In this regard, prior to the introduction of the PDP Law, no comprehensive law was previously available to regulate personal data protection in both electronic and non-electronic systems.It is inevitable that the Industrial Revolution 4.0 era will open up a new chapter in people’s lives. Currently, most needs can be accessed through digital platforms. In terms of these digital platforms, one of the most important sectors is undoubtedly trade, including purchase and sales activities that are completed online through various types of e-commerce.Through e-commerce, buyers can enjoy various conveniences and can order goods without the need to travel, get stuck in traffic jams or jostle on shop floors. Given the effectiveness and convenience on offer, it's no wonder that people now prefer to complete purchase and sales transactions through e-commerce.However, e-commerce businesses generally require users to create accounts and to provide various types of personal information, including their full names, email addresses, mobile phone numbers, home addresses and so on. These requirements create a legal obligation for e-commerce businesses to protect these types of personal data. Sadly though, news and media reports frequently cover stories of personal data leaks.This phenomenon is inseparable from the vulnerability of personal data security systems and the lack of enforceable comprehensive personal data protection policies. Based on the findings of Katadata.co.id, during the second quarter of 2022, over 1 million accounts experienced user data leaks. This figure demonstrates a significant increase in comparison with the first quarter of 2022, with only around 430,000 accounts experiencing user data leaks.1The absence of any comprehensive law that addressed the protection of personal data before the passing of Law Number 27 of 2022 on Personal Data Protection (or the PDP Law) was one of the triggers behind the low commitment of various stakeholders to making efforts to protect personal data.Furthermore, provisions on criminal sanctions were not specifically regulated under Regulation of the Minister of Communication and Informatics Number 20 of 2016 on Personal Data Protection Systems.Electronic devices and systems previously made law enforcement relating to personal data breaches less than optimal. In this regard, minimal regulation, combined with personal data protections that were regulated on a sectoral basis meant that business actors did not yet have any standards in place for the processing of personal data.Some examples of the complexities involved in the regulation of personal data prior to the introduction of the PDP Law include personal data protection within the e-commerce sector, as addressed under&nbsp;<a href="https://www.hukumonline.com/pusatdata/detail/v2/lt5de6396abe483/peraturan-pemerintah-nomor-80-tahun-2019/document">Regulation of the Government of the Republic of Indonesia Number 80 of 2019 on Trade Through Electronic Systems.&nbsp;</a>Within the financial technology sector, personal data protections are regulated under the following regulations:<ol style="list-style-type:decimal;"><li><a href="https://www.hukumonline.com/pusatdata/detail/v2/lt60efe13945898/peraturan-bank-indonesia-nomor-23-6-pbi-2021-tahun-2021/document">Regulation of Bank Indonesia Number 23/6/PBI/2021 of 2021 on Payment Service Providers</a></li><li><a href="https://www.hukumonline.com/pusatdata/detail/v2/lt62ce684f3bf66/peraturan-otoritas-jasa-keuangan-nomor-10-pojk05-2022-tahun-2022/document">Regulation of the Financial Services Authority of the Republic Indonesia Number 10/POJK.05/2022 of 2022 on Information Technology-Based Co-founding Services</a></li><li><a href="https://www.hukumonline.com/pusatdata/detail/v2/lt5b83c9b938cb0/peraturan-otoritas-jasa-keuangan-nomor-13-pojk02-2018-tahun-2018/document">Regulation of the Financial Services Authority of the Republic of Indonesia Number 13/POJK.02/2018 of 2018 on Digital Financial Innovations Within The Financial Services Sector</a>, and many more.