Kadin urges business community to comply with new Criminal Code, maintain governance in line with regulations

Jakarta (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) is encouraging the business community to strengthen compliance with the new Criminal Code (KUHP), which has officially come into effect, to ensure that corporate governance operates in line with the latest legal provisions. Deputy General Chairman of the Coordinator for Law and Human Rights, Facilities/Infrastructure of Kadin Indonesia, M. Azis Syamsuddin, in a statement received in Jakarta on Thursday, conveyed that these efforts are being realised through an executive brief held by Kadin Indonesia together with the Kadin Indonesia Institute (KII) to gain a more comprehensive understanding of the new regulations. Furthermore, according to him, the event held on Wednesday (8/4) also serves as an important step to align perspectives between the legal world and the business world. “In order to align views from the legal world for the advancement of the business and industrial world,” said Azis. Further, the discussion also highlighted the importance of socialising Law Number 1 of 2023 on the KUHP, which begins to apply from 2 January 2026, which is considered to have a close connection with business activities, including the construction sector. Expert Staff of Commission III of the Indonesian House of Representatives and also a Postgraduate Lecturer at Borobudur University, Afdhal Mahatta, emphasised that the implementation of the new KUHP brings significant implications for the business sector, especially regarding the designation of corporations as subjects of criminal law. “Of course we know that the new KUHP has been in effect since 2 January 2026 and has implications for the business and business world,” said Afdhal. He also explained the paradigm shift in the sentencing system. If previously the old KUHP did not regulate corporations as criminal subjects and focused more on a retributive approach, now that approach has shifted. “In the old KUHP, justice is retributive, focused on punishment and imprisonment. Whereas the new KUHP is rehabilitative and restorative,” he said. Furthermore, Afdhal hopes that the forum becomes the starting point for broader socialisation so that the business world can adapt well to the new regulations. “We hope this is not the end, but the beginning to carry out further socialisation and discussions so that the economy runs smoothly and corporations can carry out their functions well,” he concluded.