Indonesia's Supreme Court issues new regulation for handling corporate crime

Indonesia's Supreme Court issues new regulation for handling corporate crime

17 January 2017

Indonesia's Supreme Court issues new regulation for handling corporate crime 

In the last week of 2016, the Supreme Court of the Republic of Indonesia issued a new regulation which details procedures for prosecuting corporate crime, especially with respect to enforcement. Although existing laws in Indonesia recognize corporate criminal liability, corporations are rarely brought before the court in practice. One of the primary reasons for this is that there is no clear guidance on how to prosecute a corporation. It is expected that the newly issued Supreme Court Regulation No. 13 of 2016 regarding Procedure in Handling Corporate Crime Cases ("Regulation No. 13/2016") will be able to overcome such issues.

What procedures are being regulated?

Regulation No. 13/2016 regulates, among other things, the procedures to investigate, prosecute, and enforce judgments against a corporation and/or a group of corporations.


Why else is it relevant?
 

Other than providing a framework for handling corporate crime, Regulation No. 13/2016 also introduces defences for corporate criminal liability.

One of the defences available is where a corporation shows it has taken appropriate steps to ensure compliance with prevailing laws and prevent crimes from being committed (Article 4 paragraph 2). Time will tell how this defence – which appears to be similar to the absolute "adequate procedures" defence available under the UK Bribery Act – will work in practice.

Although Indonesia has risen in the Corruption Perception Index rankings over the past few years, corruption remains one of the major prevailing issues for corporations operating in Indonesia. As such, the implementation of an effective local anti-corruption compliance program would be a good strategy to mitigate the risk of prosecution.

How can we help? 

We at Hogan Lovells and DNFP are renowned for our compliance and investigations practice. We have extensive knowledge of the FCPA and its implications for corporations around the world.

This experience is complemented by our deep understanding of the UK Bribery Act, having been closely involved with its progress through the UK Parliament. Subsequently, we have advised a number of multinational corporations on the practical implications of this complex new legislation on their compliance programs.

We advise clients on a range of legal issues with respect to the FCPA, UK Bribery Act, and anti-corruption compliance projects globally including in Asia. Combining this with our deep knowledge of Indonesian law, we can provide strategic advice on developing compliance programs fit for your business ventures in Indonesia.

Contacts :

Chalid Heyder - Partner Indonesia : chalid.heyder@dnfp.com

Teguh Darmawan - Senior Associate Indonesia : teguh.darmawan@dnfp.com  

  

< BACK TO LISTING



Our practice areas

Our disputes practice is recognised by Legal 500 Asia Pacific – Indonesia 2018, and our highly skilled and experienced lawyers in our...

Our people

Our team at DNFP has a wide range of backgrounds and its members are well established leaders in the local market. We believe that diversity of...