Promoting the Principle of Political Equality: Reformulation of Private Funding Source Regulations for Indonesian Political Parties

Authors

DOI:

https://doi.org/10.15294/jllr.v5i3.14457

Keywords:

Reformulation, Regulation, Private Funding, Political Parties, Political Equality

Abstract

This study examines the regulation of private funding sources for political parties, with the goal of developing a framework that ensures political equality for donors. Adopting a normative legal research approach, the study employs statutory, conceptual, and comparative methods. Data are analyzed descriptively and prescriptively to offer a comprehensive understanding of the current regulatory gaps and to propose a ius constituendum for the regulation of private political party funding. The findings reveal two key issues. First, while Indonesia has regulations governing private funding for political parties, these regulations do not comprehensively address all private funding sources, leaving certain sources unregulated or insufficiently restricted. Second, the existing regulatory framework fails to ensure political equality among donors. Based on these findings, the study recommends several reforms for more equitable regulation. Specifically, it advocates for a regulatory framework that prioritizes political equality, with detailed classifications of private funding sources—distinguishing between internal sources, such as party taxes from members holding political positions, and external sources, such as loans from individuals or legal entities. Additionally, the study proposes establishing clear limits on donor contributions, including maximum limits for both member contributions and party taxes. These reforms aim to create a more transparent and balanced system of political financing, ensuring fairer access to the political process for all donors.

References

Acton, Crispin, and Benjamin Hawkins. "Are UK alcohol industry political donations intended to influence public health policies?–Analysis of publicly available data on donations and lobbying." Journal of Public Affairs 22 (2022): e2740.

Ahmed, Zahid, Sabina Yasmin, and Al Imtiaz. "Helping Hand: An efficient donation procedure based on mobile banking." 2014 International Conference on Electrical Engineering and Information & Communication Technology. IEEE, 2014.

Arif, Wahyudi, Andi Pangerang Moenta, and Muh Hasrul. "Legal Responsibilities of Members of the Makassar City Regional People's Representative Council (DPRD) to their Constituents in the Electoral District." AL-MANHAJ: Jurnal Hukum dan Pranata Sosial Islam 5, no. 2 (2023): 1845-1858.

Asen, Robert. "Introduction: Neoliberalism and the Public Sphere." Communication and the Public 3, no. 3 (2018): 171-175.

Badoh, Ibrahim Z. Fahmy, and Abdullah Dahlan. Korupsi Pemilu di Indonesia. (Jakarta: ICW and TIFA, 2010). Available online at https://icw.or.id/sites/default/files/dokumen/Korupsi%252BPemilu.pdf.

Bailey, Michael. "The two sides of money in politics: A synthesis and framework." Election Law Journal 3, no. 4 (2004): 653-669.

Baynes, Kenneth. "Democratic Equality and Respect." Theoria 55, no. 117 (2008): 1-25.

Bértoa, Fernando Casal, Fieke Molenaar, Daniela Piccio, and Ekaterina Rashkova. "The World Upside Down: Delegitimising Political Finance Regulation." International Political Science Review 35, no. 3 (2014): 355-375.

Bertsou, Eri. "Political Distrust and Its Discontents: Exploring the Meaning, Expression and Significance of Political Distrust." Societies 9, no. 4 (2019): 72.

Bimber, Bruce. "Digital Media and Political Participation." Journal of Political Communication 31, no. 3 (2014): 346-358.

Boatright, Robert G. "Party Funding in the United States." In Party Funding. (London: Edward Elgar Publishing, 2018).

Bøggild, Troels. "Politicians as Party Hacks: Party Loyalty and Public Distrust in Politicians." The Journal of Politics 82, no. 4 (2020): 1516-1529.

Broockman, David, and Neil Malhotra. "What Do Partisan Donors Want?" Public Opinion Quarterly 84, no. 1 (2020): 104-118.

Brunell, Thomas L. "The relationship between political parties and interest groups: Explaining patterns of PAC contributions to candidates for congress." Political Research Quarterly 58, no. 4 (2005): 681-688.

