Financial Crime World

Indonesia’s Financial Crimes Investigation Agencies Take Center Stage

In Indonesia, corporate crime is a serious offense that can lead to criminal liability. The country’s legal system addresses this issue through Law Number 1 of 2023 on Criminal Code, which will take effect from January 2, 2026.

Corporate Criminal Liability

According to Article 45 Paragraph (1) of the new law, corporations can be held liable for crimes committed by their management or individuals acting on behalf of the corporation. The determination of corporate criminal liability is governed by Article 46, which states that a crime is committed when an individual or group acts in the interests of the corporation.

Factors Considered in Imposing Penalties

In imposing penalties on corporations, judges will consider factors such as:

  • Whether the company benefited from the illegal activity
  • Whether it allowed the act to occur
  • Whether it failed to take necessary steps to prevent it

This approach has been outlined in Article 4 Paragraph (2) Regulation of The Supreme Court Number 13 of 2016.

Investigation and Prosecution Agencies

In Indonesia, several agencies are responsible for investigating and prosecuting financial crimes. These include:

  • Directorate of Economic and Special Crimes: This agency is responsible for investigating financial crimes, including corruption, money laundering, embezzlement, fraud, and tax offenses.
  • Public Prosecutor: The public prosecutor plays a crucial role in prosecuting financial crimes, with responsibilities that include:
    • Examining case files
    • Conducting pre-prosecutions
    • Preparing indictments
  • Corruption Eradication Commission: This agency has authority to investigate and prosecute cases involving losses to the country of at least one billion rupiah.
  • Financial Services Authority: The Financial Services Authority also plays a vital role in investigating financial crimes related to banking activities. With supervisory duties over financial service institutions, perpetrators, and supporting financial services activities, this agency is well-positioned to detect and prevent illegal activity in the financial sector.

These agencies work together to combat financial crimes and ensure that those responsible are held accountable for their actions.