New Criminal Code and Criminal Procedure Code Urged to Provide Legal Certainty for Corporations
Legal certainty for corporations is considered a crucial factor in maintaining the investment climate and driving national economic growth, particularly with the enactment of the new Criminal Code (KUHP) and the ongoing deliberation of the new Criminal Procedure Code (KUHAP).
Sofyan A. Djalal, Chief Executive Officer of the Indonesia Business Council (IBC), stated that the business community requires not only sound regulations but also certainty regarding how those rules are applied and enforced by law enforcement officials. “Certainty regarding regulations, certainty about how those regulations are implemented and enforced, and certainty about the direction of government policy are the main foundations for investment and economic growth,” he said at the Indonesian Legal and Economic Forum (ILEF) 2026 in Jakarta on Thursday (25/6).
He noted that legal uncertainty is one of the biggest risks faced by businesses. When regulations change too quickly or their application varies between agencies, companies struggle to calculate business risks. “When risk cannot be calculated, investment is postponed, relocated, or even cancelled. Therefore, legal certainty is the foundation that enables investment, economic growth, and job creation to proceed,” he said.
The former Minister of Agrarian Affairs and Spatial Planning assessed that the quality of a legal system not only affects the protection of citizens’ rights but also determines a country’s economic competitiveness. He stressed that large companies need confidence that the rule of law is applied consistently and predictably. “National companies will only grow if they have confidence that the rules of the game are clear, the legal approach is consistent, and the direction of state policy is predictable,” he asserted. He also reminded that the state must be a provider of certainty for the business world, rather than a source of risk due to legal uncertainty.
Meanwhile, Brigadier General Pol. Boy Rando Simanjuntak, Head of the Supervision Bureau at the Criminal Investigation Agency (Bareskrim) of the Indonesian National Police, acknowledged that law enforcement officers still face challenges in adapting to the various changes brought by the new Criminal Code, including provisions on corporate criminal liability. “It is not easy to change the mindset or paradigm of investigators. The changes brought by the new KUHP are quite significant, and we are still waiting for several implementing regulations,” he said.
Despite this, the National Police has prepared internal guidelines to ensure a uniform understanding among investigators across Indonesia. Boy highlighted that a key aspect of the new KUHP is the recognition of corporations as criminal subjects that can be held directly liable. “With this new codification, corporate liability is incorporated into national criminal law, providing more uniform legality for law enforcement officials,” he stated. He emphasised that a shared perception among investigators, prosecutors, and judges is a prerequisite for providing legal certainty to the business world.
In its application, investigators can name a corporation as a suspect if the criminal act was committed within the scope of the company’s activities, provided a benefit to the corporation, and was known about or allowed by the management or beneficial owner. Boy noted that the focus is not only on the criminal act itself but also on the elements of intent, knowledge, or omission by the management or controlling parties. He also stressed that companies with a good compliance system, violation prevention mechanisms, and effective internal supervision will be in a stronger position to demonstrate that they have made efforts to prevent criminal acts. “We always convey that the law is not solely for punishment, but also to encourage prevention and improvements in corporate governance,” he said.