</li></ol>The PDP Law, as a comprehensive law&nbsp; on personal data protection, is required to be enforced across all levels of society. Alfons Tanujaya, a Cyber Security Expert at Cite Tirto.id, believes that the PDP Law can raise awareness of cyber security, as it relates to personal data, among personal data controllers and personal data processors .This goal should be possible since the regulation of personal data protection under the PDP Law is modelled on the European Union's General Data Protection Regulation ("GDPR"). In other words, the current PDP Law has introduced similar standards to those that are currently applied by other countries, especially through the GDPR.. There are several reasons why the PDP Law is considered more able to bind relevant parties and increase their awareness of personal data protection issues.Firstly, the PDP law mandates the establishment of a new institution to&nbsp; govern this area and will have authority over personal data protection. Consequently, this institution will hopefully reduce any overlap in the enforcement of personal data protection in Indonesia.&nbsp;&nbsp;Secondly, there is an obligation for Personal Data Controllers and Processors to hire Data Protection Officers (DPO) in order to carry out tasks relating to personal data protection.. This requirement indicates the urgency of implementing personal data protections in an effort to improve organization and accountability..Moreover, the PDP Law also sets&nbsp; stricter requirement in terms of the implementation of personal data protections in comparison with other existing regulations, including:<ol style="list-style-type:decimal;"><li>Provisions on criminal sanctions.</li><li>Possibility of transferring personal data both domestically and internationally .</li><li>Extraterritorial provisions, as set out under Article 2.</li><li>Administrative sanctions that include a maximum fine of 2% of annual income for variable violations, etc.</li></ol>Also, the presence of the PDP Law does not necessarily repeal personal data regulations that were previously regulated on a sectoral basis. Therefore, personal data regulations across each sector may still be enforced as long as&nbsp; articles and provisions set under those regulations are in line with the PDP Law. Thus, the implementation of these personal data regulations requires further scrutiny in order to ascertain whether they are in line with the requirements set under the PDP or not.Considering how scattered personal data protection regulations are in Indonesia,&nbsp; it must be a huge challenge for businesses to assess&nbsp; their personal data protection compliance, especially those who engage in more than one type of business activity. The PDP Law also mandates that all stakeholders must follow all requirements set under the GDPR by no later than October 17 2024.Technological Solutions for Legal Compliance Related to Personal Data ProtectionIn response to the complexities created by the PDP Law, Hukumonline is offering a technological solution known as the Regulatory Compliance System (RCS), which simplifies the processes involved in identifying, analyzing and understanding legal obligations that relate to personal data protection.How does the RCS do it?Monitoring Legal Obligations Through an All-in-One PlatformThe RCS can analyze and extract every legal obligation related to personal data protection, based both on the PDP Law and personal data protection provisions.<figure class="image"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/intuitive_dashboard_home_e224eed3f1.webp" alt="intuitive_dashboard_home.webp"></figure>Always up to Date with the Latest Regulatory UpdatesThrough RCS technology, business actors can easily monitor their company's level of legal compliance in real time.<figure class="image"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/automatic_content_home_6e3960db90.webp" alt="automatic_content_home.webp"></figure>Streamline Company Auditing ProcessesBy using the RCS, users can effortlessly compile legal compliance aspects, making it easier to conduct audits.<figure class="image"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/compliance_monitor_home_ad1ab1c64d.webp" alt="compliance_monitor_home.webp"></figure>With the advantages offered by RCS, business actors no longer need to worry about the legal risks associated with the PDP Law.What are you waiting for? Enjoy the benefits of the RCS now. For more information on the Regulatory Compliance System and to request a free demo, click&nbsp;<a href="https://rcs.hukumonline.com/?utm_source=website&amp;utm_medium=website_rcs_advertorial&amp;utm_campaign=website_rcs_use_cases_feb23_eng">here</a>.&nbsp;

