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What Foreigners Should Be Aware of About the
New KUHP
Legal Brief
Overview on New Indonesian Penal Code
Backgrounds
A H R P L e g a l B r i e f
1
At present, the Indonesian government has just carried out criminal law reform, which is expected to bring
about changes in the legal system in order to form a legal culture that supports better societal procedures
and business activities.
This year, on January 2, 2023, the President of the Republic of Indonesia, Joko Widodo, approved the draft
law on the criminal law code to become Law Number 1 of 2023 concerning 2023 ("New KUHP"). The
ratification of the old KUHP was made and ratified with the aim of realizing the 1945 national criminal law of
the Unitary State of the Republic of Indonesia as well as the general legal principles recognized by the
people of nations to replace the Criminal Code inherited from the Dutch East Indies colonial government.
Consideration point (a) of New KUHP.
Efforts to reform the Kitab Undang-Undang Hukum Pidana/Criminal Code (hereinafter
referred to as “Old KUHP") in Indonesia is aimed for renewal and review of three main
issues in the law: (i) formulation of conducts which are considered as criminal acts, (ii)
criminal responsibility from the offender, both by natural person and corporate, and (iii)
type of crimes and applicable action against such.
Muliadi dan Diah Sulistyani, “Pertanggungjawaban Pidana Korporasi”, PT Alumni Bandung, 2013.
2
In the New KUHP, several provisions have been added and updated which are applicable
not only for Indonesian citizens, including entity, but also for foreign citizens and foreign
entities that needs to be obeyed in conducting any activity which is related to Indonesia’s
territory, citizens, government, regardless of where the concerned act takes place.
In this way, it is hoped that the application of the New KUHP as a form of criminal law
reform in Indonesia can avoid social concerns as well as to enhance protection, security,
and peace in the life of the nation and society.
3
The Purpose of Reforming KUHP
The reformation of criminal law post-independence has been actively discoursed since the enactment of Law Number 1 of
1946 on Criminal Law Provisions (“Law No. 1/1946”) which was announced on 26 February 1946. In Article 5 Law No.
1/1946, it is emphasized that states that, “criminal law provision – which is wholly or partially inoperable, or against the
status of Republic of Indonesian as independent state, or no longer has its meaning – has to be considered as wholly or
temporarily partially invalid.” The intentions behind the reformation of criminal law are as follows:
Criminal law in Old KUHP is no longer able to be the general basis of criminal law, norms
and values of criminal law. This is because the general provisions (Book I Old KUHP),
general criminal norms of crimes (Book II Old KUHP) and violations (Book III Old KUHP)
are no longer relevant to the growth of national criminal law and basic criminal knowledge.
The application of Iex specialis principle which creates obscure legal certainty with the
existence of 2 (two) special criminal laws, for instance on Law on Corruption Criminal
Conduct.
There had been no living law which was comprehensively formulated. This may hamper
the justice for society due to the fact that customary laws are still effectively applicable so
long as they are not in contradiction with Pancasila and Human Rights, and general law
principles as recognized across states.
Draft academic paper on RUU KUHP by National Legal Development Body of Ministry of Law and Human Rights, page 4.
Draft academic paper on RUU KUHP by National Legal Development Body of Ministry of Law and Human Rights, page 261-265.
A H R P L e g a l B r i e f
The enactment and enforcement of New KUHP
A H R P L e g a l B r i e f
6 D E C E M B E R 2 0 2 2
T h e Ho u s e o f R e p r e s e n t a t i v e s o f t h e R e p u b l i c o f In d o n e s i a ( “ D P R ” ) a n d t h e In d o n e s i a n G o v e r n m e n t
h a v e a p p r o v e d t h e Ne w K UHP t o b e c o m e r e g u l a t i o n s
2 J AN U AR Y 2 0 2 3
T h e Ne w K UHP h a s b e e n l e g a l i ze d
1
2
3
B E L E ID P E R I O D
T r a n s i t i o n a l p e r i o d f o r t h e n e xt 3 ( t h r e e ) y e a r s s i n c e i t wa s l e g a l i ze d a s n a t i o n a l c r i m i n a l l a w
What will the Indonesian Governmentdo during the transitionalperiod?
During the transitional period of 3 (three) years, government shall ensure that society and legal
enforcers able to correctly comprehend the New KUHP, for the sake of just and correct legal
enforcement. It is necessary for the government to ensure the preparation and execution of
New KUHP, predominantly on executionary regulations and all instrument and other
supporting infrastructure.
During the transitional period of 3 (three) years, government shall conduct
socialization, both by Ministry of Law and Human Rights and team of House of
Representatives, to legal enforcers, society, and universities to explain the
philosophical concept and other necessary issues.
Bambang Wuryano, Head of Commission III House of Representatives, in press conference on the
enactment regarding decision upon RUU KUHP di House of Representatives office dated 6 December 2022.
Yasona Laoly, Minister of Law and Human Rights, in press conference on the enactment regarding
decision upon RUU KUHP di House of Representatives office dated 6 December 2022.
A H R P L e g a l B r i e f
Application Scheme for the New KUHP upon the Occurring
Criminal Cases
1
Applicable law againstthe ongoing cases/criminalproceedings
In the event of any amendment to the laws and regulations after the conduct occurred,
the new laws and regulations shall be applicable, with the exception if the provisions of
the obsolete laws and regulations are beneficial to the offender and accomplice of the
crime.
Art. 3 (1) New KUHP
What if the alleged criminalconductis no longer consideredas crime in the
New KUHP regime?
(1) In the event that the act that occurred is no longer a crime in accordance with the new laws and regulations, the legal proceeding
against suspects or defendants must be terminated by operation of law;
(2) In the event that the provision as above is applied to suspects or defendants in detentions, the suspects or defendants must be
released by the authorized officials in accordance with the inspection level.
Art. 3 (2) jo. Art. 3 (3) New KUHP
1
What if the crime concernedin a legally binding decisionis no longer
consideredas crime in the New KUHP regime?
