Legal Protection for Misuse of Funding Funds and Wealth of the Foundation

Oct 13, 2025 by recoveryshake.com 5 views

Introduction

Foundations, as a legal entity that runs social activities, often experience irregularities, especially in terms of misuse of funds and wealth by the management. This happens because the legal regulations governing the criminal accountability of the foundation management of the misuse of funds and the wealth of the foundation are still incomplete. This article will discuss the criminal responsibility of the foundation management in the misuse of funds and wealth as well as efforts to protect the assets of the foundation.

Background

Foundations play a crucial role in society, providing support and resources to various causes and communities. However, the management of these foundations is often plagued by irregularities, including the misuse of funds and wealth. This can have severe consequences, including financial losses, damage to reputation, and harm to those who benefit from the foundation.

Legal Protection for Misuse of Funding Funds and Wealth of the Foundation

The legal regulations governing the criminal accountability of the foundation management of the misuse of funds and the wealth of the foundation are still incomplete. This has led to a lack of clarity and consistency in the application of the law, making it difficult to hold foundation management accountable for their actions.

The Corruption Criminal Act

Before the enactment of Law Number 28 of 2004 concerning Foundations, the Criminal Accountability of the Foundation Management which misused funds or wealth of the foundation was categorized based on the Corruption Criminal Act. This can be seen in the decision of the District Court Number 760/PID B/1986, which imposed a sentence based on Article 1 paragraph (1) of the Sub a Sub a Article 28 of the Corruption Act Number 3 of 1971 Jo Number 20 of 2001.

Law Number 28 of 2004

After the enactment of Law Number 28 of 2004, there are special criminal provisions governing the protection of the foundation's wealth, namely in Article 5 paragraph (1) jo Article 70 paragraph (1) and paragraph (2). However, the Corruption Criminal Act can still be applied in the case of misuse of funds or the wealth of the foundation.

The Need for Increased Legal Protection

Although there are already rules regarding criminal accountability, efforts are still needed to increase legal protection of the funds and the wealth of the foundation. One of the suggestions that can be done is to revise Article 70 paragraph (2) of Law Number 28 of 2004. The paragraph currently only regulates additional crimes, while the main criminal should be.

The Importance of Transparency and Supervision

Increasing the legal awareness of the foundation management and transparency in the management of funds and the wealth of the foundation is also an important thing to prevent abuse. Increasing supervision by related parties, such as the Ministry of Law and Human Rights and Non-Governmental Organizations, is also needed to ensure that the management of the foundation is running in accordance with the rules and to protect the foundation's assets.

Conclusion

In conclusion, the criminal responsibility of the foundation management in the misuse of funds and wealth is a complex issue that requires a comprehensive approach. The legal regulations governing this issue are still incomplete, and efforts are needed to increase legal protection of the funds and the wealth of the foundation. By revising Article 70 paragraph (2) of Law Number 28 of 2004 and increasing transparency and supervision, we can provide a stronger deterrent effect and more effective legal protection, both repressive and preventive.

Recommendations

Based on the findings of this study, the following recommendations are made:

Revising Article 70 paragraph (2) of Law Number 28 of 2004: The paragraph currently only regulates additional crimes, while the main criminal should be.
Increasing transparency in the management of funds and the wealth of the foundation: This can be achieved by increasing the legal awareness of the foundation management and providing regular reports on the management of funds and the wealth of the foundation.
Increasing supervision by related parties: This can be achieved by increasing the involvement of the Ministry of Law and Human Rights and Non-Governmental Organizations in the management of the foundation.

Limitations of the Study

This study has several limitations, including:

Limited scope: The study only focuses on the criminal responsibility of the foundation management in the misuse of funds and wealth.
Limited data: The study only uses literature studies and court decisions as data.
Limited analysis: The study only provides a qualitative analysis of the data.

Future Research Directions

Future research can build on the findings of this study by:

Conducting a comprehensive review of the legal regulations governing the criminal accountability of the foundation management: This can provide a more comprehensive understanding of the issue and identify areas for improvement.
Conducting a quantitative analysis of the data: This can provide a more detailed understanding of the issue and identify trends and patterns.
Conducting a case study of a foundation that has experienced misuse of funds or wealth: This can provide a more in-depth understanding of the issue and identify best practices for preventing and addressing misuse.
Frequently Asked Questions (FAQs) about Criminal Responsibility by the Foundation Management to the Misuse of the Foundation Funds/Wealth =====================================================================================================================================

Q: What is the main issue with the current legal regulations governing the criminal accountability of the foundation management?

A: The main issue with the current legal regulations is that they are still incomplete, leading to a lack of clarity and consistency in the application of the law.

Q: How does the Corruption Criminal Act relate to the misuse of funds and wealth by the foundation management?

A: The Corruption Criminal Act was used to categorize the criminal accountability of the foundation management before the enactment of Law Number 28 of 2004. However, the Corruption Criminal Act can still be applied in the case of misuse of funds or the wealth of the foundation.

Q: What are the special criminal provisions governing the protection of the foundation's wealth?

A: The special criminal provisions governing the protection of the foundation's wealth are found in Article 5 paragraph (1) jo Article 70 paragraph (1) and paragraph (2) of Law Number 28 of 2004.

Q: Why is it necessary to revise Article 70 paragraph (2) of Law Number 28 of 2004?

A: It is necessary to revise Article 70 paragraph (2) of Law Number 28 of 2004 because the paragraph currently only regulates additional crimes, while the main criminal should be.

Q: What is the importance of transparency and supervision in preventing the misuse of funds and wealth by the foundation management?

A: Transparency and supervision are important in preventing the misuse of funds and wealth by the foundation management because they can help to increase the legal awareness of the foundation management and provide regular reports on the management of funds and the wealth of the foundation.

Q: Who are the related parties that can provide supervision to the foundation management?

A: The related parties that can provide supervision to the foundation management include the Ministry of Law and Human Rights and Non-Governmental Organizations.

Q: What are the recommendations for increasing legal protection of the funds and the wealth of the foundation?

A: The recommendations for increasing legal protection of the funds and the wealth of the foundation include:

Revising Article 70 paragraph (2) of Law Number 28 of 2004: The paragraph currently only regulates additional crimes, while the main criminal should be.
Increasing transparency in the management of funds and the wealth of the foundation: This can be achieved by increasing the legal awareness of the foundation management and providing regular reports on the management of funds and the wealth of the foundation.
Increasing supervision by related parties: This can be achieved by increasing the involvement of the Ministry of Law and Human Rights and Non-Governmental Organizations in the management of the foundation.

Q: What are the limitations of this study?

A: The limitations of this study include:

Limited scope: The study only focuses on the criminal responsibility of the foundation management in the misuse of funds and wealth.
Limited data: The study only uses literature studies and court decisions as data.
Limited analysis: The study only provides a qualitative analysis of the data.

Q: What are the future research directions for this study?

A: The future research directions for this study include:

Conducting a comprehensive review of the legal regulations governing the criminal accountability of the foundation management: This can provide a more comprehensive understanding of the issue and identify areas for improvement.
Conducting a quantitative analysis of the data: This can provide a more detailed understanding of the issue and identify trends and patterns.
Conducting a case study of a foundation that has experienced misuse of funds or wealth: This can provide a more in-depth understanding of the issue and identify best practices for preventing and addressing misuse.