Corruption of People’s Business Credit Funds as Part of White-Collar Crime in Indonesia

Abstract

This article asks when a loss arising from fraudulent People’s Business Credit (Kredit Usaha Rakyat, KUR) disbursement in a state-owned bank becomes a state financial loss cognizable under Indonesian anti-corruption law. The question is pressing because Article 4B of Law No. 16 of 2025, the Fourth Amendment to the State-Owned Enterprises Law, provides that the profits or losses of a state-owned enterprise belong to that enterprise rather than to the state. Using normative legal research that combines statutory, conceptual, and case approaches, the study examines two prosecuted KUR cases at Bank Rakyat Indonesia in Kotabaru Regency, South Kalimantan. Three findings emerge. First, the KUR principal is bank money rather than budget money, so the state’s exposure runs through its equity participation in the disbursing bank and through the interest subsidy and guarantee fee the budget pays on credit that was fictitious from the outset. Second, Article 4B does not immunize branch-level fraud, because its elucidation confines the provision to losses arising from the management of enterprise assets, and fraud is not management. Third, following Constitutional Court Decision No. 25/PUU-XIV/2016, the loss must be actual and quantifiable, which disqualifies the vocabulary of potential loss. The article contributes a five-element test separating ordinary credit risk from corruption.