In the event that after the criminal decision has had a legal binding decision and the action that occurred is
no longer a crime in accordance with the new laws and regulations, the implementation of the criminal
decision will be abolished.
Art. 3 (4) New KUHP
In the event that the criminal decision has had a legal binding decision as referred to in above, the
institution or official conducting the release shall be the authorized institution or official.
Art. 3 (5) New KUHP
In the event that after the criminal decision has had a legal binding decision and the actions that occur are
threatened with a lighter sentence according to the new laws and regulations, the implementation of the
criminal decision shall be adjusted to the criminal threshold according to the new laws and regulations.
Art. 3 (7) New KUHP
The release as referred to in Article 3
(3) and (5) of New KUHP does not
give rise to the right of the suspect,
defendant or convict to demand
compensation.
Art. 3 (6) New KUHP
Applicable Principles and Acknowledgement
of Customary Laws in Indonesia
A H R P L e g a l B r i e f
Principlesthat
should be
aware of by
foreigner
Criminal provisions in the law shall be applicable to any person who committed:
a. Crime within the territory of the Unitary State of the Republic of Indonesia;
b. Crime in Indonesian ship or Indonesian aircraft; or
c. Crime in the field of information technology or other crimes which consequences are experienced or occurred
within the territory of the Unitary State of the Republic of Indonesia or in Indonesian ship or Indonesian
aircraft.
Territoriality Principle – Article 4 of New KUHP
Criminal provisions in the law shall be applicable to any person outside of the territory of the Unitary State of the
Republic of Indonesia who committed a crime against the interest of the Unitary State of the Republic of
Indonesia related to:
a. state security or state administration process;
b. dignity of the President, Vice President, and/or Indonesian officials abroad;
c. currency, seal, state stamp, stamp duty, or securities issued by Indonesian government, or credit card
issued by Indonesian banking;
d. Indonesian economy, trading, and banking;
e. sailing and aviation safety or security;
f. safety or security of buildings, equipment, and national assets or the state of Indonesia;
g. safety or security of electronic communication system;
h. Indonesian national interests as stipulated in the law; or
i. Indonesian citizens based on international agreement with the country where the crime occurred.
Protectiveand Passive Nationality Principles – Article 5 of New KUHP
Article 6 of New KUHP:
Criminal provisions in the law shall be applicable to any person who is located outside of the territory of the
Unitary State of the Republic of Indonesia who committed a crime pursuant to international laws that has been
stipulated as a crime in the law.
Article 7 of New KUHP:
Criminal provisions in the Law shall be applicable to any person who committed a crime outside of the territory of
the Unitary State of the Republic of Indonesia whose prosecution is taken over by the Indonesian government on
the basis of an international agreement which authorizes the Indonesian government to carry out criminal
prosecutions.
Universality Principle– Article 6 & Article 7 of New KUHP
New KUHP shall not diminish the enforceability of the
laws that live in the community which determine whether a
person should be sentenced even though such act is not
regulated in New KUHP.
Art. 2 (1) of New KUHP
The laws that live in the community, shall be applicable at
the place where the laws live and as long as not regulated
in this Law and in accordance with the values contained in
Pancasila, the 1945 Constitution of the Republic of
Indonesia, human rights, and general principles of law
recognized by the nations.
Art. 2 (2) of New KUHP
Recognitionof the New KUHP that
lives in society
Types of Criminal Sanctions and the Aggravation of Criminal Sanctions
Aggravation to
Criminal
Sanctions
Primary Sanctions
Imprisonment Fines
Closed Imprisonment Community Sanction*
Supervised Probation*
The aggravations
mentioned are applied in
the form of additional 1/3
(one-third) from the
maximum of criminal
sanctions concerned.
State Official who conducts criminal action which violates his/her exclusive official
obligation or abuses its authority, opportunity, or facilities provided by its official status.
The use of national flag, national anthem, and other national
attributes of Indonesia criminal actions take place.
The repetition of criminal actions.
Factorswhich mightaffect the aggravationof sanctions:
Additional Sanctions
Pursuant to Article 66 (2) of New KUHP, additional sanctions may be given in the event that
the criminal sanctions charged as mentioned above do not satisfy the aim of criminalizing the
conduct of the concerned convicted. Article 66 (1) of New KUHP further specifies the types of
additional sanctions as follows:
In Old KUHP, primary sanctions comprise of death penalty,
imprisonment, detention, fines, and closed imprisonment. Article 65
of New KUHP specifies the primary sanctions as follows:
Revocation of
Certain Rights
Confiscation of Objects
and/or Payables
Obligation to Adhere to
Certain Customary Obligations
Public Announcement
of Judge Decision
Compensation
Revocation of Licenses
What about death penalty?
The New KUHP has the tendency to avoid death penalty sanction.
As reflected from Article 98 Jo. Article 99 of New KUHP, death
penalty may only be charged for alternative means of punishment
to give deterrent impact to the society and can only be conducted
after the clemency/pardon request is not granted by the President.
Article 100 of New KUHP further states that judge may charge
death penalty with probation period of 10 (ten) years by
considering the following conditions:
a. Whether there is remorse felt by the accused and whether
there is a hope for the accused for self-improvement; or
b. role of the accused in the respective criminal conduct.
Supervised Probation is aimed for counseling out of the prison and/or institution and is not
applicable for heavy-sanctioned criminal conduct. Meanwhile, community sanction is
aimed for criminal conduct punishable by less than 5 (five) years and where the judge
eventually charges such conduct not beyond 6 (six) months or fines with maximum
amount of Rp10.000.000,- (ten million Rupiah)
01
02
03
04
05
Art. 75 Jo. Art. 85 (1) of New KUHP
a. preventing criminal conduct by upholding legal norms for the
sake of protection and public encouragement;
b. encouraging the convict as a part of society through means of
guidance and mentoring to transform the convicted as a good
and beneficial human being;
c. resolving conflict derives from criminal conduct, restoring
balance, as well as building the feeling of secure and peace
within the society; and
d. emerging the feeling of remorse and liberating the guilt from the
convicted.
What are the aims for criminalization?
