Technical Rules on Corporate Punishment in the New Criminal Code Compiled

Directorate-General of Laws and Regulations (“DJPP”) of the Ministry of Law (“Ministry”) is currently preparing Draft Regulation of the Government (“Draft Regulation”) on the Implementation of Corporate Criminal Offenses in the new Criminal Code, namely Law No. 1 of 2023 on the Criminal Code. This regulation is projected to ensure that corporations are treated as equal subjects of law in terms of criminal liability.

“The Criminal Code does regulate criminal offenses against corporations, but the procedures for its implementation have not been regulated in detail. This will be further regulated in a regulation of the government,” said Daniel Agus Dinar, Junior Legal Analyst, Directorate of Design, DJPP of the Ministry to Hukumonline.

He also emphasized the importance of the Draft Regulation to prevent the avoidance of criminal liability through business restructuring. The regulation of criminal liability in merger, consolidation, or spin-off of corporation is intended to ensure that changes in corporate structure do not become a loophole for avoiding criminal liability.

“For individuals, we will finalize the Draft Regulation on Criminal Enforcement by the end of January. Meanwhile, discussions on corporations have already begun,” he added.