When Corporations Cross the Line: Legal Perspectives on Corporate Corruption in Indonesia

Abstract

The phenomenon of corporate involvement in corruption is becoming increasingly prevalent in Indonesia. As a legal entity, a corporation can be held criminally liable for corruption offences committed under its authority. This study aims to analyse the legal framework governing corporate criminal liability in corruption cases and examine the forms of criminal sanctions that may be imposed on corporations. The research methodology employed is normative legal research, utilising a statutory approach and case study analysis of Supreme Court decisions pertaining to corporate corruption offences. The findings reveal that the legal framework for corporate criminal liability in corruption cases is primarily regulated by several key legal instruments, including Law No. 31 of 1999 in conjunction with Law No. 20 of 2001 on the Eradication of Corruption, as well as Supreme Court Regulation No. 13 of 2016 on Procedures for Handling Criminal Cases Involving Corporations. The forms of criminal liability applicable to corporations include fines, corporate dissolution, and the revocation of business licences. A case study of Supreme Court Decision No. 927 K/Pid.Sus-LH/2021 illustrates the application of these legal provisions, where the Supreme Court dismissed the cassation appeal but revised the corporate fine, reducing it from IDR 20 billion to IDR 2 billion, with the stipulation that assets would be seized should the fine remain unpaid. This ruling underscores the significance of proportionality in corporate criminal sanctions and highlights the judiciary’s role in ensuring effective and just enforcement of corporate criminal liability.