Client Alert – New Criminal Code and the New Criminal Procedural Code
The entry into force of the New Criminal Code and the New Criminal Procedural Code on 2 January 2026 marks a new chapter in Indonesia’s criminal justice system. At the same time, the Criminal Sanctions Adjustment Law has also come into effect, amending several provisions of the New Criminal Code and aligning criminal sanctions under various sectoral laws outside the New Criminal Code.
One of the key policies introduced under the New Criminal Code is the comprehensive regulation of corporate criminal liability. As a result, corporate criminal liability is no longer limited to offences under special laws. Under the new regime, corporations may now be subject to sanctions including criminal fines, revocation of business licenses, and corporate dissolution. This development serves as a strong call for corporations to strengthen their governance frameworks and implement adequate measures to prevent corporate crime.
Importantly, corporate criminal liability is not confined to the corporation itself. The New Criminal Code also extends corporate crime liability to members of management holding functional positions, persons who give orders, controlling persons, and/or beneficial owners of the corporation.
Further, the New Criminal Procedural Code introduces several new mechanisms that were previously unavailable, including the Deferred Prosecution Agreement (DPA), which applies exclusively to corporate offenders. This mechanism allows public prosecutors to defer prosecution in cases involving corporations, with the objectives of promoting legal compliance, restoring losses arising from criminal acts, and enhancing efficiency within the criminal justice system. In addition, the new procedural framework formally recognizes restorative justice, enabling the resolution of certain criminal cases without resorting to punitive sanctions.
The enactment of the New Criminal Code concludes decades of debate on replacing the long-serving colonial-era Criminal Code. Nevertheless, its implementation also leaves open several provisions that are likely to become contested and highly debated in judicial practice, particularly concerning the allocation of liability between corporations and corporate responsible persons, as well as the application of general provisions of the New Criminal Code to crimes regulated in special laws.
Please refer to our Client Alert herein: Client Alert – New Criminal Code and the New Criminal Procedural Code
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Pramudya A. Oktavinanda
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Melati Siregar
Senior Partner