Wetboek van Strafrecht voor Nederlandsch Indie (WvSNI) or commonly known as the Criminal Code (KUHP) was first enacted in Indonesia in 1918.^[1] 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.

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).^[2]

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.

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.^[3] 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. 

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.^[4] 

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.

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. 

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. 

Regulatory Compliance SystemThe Ultimate Solution for Monitoring Company Laws 

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.

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. 

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. 

Monitoring Legal Obligations via One Platform Only 

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. 

Stay Updated with Regulatory Amendments 

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. 

A More Efficient Process of Compliance Audits 

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. 

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. 

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 here.

^[1] Andi Sofyan, Nur Azisa, Hukum Pidana, (Makassar: Pustaka Pena Press, 2016), page 32.

^[2]  Article 6 of Law Number 1 of 1946 regarding Indonesian Criminal Laws. 

^[3] Article 45 of the Criminal Code.

^[4] Ibid.