Optimizing The Recovery of State Loss Assets Through an AdministrativeCompensation Mechanism
DOI:
10.59888/ajosh.v4i9.728Published:
2026-06-15Downloads
Abstract
The settlement of losses in criminal justice proceedings may, in theory, serve as an ultimum remedium capable of delivering a sense of justice, legal certainty, and benefits to society and the state. Nevertheless, the regulatory framework in the field of state finance also provides law-enforcement instruments within the domain of public financial law, particularly an administrative compensation mechanism that can optimize the recovery of state losses alongside criminal sanctions. Based on data from the Audit Board of Indonesia (BPK) Semester II 2025 Summary of Audit Results, state losses were recorded at IDR 71.57 trillion, while the Corruption Eradication Commission (KPK) recovered only IDR 2.54 trillion over the 2020-2024 period, and the Attorney General's Office recovered IDR 24.72 billion in 2025, indicating a significant recovery gap. The research method employed was normative legal research, based on a literature review of theories and regulations in the fields of state financial law and administrative law. This study finds that the administrative compensation mechanism offers five advantages over criminal proceedings: final and binding decisions (reducing lengthy litigation), liability extended to heirs (maximizing recovery), no subsidiary custodial substitution (unlike criminal judgments), responsible parties remain productive (able to earn income for repayment), and criminal verdicts do not eliminate administrative claim authority. When properly implemented, this administrative compensation mechanism can enhance the recovery of state losses.
Keywords:
asset recovery state finance state losses compensation claimsReferences
Crema, M., & Solum, L. B. (2022). The original meaning of “due process of law” in the Fifth Amendment. Virginia Law Review, 108(2), 447–535.
Dwinugroho, Y. B. (2024). Transformation strategy: Indonesian National Police in coordinating crime in the digital era. International Journal of Integrated Science and Technology, 2(5), 374–383.
Esoimeme, E. E. (2020). Institutionalising the war against corruption: New approaches to assets tracing and recovery. Journal of Financial Crime, 27(1), 217–230.
Farikhah, M. (2021). The judicial pardon arrangement as a method of court decision in the reform of Indonesian criminal law procedure. PADJADJARAN Jurnal Ilmu Hukum (Journal of Law), 8(1), 1–25.
Fukuyama, Francis. (2017). State building: Governance and world order in the 21st century. Profile Books.
Hutahaean, A., & Indarti, E. (2020). Implementation of investigation by the Indonesian National Police in eradicating corruption crime. Journal of Money Laundering Control, 23(1), 136–154.
Jacobsson, B., Pierre, J., & Sundström, G. (2015). Governing the embedded state: The organizational dimension of governance. Oxford University Press.
Kettl, D. F. (2015). The transformation of governance: Public administration for the twenty-first century. Johns Hopkins University Press.
Kurniawati, W. O. I., & Saprudin, S. (2025). Ethics in Indonesian government bureaucracy: Theoretical foundations, historical evolution, and contemporary case studies. Journal of Asian Multicultural Research for Social Sciences Study, 6(1), 21–29.
Law No. 1 of 2004 concerning state treasury. (2004).
Mantri, B. H., Nurwinardi, N., Ardi, M. K., & Triasari, D. (2025). Social work punishment in the 2023 Indonesian Criminal Code: Lessons from Finland and Netherlands. Indonesian Journal of Crime and Criminal Justice, 1(2), 131–155.
Prabowo, H. Y., & Cooper, K. (2016). Re-understanding corruption in the Indonesian public sector through three behavioral lenses. Journal of Financial Crime, 23(4), 1028–1062.
Prodjodikoro, W. (1981). Hukum perdata tentang persetujuan-persetujuan tertentu. Sumur Bandung.
Saidi, M. D. (2011). Hukum keuangan negara (Rev. ed.). Rajawali Pers.
Saktiawan, P., Dirgantara, F., Darmawan, D., Isnaini, S., & Waluyo, A. (2025). Evaluating the effectiveness of investigation and prosecution to improve the integrity of law enforcement in Indonesia. Judge: Jurnal Hukum, 6(1), 35–45.
Simatupang, D. P. N. (2011). Paradoks rasionalitas perluasan ruang lingkup keuangan negara dan implikasinya terhadap kinerja keuangan pemerintah. FHUI Press.
Sufriadi, Y. (2024). The progress of Indonesian law enforcement reform after 25 years of the reform movement. Asian Affairs: An American Review, 51(1), 28–54.
Trinchera, T. (2020). Confiscation and asset recovery: Better tools to fight bribery and corruption crime. Criminal Law Forum, 31(1), 49–79.
Utrecht, E. (1990). Pengantar hukum administrasi negara (M. S. Djindang, Rev. ed.). Ichtiar Baru.
Widyawati, A., Adhari, A., Masyhar, A., Syahputra, B. D., & Purnomo, D. (2025). Dynamics of the penitentiary system, transparent and accountable handling of criminal cases in criminal execution law in Southeast Asia: Convergence and divergence of international perspectives. Indonesia Law Review, 15(1), 2.
Wijaya, A., & Santiago, F. (2024). Enforcement of state law by the Republic of Indonesia Attorney General’s Office in the perspective of Law Number 16 of 2004. Devotion: Journal of Research and Community Service, 5(6), 664–671.
License
Copyright (c) 2026 Supriyonohadi Supriyonohadi, Lego Karjoko, Waluyo Waluyo
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
