On January 2, 2026, the National Criminal Code (KUHP) will come into effect. Several new elements have been introduced that were not previously regulated under the old KUHP. This article reviews the new provisions within the National KUHP related to corporations, including the definition of corporations, whether corporations can be subjects of criminal acts, how corporate liability works, and the forms of penalties and sanctions applicable to corporations.

What Is the Definition of Corporation Under the National KUHP?

According to Article 146 of the National KUHP: A corporation is an organized group of persons and/or assets, whether a legal entity in the form of a limited liability company, foundation, association, cooperative, state-owned enterprise, regional-owned enterprise, village-owned enterprise, or similar entities, as well as non-legal entity associations or business entities such as partnerships, limited partnerships, or other similar forms.

A more concise definition of a corporation can be found in Supreme Court Regulation (PERMA) No. 13 of 2016 on Procedures for Handling Corporate Crime Cases, which states: A corporation is an organized group of persons and/or assets, whether a legal entity or not.

Is a Corporation a Subject of Criminal Acts?

Yes, corporations are legal subjects as regulated in Article 45(1) of the National KUHP, which states: A corporation is a subject of criminal acts. This is further reinforced by Article 145: Every person refers to individuals, including corporations.

From these two articles, it can be stated simply that a corporation can commit a criminal act.

What Is Meant by Corporate Criminal Acts?

Corporate criminal acts refer to crimes committed by administrators who hold functional positions within the organizational structure of a corporation, or individuals who, based on employment or other relationships, act for and on behalf of the corporation or act in the corporation’s interests within the scope of its business or activities, whether individually or jointly. This is regulated in Article 46 of the National KUHP.

Furthermore, Article 47 expands this to include: In addition to Article 46, corporate criminal acts may also be committed by those issuing orders, controllers, or beneficial owners who are outside the corporate organizational structure but can exert control over the corporation.

How Can Corporate Criminal Acts Be Held Accountable?

Corporate criminal acts can be held accountable when they meet the requirements listed in Article 48 of the National KUHP:
a. The act falls within the scope of the corporation’s business or activities as determined in its articles of association or other applicable provisions;
b. The act unlawfully benefits the corporation;
c. The act is accepted as corporate policy;
d. The corporation fails to take necessary measures to prevent, mitigate greater harm, or ensure compliance with the law; and/or
e. The corporation allows the criminal act to occur.

Who Must Be Held Responsible for Corporate Criminal Acts?

Responsibility lies with administrators holding functional positions, those issuing orders, controllers, and/or beneficial owners of the corporation as stated in Article 49 of the National KUHP: Liability for corporate criminal acts as referred to in Article 48 applies to the corporation, functional administrators, those issuing orders, controllers, and/or beneficial owners.

What Penalties May Be Imposed on Corporations?

If a corporation is found guilty, the principal penalty is a fine, along with additional penalties as regulated in Articles 118 and 119 of the National KUHP. In addition to fines, corporations may also face additional penalties such as:
a. Payment of compensation;
b. Restoration of damage caused by the criminal act;
c. Fulfillment of neglected obligations;
d. Fulfillment of customary obligations;
e. Funding of job training;
f. Confiscation of goods or profits obtained from the criminal act;
g. Publication of the court decision;
h. Revocation of specific permits;
i. Permanent prohibition from conducting certain activities;
j. Closure of all or part of the corporate business or activities;
k. Suspension of all or part of corporate operations; and
l. Dissolution of the corporation.

What Is the Range of Fines Applicable to Corporations?

According to Article 121 of the National KUHP, the minimum fine for corporations falls under Category IV, amounting to IDR 200,000,000, unless otherwise specified by law.

If the criminal act carries a prison sentence of less than 7 years, the maximum fine for corporations is Category VI (IDR 2,000,000,000).

If the crime carries a prison sentence of 7 to 15 years, the maximum fine is Category VII (IDR 5,000,000,000).

If the crime carries severe penalties such as the death penalty, life imprisonment, or up to 20 years’ imprisonment, the maximum fine is Category VIII (IDR 50,000,000,000).

In addition to fines, corporations may also be subject to actions imposed alongside fines, such as corporate takeover, supervision, and/or guardianship, as regulated in Article 123 of the National KUHP.

What If a Corporation Fails to Pay the Fine?

If the corporation fails to pay the fine within the time frame set by the court, its assets or income may be seized and auctioned by the prosecutor to settle the unpaid fine.

If the corporation’s assets are insufficient to cover the fine, the corporation will be subject to a substitute penalty in the form of partial or total suspension of corporate business activities.

This is regulated in Article 122 of the National KUHP.