The Urgency of Asset Confiscation Results of Corruption and Criminal Acts Money Laundering: Solutions to Eradicate Corruption and Reform of National Laws

Abstract

Corruption and money laundering erode economic welfare and public trust, while asset recovery in Indonesia remains constrained by a fragmented, conviction-centric legal framework. This study analyzes the positive law governing confiscation of proceeds of corruption and money laundering, identifies normative and practical gaps, and assesses the urgency of adopting a dedicated Asset Forfeiture Law—particularly the introduction of non-conviction-based (NCB) asset forfeiture. Using normative (doctrinal) legal research with conceptual and comparative approaches, supported by illustrative cases, the paper finds three core problems: (1) reliance on criminal convictions impedes confiscation when defendants abscond, die, or proceedings stall; (2) regulatory disharmony and weak inter-agency coordination undermine tracing, freezing, and asset management; and (3) insufficient rules on standards of proof and governance of confiscated assets. Comparative evidence shows that NCB regimes with due-process safeguards, civil standards of proof, and specialized fora improve recovery outcomes and align with UNCAC and FATF recommendations. The study recommends enacting an Asset Forfeiture Law with robust human-rights guardrails, establishing an integrated cross-agency asset recovery unit, strengthening mutual legal assistance and international cooperation, and digitizing asset management to ensure accountability. Implementing NCB in Indonesia is both urgent and feasible to accelerate restitution of state losses, enhance deterrence, and reinforce legal-system integrity.