• Instgram
  • LinkeIn
  • Lexologoy

The New Criminal Code/Kitab Undang-undang Hukum Pidana (“KUHP”) Passed

2023年02月17日(金)

We published a newsletter regardingThe New Criminal Code/Kitab Undang-undang Hukum Pidana (“KUHP”) Passed.
To view the PDF version, please click the following link.

The New Criminal Code/Kitab Undang-undang Hukum Pidana (“KUHP”) Passed

 

The New Criminal Code/Kitab Undang-undang Hukum Pidana (“KUHP”) Passed

February 2023
One Asia Lawyers Indonesia Office
Koji Umai Lawyer(Japan)
Yusuke Tomofuji Lawyer(state of New York, USA)
Prisilia Sitompul Lawyer (Indonesia)

1.Introduction

On December 6, 2022, the Indonesian House of Representatives/Dewan Perwakilan Rakyat (“DPR“) finally passed the Draft Law on the Criminal Code/KUHP, which will replace the current KUHP. The new KUHP is stipulated in Law No. 1 of 2023 on the Criminal Code (“New KUHP”). This New KUHP was promulgated on January 2, 2023, and entered into force after 3 (three) years from the date of promulgation, January 2, 2026.

The New KUHP consists of 2 (two) books. The First Book contains general rules as guidelines for the application of the Second Book as well as Laws outside the new KUHP, such as Provincial Regulations, and Regency/City Regional Regulations unless otherwise specified. The New KUHP attempts to update the criminal law in Indonesia and revolutionize the current Indonesian criminal law regime.

2.Highlights of the matter:

A. The New KUHP will revise and repeal several criminal offenses in certain laws, such as: 

・Law No. 31 of 1999 on the Eradication of Corruption as amended by Law No. 20 of 2001 (“Law 31/1999”)

Corruption Act

Sanctions

New KUHP

Law 31/1999

Unlawful acts to enrich oneself, others, or corporations result in financial or economic losses to the country.

Imprisonment: for life or between two and twenty years

Fine: between a Category II fine (max. of Rp 10 million) and a Category VI fine (max. of Rp 2 billion) (Article 603 and 604)

 

Imprisonment: for life or between two and twenty years

Fine: between Rp. 200 million to Rp. 1 billion.

(Article 2 paragraph (1))

Obtaining benefits for oneself or others or corporations by abusing authority, opportunities, or facilities and obtaining benefits through positions that result in financial losses or the state economy.

Imprisonment: for life or between one and twenty years

Fine: between Rp. 50 million and Rp. 1 billion

(Article 3)

One of the following activities:

1. Giving or promising something to a civil servant or state administrator with the intention that the civil servant or state administrator performs or does not perform certain activities in his/her position that are contrary to his/her obligations; or

 

2. Giving something to a civil servant or state organizer because of or in connection with something contrary to obligations, which is done or not done in his/her office.

The party who committed the act (Article 605 paragraph (1))

Imprisonment: between one and five years

Fine: between Category III (max. of Rp 50 million) and Category V (max. of Rp 500 million)

Imprisonment: between one and five years

Fine: max. of Rp. 50 million to Rp. 250 million

(Article 5)

The state organizer who received the thing/promise (Article 605 paragraph (2))

Imprisonment: between one and six years

Fine: between a Category III fine (max. of Rp 50 million) and a Category V fine (max. of Rp 500 million)

Giving gifts or promises to civil servants or state administrators because of the power or authority attached to their position or position.

The party who committed the act (Art. 606 paragraph (1))

Imprisonment: up to three years

Fine: Category IV (max. of Rp 200 million)

 

Imprisonment: max. of three years

Fine: max. of Rp. 150 million

(Article 13)

The state organizer who received the thing/promise (Art. 606 paragraph (2))

Imprisonment: up to four years

Fine: Category IV (max. of Rp 200 million)

 

Imprisonment: between one and five years

Fine: max. of Rp. 50 million to Rp. 250 million

(Article 11)

* After the New Criminal Code becomes effective, references to existing articles in Law 31/1999 will be replaced with articles related to corruption crimes in the New KUHP.

・Law No. 8 of 2010 on the Prevention and Eradication of the Crime of Money Laundering (“Law 8/2010”)

Money Laundering Crimes

Asset Sources

Sanctions

New KUHP

Law 8/2010

Committing one of the following acts concerning assets suspected or reasonably suspected of originating from a criminal offense to conceal or keep secret the source of such assets:

1) Placing; 2) Transferring; 3) Transferring; 4) Spending; 5) Paying; 6) Gifting; 7) entrust; 8) bring abroad; 9) change the form; and 10) redeem with currency or securities. (Art. 607 paragraph (1) letter (a).

26 specific criminal offenses regulated in the Act as a source of assets classified as derived from criminal acts, as stipulated in Art. 607 paragraph (2) including Corruption; Bribery; Labor smuggling; Migrant smuggling; Criminal acts in capital markets; Gambling; and so on.