Art. 51 of New KUHP
Art. 58 Jo. Art. 59 of New KUHP
A H R P L e g a l B r i e f
Corporate as the Subject of Criminal Law
A H R P L e g a l B r i e f
Based on New KUHP, corporate is considered as criminal law subject, which can be criminally held accountable. The corporate as criminal law subject is emphasized
as the New KUHP expands the definition of “Every Person”, which does not only refer to human beings, but also to corporate. Corporate is further defined as any
company, foundation, cooperation, state-owned enterprise, regional-owned enterprise, as well as any association in the form of legal entity or non-legal entity,
enterprise in the form of firm, limited partnership, or any of its equivalent in accordance with the laws and regulations.
As explained in the Point (5) of Elucidation of Chapter I of New KUHP, corporate is often utilized as a medium to conduct criminal action and to earn advantages
through the means of criminal actions. Hence, it is only appropriate to consider corporate as a sole actor of criminal conduct. The accountability of corporate in
criminal conducts in terms of primary sanctions is in the form of fines, and may be added with additional sanctions which comprise of:
Compensation
Repairment in
relation to the
concerned criminal
conduct
Implementation of
obligations
which were
not fulfilled
Obligation to
adhere
to certain
customary
obligations
Financing for Job Trainings
Confiscation of objects
and/or payables
Public announcement
of judge decision
Revocation of certain
licenses (maximum
lasts for 2 year)
Permanent prohibition
over certain conducts
Closing of the whole
or partial place of
business and/or
entity activities
(maximum
lasts for 2 year)
Freezing of the whole or
partial business activities
(maximum
lasts for 2 year)
Dissolution of an entity
Art. 45 Jo. Art. 145 of New KUHP
Art. 119 Jo. Art. 120 of New KUHP
Corporate Criminal Conduct
A H R P L e g a l B r i e f
Previously, corporate criminal act was elaborated through Supreme Court Regulation Number 13 of 2016 on Procedures to
Settle Criminal Acts Committed by Corporations. Article 45 until Article 50 of the New KUHP has formulated a comprehensive
set of rules in classifying criminal conducts as corporate criminal conducts.
Scope Conditions Responsible Parties
Corporate Criminal Conduct is a criminal
conduct by the administrator(s) of an
entity which has the functional position
and functional structure or any person
who has employment relationship and
other relationship which allows him/her to
act on behalf of an entity or for the
interest of an entity, within the scope of
business and activities of such entity,
whether conducted individually or
together with others who have
relationship with the entity as referred
above.
A conduct can also be considered as
corporate criminal conduct when such
act is executed by the one who
commands a conduct, the controlling
party(ies), or beneficial owner(s) which is
not within the entity’s structure yet still
able to control the entity.
Responsibility upon a criminal conduct
may be held against an entity, by fulfilling
the following conditions:
a. such conduct is included within the
scope of business or activities as
determined by the entity’s article of
association or other provisions which
are applicable to such entity;
b. illegally benefits the entity ;
c. such conduct is recognized as
company’s policy;
d. the entity does not take any
necessary preventive step, step to
prevent bigger impact, and to ensure
its conformity with the applicable laws
to prevent any criminal conduct to
take place; and/or
e. the entity lets the criminal conduct
happens.
Corporate criminal conduct may not only
be held responsible against the entity
itself, but also to the administrator(s) who
has the functional position, the
commander(s) of such conduct, the
controlling party(ies) and/or beneficial
owner(s) of an entity.
Art. 46 Jo. Art. 47 of New KUHP
Art. 48 of New KUHP
Art. 49 of New KUHP
• Law Number 32 of 2009 on Environmental Protection
and Management of as amended by Law Number 6 of
2023.
• Law Number 8 of of 2010 on Prevention and
Eradication of Money Laundering.
• Law Number 31 of 1999 concerning Corruption
Eradication as amended in Law Number 20 of 2001.
• Law Number 13 of 2006 on Witness and Victim
Protection as amended in Law Number 31 of 2014.
Related special criminal acts
Criminal Provisions to be Aware of in Relation to Corporate Activities
In essence, Book II of New KUHP reemphasizes criminal regulations which have already been specified in the Old KUHP, with additional elements of
criminal actions, and new regulations which has not been specified in the Old KUHP. Below are the key points of types of criminal conducts as
regulated in Book II of New KUHP which are significant for corporate activities along with their comparison to existing regulation under the Old KUHP:
01
Letter
Forgery
Criminal conduct of letter forgery has already been regulated in Articles 263 and
264 of Old KUHP. Through the New KUHP, it is now regulated in Articles 391 and
392 of New KUHP.
Pursuant to Article 391 of New KUHP, criminal conduct of letter forgery may also
be charged with fine in maximum amount of Rp2.000.000.000,- (two billion
Rupiah), which applies alternatively as the substitute for imprisonment of 6 (six)
years.
Further, Article 392 of New KUHP expands types of letter forgery which may be
punishable by maximum 8 (eight) years of imprisonment, as specified below:
• Authentic deed • Letter of credit or bearer of note
• Obligation or bond issued by a
state or part of it or by a public
institution
• Statement letter on status over
land rights
• Shares, bond, certificate of
shares, bon certificate from an
organization, foundation,
company, or firm
• Talon, certificate of dividend or
interest of bond or other proof(s)
issued as the substitute of such
certificate.
• Other securities which are
determined in the applicable laws
02
Disclosing Corporate’s
Confidential Information
The New KUHP Draft regulates heavier criminal sanctions for those who disclose
any information of his/her current or former workplace. For those who disclose
information that should be confidential, be that current or past confidential
information, due to his/her official position, profession, or task being given by
government institution, may be punishable by imprisonment of maximum 1 (one)
year or may be fined in the maximum amount of Rp50.000.000,- (fifty million
Rupiah). Meanwhile, for those who disclose any classified confidential information
on the company he/she works or worked for, may be punishable by imprisonment
of maximum 2 (two) year or may be fined in the maximum amount
of Rp50.000.000,- (fifty million Rupiah).
