<![CDATA[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in which the court granted IDR 774,960,000 in compensation without articulating a systematic legal basis; and (3) outdated compensation value limits under Government Regulation No. 43/1991, illustrated by the Hj.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and calculation mechanisms informed by comparative practice in England and Wales, and (3) removing or revising the outdated value limits through adaptive value-adjustment mechanisms.]]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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