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The PDP Law is the answer to issues that relate to personal data protection.

Through Darkness into Light: Personal Data Protection in Indonesia

In order to maintain company compliance, an HSE division should regularly monitor the applicable regulations, including Law No. 32/2009 on Environmental Protection and Management (UU 32/2009). The obligations that apply under Law 32/2009 are usually obligations that have a high priority within the company and which can result in criminal sanctions being imposed upon non-compliant corporations, including criminal sanctions for violations relating to quality standards, waste management and licensing.Unfortunately, regulatory monitoring, as implemented by HSE divisions, is often associated with its own challenges and difficulties. For example, any manual monitoring of regulations – which is usually completed by inputting a list of regulations and detailing the company's obligations using Microsoft Excel spreadsheets – may result in human errors, as well as being an inefficient allocation of both time and energy.Moreover, HSE divisions cannot see updates in real-time if they use this method. Also, in addition to obligations that are based on regulations, certain obligations relate to certain permits. Ultimately, a lack of HSE division resources can become a problem during attempts to monitor and keep abreast of updated regulations and the numerous obligations associated with them.For example, the issuance of the Job Creation Law (UU Ciptaker) has resulted in changes being made to many of the provisions originally set out under Law 32/2009. Indeed, the Ciptaker Law has resulted in the issuance of a new government regulation that introduces changes to the framework of Law 32/2009, namely Government Regulation No. 22/2021 on the Implementation of Environmental Protection and Management (PP 22/2021). This revision has ultimately resulted in the issuance of 180 amended obligations, 228 new obligations and 39 repealed obligations.Furthermore, PP 22/2021 is the original framework for the issuance of the following regulations:<ol style="list-style-type:decimal;"><li>Regulation of the Minister of Environment and Forestry Number 4 of 2021 on the List of Businesses and/or Activities Required to Produce Environmental Impact Analyses, 1. Environmental Management Efforts and Environmental Monitoring Efforts or Statements of Environmental Management and Monitoring Ability</li><li>Regulation of the Minister of Environment and Forestry Number 5 of 2021 on 2. Procedures for the Issuance of Technical Approvals and Operational Eligibility Letters Within the Field of Environmental Pollution Control</li><li>Regulation of the Minister of Environment and Forestry Number 6 of 2021 on Procedures and Requirements for the Management of Hazardous and Toxic Waste</li><li>Regulation of the Minister of Environment and Forestry Number 11 of 2021 on Quality Standards for Internal Combustion Engine Emissions</li><li>Regulation of the Minister of Environment and Forestry Number 12 of 2021 on Quality Standards for Lithium Battery Recycling Emissions</li><li>6. Minister of Environment and Forestry Regulation Number 13 of 2021 on Information Systems for the Continuous Monitoring of Industrial Emissions</li></ol>The issuance of implementing regulations for PP 22/2021 will result in many new obligations, amended obligations or revoked obligations, and these changes must be complied with by all affected companies.Moreover, the revision of the Ciptaker Law and its implementing regulations has not yet been concluded and, in November 2021, the Constitutional Court (MK), through the issuance of Decision Number 91/PUU-XVIII/2020, affirmed that the Copyright Act was conditional. The government was thus given two years to fix it and was banned from issuing any new derivative regulations for the time being. This means that for a maximum period of two years commencing November 2021, improvements will be formulated for the framework of the Ciptaker Law.These improvements will undoubtedly have an impact on various industries, including extractive industries. HSE Divisions will be expected to renew the list of regulations that relate to the relevant companies’ businesses, while at the same time detailing the company's obligations, as set under the relevant new regulations. The high expectations that companies have of their HSE divisions are thus becoming increasingly hard to meet given that all of these jobs often have to be undertaken manually and periodically.In accordance with our commitment to offering solutions for over two decades, Hukumonline is in the process of constructing a Regulatory Compliance System (RCS), an AI-based platform created in Indonesia that will be a useful solution to HSE problems or difficulties relating to everything from regulatory monitoring to mapping obligations to legal obligations that are in accordance with the scope or relevant line of business. The Automatic Content Update feature in the RCS makes it easy for HSE divisions to keep abreast of any regulatory updates and changes that are made in relation to the liabilities of extractive industries.<figure class="image"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/User_Regframe_Tree_fullview_topic_A_1_d88e9c0fad.png"></figure>However, beyond the level of basic obligations, a given licensing obligation may contain several actionable items that must be carried out by the PIC of the obligation. That's why our Obligation Checklist feature can also be used to make it easier to detail these items.<figure class="image"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/compliance_manager_as_auditor_b4afe48330.png"></figure>In addition, HSE divisions can also monitor the fulfillment of these obligations through the RCS’s Compliance Monitor feature.<figure class="image"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/image_34_b5c25486d0.png"></figure>

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For companies working within the extractive sector, their Health, Safety and Environment (HSE) divisions are at the forefront of regulatory compliance relating to the safety and security of their workforces, as well as to the environment.

