Recent feuds involving law enforcement officials are considered not merely an internal issue, but a danger signal for Indonesia's economic stability. Rector of Paramadina University, Prof. Didik J. Rachbini, Ph.D., emphasized that incidents dragging in individuals within the Attorney General's Office and triggering tensions with the National Police reflect a systemic collapse within the country's legal institutions.
According to the senior INDEF economist, the quality of legal institutions is a crucial pillar for national economic performance. He highlighted that amid global competition, a poor legal system creates uncertainty that hampers efficiency, innovation, and investment interest. Without legal certainty, the ambitious target of 8 percent economic growth is deemed difficult to achieve.
Referring to the Coase Theorem, Didik explained that weak laws generate extremely high transaction costs for the business world. In conditions where contracts are difficult to enforce and property rights are not well protected, economic actors will be hindered by complex negotiation processes and unnecessary additional costs, thereby reducing Indonesia's competitiveness in the eyes of international investors.
Didik analogized the current situation of law enforcement institutions to the metaphor "a fish rots from the head down." He assessed that law enforcement officials should serve as a fortress of legal certainty, but are instead entangled in a vortex of corruption that tarnishes institutional credibility. This phenomenon creates a risk of a "vote of no confidence" from the market, which will automatically drive foreign capital away from Indonesia.
As a concrete step, he urged President Prabowo to take decisive action beyond administrative sanctions. He stressed that a thorough clean-up of the relevant institutions is required to restore the authority of the rule of law. For him, the integrity of law enforcement leadership is now at a crossroads that will determine the future of the nation's economic stability.
