Abstract:
The imposition of additional penalties in the form of restitution in corruption cases in Indonesia continues to reveal significant conceptual and practical weaknesses. A primary issue is the tendency of convicted individuals to opt for subsidiary imprisonment rather than paying restitution, which undermines the effective recovery of state financial losses. Furthermore, inconsistencies in interpretation between prosecutors and judges, weak asset tracing mechanisms, and ambiguities in existing regulations exacerbate the problem. This study examines the legal significance of restitution in corruption cases, identifies the shortcomings in its current implementation, and proposes a ius constituendum model to reconstruct the restitution system to enhance substantive justice and improve state financial recovery. The research employs a normative juridical method, combining statutory analysis, doctrinal review, and case studies, complemented by a comparative study of legal frameworks in the United States and the United Kingdom to highlight gaps in Indonesia’s asset recovery mechanisms. The findings indicate that first, current regulations fail to provide adequate deterrence; second, there is insufficient alignment between state interests and the rights of convicts; and third, existing mechanisms for asset tracing and execution are ineffective. Accordingly, this study recommends legal reconstruction through strengthening the prosecutorial role in execution, ensuring consistency between prosecution demands and judicial decisions, and incorporating the time value of money in determining restitution amounts.
References
Alfada, Anisah, ‘The Destructive Effect of Corruption on Economic Growth in Indonesia: A Threshold Model’, Heliyon, 5 (2019), e02649 https://doi.org/10.1016/j.heliyon.2019.e02649
Ali, Mahrus, Syarif Nurhidayat, Muhammad Shidqon Prabowo and Rusli Muhammad, ‘Corruption, Asset Origin and the Criminal Case of Money Laundering in Indonesian Law’, Journal of Money Laundering Control, 25 (2021), 455–66 https://doi.org/https://doi.org/10.1108/JMLC-03-2021-0022
An, Young Hoon, ‘Navigating Liabilities of Foreignness in Weak and Challenging Institutional Environments: Strategies of Established Multinational Enterprise Subsidiaries in Cameroon’, International Business Review, 34 (2025), 102505 https://doi.org/https://doi.org/10.1016/j.ibusrev.2025.102505
Argandoña, Antonio, ‘Private and Public Corruption’, in The Changing Face of Corruption in the Asia Pacific (Elsevier, 2017), pp. 71–79 https://doi.org/10.1016/B978-0-08-101109-6.00005-8
Brunnschweiler, Christa, Päivi Lujala, Primi Putri, Sabrina Scherzer and Indah Wardhani, ‘When Petroleum Revenue Transparency Policy Meets Citizen Engagement Reality: Survey Evidence from Indonesia’, Ecological Economics, 230 (2025), 108529 https://doi.org/10.1016/j.ecolecon.2025.108529
Bubandt, Nils, ‘Sorcery, Corruption, and the Dangers of Democracy in Indonesia’, Journal of the Royal Anthropological Institute, 12 (2006), 413–31 https://doi.org/10.1111/j.1467-9655.2006.00298.x
Butt, Simon, Corruption and Law in Indonesia (Routledge, 2017) https://doi.org/10.4324/9780203584729
Campbell, Jesse W, ‘Buying the Honor of Thieves? Performance Pay, Political Patronage, and Corruption’, International Journal of Law, Crime and Justice, 63 (2020), 100439 https://doi.org/10.1016/j.ijlcj.2020.100439
Canare, Tristan, ‘The Effect of Corruption on Foreign Direct Investment Inflows’, in The Changing Face of Corruption in the Asia Pacific (Elsevier, 2017), pp. 35–55 https://doi.org/10.1016/B978-0-08-101109-6.00003-4
