In Indonesia, gift-giving is a common way to show respect and appreciation, including between businesspeople and public officials in the context of personal relationships (e.g., as friends, colleagues).
However, gratification to public officials is strictly regulated. Indonesian Anti-Corruption Law defines gratification as gift-giving in the broad sense, including giving money, goods, discounts, commissions, and other facilities. Gratification is not automatically deemed as a bribery if it is unrelated to the official’s position and does not induce the official to act contrary to their duties.
On 14 January 2026, the Corruption Eradication Commission – Komisi Pemberantasan Korupsi (KPK) issued Regulation No. 1 of 2026 (“KPK Reg 1/2026”), amending KPK Regulation No. 2 of 2019 on Gratification Reporting (“KPK Reg 2/2019”), effective as of 20 January 2026.
This newsletter explains the key comparison between KPK Reg 1/2026 and KPK Reg 2/2019 and few practical steps to be carefully observed.
| Occasions | KPK Reg 1/2026 (Current Threshold) |
KPK Reg 2/2019 (Previous Threshold) |
| Engagements, weddings, childbirth, baptisms, circumcisions, tooth-filing ceremonies, and other traditional or religious ceremonies |
Maximum IDR 1,500,000 (approximately USD 90) |
Maximum IDR 1,000,000 (approximately USD 60) |
| Non-monetary Gifts between public officials (i.e., from a public official to his/her fellow coworkers) |
Maximum IDR 500,000 (approximately USD 30) with a total of a maximum of IDR 1,500,000 (approximately USD 90) in one year from the same grantor |
Maximum IDR 300,000 (approximately USD 20) with a total of a maximum of IDR 1,000,000 (approximately USD 60) in one year from the same grantor |
Practical compliance steps for businesses to observe:
- Match the occasion: Restrict gifts to the permitted personal/traditional occasions defined by the regulation.
- Respect the threshold: Ensure the value per grantor does not exceed the permissible amount. Each government office may impose stricter internal controls — hence business must also carefully observe the applicable internal rules.
- Avoid links to official acts: Do not give gifts that could reasonably be perceived as related to the official’s duties or to influence a decision.
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