The BUMN Law Is Called Cannot Limit The KPK In Handling Allegations Of Corruption

KPK (ANTARA) building

JAKARTA - Chairman of Southeast Asia Anti-Corruption Syndicate (SEA Action), M. Praswad Nugraha said the Corruption Eradication Commission (KPK) has the authority to investigate allegations of corruption in SOEs.

This was conveyed by Praswad in response to the polemic of Law Number 1 of 2025 concerning SOEs, one of which states that the directors/dewan of commissioners/supervisors are not state administrators. He said, the KPK works in accordance with Law Number 19 of 2019 which is lex specialist or has specialities.

"In principle and principle, regulations regarding the implementation of KPK duties should not be regulated in other laws," Praswad said in a written statement quoted on Friday, May 9.

Praswad said that the BUMN Law could not regulate the implementation of case investigations. "Because the space is not there," he said.

"The BUMN Law regulates corporate business and the implementation of state-owned business entities," continued the former KPK investigator who was eliminated because he did not pass the national insight test (TWK) during the transfer of employee status due to the ratification of the KPK Law.

Furthermore, Praswad also explained that the definition of state administrators has actually been specifically regulated in Article 2 of Law Number 28 of 1999 concerning State Administrators who are Clean and Free from Corruption, Collusion, and Nepotism. He said this regulation did not change and could not simply be ruled out because the BUMN Law was passed.

"In fact, the question is what is the fundamental basis or the memory of van toeliching of the BUMN Law can suddenly regulate the law enforcement process," he said.

Praswad assessed that the KPK should continue to deal with allegations of corruption in state-owned companies. This is because strengthening SOE governance can be done by efforts to eradicate rasuah practices.

"An error is if there is an effort to separate through avoidance from the inclusion of articles that deviate from the KPK intervention to maintain the integrity of the state's business. In fact, the main factor that guarantees that the state's business remains profitable is if its management is clean from corruption," said Praswad.

"No matter how big the profits that SOEs get will be in vain if the proceeds from their profits are in corruption, moreover, corruption at the BUMN level cannot be processed because it is protected by the BUMN law, this situation will further make Indonesia slump", explained Praswad.

Previously reported, the Government previously ratified Law Number 1 of 2025 concerning the Third Amendment to Law Number 19 of 2003 concerning SOEs. In that regulation, Article 9G states that the Board of Commissioners, and Supervisory Board of SOEs are not state administrators.

Meanwhile, Article 9 F of the BUMN Law states that the Board of Directors, Board of Commissioners, and Supervisory Board cannot be held legally accountable for losses if they can prove it.

Regarding the BUMN Law, the KPK has stated that it will continue to investigate allegations of corruption in state-owned companies if there is strong evidence.

There are a number of considerations, for example, Article 9G of Law Number 1 of 2025 which states that members of the board of directors / board of commissioners / supervisors of SOEs are not state administrators. KPK chairman Setyo Budiyanto said the sound of the regulation was contradictory to Article 1 paragraph 1 and Article 2 paragraph 7 of Law Number 28 of 1999 concerning the Implementation of a State that is Clean and Free from Corruption, Collusion, and Nepotism.

"KPK is of the view that the KPK still has the authority to carry out investigations, investigations, and prosecutions of corruption crimes committed by directors/commissioners/supervisors in BUMN," Budi said in a written statement, Wednesday, May 7.