Choo, Kim-Kwang Raymond, ‘Cryptocurrency and Virtual Currency: Corruption and Money Laundering/Terrorism Financing Risks?’, in Handbook of Digital Currency (Elsevier, 2024), pp. 259–90 https://doi.org/10.1016/B978-0-323-98973-2.00012-5
Chourou, Lamia, Ashrafee T Hossain and Anand Jha, ‘US Political Corruption and Quarterly Conference Calls’, Journal of Banking & Finance, 161 (2024), 107108 https://doi.org/https://doi.org/10.1016/j.jbankfin.2024.107108
Cisneros, Elías and Krisztina Kis-Katos, ‘Unintended Environmental Consequences of Anti-Corruption Strategies’, Journal of Environmental Economics and Management, 128 (2024), 103073 https://doi.org/https://doi.org/10.1016/j.jeem.2024.103073
Corruption (Elsevier, 1978) https://doi.org/10.1016/C2009-0-22067-8
Das, Khanindra Ch and Mantu Kumar Mahalik, ‘International Subsidiary Performance of Indian Multinationals in the Extractive Sector: The Role of Institutional Quality, Corruption and Investment Regime’, Resources Policy, 67 (2020), 101664 https://doi.org/https://doi.org/10.1016/j.resourpol.2020.101664
Das, Khanindra Ch, Mantu Kumar Mahalik and Perry Sadorsky, ‘Tax Provision by International Subsidiaries of Indian Extractive Industry Multinationals: Do Environmental Pollution and Corruption Matter?’, Resources Policy, 80 (2023), 103231 https://doi.org/https://doi.org/10.1016/j.resourpol.2022.103231
Demeré, Paul, Jeffrey Gramlich and Yoonsoo Nam, ‘Do U.S. Multinationals Use Income Shifting to Facilitate and Hide Corruption?’, Journal of Accounting and Public Policy, 46 (2024), 107213 https://doi.org/https://doi.org/10.1016/j.jaccpubpol.2024.107213
Famiola, Melia and Siti Adiprigandari Adiwoso, ‘Corporate Social Responsibility Diffusion by Multinational Subsidiaries in Indonesia: Organisational Dynamic and Institutional Effect’, Social Responsibility Journal, 12 (2016), 117–29 https://doi.org/https://doi.org/10.1108/SRJ-10-2013-0128
Feng, Qianbin, Xiao Hu, Xinyi Deng and Jun Lu, ‘Anti-Corruption Campaign and Capacity Utilization of State-Owned Enterprises: Evidence from China’s Central Committee Inspection’, Economic Analysis and Policy, 80 (2023), 319–46 https://doi.org/10.1016/j.eap.2023.08.010
Gáspár, Attila, Tommaso Giommoni, Massimo Morelli and Antonio Nicolò, ‘Corruption and Extremism’, Journal of Development Economics, 2025, 103526 https://doi.org/https://doi.org/10.1016/j.jdeveco.2025.103526
Guo, Haicheng, Sibo Liu and Chaoqun Zhan, ‘Corruption Culture of Multinationals: Evidence from China’, Journal of Economic Behavior & Organization, 234 (2025), 107012 https://doi.org/https://doi.org/10.1016/j.jebo.2025.107012
Hanoteau, Julien, Jason Miklian and Ralf Barkemeyer, ‘Business and Violent Conflict as a Multidimensional Relationship: The Case of Post-Reformasi Indonesia’, Business Horizons, 68 (2025), 425–38 https://doi.org/https://doi.org/10.1016/j.bushor.2025.02.014
Hanoteau, Julien, Gandhi Pawitan and Virginie Vial, ‘Does Social Capital Reduce Entrepreneurs’ Petty Corruption? Evidence across Indonesian Regions’, Papers in Regional Science, 100 (2021), 651–71 https://doi.org/https://doi.org/10.1111/pirs.12588
Hardi, Irsan, Jumadil Saputra, Rahmilia Hadiyani, Ar Razy Ridha Maulana and Ghalieb Mutig Idroes, ‘Decrypting the Relationship Between Corruption and Human Development: Evidence from Indonesia’, Ekonomikalia Journal of Economics, 1 (2023), 1–9 https://doi.org/10.60084/eje.v1i1.22
Hutahaean, Armunanto and Erlyn Indarti, ‘Implementation of Investigation by the Indonesian National Police in Eradicating Corruption Crime’, Journal of Money Laundering Control, 23 (2020), 136–54 https://doi.org/https://doi.org/10.1108/JMLC-12-2018-0075
