REFORMULATION OF STATE FINANCIAL LOSS RECOVERY THROUGH NON-CONVENTIONAL PUNISHMENT IN CORRUPTION OFFENCES

This research aims to evaluate the effectiveness of conventional punishment in restoring state financial losses and formulate a more effective non-conventional punishment model. With a socio-legal approach, the collection of legal materials is carried out through literature studies, while the analysis of legal materials uses descriptive techniques. The results revealed that conventional punishment-including imprisonment, nominal fines, and limited asset forfeiture-has not optimally recovered state losses due to slow inter-agency coordination, disproportionate fines in the Anti-Corruption Law, and a legal culture that prioritises imprisonment over restitution so that the recovery rate is only 15-20%. In contrast, non-conventional punishments such as progressive fines of up to 100%, civil forfeiture, and infrastructure social work have the potential to increase asset recovery to 60-85% if regulated lex specialis in the Anti-Corruption Law and Anti-Money Laundering Law and supported by an integrated monitoring system with civil society participation and blockchain technology. Recommendations include the establishment of an Asset Recovery Task Force under the KPK, ratification of asset repatriation agreements, and whistleblower incentives of 15-30% of the value of assets recovered.