03 Embezzlement
Embezzlement conduct is regulated in Article 372 of Old KUHP and Article 486 of
New KUHP, which comprise of similar elements, as well as similar criminal
sanctions for maximum imprisonment of 4 (four) year. The difference lies on the
maximum fine. In Article 372 of the Old KUHP, the maximum amount of fine was
Rp900,- (nine hundred Rupiah), meanwhile in Article 486 of New KUHP is in the
amount of Rp200.000.000,- (two hundred million Rupiah), applicable in alternative
manner as the substitute for imprisonment.
Art. 443 (1) Jo. Art. 444 (1) of New KUHP
04 Fraud
Fraud conduct is regulated in Article 378 Old KUHP and Article 492 of New KUHP
Draft, which comprise of similar elements, as well as similar criminal sanction for
maximum imprisonment of 4 (four) years. The difference lies on the criminal
sanction regulated in Article 492 of the New KUHP, in sanction in the form fine in
the maximum amount of Rp500.000.000,- (five hundred million Rupiah) is
applicable in alternative manner as the substitute for imprisonment.
A H R P L e g a l B r i e f
Special Criminal Conducts:
Unification on Provisions of Corruption and Money Laundering (1/2)
Corruption Conduct
Regulation on corruption conduct has been exclusively regulated in Law No. 31 of 1999 concerning Corruption Eradication as amended in Law No. 20 of 2001
(“Law No. 30/1999”). The New KUHP regulates the types of criminal conduct which were previously specified in Law No. 30/1999, in which both regulations
comprise of similar legal norm with different criminal sanctions as specified below:
“Violating the law through enrichment of him/herself, other people,
or entity, which inflicts State’s financial loss.”
“Benefitting him/herself, other people, or entity by abusing his/her authorities,
opportunities or medium provided through his/her official status, which
resulted in State’s financial losses.”
Article 603 of New KUHP
May be punishable by the followings:
- Life Imprisonment; or
- Minimum imprisonment of 2 (two) years and maximum
imprisonment of 20 (twenty) years; and
- Minimum fine of Rp10.000.000,- (ten million Rupiah) and
maximum fine of Rp2.000.000.000,- (two billion Rupiah).
Article 604 of New KUHP
May be punishable by the followings:
- Life Imprisonment; or
- Minimum imprisonment of 2 (two) years and maximum
imprisonment of 20 (twenty) years; and /or
- Minimum fine of Rp10.000.000,- (ten million Rupiah) and
maximum fine of Rp2.000.000.000,- (two billion Rupiah).
Article 605 (1) of New KUHP
“Giving or promising something to civil servants or state officials with
the intention that they would conduct or not conduct something
within their official capacities, which are against their
responsibilities; or giving something to the civils servants or state
officials due to or in relation with something against their
responsibilities.”
May be punishable by the followings:
- Minimum imprisonment of 1 (one) year and maximum
imprisonment of 5 (five) years; and
- Minimum fine of Rp50.000.000,- (fifty million Rupiah) and
maximum fine of Rp 250.000.000,- (twenty million Rupiah).
Article 605 (2) of New KUHP
“Civil servants or state officials who give promise or any equivalent act with
the intention to conduct or not conduct something within their official
authorities, which are against their responsibilities; or civil servants or
state officials who receive something due to or in relation of something
against their responsibilities.”
May be punishable by the followings:
- Minimum imprisonment of 1 (one) year and maximum
imprisonment of 6 (six) years; and
- Minimum fine of Rp50.000.000,- (fifty million Rupiah) and
maximum fine of Rp 250.000.000,- (twenty million Rupiah).
A H R P L e g a l B r i e f
Special Criminal Conducts:
Unification on Provisions of Corruption and Money Laundering (2/2)
“Gifting or promising civil servants or state official due to their authorities
or capabilities attached to their official status or considered as in relation
to thereof.”
May be punishable by maximum fine of Rp200.000.000,- (two
hundred million Rupiah) and maximum imprisonment of 3 (three)
years.
Article 604 of New KUHP
Article 605 (1) of New KUHP Article 605 (2) of New KUHP
Article 606 (1) of New KUHP Article 606 (2) of New KUHP
“Civil servants or state officials who accept gift or promise something in
which such action shall be considered as in relation to their authorities or
capabilities of their official status, or considered by the parties who provide
gifts or receive promise is in relation to their official status.”
May be punishable by maximum fine of Rp200.000.000,- (two hundred
million Rupiah) and maximum imprisonment of 4 (four) years.
Money Laundering Conduct
The regulations concerning money laundering are exclusively regulated in Law No. 8 of 2010 on Prevention and Eradication of Money Laundering (“Law
No. 8/2010”). The New KUHP regulates criminal conduct of money laundering which was previously regulated by Law No. 8/2010, in which both
regulations comprise of similar legal norm with different criminal sanctions as specified below:
Article 607 (1) (a) New KUHP
“Placing, transferring, switching, spending, financing, granting, entrusting,
bringing the money or securities out of the country, exchanging the
money with other currencies, or any other act against the assets known
or should be considered as a result of criminal conduct with the purpose
of hiding or disguising the origin of such assets.”
May be punishable by maximum fine of Rp2.00.000.000,- (two billion
Rupiah) and maximum imprisonment of 15 (fifteen) years.
Article 607 (1) (b) New KUHP
“Hiding or disguising the origins, sources, locations, the usages, transfer
of rights, or ownership which actually known or should be known that
such assets derive from criminal conducts.”
May be punishable by maximum fine of Rp5.00.000.000,- (five billion
Rupiah) and maximum imprisonment of 15 (fifteen) years.
Article 607 (1) (c) New KUHP
“Accepting or controlling of a placement, transferring, financing, granting,
donating, entrusting, exchanging, or using assets which are known or should
be known deriving from criminal conducts.”
May be punishable by maximum fine of Rp2.00.000.000,- (two billion
Rupiah) and maximum imprisonment of 5 (five) years.
