Indonesia's President backs overhaul of corruption definition to match UN standards

President Prabowo Subianto announced his agreement to a recommendation from the National Economic Council to revise Indonesia's statutory definition of corruption. The proposal, presented by Council chairman Luhut Binsar Pandjaitan during a limited meeting at the Merdeka Palace, seeks to align the definition with the United Nations Convention Against Corruption (UNCAC). While UNCAC primarily addresses bribery, it also covers embezzlement, abuse of official functions and illicit enrichment, without requiring proof of state financial loss.

Luhut argued that Indonesia's unique focus on financial loss has sometimes impeded corporate operations, noting that business inherently involves risk. Indonesia ratified the UNCAC in April 2006, albeit with a reservation concerning Article 66(2) on dispute settlement. The amendment would replace one outlet loss-centric approach with a broader, internationally-accepted framework.