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All Journal Lex Journal : Kajian Hukum dan Keadilan
Juniarto Prakoso
University of Gadjah Mada, Indonesia
Law, Crime, Criminology & Criminal Justice

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Sovereign Debt and State Budget Deficit: A Financial Law Perspective Juniarto Prakoso
Lex Journal: Kajian Hukum & Keadilan Vol 10 No 3 (2026): September
Publisher : Faculty of Law, University of Dr. Soetomo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.25139/lex.v10i3.12354

Abstract

Since the reform era, foreign debt has contributed to Indonesia's economic growth. However, new borrowing exceeding the country's repayment capacity has resulted in the national debt reaching Rp9,920.42 trillion by 2026, accompanied by a debt wall of Rp833.96 trillion. This normative legal research, using legislative and conceptual approaches, analyzes the legal regulations for managing state debt and the state budget deficit, and their implications for the principles of prudence and intergenerational equity. The results show that the legal framework for state debt, from the 1945 Constitution of the Republic of Indonesia, the State Finance Law (limiting deficit at 3% and debt at 60% of GDP), to the State Treasury Law and the Government Securities Law, contains normative gaps due to the lack of effective enforcement mechanisms, resulting in aspirational fiscal limits. This condition creates a self-reinforcing cycle of debt, narrowing fiscal space, and placing a disproportionate burden on future generations, contrary to the ideals of intergenerational equity. This study recommends amendments to the State Finance Law, including binding legal sanctions and the establishment of an independent fiscal oversight body.
Legal Certainty of Territorial Boundaries as a Constitutional Right of Autonomous Regions: An Analysis of Constitutional Court Decision No. 62/PUU-X/2012 Juniarto Prakoso
Lex Journal: Kajian Hukum & Keadilan Vol 10 No 3 (2026): September
Publisher : Faculty of Law, University of Dr. Soetomo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.25139/lex.v10i3.12355

Abstract

Post-1998 reform regional expansion often leads to boundary disputes between regions, one of which is the dispute over ownership of Berhala Island between Lingga Regency (Riau Islands Province) and Jambi Province, which has lasted for three decades. This study aims to analyze the constitutionality of Constitutional Court Decision No. 62/PUU-X/2012 concerning the legal certainty of territorial boundaries as a constitutional right of autonomous regions. The research method uses normative juridical methods. The results of the study indicate that Constitutional Court Decision No. 62/PUU-X/2012, which provides legal certainty regarding territorial boundaries, stating that Berhala Island is included in the Riau Islands region, is final and binding. This is a constitutional prerequisite for the running of all wheels of the Indonesian government because without definite territorial boundaries, regional autonomy cannot be managed. However, more than a decade later, the existence of a Joint Agreement (KSB) between Jambi Province and the Riau Islands on April 13, 2026, in the management of Berhala Island proves that legal settlement through litigation often needs to be accompanied by non-litigation settlement in the field. This is achieved through legal certainty (Rechtssicherheit) with utility (Zweckmassigkeit) and justice (Gerechtigkeit), as conceptualized by Gustav Radbruch. This study recommends harmonizing regional formation regulations with the Minister of Home Affairs Regulation and strengthening public participation in the process of determining regional boundaries.
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