EN.malanginspirasi.com – Indonesia’s Constitutional Court (Mahkamah Konstitusi/MK) has declared Law No. 12 of 1980 concerning the Financial and Administrative Rights of Leaders and Members of the Highest and High State Institutions (and their former holders) conditionally unconstitutional and without binding legal force.
Chief Justice Suhartoyo read the verdict in Case No. 191/PUU-XXIII/2025 on Monday, 16 March 2026. The Court partially granted the judicial review petition filed by seven lecturers and students from the Faculty of Law at Universitas Islam Indonesia (UII).
The ruling states that the 1980 law remains in effect until a replacement law is enacted. However, the House of Representatives (DPR) and the Government are ordered to revise it no later than two years from the date of the decision. If the deadline is missed, the entire law will permanently lose its binding legal force.
“Ordering the lawmakers to carry out replacement within a maximum period of two (2) years from the pronouncement of this decision. And if within that period no replacement is made, then Law No. 12 of 1980 … becomes contrary to the 1945 Constitution of the Republic of Indonesia and has no permanent binding legal force,” Chief Justice Suhartoyo read aloud.
The articles declared conditionally unconstitutional include Article 12 paragraphs (1) and (2), Article 16 paragraph (1) letter a, Article 17 paragraph (1), Article 18 paragraph (1) letter a, and Article 19 paragraphs (1) and (2).
These provisions regulate lifetime pensions for the leaders and members of high state institutions, as well as inheritance rights for widows, widowers, and children.
Affected Institutions
The ruling directly impacts lifetime pension rights for:
- Chairpersons, Deputy Chairpersons, and members of the House of Representatives (DPR)
- Chairpersons, Deputy Chairpersons, and members of the Audit Board (BPK)
- Chief Justice, Deputy Chief Justices, Associate Chief Justices, and judges of the Supreme Court (MA)
- Chairpersons, Deputy Chairpersons, and members of the now-defunct Supreme Advisory Council (DPA), inactive since 2003
The President and Vice President are not covered by this law, as their pensions are governed by separate legislation.
Court’s Reasoning
The MK ruled that Law No. 12/1980 is outdated following the amendments to the 1945 Constitution, which eliminated the distinction between “highest” and “high” state institutions. The Court found lifetime pensions disproportionate: DPR members serve only five-year terms, receive substantial salaries from the state budget, yet continue to enjoy lifelong pensions that burden public finances. This violates principles of social justice and the priority of development for the people.
The seven petitioners — Ahmad Sadzali, Anang Zubaidy, Muhammad Farhan Kamase, Alvin Daun, Zidan Patra Yudistira, Rayhan Madani, and Muhammad Fajar Rizki — filed the case as taxpayers who argued the scheme creates inequality. Public funds collected through taxes are used to finance pensions for officials who, in their view, have not made proportional contributions.
The lifetime pension provisions remain fully enforceable until a new, fairer law is passed. The DPR and Government now have exactly two years to draft replacement legislation that is more proportional and aligned with Indonesia’s modern constitutional framework.
The MK’s decision is final and binding. Full copies of the ruling will be published in the State Gazette of the Republic of Indonesia.
