Rethinking the Definition of Corruption: Focus on Bribery, Not State Losses - What About Budget Markups?
President Prabowo Subianto has given the green light for the National Economic Council (DEN) to study a proposal that would change the definition of corruption in Indonesia. Instead of focusing on state financial losses, it'd zero in on bribery. The idea was put forward by DEN Chairman Luhut Binsar Pandjaitan after a meeting at the Merdeka Palace on Tuesday (October 20, 2026). The study refers to the United Nations Convention Against Corruption (UNCAC), which Indonesia ratified through Law No. 7 of 2006, where corruption is defined as bribery without mentioning state losses.
Right now, Indonesia's Anti-Corruption Law classifies corruption into seven types-things like causing state financial losses, bribery, embezzlement, extortion, fraud, conflict of interest, and gratification. The state loss elements in Articles 2 and 3 are often used by law enforcement to nail cases involving goods and services procurement. The Constitutional Court, through Decision No. 25/PUU-XIV/2016, stressed that the loss in question must be actual, not just a potential one.
Budget markups, like inflating the owner's estimate or bid prices, have so far been treated as corruption that causes state losses because they create an illegal profit margin. President Prabowo, back in late December 2024, said that the markup culture is corruption and robs people's money, emphasizing that budget records should match the real values.
https://www.harianaceh.co.id/2