The Petitioners and his legal counsel during the Decision Hearing for Case Number 184/PUU-XXII/2024, the Material Review of Law Number 1 of 2004 concerning State Treasury, Thursday (14/8/2025). Public Relations/Bay

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JAKARTA (MKRI) - The Constitutional Court (MK) has rejected the petition filed by a group of retired civil servants from the Ministry of Foreign Affairs (Kemlu) who sought a judicial review of Article 40 paragraphs (1) and (2) of Law Number 1 of 2004 on State Treasury. The ruling was delivered during a hearing chaired by Chief Justice Suhartoyo in the Court’s Plenary Session Room on Thursday.

The petition, filed by former diplomats and staff assigned to Indonesia's foreign missions, centered on claims for unpaid basic salaries during their overseas postings between 1950 and 2012. The petitioners argued that their unpaid domestic salaries amounted to state debt, which should be settled under the provisions of the State Treasury Law.

However, in the Court’s legal considerations, Constitutional Justice M. Guntur Hamzah stated that the issue was not a matter of constitutionality, but rather an administrative and regulatory issue dating back decades.

The dispute stems from Circular Letter No. 015690, issued by the Foreign Ministry on October 16, 1950, which regulated the finances of Indonesian representatives abroad. Under this policy, effective November 1, 1950 officials posted overseas received a residence allowance that already included their basic salary, meaning the domestic salary was not paid separately.

“The regulation has never been revoked and remains legally binding,” said Justice Guntur. “There is no legal obligation for the state to provide a separate basic salary, as it was already factored into the allowances received abroad.”

The Ministry of Foreign Affairs had also submitted statements confirming that staff assigned overseas were fully awarethat their base salary was embedded in the allowance structure and had agreed to this arrangement at the time.

“Therefore, the issue raised by the petitioners does not fall within the category of state debt and is irrelevant to the constitutional validity of Article 40 of the State Treasury Law,” Justice Guntur affirmed.

The Court concluded that the substance of the petition did not raise a constitutional issue, and thus dismissed the case in its entirety.

Give it up to the Government

During the hearing on Case No. 184/PUU-XXII/2024, it revealed that since January 2013, Ministry of Foreign Affairs employees posted abroad have not been required to submit a Work Order (SKPP), a key document typically used to stop domestic salary payments upon overseas assignment. As a result, from that year forward, base salaries for those stationed abroad have not been suspended.

The Court also noted that an estimated 5,200 employees were affected between 1950 and 2012 under Circular Letter No. 015690/1950, which allowed residence allowances abroad to effectively replace basic salaries in Indonesia.

In delivering the Court’s legal considerations, Constitutional Justice M. Guntur Hamzah stated that the issue no longer constitutes a matter of state debt, nor does it present a constitutional question related to Article 40 paragraphs (1) and (2) of the State Treasury Law.

“This is no longer a constitutional issue. However, the Court leaves it to the Government to determine whether the matter can be resolved not purely on legal grounds, but as an act of state recognition, appreciation, and responsibility toward the employees affected,” said Justice Guntur.

He pointed out that such a resolution could be accommodated through implementing regulations, such as Government Regulation No. 45 of 2013, as amended by Government Regulation No. 50 of 2018, regarding procedures for state budget implementation.

If the Government chooses to address the issue by issuing a new legal basis such as a regulation that authorizes back payment of the disputed basic salaries, the Court clarified that the five-year statute of limitations on state receivables under Article 40 would begin from the date such a regulation is enacted.

“Based on these legal considerations, the petitioners’ argument that Article 40 unconstitutional is legally unfounded,” concluded Justice Guntur.

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For information, the petition case Number 184/PUU-XXII/2024 filed by several retired civil servants of the Ministry of Foreign Affairs (MoFA), who used to be stationed overseas. They are Kusdiana, Hari Budiarto, Khaerul Anwar Bratawijaya, Hari Tjahyono, and Sarwono.

At the preliminary hearing on Tuesday, March 4, 2025, the Petitioners conveyed their challenge against the provisions on payment of domestic basic salary over time contained in the provisions of Article 40 paragraph (1) and paragraph (2) of Law No. 1 of 2004. They believe that these articles are in conflict with Article 1 paragraph (3), Article 28D paragraph (1), Article 28D paragraph (2), as well as Article 28I paragraphs (4) and (5) of the 1945 Constitution.

They argue that the suspension of domestic basic salaries to civil servants in government agencies, in this case MoFA, began with the issuance of Circular Letter (SE) No. 015690 on October 16, 1950. This regulation became the basis for the non-payment of domestic basic salaries for MoFA employees. The suspension was based on the limited supply of foreign exchange, and the policy was enforced while waiting for a definitive decision.

In their petitums, the Petitioners ask the Constitutional Court to declare Article 40 paragraphs (1) and (2) of the State Treasury Law unconstitutional and not legally binding as long as it is interpreted as “applies to the domestic basic salaries of civil servants assigned to Indonesian Representatives Abroad.”

Read full decision No. 184/PUU-XXII/2024 here.

Author         : Sri Pujianti
Editor          : N. Rosi
PR               : Fauzan F.
Translator     : SO

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.

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