On the other hand, there is a legal vacuum that must be resolved with the Asset Confiscation Law.

In addition, there are many fugitives in corruption cases who have fled abroad, even though their criminal assets can be found. However, currently the confiscation of criminal assets cannot be carried out because it must be linked to the crime they committed. Moreover, if the perpetrators escape and their assets cannot be confiscated as long as there is no court decision.

Meanwhile, Transparency International Indonesia researcher Alvin Nicola once said that if this country wants to move up a class, one of the instruments needed is asset recovery.

In addition to the mandate of the United Nations Convention Against Corruption (UNCAC), asset forfeiture is also a prerequisite for joining various multilateral initiatives, such as entry into the Organisation for Economic Co-operation and Development (OECD).

The existence of the Asset Confiscation Bill helps restore state financial losses and increase the deterrent effect. So far, Alvin said, Indonesia has only relied on mutual legal assistance (MLA) agreements which have proven to be insufficient. This is because the process is very slow due to having to adjust to the foreign criminal justice process in each foreign jurisdiction.