The Implementation of Compensation Payment Penalties in Recovering State Financial Losses in Corruption Cases in Central Kalimantan

Abstract

This study aims to analyze the implementation of substitute money penalties in recovering state financial losses caused by corruption in Central Kalimantan and to examine the obstacles faced by law enforcement authorities in their execution. The research employs an empirical juridical method with a qualitative descriptive approach, combining library research and field studies conducted at the Central Kalimantan High Prosecutor’s Office. Data were collected through interviews with public prosecutors and judges of the Corruption Court. The results indicate that the mechanism for implementing substitute money penalties is in accordance with Law Number 31 of 1999 in conjunction with Law Number 20 of 2001 on the Eradication of Corruption. However, in practice, the recovery of state losses has not been carried out optimally. The main obstacles include limited assets owned by convicted persons, the transfer and concealment of illicit assets, difficulties in asset tracing, and lengthy execution and auction procedures. As a result, many convicts are unable to fulfill their obligation to pay substitute money and only serve imprisonment. Therefore, strengthening the role of law enforcement agencies, optimizing asset recovery efforts, and enhancing inter-agency coordination are necessary to improve the effectiveness of state financial loss recovery.