Extractive Companies: Practical Implementation of Regulatory Updates in Line with Liability Levels

Wetboek van Strafrecht voor Nederlandsch Indie (WvSNI) or commonly known as the Criminal Code (KUHP) was first enacted in Indonesia in 1918.<a href="#_ftn1">[1]</a> After the proclamation of Indonesian independence in 1945, as mandated by Article II of the Transitional Rules of the 1945 Constitution, WvSNI remained in force so that it could fill a legal vacuum.&nbsp;WvSNI was later ratified as a codification of criminal laws in Indonesia pursuant to the Law Number 1 of 1946 regarding Indonesian Criminal Laws. Based on the regulation, WvSNI was changed to Wetboek van Strafrecht and it could be referred to as the Criminal Code (KUHP).<a href="#_ftn2">[2]</a>&nbsp;Now, more than 70 years after the independence, Indonesia finally has a new Criminal Code to supersede the old Criminal Code, which was a Dutch colonial heritage. The Law No. 1 of 2023 regarding the Criminal Code, which consists of 2 Books, 37 chapters, and 624 clauses and was passed into law on January 2, 2023 (“New Criminal Code”). The new Criminal Code will become effective 3 years after its enactment.&nbsp;One interesting issue in the New Criminal Code is related to legal subjects. Previously, the old Criminal Code recognized only humans (natural person) as a subject of criminal laws; and now the new Criminal Code specifies corporations as subjects of criminal laws.<a href="#_ftn3">[3]</a> Although the existence of corporations in criminal acts could actually be found in several laws and regulations, the author still finds it interesting to observe this issue because the New Criminal Code clearly affirms that corporations are legal subjects that can be held liable for committing a crime.&nbsp;&nbsp;It should be noted that in this regard, a corporation refers to both a legal entity and a non-legal entity. It includes a limited liability company, foundation, cooperative, state-owned enterprise, regionally-owned enterprise, and business entities such as a firm, limited partnership, or any equivalent entity in accordance with the laws and regulations.<a href="#_ftn4">[4]</a>&nbsp;&nbsp;In the author's observation, several types of criminal acts, for which corporations may be held liable, can be found from the New Criminal Code such as disclosure of confidential information, embezzlement, fraudulent acts, etc.&nbsp;Upon the introduction of corporations as criminal wrongdoers under the new Criminal Code, it is important for business actors to address issues relating to corporate crimes in order to maintain the business continuity and as a preventive measure against legal risks which can arise from any violation of the New Criminal Code. Therefore, it is important for corporations to raise an awareness to comply with the latest codification of criminal laws in Indonesia, particularly within the period of 3 years prior to the effectiveness of the new Criminal Code.&nbsp;&nbsp;Additionally, considering the massive provisions of the New Criminal Code, which consists of 624 clauses, issues are inevitable for companies which do not have a sufficient legal team to analyse the legal risks that may arise from the enactment of the New Criminal Code.&nbsp;&nbsp;Regulatory Compliance SystemThe Ultimate Solution for Monitoring Company Laws&nbsp;&nbsp;As a legal tech company which has been operating for more than 20 years in Indonesia, Hukumonline is offering the Regulatory Compliance System (RCS) as a web-based practical solution to comply with company laws on a systematic basis. Until 2023, RCS has been trusted by many companies from various industries ranging from state-owned enterprises to multinational companies.&nbsp;With more than 20 years of experience and a commitment to continue innovating and contributing to increase the legal literacy in the country, RCS can help corporations in overcoming issues such as the difficulty in monitoring numerous updates of local laws and regulations and the compliance with company laws.&nbsp;&nbsp;The New Criminal Code is only one of many legal products that have created complexities in laws applying to companies. Therefore, we believe that the utilization of RCS can become the right solution to satisfy the needs for complying company laws. In summary, the conveniences offered by RCS are as follows.&nbsp;Monitoring Legal Obligations via One Platform Only&nbsp;The compliance system offered by RCS can systematically map obligations and penalties so that it is expected to assist companies in understanding any potential legal risks from regulations which may have impacts on their businesses.&nbsp;&nbsp;<figure class="image"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/image_f2b7edcc8d.png"></figure>&nbsp;Stay Updated with Regulatory Amendments&nbsp;With the RCS technology, businesses can easily monitor their level of legal compliance currently or on a real-time basis so as to increase the compliance level.&nbsp;<figure class="image"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/image_741e034014.png"></figure>&nbsp;A More Efficient Process of Compliance Audits&nbsp;The compilation of legal compliance matters in a systematic and comprehensive manner via the RCS will give users an additional value and make it easier to carry out audits.&nbsp;<figure class="image"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/image_8c9d070a5b.png"></figure>With various benefits being offered by the RCS, corporations will no longer be concerned with the complexity of regulations for companies and legal risks from any failure to satisfy a legal obligation.&nbsp;What are you waiting for? Get the benefits of RCS for yourself now. For more information about the Regulatory Compliance System and any request for a free demo, click&nbsp;<a href="https://rcs.hukumonline.com/?utm_source=website&amp;utm_medium=seo_articles&amp;utm_campaign=cta_kerjamigas">here</a>. &nbsp;<hr><a href="#_ftnref1">[1]</a>&nbsp;Andi Sofyan, Nur Azisa, Hukum Pidana,&nbsp;(Makassar: Pustaka Pena Press, 2016), page 32.<a href="#_ftnref2">[2]</a>&nbsp;&nbsp;Article 6 of Law Number 1 of 1946 regarding Indonesian Criminal Laws.&nbsp;<a href="#_ftnref3">[3]</a> Article 45 of the Criminal Code.<a href="#_ftnref4">[4]</a> Ibid.

