New bill allows the state to confiscate crime-linked assets without waiting for court verdicts
Indonesia is moving closer to a major legal shift that could fundamentally change how the state recovers assets linked to serious economic crimes, particularly corruption cases involving fugitives or deceased suspects.
Dual Forfeiture Models Introduced
Indonesia’s House of Representatives Expert Body, or Badan Keahlian DPR RI, presented progress on the Draft Bill on Asset Seizure Related to Criminal Acts to Commission III of the DPR RI on Thursday, January 15, 2026. The bill introduces two legal mechanisms for confiscating assets obtained through criminal activity: conviction-based forfeiture and non-conviction-based forfeiture. This marks a significant expansion of Indonesia’s existing legal framework, which currently relies almost entirely on criminal convictions.
Seizing Assets Without Criminal Verdicts
One of the most critical provisions in the draft bill is the adoption of non-conviction-based forfeiture. This mechanism allows the state to seize assets without waiting for a criminal court ruling against the alleged perpetrator. It applies in situations where suspects cannot be tried, including cases when they have died, fled, suffer permanent illness, or their whereabouts are unknown. This approach focuses on the assets themselves rather than on the individual offender.
Closing Longstanding Legal Gaps
Head of the DPR Expert Body, Bayu Dwi Anggono, explained that the draft law consists of eight chapters and 62 articles. He emphasized that the bill is designed to close legal loopholes that have long allowed perpetrators of economic crimes to retain illicit assets simply by avoiding trial. According to Bayu, the absence of clear regulation on non-conviction-based forfeiture has repeatedly obstructed asset recovery efforts in Indonesia.
Legal Thresholds and Strict Conditions
The draft bill outlines specific criteria under which non-conviction-based forfeiture may be applied. These include cases where criminal proceedings cannot proceed, as well as situations where a defendant has already been convicted with a final ruling but additional crime-related assets are discovered later. Importantly, the assets targeted must be valued at a minimum of Rp1 billion, equivalent to approx. SGD 80,000, ensuring the mechanism targets significant financial crimes rather than minor offenses.
In Rem Approach Aligns With Global Standards
Bayu noted that non-conviction-based forfeiture follows the international legal concept of in rem confiscation, meaning legal action is taken against the asset rather than the person. This approach is widely recognized in global anti-corruption and anti-money laundering frameworks and has been recommended by international bodies to prevent criminals from benefiting from illicit wealth.
Strengthening Indonesia’s Anti-Corruption Arsenal
By formally codifying both forfeiture models into a single comprehensive law, the DPR aims to improve legal certainty and enforcement efficiency. While conviction-based forfeiture already exists across various Indonesian statutes, it remains fragmented. The proposed bill consolidates these rules while introducing a long-missing mechanism to handle exceptional cases where prosecution is impossible.
The proposed Asset Seizure Bill represents a decisive step in strengthening Indonesia’s fight against corruption and economic crime. By enabling the state to recover illicit assets even when perpetrators evade justice, the law could significantly deter financial crimes and enhance public trust. Its progress will also be closely watched by Singapore and regional partners, given its implications for cross-border asset recovery and financial governance in Southeast Asia.
Sources: Tirto (2026) , Kompas (2026)
Keywords: Non Conviction Forfeiture, Asset Confiscation, Corruption Law, DPR Commission III, Indonesian Parliament
