MK Redefines ‘State Loss’ in Landmark Case Backed by Undiknas Law Faculty and IUP Student

Denpasar, Bali, April 29, 2026 – The Constitutional Court of the Republic of Indonesia has granted a judicial review petition filed through a collaboration between the Faculty of Law, Universitas Pendidikan Nasional (FH Undiknas), Bali, and Desa Adat Kukuh, Tabanan Regency. The decision in case Number 66/PUU-XXIV/2026 was read in an open plenary session on Wednesday, April 29, 2026. The judicial review challenged Article 16 paragraph (6), Article 20 paragraph (2), and Article 20 paragraph (4) of Law Number 30 of 2014 on Government Administration (UU AP). In its ruling, the Court partially granted the petition, declaring that the phrase “state loss” in Article 20 paragraphs (5) and (6) is unconstitutional. The Court interpreted that the phrase must be understood as “state financial loss,” thereby making the norm clearer, more consistent, and measurable.

This ruling carries significant implications for Indonesia’s legal system. The Court emphasized the conceptual distinction between “state loss” and “state financial loss,” terms that have often been used inconsistently in practice. This clarification is expected to prevent the criminalization of policy decisions arising from administrative errors, while reinforcing the principle of ultimum remedium, that criminal law should serve as a last resort. Furthermore, the decision strengthens the principle of good governance, ensures legal certainty, and encourages a more accountable and professional bureaucracy.

The petition was filed by eight applicants, consisting of lecturers, students, and a village head. Among the students was Ayu Bang Bahari Ken Widyawati, a participant in the International Undergraduate Program (IUP) at FH Undiknas. From the faculty side, applicants included Dr. Ni Gusti Agung Ayu Mas Tri Wulandari, I Putu Edi Rusmana, and Putu Wahyu Widiartana. Representing the village government, Kukuh Village Head I Nyoman Widhi Adnyana also joined as an applicant. All applicants were represented by a legal team composed entirely of FH Undiknas lecturers, including Dr. Febriansyah Ramadhan, S.H., M.H.; Dr. Dewa Krisna Prasada, S.H., M.H.; I Gede Sadia Dwi Ratmaja, S.H., M.H.; I Gede Druvananda Abhiseka, S.H., M.H.; I Gusti Agung Kiddy Krsna Zulkarnain, S.H., M.H.; Muhamad Syahnakri, S.H., M.H.; I Made Fajar Pradnyana, S.H., M.H.; dan Kadek Indra Dewan Tara, S.H., M.H. Their involvement highlights that judicial review efforts are not confined to academic discourse but are rooted in the realities of village governance. The proceedings moved relatively quickly, with only two hearings held on February 28 and March 5, 2026, before the ruling was delivered on April 29, 2026. The Court considered the petition sufficiently clear, making further examination of the DPR and the President unnecessary. This collaboration between academia, students, and village government stands as a concrete example of how law can grow from societal needs, be processed through strong academic frameworks, and ultimately contribute meaningfully to the development of national law.