THE CONSTITUTIONAL COURT TRANSFERS THE AUTHORITY TO DEVELOP AND ORGANIZE TAX COURT FROM THE MINISTRY OF FINANCE TO THE SUPREME COURT
The Constitutional Court (“MK”) in Decision Number 26/PUU-XXI/2023 ruled that as long as the phrase “Department of Finance” in Article 5 Paragraph
2 of Law 14/2022 concerning the Tax Court is contrary to the 1945 Constitution and does not have binding legal force as long as it does not mean “The Supreme Court (“MA”), which will be implemented in stages no later than 31 December 2026,” so that
Article 5 paragraph (2) of Law 14/2002 reads in full, “Organizational, administrative and financial development for the Tax Court is carried out by MA which will be carried out in stages no later than 31 December 2026”;
The Constitutional Court’s decision is based on the changes to Law 48/2009, which explains that special lawsuits are lawsuits under the Supreme Court,
including tax lawsuits. Article 24 of the 1945 Constitution also regulates judicial powers so that the tax court should be under the purview of the Supreme Court. The development of the organization of the content of the Tax Court at the Ministry of Finance,
Ministry of Finance, is contrary to the principle of independent judicial power as guaranteed by Article 24 paragraph (1) of the 1945 Constitution. This has also given rise to legal disputes and injustice.
The Constitutional Court opines that it is necessary to carry out a “one roof system” in the Tax Court, where judicial technical guidance, as well
as organizational, administrative, and financial development, are fully under the authority of the Supreme Court, without any interference from other institutions. By realizing a one-roof justice system, a judicial body will be obtained which is free from
the influences of other parties, which will prove the function of the judiciary, which provides justice independently that can be enjoyed by seekers of justice and justice and legal certainty that is expected and trusted by the public.
Source: The explanation above is taken from the Constitutional Court Decision Number 26/PUU-XXI/2023, which can be accessed at
https://www.mkri.id/public/content/persidangan/decitan/decision_mkri_9022_1685002508.pdf
Best regards
Fredrik J. Pinakunary
