Tax Crimes No Longer Covered Under Asset Confiscation Draft Law
JAKARTA, DDTCNews - The Government and the House of Representatives have agreed to reduce the types of crimes that form the basis for asset confiscation under the Asset Confiscation Draft Law.
Previously, 13 types of crimes formed the basis for asset confiscation, including corruption and tax crimes. The Government and the House have now agreed to limit the scope of the Asset Confiscation Draft Law to corruption and 6 other types of crimes.
The six other types of crimes covered under the Asset Confiscation Draft Law are: narcotics and psychotropic substances crimes; terrorism and terrorism financing crimes; human smuggling crimes; weapons, ammunition and hazardous materials smuggling crimes; human trafficking crimes; and fraud and/or embezzlement crimes committed using information technology means and/or having an impact on the wider public economy.
"Let us not include others. If we include others, it could go in all directions. We are still concerned about abuse of power by law enforcement officers who frequently engage in abuse of power," said Habiburokhman, Chairperson of House Commission III, as quoted on Thursday (12/11/2026).
In the initial draft, a number of crimes also covered under the Asset Confiscation Draft Law included those in the fields of taxation, banking, insurance, forestry, mining and the environment. This scope was considered too broad and potentially impactful on civil society.
The simplification of the scope of the Asset Confiscation Draft Law is deemed necessary to prevent potential abuse of authority by law enforcement officers and to maintain proportionality in asset confiscation.
The limitation of the types of crimes covered under the Asset Confiscation Draft Law was also carried out with consideration of the United Nations Convention Against Corruption (UNCAC), which regulates the mechanism for asset confiscation in the context of corruption crimes.
The determination of the types of crimes covered under the Asset Confiscation Draft Law also took into account public aspirations, particularly from those who had previously been victims of fraudulent investment schemes.
Through the mechanism provided for under the Asset Confiscation Draft Law, assets confiscated from perpetrators of fraud crimes may subsequently be returned to victims of fraudulent investment schemes, rather than being remitted to the state treasury. (rig)