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The enactment of the New Criminal Code has actually given rise to significant impacts on corporations or business actors.

Enactment of the New Criminal Code and its Impacts on Corporations

The transformation of a private company (PT) into a public company (PT Tbk) is a major achievement for a company. To give more context, by going public, a company has the "privilege" of being able to access large capital sources originating from public investment. This, certainly, can support the accelerated growth and expansion of the company's business.However, holding the status of a public company certainly creates hefty legal consequences. This condition has a purpose of ensuring an increase in the company performance and an increase in the credibility of stakeholder, especially investors/shareholders. The big responsibility in question is, of course, related to the complexity and numbers of compliance activities which must be complied with.In general, there are two factors which make the compliance activities of public companies more complex. First, there is more than one government agency which has authority to enforce the law against unlawful activities in the capital market sector. Among other things, the Financial Services Authority (OJK) which has the authority to regulate and supervise, and other authorities known as self-regulatory organization (SRO). Furthermore, other authorities in question consist of the Indonesia Stock Exchange (IDX); Guarantee and Settlement Institution whose functions are performed by the Indonesia Central Securities Depository (KSEI); and the Indonesia Securities Clearing and Guarantee Institution which is performed by PT Kliring Penjaminan Efek Indonesia (KPEI).Another factor is many regulations in the capital market sector which create legal obligations for public companies. Based on regulatory mapping data conducted by Hukumonline Team, it was found that at least more than 100 (one hundred) regulations governing the obligation of public companies after conducting an initial public offering (IPO). This condition is undoubtedly a logical consequence of the first factor as described above.To show the claim that the compliance activities of public companies in Indonesia are numerous and complex, we can look at one aspect of public company compliance, namely reports which need to be submitted by public companies.Referring to Article 2 of Regulation of the Financial Services Authority Number 14/POJK.04/2022 of 2022 regarding the Submission of Periodic Financial Statements by Issuers or Public Companies (“POJK 14/2022”), it is explained that the issuers or public companies whose registration statements have become effective must submit periodic financial statements to the Financial Services Authority.The periodic financial statements include annual financial statements and semi-annual financial statements. On the other hand, the Indonesia Stock Exchange (IDX) as the authority in the capital market sector stipulates nearly identical obligations. Based on Regulation I-E - Decree of the Board of Directors of PT Bursa Efek Indonesia Number KEP-00066/BEI/09-2022 of 2022 regarding the Amendment to Regulation I-E on Information Disclosure Obligations (“IDX Regulation I-E”), it is regulated that listed companies, in this case are the issuers or public companies whose securities are listed on the stock exchange, must submit periodic financial statements to the IDX.Furthermore, not only periodic financial statements, based on IDX Regulation I-E, it is also explained that the obligations of the listed companies to submit various incidental reports to the IDX, which, when viewed quantitatively, are not less than 17 (seventeen) types of report.The complexity of the compliance aspect of this public company certainly needs to be monitored carefully. This is due to the fact that the authorities in the capital market sector have imposed&nbsp; threat of sanctions for non-compliance by public companies.In POJK 14/2022 which regulates the obligation to submit periodic financial statements, for examples, a number of threats of severe administrative sanctions are explained, starting from warning notices, fines, business suspensions, to revocation of the effectiveness of Registration Statement by the OJK.Likewise with the IDX as stated in the provisions of Regulation I-H - Decree of the Board of Directors of PT BEJ Number KEP-307/BEJ/07-2004 of 2004 regarding Sanctions, which provides for threat of severe administrative sanctions for public companies' non-compliance with the obligations stipulated by the stock exchange, starting from warning notices, fines, and suspensions on the IDX. Thus, it is not surprising that, in practice, many public companies are subject to sanctions by the relevant authorities, as can be seen through various news sources.&nbsp;Responding to the complex problem of the public companies' compliance activities above, Hukumonline presents Regulatory Compliance System ("RCS"). The Regulatory Compliance System is a platform launched by Hukumonline to monitor company regulatory compliance supported by Artificial Intelligence (AI).Through RCS, public companies could monitor all regulations from various regulators in the capital market sector. Furthermore, RCS can systematically classify various obligations arising from these regulations, making it very easy for public companies to carry out compliance aspects.<figure class="image image_resized" style="width:75%;"><img src="https://es-rcs.s3.ap-southeast-3.amazonaws.com/cms/Pasar_Modal_Sector_Highlight_1_0f7f5c1eb6.png" alt="Pasar Modal Sector Highlight (1).png"></figure>Complexity of Capital Market Legal Obligations (Post-IPO) which Must Be Complied withBased on the figure, it can be seen that there are 558 legal obligations in the capital market sector. This number indicates the complex of compliance activities for a company right after conducting an IPO.And most urgently, RCS will optimally help mitigate the risk of public company non-compliance, so that the public companies are free from the "shadow" of sanctions which can disrupt the continuity of the company's business activities.The Regulatory Compliance System is supported by curated content and results from the Hukumonline team with undergraduate and postgraduate legal backgrounds from well-known universities in the country and abroad. Therefore, RCS can package legal obligations accurately and can be easily understood by all users.A number of leading companies have trusted RCS as their flagship legal compliance monitoring platform. Find out more about how RCS can help the companies by contacting demo@hukumonline.com or clicking&nbsp;<a href="https://rcs.hukumonline.com/?utm_source=website&amp;utm_medium=website_rcs_advertorial&amp;utm_campaign=website_rcs_use_cases_dec">here</a>. &nbsp;&nbsp;

