The Draft Bill on Asset Forfeiture Related to Criminal Offenses marks a significant breakthrough in Indonesia’s legal system. To date, the confiscation of crime-related assets could only be carried out through criminal convictions against the perpetrators. This Bill introduces a new regime that enables the state to seize assets through a civil forfeiture mechanism, regardless of the offender’s criminal status.

Scope of Assets

The Bill defines assets as any form of property with economic value, whether movable or immovable, tangible or intangible. Assets subject to forfeiture include proceeds of crime, assets used to commit crimes, substitute assets, and wealth disproportionate to lawful income. To ensure proportionality, only assets valued at a minimum of Rp100,000,000 (one hundred million Rupiah) may be forfeited, particularly those related to criminal offenses punishable by four years of imprisonment or more.

Asset Forfeiture Process

The asset forfeiture process is carried out through several stages: tracing, freezing, seizure, and filing an asset forfeiture petition before the court. Uniquely, this process takes place within the civil law domain through the State Attorney, rather than solely through criminal prosecution. This mechanism ensures the effectiveness of asset recovery without being hindered by the success or failure of criminal proceedings.

The Bill also provides safeguards for bona fide third parties. They may file objections, prove lawful ownership, and claim compensation if they suffer losses as a result of freezing or seizure.

Asset Management

In terms of management, forfeited assets will fall under the authority of the Attorney General, guided by the principles of professionalism, transparency, efficiency, and accountability. Such assets may be utilized for state interests through auctions, direct use, or cooperative arrangements, with the proceeds directed to the state treasury as non-tax revenue.

Furthermore, the Bill accommodates international cooperation. Indonesia may collaborate with foreign jurisdictions to trace, seize, and share the proceeds of assets confiscated across borders.

Through this regulation, Indonesia not only strengthens its instruments for combating crime but also reaffirms its commitment to building economic integrity, enhancing investor confidence, and safeguarding sustainable national development.