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Exploring Alternative Legal Frameworks for Handling Financial Crimes in Indonesia
In Indonesia, addressing financial crimes efficiently and effectively remains a critical concern for both legal authorities and corporations. Alternative mechanisms, such as deferred prosecution agreements, civil recovery orders, and other non-prosecutorial solutions, often provide a viable path forward. This article explores the available legal frameworks and procedures within Indonesia that facilitate these alternative resolutions, highlighting the unique approaches adopted under Indonesian law to manage financial crimes without resorting to full prosecution.
While some countries have established mechanisms like deferred prosecution agreements and civil recovery orders, The Indonesia Public Prosecution Service has authority based on the principle of opportunity as stipulated in Article 35 of Law Number 16 of 2004 on the Public Prosecution Service. In the formulation of Article 35 paragraph (1) letter k of Law Number 11 of 2021 on Amendments to Law Number 16 of 2004 on the Public Prosecution Service, regulates amicable fines, which may be stated more clearly as “The Attorney General has the duties and powers: k. dealing with criminal acts that cause losses to the state economy and may use peace fines in economic crimes based on statutory regulations”. As for the Elucidation of Article 35 paragraph (1) letter k, “amicable fine” is the termination of a case out of court by paying a fine approved by the Attorney General. The implementation of amicable fines for financial crimes is one form of application of the opportunity principle that the Attorney General has in carrying out prosecutions of financial crimes based on the law.
Plea Bargaining
Unlike some jurisdictions, Indonesia does not currently have established laws or regulations specifically governing plea bargaining. The concept exists only in the draft amendment to the Law on Criminal Procedure, which suggests a potential future pathway for settling criminal cases through plea negotiations. This indicates an evolving legal landscape that may soon offer additional resolution mechanisms.
Voluntary Disclosure by Corporates
Corporate entities in Indonesia are encouraged to voluntarily disclose financial irregularities, particularly in the realm of taxation. Such disclosure is incentivized with benefits like exemption from administrative sanctions and ongoing protection of disclosed data from being used in criminal investigations or prosecutions. This policy supports a proactive approach in managing potential legal issues, offering a layer of security to corporates that choose transparency and cooperation with legal authorities.
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Anggraeni and Partners, an Indonesian law practice with a worldwide vision, provides comprehensive legal solutions using forward-thinking strategies. We help clients manage legal risk and resolve disputes on admiralty and maritime law, complicated energy and commercial issues, arbitration and litigation, tortious claims handling, and cyber tech law
S.F. Anggraeni
Managing Partner
Yoga Adi Nugraha
Managing Associate Practice Group White Collar Crime and Investigation
Aga Kristiana Silaen
Middle Associate
Nazaruddin Insyiroh
Trainee Associate
