REGULATIONS ON LHKPN
The obligation of State Officials to report their wealth is stipulated by the following regulations:
1. Law No. 28/1999 on State Officials that are Free from Corruption, Collusion, and Nepotism;
2. Law No. 30/2002 on Corruption Crime Eradication Commission; and
3. Decision of the Corruption Eradication Commission No. KEP. 07/KPK/02/2005 on Procedure of the Registration, Inspection, and Publication of Report of State Officials Assets.
BRIEF HISTORY OF LHKPN
Prior to the establishment of the Corruption Eradication Commission (KPK), the LHKPN obligatory reporting is handled by the State Officials Wealth Audit Commission (KPKPN). However, following the issuance of Law No. 30/2002, KPKPN was disbanded and merged into KPK prevention unit.
OBLIGATION OF STATE OFFICIALS IN RELATION TO LHKPN
Based on the above provision, State Officials are obliged:
1. To be willing for their wealth to be examined before, during, and after their term of office;
2. To report their wealth during their first term, as well as after each transfer, promotion, or retirement.
3. To publish their wealth.
DEFINITION OF STATE OFFICIAL
The State Officials as stipulated in Article 2 Law No. 28/1999 are:
1. State Officials of the Highest State Institutions;
2. State Officials of the High State Institutions;
3. Government Ministers;
6. Other state officials in accordance with existing laws and regulations; and
7. Other officials with strategic functions in relations to state administration in accordance with existing laws and regulations, such as:
• Directors, Commissioners, and other relevant structural officials in State-Owned Enterprises (SOE) and Regional Government-Owned Enterprises;
• Heads of the Central Bank;
• Heads of Public Universities;
• Echelon I Officials and other officials with equivalent ranks in civil, military, and police departments of the Republic of Indonesia;
• Court Clerks; and
• Project Leaders and Treasurers
OTHER POSITIONS OBLIGED TO SUBMIT LHKPN
To maintain the spirit of corruption eradication, the President has issued Presidential Instruction No. 5/2004 on the Acceleration of Corruption Eradication. Based on the instruction, the Minister of Administrative and Bureaucratic Reforms has issued Circular Letter No. SE/03/M.PAN/01/2005 on Report of State Officials Wealth (LHKPN) (link), which also obliges personnel in the following positions to submit LHKPN:
1. Echelon II Officials and other officials with equivalent ranks in governmental institutions and/or state institutions;
2. Heads of Offices in the Ministry of Finance;
3. Customs and Excise Inspectors;
4. Tax Inspectors;
6. Officials issuing permits;
7. Officials/Unit Heads of Public Service Units; and
8. Regulatory officials
To support corruption eradication movement, the Minister of Administrative and Bureaucratic Reforms has subsequently re-issued Circular Letter No. SE/05/M.PAN/04/2005 (link) on the same issue. Based on the Circular Letter, each Institutional Head must issue a letter to decide which positions that are prone to Corruption, Collusion, and Nepotism in each department and thus obliged to submit LHKPN to KPK.
In addition, to implement the regulations and verify integrity and transparency, certain State Official Candidates or Nominees are required to submit LHKPN to KPK, such as Presidential Candidates, Vice Presidential Candidates, Regional Government Head Candidates, and Deputy Regional Government Head Candidates.
NEGLIGENCE IN FULFILLING LHKPN OBLIGATION
According to Article 20 of Law No. 28/1999, any State Official failing to fulfill their LHKPN obligation as stipulated in the aforementioned law is subject to administrative sanctions in accordance with existing laws.
LHKPN SERVICE CONTACT
Corruption Eradication Commission
Jln. Kuningan Persada Kav. 4
Jakarta Selatan 12950
Tel: (021) 2557 8300
Fax: (021) 5289 2456