A H R P L e g a l B r i e f
We will continue to follow the developments on this topic and provide additional information as it becomes
available. If you have any questions on this topic, please contact:
Adnan
adnan@ahrplaw.com
Dinda Maylinda Suhendra
dinda@ahrplaw.com
Indira Jauhara Pratiwi
indira@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee concerning
the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your
circumstances before deciding to take any action.
World Capital Tower 19th floor
Jl. Mega Kuningan Barat No.3, Kuningan
Jakarta 12950 Indonesia
P: +6221 50917915
+6221 50917916
E: office@ahrplaw.com
www.ahrplaw.com

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Overview On New Indonesian Panel Code

  • 1. What Foreigners Should Be Aware of About the New KUHP Legal Brief Overview on New Indonesian Penal Code
  • 2. Backgrounds A H R P L e g a l B r i e f 1 At present, the Indonesian government has just carried out criminal law reform, which is expected to bring about changes in the legal system in order to form a legal culture that supports better societal procedures and business activities. This year, on January 2, 2023, the President of the Republic of Indonesia, Joko Widodo, approved the draft law on the criminal law code to become Law Number 1 of 2023 concerning 2023 ("New KUHP"). The ratification of the old KUHP was made and ratified with the aim of realizing the 1945 national criminal law of the Unitary State of the Republic of Indonesia as well as the general legal principles recognized by the people of nations to replace the Criminal Code inherited from the Dutch East Indies colonial government. Consideration point (a) of New KUHP. Efforts to reform the Kitab Undang-Undang Hukum Pidana/Criminal Code (hereinafter referred to as “Old KUHP") in Indonesia is aimed for renewal and review of three main issues in the law: (i) formulation of conducts which are considered as criminal acts, (ii) criminal responsibility from the offender, both by natural person and corporate, and (iii) type of crimes and applicable action against such. Muliadi dan Diah Sulistyani, “Pertanggungjawaban Pidana Korporasi”, PT Alumni Bandung, 2013. 2 In the New KUHP, several provisions have been added and updated which are applicable not only for Indonesian citizens, including entity, but also for foreign citizens and foreign entities that needs to be obeyed in conducting any activity which is related to Indonesia’s territory, citizens, government, regardless of where the concerned act takes place. In this way, it is hoped that the application of the New KUHP as a form of criminal law reform in Indonesia can avoid social concerns as well as to enhance protection, security, and peace in the life of the nation and society. 3
  • 3. The Purpose of Reforming KUHP The reformation of criminal law post-independence has been actively discoursed since the enactment of Law Number 1 of 1946 on Criminal Law Provisions (“Law No. 1/1946”) which was announced on 26 February 1946. In Article 5 Law No. 1/1946, it is emphasized that states that, “criminal law provision – which is wholly or partially inoperable, or against the status of Republic of Indonesian as independent state, or no longer has its meaning – has to be considered as wholly or temporarily partially invalid.” The intentions behind the reformation of criminal law are as follows: Criminal law in Old KUHP is no longer able to be the general basis of criminal law, norms and values of criminal law. This is because the general provisions (Book I Old KUHP), general criminal norms of crimes (Book II Old KUHP) and violations (Book III Old KUHP) are no longer relevant to the growth of national criminal law and basic criminal knowledge. The application of Iex specialis principle which creates obscure legal certainty with the existence of 2 (two) special criminal laws, for instance on Law on Corruption Criminal Conduct. There had been no living law which was comprehensively formulated. This may hamper the justice for society due to the fact that customary laws are still effectively applicable so long as they are not in contradiction with Pancasila and Human Rights, and general law principles as recognized across states. Draft academic paper on RUU KUHP by National Legal Development Body of Ministry of Law and Human Rights, page 4. Draft academic paper on RUU KUHP by National Legal Development Body of Ministry of Law and Human Rights, page 261-265. A H R P L e g a l B r i e f
  • 4. The enactment and enforcement of New KUHP A H R P L e g a l B r i e f 6 D E C E M B E R 2 0 2 2 T h e Ho u s e o f R e p r e s e n t a t i v e s o f t h e R e p u b l i c o f In d o n e s i a ( “ D P R ” ) a n d t h e In d o n e s i a n G o v e r n m e n t h a v e a p p r o v e d t h e Ne w K UHP t o b e c o m e r e g u l a t i o n s 2 J AN U AR Y 2 0 2 3 T h e Ne w K UHP h a s b e e n l e g a l i ze d 1 2 3 B E L E ID P E R I O D T r a n s i t i o n a l p e r i o d f o r t h e n e xt 3 ( t h r e e ) y e a r s s i n c e i t wa s l e g a l i ze d a s n a t i o n a l c r i m i n a l l a w What will the Indonesian Governmentdo during the transitionalperiod? During the transitional period of 3 (three) years, government shall ensure that society and legal enforcers able to correctly comprehend the New KUHP, for the sake of just and correct legal enforcement. It is necessary for the government to ensure the preparation and execution of New KUHP, predominantly on executionary regulations and all instrument and other supporting infrastructure. During the transitional period of 3 (three) years, government shall conduct socialization, both by Ministry of Law and Human Rights and team of House of Representatives, to legal enforcers, society, and universities to explain the philosophical concept and other necessary issues. Bambang Wuryano, Head of Commission III House of Representatives, in press conference on the enactment regarding decision upon RUU KUHP di House of Representatives office dated 6 December 2022. Yasona Laoly, Minister of Law and Human Rights, in press conference on the enactment regarding decision upon RUU KUHP di House of Representatives office dated 6 December 2022.
