Indonesia's Parliament Targets 13 Crimes for Asset Forfeiture, Including Forestry and Trafficking Offenses

Indonesia's Parliament Targets 13 Crimes for Asset Forfeiture, Including Forestry and Trafficking Offenses

Indonesia's House of Representatives is advancing legislation that would allow authorities to seize assets connected to 13 categories of criminal activity, including corruption, forestry crimes and human trafficking, with lawmakers targeting final passage by December 15, 2026.

The proposed Asset Forfeiture Bill has undergone extensive scrutiny, with Commission III of the House holding 35 public hearings, conducting three regional working visits and receiving written submissions from dozens of community groups as of August 2026. The bill represents an entirely new legal framework for Indonesia, which partly explains the extended timeline compared to recent revisions of the Criminal Procedure Code and Police Law.

Habiburokhman, Chairman of Commission III, which oversees legal, human rights and security affairs, addressed public concerns that ordinary citizens could face asset seizures under the new law. He emphasized that Indonesia's Constitution upholds equality before the law.

"Anyone who violates the law must face sanctions, regardless of their position or background," Habiburokhman said in Jakarta on Monday.

Scope of Proposed Legislation

The bill would apply asset forfeiture to corruption, narcotics and psychotropic drug offenses, terrorism, people smuggling, forestry crimes, environmental crimes, taxation offenses, banking crimes, insurance-sector crimes and mining crimes. It would also cover the smuggling of weapons, ammunition and hazardous materials, as well as marine and fisheries crimes and human trafficking.

The inclusion of forestry crimes addresses a longstanding problem in Indonesia. During the 2000s, the country lost an average of 2.8 million hectares of forests annually, with 80 percent of timber exports estimated to be illegal, costing approximately $4.35 billion in lost revenue each year. By 2013, illegal timber production still accounted for 60 percent of total Indonesian timber production and represented 50 percent of the global supply of illegal timber. Human Rights Watch previously recommended that Indonesian law enforcement officials pursue asset forfeiture to recoup proceeds from illegal logging and corruption.

Human trafficking remains another critical concern. Indonesian immigration authorities prevented 8,827 Indonesians identified as being at risk of human trafficking from departing the country between January and July 2026. According to Indonesian National Police data, 427 citizens became confirmed victims of human trafficking from January to July 2025.

International Precedents

Habiburokhman noted that applying asset forfeiture to crimes beyond corruption mirrors practices in the United Kingdom, the United States and several other countries. Non-conviction based asset forfeiture has been employed in the United States since 1970 and in Italy since 1956, and has been adopted by Australia, Canada, South Africa, New Zealand, the Netherlands, Colombia and the Philippines. The UK's Proceeds of Crime Act 2002 established the legal framework for asset forfeiture there, including civil asset forfeiture without criminal conviction through mechanisms such as Unexplained Wealth Orders.

Safeguards Against Abuse

Habiburokhman stressed that asset forfeiture must not be enforced arbitrarily. He warned that the law must not become a tool to extort citizens, criminalize political opponents or silence critics.

"Therefore, Commission III is seeking the best formula to strengthen oversight of the implementation of the Asset Forfeiture Law," he said.

He emphasized the need for a strong institution capable of taking action against corrupt law enforcement officers who abuse their authority. Such officers should face disciplinary, professional and criminal sanctions, he added.

"In short, the implementation of the Asset Forfeiture Law requires law enforcement personnel who are clean and uphold high standards of integrity," Habiburokhman said.

Indonesia's Corruption Eradication Commission, established in 2002, has used wiretapping and sting operations to arrest hundreds of national and regional politicians, state managers, officials, judges and businessmen for corruption, demonstrating the country's existing enforcement capabilities in combating financial crimes.