KPK Issues KPK Regulation Number 1 of 2026, Increasing the Threshold Value of Gratuities

Introduction

On 14 January 2026, the Corruption Eradication Commission (“KPK”) issued Regulation of the Corruption Eradication Commission Number 1 of 2026 on Amendments to Regulation of the Corruption Eradication Commission Number 2 of 2019 on Gratuity Reporting (“KPK Regulation 1/2026”), which took effect on 20 January 2026. This Regulation revises the previous provisions in order to accommodate rapidly evolving legal dynamics.

KPK considers it necessary to implement legal adjustments in order to strengthen the existing reporting mechanisms and to enhance the accuracy of substance and compliance in gratuity reporting.

 

Comparison

KPK Regulation 1/2026 amends several provisions of Regulation of the Corruption Eradication Commission Number 2 of 2019 on Gratuity Reporting (“KPK Regulation 2/2019”), particularly on the threshold value of gifts and the technical reporting mechanisms. The table below presents a comparison between KPK Regulation 1/2026 and KPK Regulation 2/2019:

 

Key Provisions

Relaxation of the Gratuity Value Threshold

Pursuant to Article 2 paragraph (3) letter l, KPK increases the threshold value of gifts in the context of customary ceremonies or personal celebrations (such as marriages, engagements, births, baptisms, circumcisions) to IDR 1,500,000.00. Article 2 paragraph (3) letter n stipulates that non-monetary gifts among colleagues are permissible up to a value of IDR 500,000.00 per gift, provided that the annual accumulation from the same giver does not exceed IDR 1,500,000.00.

Mechanism for Reporting Refusal and Handling of Perishable Objects

Article 4A provides an avenue for Civil Servants or State Officials to report acts of “refusal” of gratuities, not only their receipt. Furthermore, with regard to the handling of evidence, Article 5 paragraphs (2) and (3) regulate procedures for objects in the form of food or beverages that are easily perishable. Reporters are no longer required to bring the physical food items to KPK, and may instead directly distribute them for social benefit.

Sanctions for Late Reporting

Based on Article 17 paragraph (3), if reporting is conducted beyond the time limit of 30 working days, or if the gratuity is only reported after becoming a finding of the internal supervisory body, KPK will determine that the object becomes state property with a special notation. This notation will state that the reporter submitted the report late or only reported it after an audit.

Digitalization and Strengthening of the Role of UPG

Article 19 paragraph (1) now legalizes the use of electronic signatures in Leadership Decisions concerning the determination of gratuity status in order to expedite bureaucratic processes. Pursuant to Article 27, the Gratuity Control Unit (Unit Pengendalian Gratifikasi - “UPG”) is not only responsible for forwarding reports, but also bears responsibility for planning, evaluating, providing internal training, and disseminating gratuity control regulations to external parties.

 

Transitional Provisions

Article 32 stipulates that gratuity reports submitted and still under process prior to 20 January 2026 will continue to be resolved using the mechanism under KPK Regulation 2/2019. If there is a determination of gratuity ownership status where the reporting exceeds 30 working days and the report is received prior to 20 January 2026, the settlement process will be subject to the provisions of KPK Regulation 1/2026.

 

Closing

KPK Regulation 1/2026 increases the threshold value of gratuities for personal events to IDR 1,500,000.00 and gifts among colleagues to IDR 500,000.00, while enhancing efficiency through the use of electronic signatures and the simplification of handling perishable food objects. In addition, KPK continues to strengthen compliance through the new mechanism for reporting refusals, the reinforcement of the educational function of UPG, and the application of administrative sanctions for reporters who submit reports late or fail to complete reports within the shortened rectification period of 20 working days.