Cage, Julia and Guillot, Malka. “Is Charitable Giving Political? Evidence from Wealth and Income Tax Returns” SSRN, June 30 (2021). Available at SSRN http://dx.doi.org/10.2139/ssrn.3881112

Carmichael, Brianna, and Paul Howe. "Political Donations and Democratic Equality in Canada." Canadian Parliamentary Review 37, no. 1 (2014): 16-20.

Casas-Zamora, Kevin. Political Finance and State Funding System: An Overview. (Arlington: International Foundation for Electoral System, 2008).

Dahl, Robert A. A Preface to Democratic Theory. (Chicago: University of Chicago Press, 1956).

Dalton, Russell J., and Steven A. Weldon. "Public Images of Political Parties: A Necessary Evil?" West European Politics 28, no. 5 (2005): 931-951.

Dolgikh, F., et al. "Formation of Models for Funding of Political Parties in Europe." International Scientific Conference" Far East Con"(ISCFEC 2020). Atlantis Press, 2020.

Drummond, Andrew J. "Electoral volatility and party decline in Western democracies: 1970–1995." Political Studies 54, no. 3 (2006): 628-647.

Dworkin, Ronald. Sovereign Virtue: The Theory and Practice of Equality. (Cambridge, MA: Harvard University Press, 2002).

Evertsson, Nubia. "Political corruption and electoral funding: a cross-national analysis." International Criminal Justice Review 23, no. 1 (2013): 75-94.

Faisal, Fadli, B. Barid, and D. Mulyanto. "Pendanaan Partai Politik di Indonesia: Mencari Pola Pendanaan Ideal untuk Mencegah Korupsi." Integritas: Jurnal Antikorupsi 4, no. 1 (2018): 265-287.

Fink, Anke. "Donations to Political Parties: Investing Corporations and Consuming Individuals?" Kyklos 70, no. 2 (2017): 220-255.

Fiorelli, Chiara. "Running out of oxygen: The financial condition of Italian political parties." Italian Journal of Electoral Studies (IJES) 85, no. 2 (2022): 29-39.

Fisher, Justin, and Todd A. Eisenstadt. "Introduction: Comparative Party Finance: What Is to Be Done?" Party Politics 10, no. 6 (2004): 619-626.

Flavin, Patrick. "Campaign Finance Laws, Policy Outcomes, and Political Equality in the American States." Political Research Quarterly 68, no. 1 (2015): 77-88.

Foa, Roberto, and Yascha Mounk. "The Democratic Disconnect." Journal of Democracy 27, no. 3 (2016): 5-17.

Franks, Andrew, and Kerry Scherr. "Economic Issues Are Moral Issues: The Moral Underpinnings of the Desire to Reduce Wealth Inequality." Social Psychological and Personality Science 10, no. 4 (2018): 553-562.

Germany, Federal Elections Act 1993 (amended 2019)

Germany, Political Parties Act 1967 (amended 2018).

Gherghina, Sergiu, and Clara Volintiru. "A new model of clientelism: Political parties, public resources, and private contributors." European Political Science Review 9, no. 1 (2017): 115-137.

Gilens, Martin, and Benjamin I. Page. "Testing theories of American politics: Elites, interest groups, and average citizens." Perspectives on Politics 12, no. 3 (2014): 564-581.

Green, Donald, Jonathan Krasno, Costas Panagopoulos, Benjamin Farrer, and Michael Schwam-Baird. "Encouraging Small Donor Contributions: A Field Experiment Testing the Effects of Nonpartisan Messages." Journal of Experimental Political Science 2, no. 2 (2015): 183-191.

Hadiz, Vedi R. "Democracy and money politics: The Case of Indonesia." Routledge Handbook of Southeast Asian Politics. (London: Routledge, 2012), pp. 71-82.

Hall, Richard L., and Frank W. Wayman. "Buying time: Moneyed interests and the mobilization of bias in congressional committees." American Political Science Review 84, no. 3 (1990): 797-820.

Hamada, Yukihiko, and Khushbu Agrawal. Political Finance Reforms: How to respond to today’s policy challenges?. (Stockholm: International Institute for Democracy and Electoral Assistance, 2021).

Hamm, Keith E., and Robert E. Hogan. "Campaign Finance Laws and Candidacy Decisions in State Legislative Elections." Political Research Quarterly 61, no. 3 (2008): 458-467.