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The transformation of a limited liability company into a publicly listed company creates more complex compliance tasks. Read more.

Public Company Compliance Complexities in Indonesia: Challenge and Solution

Today, we are increasingly aware of the importance of the existence of Financial Services Institutions (“LJK”) to our society. This is because various aspects of people's lives currently rely on the services from LJK, ranging from banks, insurance, financial institutions, pension funds, pawnshops, and many others.However, in carrying out its day-to-day business, LJK cannot escape the risk of criminal acts of money laundering, terrorism financing, as well as corruption, collusion, and nepotism (“TPPU, TPPT, and KKN"). Oftentimes, LJK becomes involved due to the perpetrators of such criminal acts using the LJK as a means to send, receive, and/or store wealth that comes from the criminal acts. In fact, LJK is considered to be the main supply in the chain of criminal acts of corruption handled by the Corruption Eradication Commission (Komisi Pemberantasan Korupsi or “KPK”) and its involvement can have fatal consequences in the loss of public trust.1Considering that TPPU, TPPT, and KKN are complex criminal acts and can have a major impact on the community, the government regulates them strictly through a series of laws and regulations. The state authorities also seem to be competing in drafting the laws and regulations or guidelines in relation to Anti-Money Laundering, Prevention of Terrorism Financing, and Anti-Corruption, Collusion, and Nepotism (Anti Pencucian Uang, Pencegahan Pendanaan Terorisme, and Anti Korupsi, Kolusi, dan Nepotisme or “APU PPT and Anti-KKN"). Some of the authorities involved including the Financial Services Authority (Otoritas Jasa Keuangan), the Financial Transaction Reports and Analysis Centre (Pusat Pelaporan dan Analisis Transaksi Keuangan), the Bank Indonesia, and the KPK. This of course has resulted in the existence of so many laws and regulations regarding the APU PPT and Anti-KKN which must be complied with.The next difficulty arises because such laws and regulations that have been stipulated are often amended and/or revoked which puts the community at risk of implementing any provisions that are no longer valid and/or not knowing that there are any new provisions to be implemented. Therefore, LJK has its own challenges to identify, understand, and implement these laws and regulations and all of their amendments.Furthermore, the risk of criminal acts of money laundering, terrorism funding, as well as corruption, collusion and nepotism in LJK may be incurred by any divisions that do not have any legal background. Even today, many persons or entities are considered to have difficulties in comprehending the boundaries of corruption criminal acts.2 &nbsp;For example, Article 12C of Law Number 31 of 1999 on Eradication of Corruption Crimes as amended by Law Number 20 of 2001 on Amendments to Law Number 31 of 1999 on Eradication of Corruption Crimes (“Corruption Law”) stipulates that a civil servant or state administrator can be freed from any criminal offence of gratification if the