CORPORATE CAMPAIGN CONTRIBUTIONS AND ELECTORAL INTEGRITY IN INDONESIA: CHALLENGES AND LEGAL RECONSTRUCTION

Abstract

The 2024 general election in Indonesia revealed critical challenges in the management and transparency of campaign finance, particularly regarding corporate contributions to political parties. Despite regulatory frameworks requiring the submission of the Initial Campaign Fund Report (LADK) and subsequent reports, many parties and candidates failed to comply, while reported expenditures often appeared inconsistent with visible campaign activities. Foreign funding further complicated monitoring, with contributions increasing from IDR 83 billion in 2022 to IDR 195 billion in 2024, highlighting vulnerabilities to illicit financial practices. Weak institutional capacity and fragmented regulatory authority among the General Elections Commission (KPU), the Election Supervisory Board (Bawaslu), and the Financial Transaction Reports and Analysis Center (PPATK) exacerbated these challenges. This study employs normative legal research with a descriptive and evaluative approach, using statutory and case-based analysis to examine the legal framework, reporting systems, and oversight mechanisms for corporate campaign contributions. Findings indicate that while Indonesian law allows regulated corporate donations under a system of “restricted permissibility,” enforcement gaps, unclear reporting obligations, and limited audit oversight undermine accountability and transparency. The study proposes a reconstruction of campaign finance law based on an integrity system, emphasizing harmonized regulations, technology-based reporting and audits, proportional sanctions, and the promotion of legal and ethical awareness among political actors. Such reforms aim to ensure that corporate participation supports fair, transparent, and democratically accountable elections.