Heath, Joseph. "Political Egalitarianism." Social Theory and Practice 34, no. 4 (2008): 485-516.

Heikes, Deborah K. "Race and the Copernican turn." The Journal of Mind and Behavior (2015): 139-163.

Hopkin, Jonathan. "The Problem with Party Finance." Party Politics 10, no. 6 (2004): 627-651.

Hutton, James, and Mahmoud Watad. "Political action committees, ‘soft’ money, foreign contributions and US politics: Lessons from the American experience." Journal of Communication Management 3, no. 3 (1999): 293-302.

Indrayana, Denny. "Money Politics in a More Democratic Indonesia: An Overview." Australian Journal of Asian Law 18, no. 2 (2017): 1-15.

International Foundation for Electoral System. Buku Pedoman Pengawasan Keuangan Politik. (United States Agency for International Development, 2013). Available online at https://www.ifes.org/sites/default/files/migrate/tide-political-finance-oversight-handbook-bahasa-indonesian.pdf.

International Foundation for Electoral System. Enforcing Political Finance Laws: Training Handbook. (Arlington: International Foundation for Electoral System, 2005). Available online at https://www.ifes.org/publications/enforcing-political-finance-laws-training-handbook.

International IDEA. Database Political Finance, available online at https://www.idea.int/data-tools/data/political-finance-database.

International Institute for Democracy and Electoral Assistance. Funding of Political Parties and Election Campaigns: A Handbook on Political Finance. (Sweden: International IDEA Publication, 2014).

Invernizzi-Accetti, Carlo, and Fabio Wolkenstein. "The crisis of party democracy, cognitive mobilization, and the case for making parties more deliberative." American Political Science Review 111, no. 1 (2017): 97-109.

Irwansyah, Irwansyah. Penelitian Hukum: Pilihan Metode & Praktik Penulisan Artikel. (Yogyakarta: Mirra Buana Media, 2020).

Katz, Richard S., and Peter Mair. "Changing Models of Party Organization and Party Democracy: The Emergence of the Cartel Party." Party Politics 1, no. 1 (1995): 5-28.

Katz, Richard S., and Peter Mair. "The Cartel Party Thesis: A Restatement." Perspectives on Politics 7, no. 4 (2009): 753-766.

Katz, Richard S., and Peter Mair. "The Evolution of Party Organizations in Europe: The Three Faces of Party Organization." American Review of Politics 14 (1993): 593-617.

Koll, Ann-Kristin. "Does Party Finance Regulation Create a Level Playing Field?" Election Law Journal: Rules, Politics, and Policy 15, no. 1 (2016): 71-82.

Kopecký, Petr, et al. "Party patronage in contemporary democracies: Results from an expert survey in 22 countries from five regions." European Journal of Political Research 55, no. 2 (2016): 416-431.

Kosiara-Pedersen, Karina, et al. "Party membership costs, new forms of party affiliation, and partisan participation." In Susan E. Scarrow, Paul D. Webb, and Thomas Poguntke (eds). Organizing Political Parties: Representation, Participation, and Power (Oxford: Oxford University Press, 2017), pp. 234-258.

Kume, Andon. "Legislative Solution to Prevent the Interference of Foreign Financing in the Electoral Campaign and their Destabilizing Effects." Interdisciplinary Journal of Research and Development 10, no. 1 S1 (2023): 126-126.

Kurniawan, Galih. "Pengaruh Penerimaan dan Pengelolaan Dana Partai Politik Terhadap Masa Depan Politik di Indonesia." Jurnal Pendidikan Agama dan Keagamaan 4, no. 2 (2021): 110-116.

Kypri, Kypros, et al. “‘If someone donates $1000, they support you. If they donate $100 000, they have bought you’. Mixed methods study of tobacco, alcohol and gambling industry donations to Australian political parties”. Drug and Alcohol Review 38, no. 3 (2019): 226-233.

Lamprinakou, Chrysa. "The Party Evolution Model: An Integrated Approach to Party Organisation and Political Communication." Political Studies Review 28, no. 2 (2008): 103-111.

Laska, Valbona. "The Role of Political Parties in the Constitutional Order in Albania." Justice and Justicia 17, no. 2 (2023): 75-92.