  • 5. A H R P L e g a l B r i e f Application Scheme for the New KUHP upon the Occurring Criminal Cases 1 Applicable law againstthe ongoing cases/criminalproceedings In the event of any amendment to the laws and regulations after the conduct occurred, the new laws and regulations shall be applicable, with the exception if the provisions of the obsolete laws and regulations are beneficial to the offender and accomplice of the crime. Art. 3 (1) New KUHP What if the alleged criminalconductis no longer consideredas crime in the New KUHP regime? (1) In the event that the act that occurred is no longer a crime in accordance with the new laws and regulations, the legal proceeding against suspects or defendants must be terminated by operation of law; (2) In the event that the provision as above is applied to suspects or defendants in detentions, the suspects or defendants must be released by the authorized officials in accordance with the inspection level. Art. 3 (2) jo. Art. 3 (3) New KUHP 1 What if the crime concernedin a legally binding decisionis no longer consideredas crime in the New KUHP regime? In the event that after the criminal decision has had a legal binding decision and the action that occurred is no longer a crime in accordance with the new laws and regulations, the implementation of the criminal decision will be abolished. Art. 3 (4) New KUHP In the event that the criminal decision has had a legal binding decision as referred to in above, the institution or official conducting the release shall be the authorized institution or official. Art. 3 (5) New KUHP In the event that after the criminal decision has had a legal binding decision and the actions that occur are threatened with a lighter sentence according to the new laws and regulations, the implementation of the criminal decision shall be adjusted to the criminal threshold according to the new laws and regulations. Art. 3 (7) New KUHP The release as referred to in Article 3 (3) and (5) of New KUHP does not give rise to the right of the suspect, defendant or convict to demand compensation. Art. 3 (6) New KUHP
  • 6. Applicable Principles and Acknowledgement of Customary Laws in Indonesia A H R P L e g a l B r i e f Principlesthat should be aware of by foreigner Criminal provisions in the law shall be applicable to any person who committed: a. Crime within the territory of the Unitary State of the Republic of Indonesia; b. Crime in Indonesian ship or Indonesian aircraft; or c. Crime in the field of information technology or other crimes which consequences are experienced or occurred within the territory of the Unitary State of the Republic of Indonesia or in Indonesian ship or Indonesian aircraft. Territoriality Principle – Article 4 of New KUHP Criminal provisions in the law shall be applicable to any person outside of the territory of the Unitary State of the Republic of Indonesia who committed a crime against the interest of the Unitary State of the Republic of Indonesia related to: a. state security or state administration process; b. dignity of the President, Vice President, and/or Indonesian officials abroad; c. currency, seal, state stamp, stamp duty, or securities issued by Indonesian government, or credit card issued by Indonesian banking; d. Indonesian economy, trading, and banking; e. sailing and aviation safety or security; f. safety or security of buildings, equipment, and national assets or the state of Indonesia; g. safety or security of electronic communication system; h. Indonesian national interests as stipulated in the law; or i. Indonesian citizens based on international agreement with the country where the crime occurred. Protectiveand Passive Nationality Principles – Article 5 of New KUHP Article 6 of New KUHP: Criminal provisions in the law shall be applicable to any person who is located outside of the territory of the Unitary State of the Republic of Indonesia who committed a crime pursuant to international laws that has been stipulated as a crime in the law. Article 7 of New KUHP: Criminal provisions in the Law shall be applicable to any person who committed a crime outside of the territory of the Unitary State of the Republic of Indonesia whose prosecution is taken over by the Indonesian government on the basis of an international agreement which authorizes the Indonesian government to carry out criminal prosecutions. Universality Principle– Article 6 & Article 7 of New KUHP New KUHP shall not diminish the enforceability of the laws that live in the community which determine whether a person should be sentenced even though such act is not regulated in New KUHP. Art. 2 (1) of New KUHP The laws that live in the community, shall be applicable at the place where the laws live and as long as not regulated in this Law and in accordance with the values contained in Pancasila, the 1945 Constitution of the Republic of Indonesia, human rights, and general principles of law recognized by the nations. Art. 2 (2) of New KUHP Recognitionof the New KUHP that lives in society
  • 7. Types of Criminal Sanctions and the Aggravation of Criminal Sanctions Aggravation to Criminal Sanctions Primary Sanctions Imprisonment Fines Closed Imprisonment Community Sanction* Supervised Probation* The aggravations mentioned are applied in the form of additional 1/3 (one-third) from the maximum of criminal sanctions concerned. State Official who conducts criminal action which violates his/her exclusive official obligation or abuses its authority, opportunity, or facilities provided by its official status. The use of national flag, national anthem, and other national attributes of Indonesia criminal actions take place. The repetition of criminal actions. Factorswhich mightaffect the aggravationof sanctions: Additional Sanctions Pursuant to Article 66 (2) of New KUHP, additional sanctions may be given in the event that the criminal sanctions charged as mentioned above do not satisfy the aim of criminalizing the conduct of the concerned convicted. Article 66 (1) of New KUHP further specifies the types of additional sanctions as follows: In Old KUHP, primary sanctions comprise of death penalty, imprisonment, detention, fines, and closed imprisonment. Article 65 of New KUHP specifies the primary sanctions as follows: Revocation of Certain Rights Confiscation of Objects and/or Payables Obligation to Adhere to Certain Customary Obligations Public Announcement of Judge Decision Compensation Revocation of Licenses What about death penalty? The New KUHP has the tendency to avoid death penalty sanction. As reflected from Article 98 Jo. Article 99 of New KUHP, death penalty may only be charged for alternative means of punishment to give deterrent impact to the society and can only be conducted after the clemency/pardon request is not granted by the President. Article 100 of New KUHP further states that judge may charge death penalty with probation period of 10 (ten) years by considering the following conditions: a. Whether there is remorse felt by the accused and whether there is a hope for the accused for self-improvement; or b. role of the accused in the respective criminal conduct. Supervised Probation is aimed for counseling out of the prison and/or institution and is not applicable for heavy-sanctioned criminal conduct. Meanwhile, community sanction is aimed for criminal conduct punishable by less than 5 (five) years and where the judge eventually charges such conduct not beyond 6 (six) months or fines with maximum amount of Rp10.000.000,- (ten million Rupiah) 01 02 03 04 05 Art. 75 Jo. Art. 85 (1) of New KUHP a. preventing criminal conduct by upholding legal norms for the sake of protection and public encouragement; b. encouraging the convict as a part of society through means of guidance and mentoring to transform the convicted as a good and beneficial human being; c. resolving conflict derives from criminal conduct, restoring balance, as well as building the feeling of secure and peace within the society; and d. emerging the feeling of remorse and liberating the guilt from the convicted. What are the aims for criminalization? Art. 51 of New KUHP Art. 58 Jo. Art. 59 of New KUHP A H R P L e g a l B r i e f
