Indonesia's New Economic Crimes Task Force: What It Means for Your Business

Introduction

White-collar crime in Indonesia has evolved far beyond simple fraud. Today, economic offenses are systemic, organized, and often cross-border, threatening national economic stability. The government recognizes that existing legal frameworks are not enough to tackle these complex threats.

In response, the government has drafted a Regulation in Lieu of Law (Perppu) on the Eradication of Economic Crimes and National Economic Recovery. This blog explains the three key areas covered by this Draft Regulation: (1) what qualifies as an economic crime, (2) the new Task Force and its powers, and (3) how cases will be handled, including asset recovery.

1. What Qualifies as an Economic Crime?

The Draft Regulation defines economic crimes as any criminal acts that damage national economic stability, hinder growth, or cause losses on a macroeconomic scale. These are split into two categories:

Category A: Crimes Under Existing Laws

These cover offenses under 18 existing regulatory frameworks, including laws on:

•         Customs and Excise

•         Mineral and Coal Mining

•         Trade

•         Development and Strengthening of the Financial Sector

Category B: Other Crimes Meeting Specific Criteria

1.      Organized crimes in the natural resources sector

2.      Systemic manipulation in the capital market and financial sector

3.      Hoarding or sabotaging distribution of nationally strategic commodities in ways that trigger crises

4.      Financial cybercrimes threatening payment system infrastructure or state finances

5.      Money laundering and/or capital flight connected to the crimes above

2. The New Task Force: Powers and Penalties

The Draft Regulation mandates the creation of a Task Force for the Handling of Economic Crimes, led by the Attorney General. Its members will include state attorneys, financial experts, asset-tracing specialists, and investigators from other agencies.

Five Key Authorities of the Task Force

1.      Conduct preliminary investigations, formal investigations, prosecutions, and enforce verdicts

2.      Carry out intelligence functions to prevent and track diversions of criminal assets

3.      Take over investigations from other agencies if the crime threatens the state economy

4.      Investigate and pursue legal accountability of corporate beneficial owners who facilitate crimes

5.      Instruct financial service providers to suspend transactions or freeze funds suspected of originating from economic crimes

Importantly, the Task Force's information requests to financial institutions are exempt from banking secrecy and financial confidentiality rules.

Penalties for Obstruction

Anyone who deliberately obstructs the Task Force, conceals suspect assets, or refuses to disclose information about suspect funds faces up to 7 years of imprisonment and/or a Category VI fine. If the obstruction is committed by a corporation, the fine increases by one-third, and the corporation may have its business permit revoked.

3. Handling Cases: Peace Fines, DPA, and Asset Recovery

Peace Fines (Denda Damai)

The Attorney General may terminate investigations or prosecutions through a peace fine mechanism, particularly for corporate suspects. The fine is calculated based on the total illegal profits or state losses, plus proportional financial sanctions. Proceeds go to the state as Non-Tax State Revenue (PNBP).

Deferred Prosecution Agreements (DPA)

If prosecuting a corporation could threaten workers' livelihoods, trigger mass layoffs, or disrupt citizens' welfare, the Task Force may propose a DPA to the Attorney General. The corporation must then:

1.      Restructure management and dismiss managers involved in criminal acts

2.      Implement a regularly monitored legal compliance program

3.      Settle all compensation or fines owed to the state

Asset Blocking and Confiscation

In urgent situations, the Task Force can block and confiscate assets to prevent diversion of criminal funds. These actions must be reported immediately to the Head of the local District Court for a ruling. Assets that are perishable, fragile, or expensive to maintain may be auctioned in coordination with the suspect or defendant.

Conclusion

This Draft Regulation signals a major expansion in how Indonesia defines and prosecutes economic crimes. The creation of a centralized, Attorney General-led Task Force with broad powers to investigate, freeze assets, and pursue beneficial owners represents a significant step toward more aggressive enforcement.

For businesses, especially those in sectors covered by the regulation (mining, financial services, trade, customs), the takeaway is clear: review your compliance programs now. Ensure your operations, financial practices, and management structures can withstand scrutiny. Train your personnel on their legal obligations. The cost of inaction could be severe.

Keywords: #economic #crimes  #taskforce  #beneficialownership  #DPA  #peace #fines  #Astayuda

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