Lessig, Lawrence. Republic, lost: How money corrupts Congress—and a plan to stop it. (New York: Hachette Book Group, 2011).

Levitsky, Steven, and Maxwell A. Cameron. "Democracy without Parties? Political Parties and Regime Change in Fujimori’s Peru." Latin American Politics and Society 45, no. 3 (2003): 1-33.

Lopes, D. "An Analysis on the Legal Standing of Dissolution of Political Parties in the Court of Appeals of Timor-Leste." Global Journal of Politics and Law Research 11, no. 6 (2023): 9-31.

Lyrintzis, Christos. "Political parties in post‐junta Greece: A case of ‘bureaucratic clientelism'?." West European Politics 7, no. 2 (1984): 99-118.

Martin, John J. "Self-Funded Campaigns and the Current (Lack of?) Limits on Candidate Contributions to Political Parties." Columbia Law Review 120, no. 6 (2020): 178-197.

Matakovic, Hrvoje, and Ivana C. Mraovic. "Development of Political Parties and Party Funding: Models and Characteristics." CES Working Papers 7, no. 1 (2015): 111-125.

McElwee, Sean, Brian Schaffner, and Jesse Rhodes. Whose Voice, Whose Choice? The Distorting Influence of the Political Donor Class in Our Big-Money Elections. (New York: Demos, 2016).

Mietzner, Marcus. "Dysfunction by Design: Political Finance and Corruption in Indonesia." Critical Asian Studies 47, no. 4 (2015): 587-610.

Mills, C. Wright. The Power Elite. (Oxford: Oxford University Press, 1956).

Molenaar, Fransje, Daniela R. Piccio, and Ekatrina R. Rashkova. "The World Upside Down: Delegitimising Political Finance Regulation." International Political Science Review 35, no. 3 (2014): 355-375.

Morlino, Leonardo. "What Is a 'Good' Democracy?" Democratization 11, no. 5 (2004): 10-32.

Muhtadi, Burhanuddin. "Politik Uang dan Dinamika Elektoral di Indonesia: Sebuah Kajian Awal Interaksi antara Party-ID dan Patron-Klien." Jurnal Penelitian Politik 10, no. 1 (2013): 41-58.

Mukhlis, Muhammad Mutawalli, Maskun Maskun, Muhammad Saleh Tajuddin, and Zulhilmi Paidi. "Regional Government According to the 1945 Constitution: Ideas Refinements and Law Reform." Journal of Law and Legal Reform 5, no. 2 (2024): 495-530.

Mutawalli, Muhammad, Zainal Amin Ayub, and Hemen Philip Faga. "Revitalizing Political Parties in Indonesia: Dissecting Patronage-Clientelism Dynamics vis-à-vis Political Representation.” Jurnal Mengkaji Indonesia 2, no. 2 (2023): 301-326.

New Zealand, Electoral Act 1993, (amended 2023).

Norris, Pippa. Strengthening Electoral Integrity. (Cambridge: Cambridge University Press, 2019).

O’Cinneide, Colm. Equality: A Core Common Law Principle, or 'Mere' Rationality? (Oxford: Hart Publishing, 2020).

OECD. Financing Democracy: Funding of Political Parties and Election Campaigns and the Risk of Policy Capture. (Paris: OECD Public Governance Reviews, OECD Publishing, 2016). https://doi.org/10.1787/9789264249455-en.

Ohman, Magnus, ed. Buku Pedoman Pengawasan Keuangan Politik. International Foundation for Electoral System, 2013. http://perludem.org/wp-content/uploads/2017/02/Political-Finance-Oversight-Handbook-Bahasa-Indonesia.pdf.

O'Neill, Martin. "Liberty, Equality, and Property‐Owning Democracy." Journal of Social Philosophy 40, no. 3 (2009): 379-396.

Orozco Henríquez, José De Jesús. "Financing and Monitoring Political Parties in Mexico: Strengths and Weaknesses." Election Law Journal 3, no. 3 (2004): 463-473.

Overton, Spencer. "The Donor Class: Campaign Finance, Democracy, and Participation." University of Pennsylvania Law School 153, no. 1 (2004): 73.