  • 8. Corporate as the Subject of Criminal Law A H R P L e g a l B r i e f Based on New KUHP, corporate is considered as criminal law subject, which can be criminally held accountable. The corporate as criminal law subject is emphasized as the New KUHP expands the definition of “Every Person”, which does not only refer to human beings, but also to corporate. Corporate is further defined as any company, foundation, cooperation, state-owned enterprise, regional-owned enterprise, as well as any association in the form of legal entity or non-legal entity, enterprise in the form of firm, limited partnership, or any of its equivalent in accordance with the laws and regulations. As explained in the Point (5) of Elucidation of Chapter I of New KUHP, corporate is often utilized as a medium to conduct criminal action and to earn advantages through the means of criminal actions. Hence, it is only appropriate to consider corporate as a sole actor of criminal conduct. The accountability of corporate in criminal conducts in terms of primary sanctions is in the form of fines, and may be added with additional sanctions which comprise of: Compensation Repairment in relation to the concerned criminal conduct Implementation of obligations which were not fulfilled Obligation to adhere to certain customary obligations Financing for Job Trainings Confiscation of objects and/or payables Public announcement of judge decision Revocation of certain licenses (maximum lasts for 2 year) Permanent prohibition over certain conducts Closing of the whole or partial place of business and/or entity activities (maximum lasts for 2 year) Freezing of the whole or partial business activities (maximum lasts for 2 year) Dissolution of an entity Art. 45 Jo. Art. 145 of New KUHP Art. 119 Jo. Art. 120 of New KUHP
  • 9. Corporate Criminal Conduct A H R P L e g a l B r i e f Previously, corporate criminal act was elaborated through Supreme Court Regulation Number 13 of 2016 on Procedures to Settle Criminal Acts Committed by Corporations. Article 45 until Article 50 of the New KUHP has formulated a comprehensive set of rules in classifying criminal conducts as corporate criminal conducts. Scope Conditions Responsible Parties Corporate Criminal Conduct is a criminal conduct by the administrator(s) of an entity which has the functional position and functional structure or any person who has employment relationship and other relationship which allows him/her to act on behalf of an entity or for the interest of an entity, within the scope of business and activities of such entity, whether conducted individually or together with others who have relationship with the entity as referred above. A conduct can also be considered as corporate criminal conduct when such act is executed by the one who commands a conduct, the controlling party(ies), or beneficial owner(s) which is not within the entity’s structure yet still able to control the entity. Responsibility upon a criminal conduct may be held against an entity, by fulfilling the following conditions: a. such conduct is included within the scope of business or activities as determined by the entity’s article of association or other provisions which are applicable to such entity; b. illegally benefits the entity ; c. such conduct is recognized as company’s policy; d. the entity does not take any necessary preventive step, step to prevent bigger impact, and to ensure its conformity with the applicable laws to prevent any criminal conduct to take place; and/or e. the entity lets the criminal conduct happens. Corporate criminal conduct may not only be held responsible against the entity itself, but also to the administrator(s) who has the functional position, the commander(s) of such conduct, the controlling party(ies) and/or beneficial owner(s) of an entity. Art. 46 Jo. Art. 47 of New KUHP Art. 48 of New KUHP Art. 49 of New KUHP • Law Number 32 of 2009 on Environmental Protection and Management of as amended by Law Number 6 of 2023. • Law Number 8 of of 2010 on Prevention and Eradication of Money Laundering. • Law Number 31 of 1999 concerning Corruption Eradication as amended in Law Number 20 of 2001. • Law Number 13 of 2006 on Witness and Victim Protection as amended in Law Number 31 of 2014. Related special criminal acts
  • 10. Criminal Provisions to be Aware of in Relation to Corporate Activities In essence, Book II of New KUHP reemphasizes criminal regulations which have already been specified in the Old KUHP, with additional elements of criminal actions, and new regulations which has not been specified in the Old KUHP. Below are the key points of types of criminal conducts as regulated in Book II of New KUHP which are significant for corporate activities along with their comparison to existing regulation under the Old KUHP: 01 Letter Forgery Criminal conduct of letter forgery has already been regulated in Articles 263 and 264 of Old KUHP. Through the New KUHP, it is now regulated in Articles 391 and 392 of New KUHP. Pursuant to Article 391 of New KUHP, criminal conduct of letter forgery may also be charged with fine in maximum amount of Rp2.000.000.000,- (two billion Rupiah), which applies alternatively as the substitute for imprisonment of 6 (six) years. Further, Article 392 of New KUHP expands types of letter forgery which may be punishable by maximum 8 (eight) years of imprisonment, as specified below: • Authentic deed • Letter of credit or bearer of note • Obligation or bond issued by a state or part of it or by a public institution • Statement letter on status over land rights • Shares, bond, certificate of shares, bon certificate from an organization, foundation, company, or firm • Talon, certificate of dividend or interest of bond or other proof(s) issued as the substitute of such certificate. • Other securities which are determined in the applicable laws 02 Disclosing Corporate’s Confidential Information The New KUHP Draft regulates heavier criminal sanctions for those who disclose any information of his/her current or former workplace. For those who disclose information that should be confidential, be that current or past confidential information, due to his/her official position, profession, or task being given by government institution, may be punishable by imprisonment of maximum 1 (one) year or may be fined in the maximum amount of Rp50.000.000,- (fifty million Rupiah). Meanwhile, for those who disclose any classified confidential information on the company he/she works or worked for, may be punishable by imprisonment of maximum 2 (two) year or may be fined in the maximum amount of Rp50.000.000,- (fifty million Rupiah). 