The State’s Stance on The Payment of Restitution by Corruption Convicts Using Bankruptcy Legal Instrumens to Recover State Losses

Adia Pratistia (Master of Laws, Faculty of Law, Padjajaran University, Sumedang, West Java, Indonesia)

Perspektif : Kajian Masalah Hukum dan Pembangunan
Vol. 31 No. 3 (2026): Edisi September

Combating corruption in Indonesia faces significant challenges, particularly regarding the effectiveness of recovering state financial losses through the imposition of “restitution money” as an additional criminal penalty. This study aims to analyze the legal status of unpaid restitution money owed by a convicted corruptor specifically whether it constitutes a debt subject to bankruptcy proceedings and to examine the legitimacy and legal standing of the State Attorney in this context. The findings indicate that an obligation to pay restitution money once the court ruling has become final and binding (inkracht) is essentially a financial obligation with economic value that can be categorized as a debt. If a convicted individual has two or more creditors (including the state) and fails to pay a due debt, the criteria for bankruptcy under Article 2, paragraph (1) of Law No. 37/2004 may be met. Applying bankruptcy legal instruments (mutatis mutandis) could serve as an effective legal breakthrough for the state to recover financial losses caused by bankrupt convicted corruptors. To optimize the role of the Prosecutor’s Office as a bankruptcy petitioner acting in the public interest, it is required to enhance the capacity of prosecutorial personnel regarding bankruptcy law and to conduct broader public outreach.