Policy Paper: Institutional Framework for the Management of an Endowment Fund for the Recovery of Victims of Crime

Following the effective enactment of Law Number 20 of 2025 on the Criminal Procedure Code (KUHAP), Article 187 introduces an endowment fund financing mechanism intended to support the payment of damages, rehabilitation, restitution, and compensation. The sources of funding may include the State Budget (APBN), investment returns, revenue-sharing from non-tax state revenues (PNBP) derived from law enforcement activities, proceeds from the management of seized assets, and/or other lawful and non-binding sources. However, provisions regarding the institutional framework responsible for managing the endowment fund have not been explicitly regulated. The 2025 KUHAP merely stipulates that the endowment fund shall be disbursed by the institution responsible for managing it and delegates further regulation to a Government Regulation. At the time this policy paper is prepared, the implementing Government Regulation for the 2025 KUHAP is still under development.

In light of this, there is an urgent need to map out alternative institutional arrangements for the management of the endowment fund as mandated by the 2025 KUHAP. Accordingly, this policy paper aims to formulate several alternative institutional models for managing the endowment fund, taking into account the existing legal framework, prevailing practices in endowment fund management in Indonesia, the alignment of mandates among institutions, and the need for effective victim recovery mechanisms.