Pacini, Maria Chiara. "Public Funding of Political Parties in Italy." Modern Italy 14, no. 2 (2009): 183-202.

Piccio, Daniela. "Mapping Private Party Funding Regulation: Deregulation in Sight?" Italian Political Science Review/Rivista Italiana Di Scienza Politica (2024): 1-13.

Pierre, Jon, Lars Svåsand, and Anders Widfeldt. "State Subsidies to Political Parties: Confronting Rhetoric with Reality." West European Politics 23, no. 3 (2000): 1-24.

Pinto-Duschinsky, Michael. "Financing politics: A global view." Journal of Democracy 13, no. 4 (2002): 69-86.

Pinto-Duschinsky, Michael. "Foreign political aid: the German political foundations and their US counterparts." International Affairs 67, no. 1 (1991): 33-63.

Primo, David, and Jeffrey Milyo. "Campaign Finance Laws and Political Efficacy: Evidence from the States." Election Law Journal Rules, Politics, and Policy 5, no. 1 (2006): 23-39.

Radford, Simon, Andrew Mell, and Stéphane A. Thevoz. "'Lordy Me!' Can Donations Buy You a British Peerage? A Study in the Link between Party Political Funding and Peerage Nominations, 2005–2014." British Politics 15 (2020): 135-159.

Raja, Raymond, and David Wiltse. "Don’t Blame Donors for Ideological Polarization of Political Parties." American Politics Research 40, no. 3 (2011): 501-530.

Ratcliff, Steven, and Darren Halpin. "Dark Money and Opaque Politics: Making Sense of Contributions to Australian Political Parties." Australian Journal of Political Science 56, no. 4 (2021): 335-357.

Rawls, John. Political Liberalism. (Columbia: Columbia University Press, 1993).

Republic of Indonesia, Political Party Law 2008 (Undang-Undang Republik Indonesia Nomor 2 Tahun 2008 Tentang Partai Politik). Available online at https://berkas.dpr.go.id/jdih/document/uu/UU_2008_2.pdf

Republic of Indonesia, the General Election Law 2017 (Undang-undang Nomor 7 Tahun 2017 Tentang Pemilihan Umum). Available online at https://peraturan.go.id/id/uu-no-7-tahun-2017

Reuter, Thomas. "Political Parties and the Power of Money in Indonesia and Beyond." TRaNS: Trans-Regional and National Studies of Southeast Asia 3, no. 2 (2015): 267-288.

Rhodes, Jesse, Brian Schaffner, and Ray Raja. "Detecting and Understanding Donor Strategies in Midterm Elections." Political Research Quarterly 71, no. 3 (2018): 503-516.

Rofiq, Rofiq. "The Decline of Political Party Public Financing and the Emergence of Political Cartel in Indonesia: A Study of Partai Kebangkitan Bangsa." Proceedings of the First International Conference on Democracy and Social Transformation, ICON-DEMOST 2021, September 15, 2021, Semarang, Indonesia. 2022.

Rowbottom, Jacob. Democracy Distorted. (Cambridge: Cambridge University Press, 2010).

Rubenstein, Jennifer. "Small Money Donating as Democratic Politics." Perspectives on Politics 20, no. 3 (2021): 965-982.

Ruiz, Nelson. “The Power of Money. The Consequences of Electing a Donor Funded Politician”. SSRN, March 8, (2017). Available at SSRN http://dx.doi.org/10.2139/ssrn.3123592

Sartori, Giovanni. "Party Types, Organisation, and Functions." West European Politics 28, no. 1 (2005): 5-32.

Sayarı, Sabri. Clientelism and patronage in Turkish politics and society. (Istanbul: Istanbul Bilgi Universitesi Yayınları, 2011).

Scambary, James. "Robbing Peter to pay Paul: changing clientelist patterns in East Timor’s 2017 parliamentary elections." Democratization 26, no. 7 (2019): 1114-1131.

Scarrow, Susan E. "Party subsidies and the freezing of party competition: Do cartel mechanisms work?." West European Politics 29, no. 4 (2006): 619-639.

Schemmel, Christian. "How (Not) to Criticise the Welfare State." Journal of Applied Philosophy 32, no. 4 (2015): 393-409.