Isra, Saldi, Yuliandri, Feri Amsari and Hilaire Tegnan, ‘Obstruction of Justice in the Effort to Eradicate Corruption in Indonesia’, International Journal of Law, Crime and Justice, 51 (2017), 72–83 https://doi.org/10.1016/j.ijlcj.2017.07.001
Joseph, Corina, Juniati Gunawan, Yussri Sawani, Mariam Rahmat, Josephine Avelind Noyem and Faizah Darus, ‘A Comparative Study of Anti-Corruption Practice Disclosure among Malaysian and Indonesian Corporate Social Responsibility (CSR) Best Practice Companies’, Journal of Cleaner Production, 112 (2016), 2896–2906 https://doi.org/https://doi.org/10.1016/j.jclepro.2015.10.091
Khatri, Naresh, Shaista E Khilji and Bahaudin Mujtaba, ‘Anatomy of Corruption in South Asia’, in Globalization, Change and Learning in South Asia (Elsevier, 2013), pp. 63–81 https://doi.org/10.1016/B978-0-85709-464-3.50004-0
Lee, Hyoungjin and Chris Changwha Chung, ‘Who Is to Blame? The Effects of Conflict Actors on Foreign Subsidiary Exit’, Journal of Business Research, 201 (2025), 115684 https://doi.org/https://doi.org/10.1016/j.jbusres.2025.115684
Lee, Jeoung Yul, Byung Il Park, Pervez N Ghauri and Vikas Kumar, ‘Corruptive Practices, Digitalization, and International Business’, Journal of Business Research, 181 (2024), 114748 https://doi.org/https://doi.org/10.1016/j.jbusres.2024.114748
Lewis, Blane D and Adrianus Hendrawan, ‘The Impact of Majority Coalitions on Local Government Spending, Service Delivery, and Corruption in Indonesia’, European Journal of Political Economy, 58 (2019), 178–91 https://doi.org/https://doi.org/10.1016/j.ejpoleco.2018.11.002
Lukito, Anastasia Suhartati, ‘Building Anti-Corruption Compliance through National Integrity System in Indonesia’, Journal of Financial Crime, 23 (2016), 932–47 https://doi.org/https://doi.org/10.1108/JFC-09-2015-0054
Luo, Min, Xiaopeng Deng and Na Zhang, ‘Understanding the Critical Inducers of International Contractors’ Corruption’, KSCE Journal of Civil Engineering, 27 (2023), 3659–73 https://doi.org/https://doi.org/10.1007/s12205-023-2160-z
Maxey, William, Zainal Arifin, Hari Harjanto Setiawan, Sri Setiawati and Rudi Febriamansyah, ‘Discrepancy between Policy and Practice: A Case Study on Hegemony within an Indonesian Juvenile Correctional Center (LPKA)’, Children and Youth Services Review, 177 (2025), 108469 https://doi.org/10.1016/j.childyouth.2025.108469
Mohammad, Shoeb, Jie Yang and Irfan Butt, ‘Does Corruption Have a Sanding or Greasing Impact on Innovation? Reconciling the Contrasting Perspectives through a Systematic Literature Review’, Research Policy, 53 (2024), 105036 https://doi.org/https://doi.org/10.1016/j.respol.2024.105036
Paranata, Ade, ‘The Miracle of Anti-Corruption Efforts and Regional Fiscal Independence in Plugging Budget Leakage: Evidence from Western and Eastern Indonesia’, Heliyon, 8 (2022), e11153 https://doi.org/https://doi.org/10.1016/j.heliyon.2022.e11153
Park, Jongpil and Woojin Yoon, ‘A Foreign Subsidiary’s Largest Shareholder, Entry Mode, and Divestitures: The Moderating Role of Foreign Investment Inducement Policies’, European Research on Management and Business Economics, 28 (2022), 100197 https://doi.org/https://doi.org/10.1016/j.iedeen.2022.100197
Prabowo, Hendi Yogi, Kathie Cooper, Jaka Sriyana and Muhammad Syamsudin, ‘De-Normalizing Corruption in the Indonesian Public Sector through Behavioral Re-Engineering’, Journal of Financial Crime, 24 (2017), 552–73 https://doi.org/https://doi.org/10.1108/JFC-10-2015-0057
Prabowo, Hendi Yogi, Jaka Sriyana and Muhammad Syamsudin, ‘Forgetting Corruption: Unlearning the Knowledge of Corruption in the Indonesian Public Sector’, Journal of Financial Crime, 25 (2018), 28–56 https://doi.org/https://doi.org/10.1108/JFC-07-2016-0048
