New Criminal Code Changes Direction of Business Law, Business Community Urged to Prepare

The enactment of Law Number 1 of 2023 starting from early 2026 brings major changes for the business world. Business actors are now urged to immediately adjust their corporate governance to align with the new legal regulations that emphasise a restorative and rehabilitative approach. This encouragement was conveyed by the Indonesian Chamber of Commerce and Industry through a discussion forum with the Kadin Indonesia Institute during an executive briefing in Jakarta on Wednesday (8/4/2026). This agenda serves as a space to align understanding between business actors and legal circles regarding the implications of the latest KUHP. Deputy General Chairman of the Kadin Indonesia Coordinator for Law and Human Rights, M. Azis Syamsuddin, emphasised the importance of aligning perspectives so that the business world can continue to develop without violating legal provisions. “In order to align the views of the legal world for the advancement of the business and industrial world,” he said. In the forum, one of the main highlights is the position of corporations that are now recognised as subjects of criminal law. This change is seen to directly impact various sectors, including construction and other strategic industries. Expert Staff of Commission III of the DPR RI as well as a postgraduate lecturer at Borobudur University, Afdhal Mahatta, explained that the new KUHP brings a paradigm shift in the criminal justice system. “Of course, we know that the new KUHP has been in effect since 2 January 2026 and has implications for the business and corporate sectors,” said Afdhal. He added that the legal approach is no longer solely punitive but also prioritises recovery. “In the old KUHP, justice was retributive, focusing on punishment and imprisonment. Whereas the new KUHP is rehabilitative and restorative,” he said. According to Afdhal, continuous socialisation is key so that business actors can adapt well. He hopes this discussion forum becomes the initial step to broaden understanding of 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.