Mark Forbes – Indonesia is planning to abolish its anti-corruption court in a move likely to reduce sentences for graft, prompting a walkout by watchdog groups which had been helping to draw up the new law.

A team formed by the Justice Minister, Hamid Awaluddin, is completing a bill to sack specialist anti-corruption judges and order graft trials be held in the Supreme and District courts. But Indonesian Corruption Watch claims these changes will curtail President Susilo Bambang Yudhoyono's drive to eliminate corruption, leaving anti-corruption agencies toothless.

"The anti-corruption court has been very powerful, important and credible," the watchdog's coordinator, Danang Widiyoko, said. "But now the system will be erased."

Established three years ago, the court has handed down tough sentences against 20 people. The draft bill reduces the role of the Corruption Eradication Commission and would dissolve the court which normally hears the commission's cases, Mr Widiyoko said.

The head of the World Bank's Indonesian governance unit, Joel Hellman, said both institutions were proving effective in combating corruption and "we would like to see them continue".

The chairman of the team drafting the anti-corruption law, Andi Hamzah, accused the court's ad hoc judges – those not seconded from other courts – of not knowing their jobs – a statement described by a court spokesman as "an insult". Most of the 21 ad hoc judges had more than 20 years experience as judges, prosecutors and lawyers, he said.

Mr Widiyoko urged the President, who he said has spoken about the importance of combating corruption, to intervene.

[With Karuni Rompies.]