03 Embezzlement Embezzlement conduct is regulated in Article 372 of Old KUHP and Article 486 of New KUHP, which comprise of similar elements, as well as similar criminal sanctions for maximum imprisonment of 4 (four) year. The difference lies on the maximum fine. In Article 372 of the Old KUHP, the maximum amount of fine was Rp900,- (nine hundred Rupiah), meanwhile in Article 486 of New KUHP is in the amount of Rp200.000.000,- (two hundred million Rupiah), applicable in alternative manner as the substitute for imprisonment. Art. 443 (1) Jo. Art. 444 (1) of New KUHP 04 Fraud Fraud conduct is regulated in Article 378 Old KUHP and Article 492 of New KUHP Draft, which comprise of similar elements, as well as similar criminal sanction for maximum imprisonment of 4 (four) years. The difference lies on the criminal sanction regulated in Article 492 of the New KUHP, in sanction in the form fine in the maximum amount of Rp500.000.000,- (five hundred million Rupiah) is applicable in alternative manner as the substitute for imprisonment. A H R P L e g a l B r i e f
  • 11. Special Criminal Conducts: Unification on Provisions of Corruption and Money Laundering (1/2) Corruption Conduct Regulation on corruption conduct has been exclusively regulated in Law No. 31 of 1999 concerning Corruption Eradication as amended in Law No. 20 of 2001 (“Law No. 30/1999”). The New KUHP regulates the types of criminal conduct which were previously specified in Law No. 30/1999, in which both regulations comprise of similar legal norm with different criminal sanctions as specified below: “Violating the law through enrichment of him/herself, other people, or entity, which inflicts State’s financial loss.” “Benefitting him/herself, other people, or entity by abusing his/her authorities, opportunities or medium provided through his/her official status, which resulted in State’s financial losses.” Article 603 of New KUHP May be punishable by the followings: - Life Imprisonment; or - Minimum imprisonment of 2 (two) years and maximum imprisonment of 20 (twenty) years; and - Minimum fine of Rp10.000.000,- (ten million Rupiah) and maximum fine of Rp2.000.000.000,- (two billion Rupiah). Article 604 of New KUHP May be punishable by the followings: - Life Imprisonment; or - Minimum imprisonment of 2 (two) years and maximum imprisonment of 20 (twenty) years; and /or - Minimum fine of Rp10.000.000,- (ten million Rupiah) and maximum fine of Rp2.000.000.000,- (two billion Rupiah). Article 605 (1) of New KUHP “Giving or promising something to civil servants or state officials with the intention that they would conduct or not conduct something within their official capacities, which are against their responsibilities; or giving something to the civils servants or state officials due to or in relation with something against their responsibilities.” May be punishable by the followings: - Minimum imprisonment of 1 (one) year and maximum imprisonment of 5 (five) years; and - Minimum fine of Rp50.000.000,- (fifty million Rupiah) and maximum fine of Rp 250.000.000,- (twenty million Rupiah). Article 605 (2) of New KUHP “Civil servants or state officials who give promise or any equivalent act with the intention to conduct or not conduct something within their official authorities, which are against their responsibilities; or civil servants or state officials who receive something due to or in relation of something against their responsibilities.” May be punishable by the followings: - Minimum imprisonment of 1 (one) year and maximum imprisonment of 6 (six) years; and - Minimum fine of Rp50.000.000,- (fifty million Rupiah) and maximum fine of Rp 250.000.000,- (twenty million Rupiah). A H R P L e g a l B r i e f
  • 12. Special Criminal Conducts: Unification on Provisions of Corruption and Money Laundering (2/2) “Gifting or promising civil servants or state official due to their authorities or capabilities attached to their official status or considered as in relation to thereof.” May be punishable by maximum fine of Rp200.000.000,- (two hundred million Rupiah) and maximum imprisonment of 3 (three) years. Article 604 of New KUHP Article 605 (1) of New KUHP Article 605 (2) of New KUHP Article 606 (1) of New KUHP Article 606 (2) of New KUHP “Civil servants or state officials who accept gift or promise something in which such action shall be considered as in relation to their authorities or capabilities of their official status, or considered by the parties who provide gifts or receive promise is in relation to their official status.” May be punishable by maximum fine of Rp200.000.000,- (two hundred million Rupiah) and maximum imprisonment of 4 (four) years. Money Laundering Conduct The regulations concerning money laundering are exclusively regulated in Law No. 8 of 2010 on Prevention and Eradication of Money Laundering (“Law No. 8/2010”). The New KUHP regulates criminal conduct of money laundering which was previously regulated by Law No. 8/2010, in which both regulations comprise of similar legal norm with different criminal sanctions as specified below: Article 607 (1) (a) New KUHP “Placing, transferring, switching, spending, financing, granting, entrusting, bringing the money or securities out of the country, exchanging the money with other currencies, or any other act against the assets known or should be considered as a result of criminal conduct with the purpose of hiding or disguising the origin of such assets.” May be punishable by maximum fine of Rp2.00.000.000,- (two billion Rupiah) and maximum imprisonment of 15 (fifteen) years. Article 607 (1) (b) New KUHP “Hiding or disguising the origins, sources, locations, the usages, transfer of rights, or ownership which actually known or should be known that such assets derive from criminal conducts.” May be punishable by maximum fine of Rp5.00.000.000,- (five billion Rupiah) and maximum imprisonment of 15 (fifteen) years. Article 607 (1) (c) New KUHP “Accepting or controlling of a placement, transferring, financing, granting, donating, entrusting, exchanging, or using assets which are known or should be known deriving from criminal conducts.” May be punishable by maximum fine of Rp2.00.000.000,- (two billion Rupiah) and maximum imprisonment of 5 (five) years. A H R P L e g a l B r i e f
  • 13. We will continue to follow the developments on this topic and provide additional information as it becomes available. If you have any questions on this topic, please contact: Adnan adnan@ahrplaw.com Dinda Maylinda Suhendra dinda@ahrplaw.com Indira Jauhara Pratiwi indira@ahrplaw.com This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your circumstances before deciding to take any action. World Capital Tower 19th floor Jl. Mega Kuningan Barat No.3, Kuningan Jakarta 12950 Indonesia P: +6221 50917915 +6221 50917916 E: office@ahrplaw.com www.ahrplaw.com