Bambang Soesatyo Encourages Legal Update On Confiscation Of Corruption Assets And Money Laundering In Indonesia

JAKARTA Member of Commission III of the DPR RI as well as permanent lecturer of the Doctorate of Law at Borobudur University, Jayabaya, and Defense University (IDU), Bambang Soesatyo (Bamsoet) emphasized the importance of legal reform related to the confiscation of corruption assets and money laundering (TPPU). He considered that the existing legal system has not been able to guarantee asset recovery quickly, effectively, and across jurisdictions.

"Depending on criminal decisions, weak tracking technology, and overlapping authority between institutions, the asset recovery process is slow and not optimal," said Bamsoet while teaching a lecture on National Law Renewal at Borobudur University, Jakarta, Saturday, May 17.

Data from the Corruption Eradication Commission (KPK) noted that during 2020-2024, state losses due to corruption reached Rp45.7 trillion. However, only around Rp2.5 trillion was recovered. In fact, Indonesia has ratified the United Nations Convention against Corruption (UNCAC), underlining asset recovery as the main principle in eradicating global corruption.

"The Corruption Law and the Money Laundering Law already exist, but the effectiveness is still weak. The legal process is too long and complicated. Frozen assets have lost value because they have been waiting too long for a decision with permanent legal force," said Bamsoet.

He highlighted the system's dependence on the conviction-based forfeiture, namely confiscation of assets can only be done after the perpetrator is convicted. According to him, this approach is not enough. Especially if the perpetrator escapes or hides assets abroad.

Bamsoet also mentioned technological limitations as a big obstacle. Many crime assets have been diverted through difficult-to-track methods. FATF data shows that less than 1% of the assets resulting from money laundering have been confiscated globally. In Indonesia, tracking infrastructure is still minimal.

Bamsoet added that the Asset Confiscation Bill offers a more progressive approach. One of them is through a non-conviction based asset forfeiture (NCB) scheme that allows the state to confiscate assets without waiting for a court decision.

Negara seperti Amerika Serikat sudah menerapkan Civil Asset Forfeiture Reform Act (CAFRA) 2000. Swiss dan Singapura juga punya aturan yang memungkinkan penguahan berbasis investigasi. Sementara Australia berliangkan Proceeds of Crime Act 2002, jelasnya.

As Chairman of the Board of Trustees of the Unpad Legal Science Doctors Alumni Association, Bamsoet reminded that the implementation of this bill is not easy. There will be political challenges, constitutional issues regarding the principle of presumption of innocence, to limited institutional capacity.

However, the former chairman of the MPR is optimistic that if accompanied by a serious commitment, Indonesia can strengthen the asset recovery system. He proposed five concrete steps: accelerate the ratification of the bill by upholding human rights, forming an integrated asset recovery unit, increasing the capacity of the apparatus, developing a digital asset information system, and involving the public under surveillance.

"Without comprehensive legal reforms, the state will continue to be harmed. Corruption will be difficult to eradicate if assets resulting from crime cannot be seized effectively," concluded Bamsoet.