Schnurr, Emily. "Role of Money in Campaigns and Elections." Routledge Handbook of Election Law. (London: Routledge, 2022), pp. 147-159

Singer, Matthew. "Buying voters with dirty money: The relationship between clientelism and corruption." APSA 2009 Toronto Meeting Paper, 2009.

Smirnova, Valeria. "Why Make Political Finance Transparent? Explaining the Group of States Against Corruption (GRECO)’s in Reforming National Political Finance Regulation." European Political Science Review 10, no. 4 (2018): 565-588.

Speck, Brumo Wilhelm. "Money in Politics: Sound Political Competition and Trust in Government." In Policy Forum on Restoring Trust in Government: Addressing Risks of Influence in Public Decision Making, hosted by the Public Sector Integrity Network, OECD, Paris, 14-15 November 2013.

Stănescu, Simona Maria. Raport de recomandări al economiei sociale: România 2013. (Bucureşti: ADD Media Communication, 2013).

Stratmann, Thomas. "Some talk: Money in politics. A (partial) review of the literature." Public Choice 124, no. 1 (2005): 135-156.

Stuckatz, Jan. "How the Workplace Affects Employee Political Contributions." American Political Science Review 116, no. 1 (2021): 54-69.

Sule, Bashir, Mohammed A. Sani, and Bahrom Mat. "Godfatherism and Political Party Financing in Nigeria: Analysing the 2015 General Election." Geografia: Malaysian Journal of Society and Space 14, no. 1 (2018): 1-14.

Teehankee, Julio C. "Clientelism and party politics in the Philippines." Party Politics in Southeast Asia. (London: Routledge, 2012), pp. 186-214.

Thailand, Organic Law on Political Parties, 2017.

Tham, Joo-Cheong. "Of Aliens, Money and Politics: Should Foreign Political Donations Be Banned?." King's Law Journal 28, no. 2 (2017): 262-278.

The Philippines, Omnibus Election Code, (revised 2013)

The Philippines, Philippine Election Code (revised 2013)

Tolley, Erin, Randy Besco, and Simone Sevi. "Who Controls the Purse Strings? A Longitudinal Study of Gender and Donations in Canadian Politics." Politics & Gender 18, no. 1 (2020): 244-272.

United Kingdom, Law on Political Parties and Referendums Act 2000, https://www.legislation.gov.uk/ukpga/2000/41/pdfs/ukpga_20000041_en.pdf

United States United States Code, Title 2, The Congress.

Vallejo, Ana. "Unequal Resources, Unequal Careers: The Role of Campaign Financing in the Gender Gap in Candidates’ Persistence in Brazil." Political Research Quarterly 77, no. 2 (2024): 633-646.

Van Biezen, Ingrid, and Petr Kopecký. "The state and the parties: public funding, public regulation and rent-seeking in contemporary democracies." Party Politics 13, no. 2 (2007): 235-254.

Van Biezen, Ingrid, and Richard S. Katz. "Democracy and Political Parties." Paper Presented for the workshop ‘Democracy and Political Parties’, ECPR Joint Sessions, 2005, Granada, 14-19 April.

Van Biezen, Ingrid. "How Political Parties Shape Democracy." Paper presented at the International Conference of Europeanists, Chicago, Center for the Study of Democracy at University of California, 2004, 1-15.

Van Biezen, Ingrid. "Party Financing in New Democracies." Party Politics 6, no. 3 (2000): 329-342.

Van Biezen, Ingrid. Financing Political Parties and Election Campaigns Guidelines. (Germany: Council of Europe Publishing, 2003).

Williams, Robert. "Aspects of Party Finance and Political Corruption." In Party Finance and Political Corruption. (London: Palgrave Macmillan UK, 2000), pp. 1-13.

Winters, Jeffrey A. "Oligarchy and Democracy in Indonesia." Indonesia 96, no. 1 (2013): 11-33.

Downloads

Article ID

14457

Published

31-10-2024

How to Cite

“Promoting the Principle of Political Equality: Reformulation of Private Funding Source Regulations for Indonesian Political Parties”. 2024. Journal of Law and Legal Reform 5 (3): 1067-1128. https://doi.org/10.15294/jllr.v5i3.14457.