Hari Purwadi ,, adriana Grahani Firdausy ,, Sasmini ,


This research aims to explain that corruption cause financial or economic disadvantage, both state and local government. The proceeds of corruption that has successfully returned through the criminal justice process (through the payment of money substitutes) as well as civil action (through a lawsuit in state losses of return) should be returned to state or local government which was stolen its assest.This
study focuses only on the return process for the interest of local government that still legally problematic, at least its legal procedure. These legal issues important to put forward because of the prosecutionagen-cies and implementing of court decision in cases of corruption does not in a chain of local bureaucracy or subject to different power structures. This research is methodologically performed with combining legal
research and socio-legal research. The results showed that stolen assets recovery is a fundamental prin-ciple of UNCAC and Anti-Corruption Act. The provisions of Anti-corruption law have no interesting ofthe real return on the financial losses to prior legitimate owner. Local governments also do not have a policy that integrated with the criminal justice process of corruption that regional financial disadvantage . In con-trast, law enforcer did not consider recovering proceeds of corruption to local government, so do no t care if the money that was corrupted successfully withdrawn and deposited in the state treasury, not the local treasury.

Keywords: corruption, state assets recovery, local government.

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