beneficiary reports the gratification to the KPK. If such report is not provided, as regulated in Article 12B paragraph (2) of the Corruption Law, the beneficiary may be subject to criminal sanctions in the form of life imprisonment or imprisonment for a minimum of 4 (four) years and a maximum of 20 (twenty) years and a minimum fine of IDR200,000,000.00 (two hundred million rupiah) and a maximum fine of IDR1,000,000,000.00 (one billion rupiah).If the employee of an LJK is not provided with sufficient information, the relevant personnel may not know that he/she has received a prohibited gratification and/or does not know that if he/she receives the gratification, the relevant personnel must report it to the KPK. This of course is a very big risk and it pose the next challenge for LJK because the misunderstanding, ignorance, and/or misinterpretation of employees towards the laws and regulations regarding the APU, PPT and Anti-KKN can cause various risks for LJK, ranging from reputational, financial, compliance, to legal risks.In response to the aforementioned concerns raised by LJK, Hukumonline comes with a Regulatory Compliance System (“RCS”) which shall make it easier for LJK to avoid TPPU, TPPT and KKN. Equipped with Hukumonline regulation database which have access to more than 150,000 (one hundred and fifty thousand) laws and regulations, the RCS can help LJK in identifying various obligations quickly and efficiently to avoid various risks, especially legal and non-compliance risks. By using an Artificial Intelligence and presenting curated results from law scholars, RCS is able to package these obligations by paying attention to user comfort and convenience so that the content is easy to understand even for any parties without any legal background. Therefore, RCS is able to mitigate the non-compliance and legal risks so that LJK can focus more on running their business.Take a firsthand look at the benefits that you will be able to enjoy through the RCS by experiencing a free demo of our new Regulatory Compliance System <a href="https://rcs.hukumonline.com/wa?utm_source=website&amp;utm_medium=website_rcs_advertorial&amp;utm_campaign=website_rcs_use_cases_oct">here</a>.&nbsp;[1] Mochamad Januar Rizki. “Menyoroti Risiko Tipikor Pada Industri Jasa Keuangan”. Hukumonline.&nbsp;<a href="https://www.hukumonline.com/berita/a/menyoroti-risiko-tipikor-pada-industri-jasa-keuangan-lt61497fc0d6607/?page=2">https://www.hukumonline.com/berita/a/menyoroti-risiko-tipikor-pada-industri-jasa-keuangan-lt61497</a>&nbsp;<a href="https://www.hukumonline.com/berita/a/menyoroti-risiko-tipikor-pada-industri-jasa-keuangan-lt61497fc0d6607/?page=2">fc0d6607/?page=2</a>. Access date September 20, 2022.[2]&nbsp;Ibid.

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Today, we are increasingly aware that Financial Services Institutions (Lembaga Jasa Keuangan or LJK) are vulnerable to the risk of money laundering and terrorism financing crimes.

Harmed Reputation to Imposition of Criminal Sanctions, the Difficulties for Financial Service Institutions to Comply with Anti-Money Laundering, Prevention of Terrorism Financing, as well as Corruption, Collusion and Nepotism Regulations in Indonesia