Mass fraud is an increasingly prevalent economic crime in Indonesia, involving sophisticated schemes such as Ponzi investments, fictitious savings, and digital scams that have caused systemic financial losses to society. Although criminal proceedings often result in the incarceration of perpetrators, the rights of victims, especially restitution and compensation, remain neglected. This research examined the development of a fair recovery model for victims of mass fraud within Indonesia’s legal system, integrating theories of justice (Rawls), victimology, and restorative justice. The normative-juridical approach employed in this study was supported by a comparative analysis of successful victim compensation frameworks from the Netherlands and Canada, including the Schadefonds Geweldsmisdrijven and the Criminal Injury Compensation Program. Findings indicate that Indonesia’s current legal mechanisms—such as Article 98 KUHAP and Law No. 31/2014 on Witness and Victim Protection—are substantively progressive but practically ineffective due to regulatory gaps, bureaucratic complexity, and lack of victim-oriented enforcement. The study proposes a victim-centric recovery model through: (1) the establishment of a state-managed Victim Compensation Fund; (2) the integration of restitution into prosecutorial practice by enhancing the role of public prosecutors as dominus litis; and (3) harmonizing criminal and civil procedures under a restorative justice paradigm. This conceptual reconstruction aims to shift Indonesia’s penal policy from perpetrator-focused punishment to a balanced system that ensures substantive justice and comprehensive recovery for victims of mass fraud.
Arisanti et al. (Wed,) studied this question.