Indonesian lawmakers debate corruption definition and state losses

A debate has emerged in Indonesia regarding whether state financial loss should remain a core element in the definition of corruption. This discussion follows a proposal by the National Economic Council (DEN) to adjust the definition to align with the 2003 United Nations Convention Against Corruption (UNCAC), which focuses heavily on bribery.

Soedeson Tandra, a member of Commission III of the Indonesian House of Representatives (DPR RI), warned that removing the state loss element could downgrade corruption from an ‘extraordinary crime’ to an ordinary crime. He argued that such a change could lead to calls for the dissolution of the Corruption Eradication Commission (KPK) and described the potential shift as a ‘national disaster.’

Conversely, Denny JA, President Commissioner of Pertamina Hulu Energi, argued that the law must distinguish between legitimate business risks and criminal acts. He noted that corruption can occur without direct state loss, such as in bribery cases where a project remains profitable, and that professional investment decisions by state-owned enterprise directors should not automatically be classified as corruption if they result in losses. Denny JA cited high-ranking countries on the Corruption Perceptions Index, such as Denmark and Singapore, where anti-bribery laws focus on corrupt acts rather than strictly requiring the loss of state funds.