Indonesia, as a rule of law state, requires governance to be conducted based on law (Article 1(3) of the 1945 Constitution) with the aim of public welfare (Article 33). In practice, economic crimes have encouraged the use of settlement fines as an alternative dispute resolution mechanism through the payment of fines. This mechanism is regulated under Article 35(1)(k) of Law No. 11 of 2021 and Articles 65 and 66 of Law No. 20 of 2025. However, its implementation remains constrained by the absence of clear implementing regulations.This study aims to examine the legal basis, its implications for legal certainty, and the application of settlement fines from a cost and benefit perspective, including its supervision. The research employs a normative legal method with statutory, conceptual, and comparative approaches, using secondary data supported by literature study and interviews, analyzed qualitatively. The findings indicate that the authority of the Attorney General in applying settlement fines is grounded in the Prosecutor’s Law and the Criminal Procedure Code, reflecting the principles of dominus litis and prosecutorial discretion (opportunitas). It is recommended that further regulations be established through a Presidential Regulation and internal guidelines to ensure legal certainty and prevent potential abuse of power.
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