Indonesia's New Criminal Code Bolsters Corporate Accountability

Indonesia's new Criminal Code introduces significant advancements in corporate accountability with Articles 45-49, according to DPR RI member Bambang Soesatyo (Bamsoet). These provisions are designed to dismantle corporate crimes that have often evaded justice by hiding behind legal structures.

Bamsoet explained that under the National KUHP, corporations are no longer viewed merely as business entities. They can now face criminal liability if they benefit from criminal acts or permit such acts within their operational scope. This move is intended to provide legal certainty and bolster the accountability of healthy businesses.

The new articles offer hope that the law will target not only the individuals signing documents but also the masterminds behind the operations. Bamsoet emphasized that effective law should hold those in control accountable without unfairly penalizing legitimate businesses. The true test of Articles 45-49 lies in their ability to penetrate corporate facades without stifling entrepreneurial spirit.

These changes mark a pivotal moment in Indonesian criminal law reform. The recognition of corporations as subjects of criminal law addresses the evolving nature of economic crimes. Previously, perpetrators often exploited complex corporate structures, making them difficult for law enforcement to reach. The old KUHP's focus on individual accountability was insufficient for these sophisticated offenses.

Bamsoet clarified that recognizing corporations as criminal subjects is not a threat to the business world. Instead, it ensures that companies with good governance receive legal protection, while those used for criminal activities can be held justly accountable. This update aims to tackle issues like corruption, money laundering, tax evasion, environmental crimes, and illegal trading, which are increasingly conducted through corporate channels.