Proctor, Andrew, ‘Petty Corruption in Developing Countries’, in The Changing Face of Corruption in the Asia Pacific (Elsevier, 2017), pp. 327–33 https://doi.org/10.1016/B978-0-08-101109-6.00022-8
Quah, Jon ST, ‘Combating Police Corruption in Indonesia: Cleansing the Buaya (Crocodile)’, Asian Education and Development Studies, 9 (2020), 129–43 https://doi.org/https://doi.org/10.1108/AEDS-04-2018-0088
dela Rama, Marie, ‘Corruption, Corporate Governance, and Building Institutions in the Asia-Pacific * *The Author Wishes to Thank Andrew Proctor for His Comments on This Chapter.’, in The Changing Face of Corruption in the Asia Pacific (Elsevier, 2017), pp. 93–108 https://doi.org/10.1016/B978-0-08-101109-6.00007-1
dela Rama, Marie and Chris Rowley, ‘Future Directions for Research into Corruption and Anticorruption Practice’, in The Changing Face of Corruption in the Asia Pacific (Elsevier, 2017), pp. 369–77 https://doi.org/10.1016/B978-0-08-101109-6.00025-3
Raufu, Abiodun, Lucy Tsado and Emmanuel Ben-Edet, ‘Cybercrimes: Critical Issues in a Global Context, Anita Lavorgna, Macmillan Educational Limited’, International Journal of Law, Crime and Justice, 64 (2021), 100454 https://doi.org/https://doi.org/10.1016/j.ijlcj.2020.100454
Rehman, Abdul, Waqas Mehmood, Ahnaf Ali Alsmady and Arshian Sharif, ‘Corruption’s Impact on Non-Performing Loans of Banks in Emerging Markets: Empirical Insights’, Research in Globalization, 9 (2024), 100241 https://doi.org/https://doi.org/10.1016/j.resglo.2024.100241
Ribbers, Eva, ‘Sentencing Rape: A Comparative Analysis, G. Brown, Hart Publishing, Oxford’, International Journal of Law, Crime and Justice, 70 (2022), 100534 https://doi.org/10.1016/j.ijlcj.2022.100534
Sabani, Alvedi, Mohamed H Farah and Dian Retno Sari Dewi, ‘Indonesia in the Spotlight: Combating Corruption through ICT Enabled Governance’, Procedia Computer Science, 161 (2019), 324–32 https://doi.org/10.1016/j.procs.2019.11.130
Sarhan, Ahmed A, Mohamed H Elmagrhi and Emad M Elkhashen, ‘Corruption Prevention Practices and Tax Avoidance: The Moderating Effect of Corporate Board Characteristics’, Journal of International Accounting, Auditing and Taxation, 55 (2024), 100615 https://doi.org/https://doi.org/10.1016/j.intaccaudtax.2024.100615
Sihombing, Sabrina O, ‘Youth Perceptions toward Corruption and Integrity: Indonesian Context’, Kasetsart Journal of Social Sciences, 39 (2018), 299–304 https://doi.org/https://doi.org/10.1016/j.kjss.2018.03.004
Sovacool, Benjamin K, Bojana Novaković and Alexander A Dunlap, ‘Sex for Solar? Examining Patterns of Public and Private Sector Corruption within the Booming California Solar Energy Market’, Energy Strategy Reviews, 59 (2025), 101727 https://doi.org/https://doi.org/10.1016/j.esr.2025.101727
Suh, Jiwon, ‘Human Rights and Corruption in Settling the Accounts of the Past’, Bijdragen Tot de Taal-, Land- En Volkenkunde / Journal of the Humanities and Social Sciences of Southeast Asia, 179 (2023), 61–89 https://doi.org/https://doi.org/10.1163/22134379-bja10049
Syahuri, Taufiqurrohman, Gazalba Saleh and Mayang Abrilianti, ‘The Role of the Corruption Eradication Commission Supervisory Board within the Indonesian Constitutional Structure’, Cogent Social Sciences, 8 (2022) https://doi.org/10.1080/23311886.2022.2035913
Tahir, Muhammad, Haslindar Ibrahim, Abdul Hadi Zulkafli and Muhammad Mushtaq, ‘Corruption, National Culture, Law and Dividend Repatriation Policy’, Journal of Multinational Financial Management, 57–58 (2020), 100658 https://doi.org/https://doi.org/10.1016/j.mulfin.2020.100658