Imprisonment: max. of fifteen years

Fine: Category VII (max. of Rp 5 billion)

Imprisonment: max. of twenty years

Fine: max. of Rp. 10 billion

(Article 3)

Conceal or disguise the origin, source, location, allocation, transfer of rights, or actual ownership of an asset suspected or reasonably suspected of originating from a criminal offence. (Art. 607 paragraph (1) letter (b).

Imprisonment: Max. of fifteen years

Fine: Category VI (max. of Rp 2 billion)

Imprisonment: max. of twenty years

Fine: max. of Rp. 5 billion

(Article 4)

Take a receipt or control over an asset as referred to at the top of this table. (Art. 607 paragraph (1) letter (c).

Imprisonment: max. of five years

Fine: Category VI (max. of Rp2 billion)

Imprisonment: max. of five years

Fine: max. of Rp. 1 billion

(Article 5 paragraph (1))

* After the New Criminal Code becomes effective, references to existing articles in Law 8/2010 will be replaced with articles related to corruption crimes in the New KUHP.

 Refer to Article 79 (1) of the New KUHP, a maximum criminal fine shall be determined based on Category:

I

II

III

IV

Rp.1,000,000.00 (one million rupiah)

Rp.10,000,000.00 (ten million rupiah)

Rp.50,000,000.00 (fifty million rupiah)

Rp.200,000,000.00 (two hundred million   rupiah)

V

 

VI

VII

VIII

Rp.500,000,000.00 (five hundred million rupiah)

Rp.2,000,000,000.00 (two billion rupiah)

Rp.5,000,000,000.00 (five billion rupiah)

Rp.50,000,000,000.00 (fifty billion rupiah)

・Law No. 11 of 2008 on Electronic Information and Transactions as amended by Law No. 19 of 2016 (“Law 11/2008”)

Concerning Law 11/2008, one of the key changes in the New KUHP is to introduce criminal sanctions for anyone who “disseminates criminal content through information technology” or “broadcasts”, which includes transmitting, distributing, and making accessible digital information and documents on digital platforms. This provision does not make it clear whether this will affect the extent to which the owner/operator of the platform on which the information or document is disseminated can be held liable.

B. Corporate Criminal Liability

Who are the parties included in the corporation?

A corporation is the subject of a criminal offense. The parties included in the corporation are 1) Legal Entities, such as Limited Liability Companies, Cooperatives, and State/Regional Owned Enterprises, and 2) Partnerships, both incorporated and unincorporated, such as the Commanditaire Vennootsschap (“CV“). In addition, corporate crime can also be committed by the commanders, controllers, or beneficial owners of the Corporation who are outside the organizational structure but can control the Corporation.

What actions can a corporation be held accountable for?

1) Included in the scope of business or activities of the corporation, as stipulated in the Articles of Association (“AoA“) or other applicable provisions; 2) Unlawfully benefiting the corporation; 3) Accepted as corporate policy; 4) The corporation does not take the necessary steps to take precautions, prevent more significant impact, and ensure compliance with applicable legal provisions to avoid the occurrence of criminal acts; and/or 5) A corporation intentionally allows a criminal act to occur.

What are the sanctions for such actions?

It is divided into two types of sentences, Principal and Additional.

–    Principal Sentences, such as criminal fines (Article 119 of the New KUHP)

In the form of a fine with the following amounts: 1) Subject to a max. of Rp. 200 million if there is no other determining law; 2) For criminal acts with a max. imprisonment under seven years, max. of Rp 2 billion; 3) For criminal acts with a max. imprisonment of 7 to 15 years: a max. of Rp. 5 billion; and 4) For crimes with the death penalty or life, as well as a max. imprisonment of 20 years: a max. of Rp 50 billion.

–   Additional sentences, such as payment of compensation; remedy for the consequences of Crimes; implementation of obligations that have been neglected; fulfillment of customary obligations; financing of job training; confiscation of Goods or profits obtained from Crimes; announcement of the court decision; revocation of specific licenses; a permanent ban on certain actions; the closure of all or part of the places of business and/or activities of Corporations; suspension of all or part of the business activities of Corporations; and dissolution of Corporations (Article 120 of the New KUHP).

C. Controversial Articles

Some articles that are considered controversial and still being debated among the public include: Articles on insulting the president; insulting state institutions; living together without marriage; Morality; Death Penalty; Contempt of Court Process; Religious Crimes; Articles on Communism, Leninism, and Marxism; Public Opinion; Articles related to contraceptive education are considered to have the potential to criminalize those who educate on reproductive health; and Witchcraft Crime. These articles are considered to violate freedom of speech, democracy, and human rights.

3. Conclusion

Most of the provisions set out in the New KUHP are essentially the same as those in the current KUHP. However, the new KUHP will be effective three years later, in 2026, so the companies can still keep an eye out for any changes to the articles in the New KUHP. If there are changes to the New KUHP, it is likely related to several articles still being debated or controversial among the public.