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All Journal South East Asian Journal of Advanced Law and Governance
M. Rizqi
Judicial Case Analyst, Administrative Court (Pengadilan Tata Usaha Negara) Pekanbaru, Indonesia.
Law, Crime, Criminology & Criminal Justice

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Redesigning Regulation to Provide Fairer Compensation for Unlawful Acts at the Administrative Court M. Rizqi
South East Asian Journal of Advanced Law and Governance (SEAJ-ALGov) Vol 3 No 2 (2026): Ensuring Democratic Oversight through Judicial Means: An Analysis of the Administ
Publisher : Fakultas Hukum Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22146/seajalgov.v3i2.32868

Abstract

This article examines the regulatory problems surrounding compensation in disputes over unlawful acts committed by the government (onrechtmatige overheidsdaad) before Indonesia's Administrative Court (PERATUN) and proposes a redesign of the applicable regulatory framework. Using a normative-descriptive analytical method combining a statutory, conceptual, and case approach, this study analyzes three PERATUN compensation decisions. The findings identify three fundamental problems: (1) a hierarchical conflict between Government Regulation No. 43 of 1991 and Supreme Court Circular Letter No. 2 of 2019, the latter unilaterally excluding the former despite the expanded meaning of administrative decisions under Article 87 of the Government Administration Law; (2) the absence of clear criteria for “actual loss,” illustrated by the Tuasai Farmers Group case (Decision No. 23/G/TF/2020/PTUN.PBR), in which the court granted IDR 774,960,000 in compensation without articulating a systematic legal basis; and (3) outdated compensation value limits under Government Regulation No. 43/1991, illustrated by the Hj. Sapia case (Decision No. 28/G/TF/2022/PTUN.JKT), in which the court applied a gold-price conversion method with an imprecise formula. This article recommends a comprehensive redesign through (1) reformulating the regulatory hierarchy by relocating substantive compensation provisions into the PERATUN Law, (2) formulating clear criteria and calculation mechanisms informed by comparative practice in England and Wales, and (3) removing or revising the outdated value limits through adaptive value-adjustment mechanisms.
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