Tang, Thomas Li-Ping, Zhen Li, Mehmet Ferhat Özbek, Vivien Kim Geok Lim, Thompson Sian Hin Teo, Mahfooz A Ansari, and others, ‘Behavioral Economics and Monetary Wisdom: A Cross-Level Analysis of Monetary Aspiration, Pay (Dis)Satisfaction, Risk Perception, and Corruption in 32 Nations’, in Monetary Wisdom (Elsevier, 2024), pp. 215–37 https://doi.org/10.1016/B978-0-443-15453-9.00004-8
Tang, Thomas Li-Ping, Toto Sutarso, Mahfooz A Ansari, Vivien Kim Geok Lim, Thompson Sian Hin Teo, Fernando Arias-Galicia, and others, ‘Behavioral Economics and Monetary Wisdom: The Enron Effect—Love of Money, Corporate Ethical Values, Corruption Perceptions Index (CPI), and Dishonesty across 31 Geopolitical Entities’, in Monetary Wisdom (Elsevier, 2024), pp. 193–213 https://doi.org/10.1016/B978-0-443-15453-9.00019-X
Tomsa, Dirk, ‘Local Politics and Corruption in Indonesia’s Outer Islands’, Bijdragen Tot de Taal-, Land- En Volkenkunde / Journal of the Humanities and Social Sciences of Southeast Asia, 171 (2015), 196–219 https://doi.org/https://doi.org/10.1163/22134379-17101005
Triatmanto, Boge and Suryaning Bawono, ‘The Interplay of Corruption, Human Capital, and Unemployment in Indonesia_ Implications for Economic Development’, Journal of Economic Criminology, 2 (2023), 100031 https://doi.org/10.1016/j.jeconc.2023.100031
Ufen, Andreas, ‘Political Finance and Corruption in Southeast Asia’, in The Changing Face of Corruption in the Asia Pacific (Elsevier, 2017), pp. 23–33 https://doi.org/10.1016/B978-0-08-101109-6.00002-2
Vial, Virginie and Julien Hanoteau, ‘Corruption, Manufacturing Plant Growth, and the Asian Paradox: Indonesian Evidence’, World Development, 38 (2010), 693–705 https://doi.org/https://doi.org/10.1016/j.worlddev.2009.11.022
Weng, Lingfei, Lan Xue, Jeffrey Sayer, Rebecca Anne Riggs, James Douglas Langston and Agni Klintuni Boedhihartono, ‘Challenges Faced by Chinese Firms Implementing the “Belt and Road Initiative”: Evidence from Three Railway Projects’, Research in Globalization, 3 (2021), 100074 https://doi.org/https://doi.org/10.1016/j.resglo.2021.100074
Windsor, Duane, ‘The Role of Multinationals in Corruption in the Asia-Pacific Region’, in The Changing Face of Corruption in the Asia Pacific (Elsevier, 2017), pp. 57–70 https://doi.org/10.1016/B978-0-08-101109-6.00004-6
Wu, Tao, Andrew Delios, Zhaowei Chen and Xin Wang, ‘Rethinking Corruption in International Business: An Empirical Review’, Journal of World Business, 58 (2023), 104 https://doi.org/10.1016/j.jwb.2022.101410
Wu, Yan, Yong Yang and Tomasz Mickiewicz, ‘Corruption, the Digital Sectors, and the Profitability of Foreign Subsidiaries in Emerging Markets’, Journal of Business Research, 161 (2023), 113848 https://doi.org/https://doi.org/10.1016/j.jbusres.2023.113848
Yogi Prabowo, Hendi, ‘To Be Corrupt or Not to Be Corrupt’, Journal of Money Laundering Control, 17 (2014), 306–26 https://doi.org/10.1108/JMLC-11-2013-0045
You, Chengjing, ‘An Examination of the Theory of Crimes in Common Partly Establishment Standard of Joint Crime under the Factual Crime System’, International Journal of Law, Crime and Justice, 45 (2016), 152–70 https://doi.org/10.1016/j.ijlcj.2015.12.004
Zhang, John Fan and Jacky Yuk-chow So, ‘The Effect of Corruption Exposure on the ESG Performance of Multinational Firms11We Greatly Appreciate the Valuable Feedback from the Editor Hui Guo. John Fan Zhang Is an Assistant Professor and Jacky Yuk-Chow So Is the Chair Professor, Both Authors Are A’, Pacific-Basin Finance Journal, 86 (2024), 102433 https://doi.org/https://doi.org/10.1016/j.pacfin.2024.102433
Zhang, Mengyue, Siyan Tang and Jinyang Ren, ‘The Impact of Anti-Corruption on Migration and Family Welfare’, China Economic Review, 93 (2025), 102492 https://doi.org/https://doi.org/10.1016/j.chieco.2025.102492