Bamsoet: Criminal Code Reform Strengthens Corporate Accountability

Bambang Soesatyo (Bamsoet), a member of the House of Representatives and lecturer at Borobudur University, has stated that the presence of Articles 45-49 in the new Criminal Code (KUHP) represents significant progress in uncovering corporate crimes hidden behind legal entities. These articles provide hope that the law can not only catch ‘the hand that signs’, but also ‘the brain that controls’. He noted that good law must not be blunt against shadowy controllers, nor must it be reckless towards legitimate business actors. That, he said, is the true test of Articles 45-49 of the KUHP: piercing the corporate veil without killing the courage to do business.

Bamsoet assessed that the enactment of Law Number 1 of 2023 concerning the National Criminal Code is a milestone in Indonesian criminal law reform. One of the fundamental changes is the recognition of corporations as subjects of criminal law that can be held accountable. This change adapts to the increasingly complex development of economic crime, where main perpetrators often hide behind legal entities, corporate networks, or complicated ownership structures, making them difficult for law enforcement to reach.

‘Under the National Criminal Code, a corporation is no longer seen merely as a vehicle for business activities, but can also be held criminally liable if it benefits from a criminal act or allows a criminal act to occur within its business scope. This step provides legal certainty while strengthening accountability in a healthy business world,’ he explained. He added that this change addresses the weakness of the old Criminal Code, which was oriented towards individual responsibility. In practice, various criminal acts such as corruption, money laundering, tax manipulation, environmental crimes, illegal trade, and financial sector crimes are increasingly committed through corporations.

Data from the Financial Transaction Reports and Analysis Centre (PPATK) shows that suspicious financial transactions involving complex corporate structures remain a major challenge for economic law enforcement. Bamsoet argued that recognising corporations as criminal subjects is not a threat to the business world. On the contrary, this regulation provides certainty that companies implementing good governance will receive legal protection, while companies used as instruments of crime can be held fairly accountable. ‘Legal certainty is the essential foundation for a healthy and competitive investment climate,’ he said.

Bamsoet reminded that the current challenge is not merely proving a corporate crime occurred, but uncovering who truly controls the company, the beneficial owner. In many cases, the main controllers deliberately use nominees, shell companies, cross-border ownership networks, and various other schemes to conceal their identities, leaving law enforcement to find only formal managers while the parties enjoying the profits remain behind the scenes. This phenomenon is commonly found in corruption, money laundering, taxation, illegal mining, and international trade cases.

‘Law enforcement must be able to penetrate the uppermost layers of corporate management. Beneficial owners who are proven to control the corporation and enjoy the proceeds of crime must also be held accountable. The law must not stop at formal directors or commissioners while the true controllers escape the legal net,’ he stated. He added that effective enforcement against corporate crime requires stronger coordination between the Police, the Attorney General’s Office, the Corruption Eradication Commission (KPK), PPATK, the Financial Services Authority (OJK), the Directorate General of Taxes, and international cooperation through Mutual Legal Assistance mechanisms. The complexity of today’s corporate ownership structures means that proof can no longer rely solely on conventional evidence, but also requires analysis of financial transactions, digital footprints, communication patterns, and cross-border information exchange. Such synergy will narrow the space for economic criminals to hide their assets and identities behind global corporate networks.

Bamsoet concluded that the Criminal Code must become an instrument that brings balance between protecting investment and firmly eradicating corporate crime. Law-abiding businesses must receive certainty and protection, while those using corporations as vehicles for corruption, money laundering, tax evasion, and other economic crimes must be held accountable, right up to the beneficial owners who enjoy the proceeds of crime.