Indonesia's New KUHAP 2025: What Every Business Owner Must Know About Corporate Criminal Liability

Introduction

Can a company be treated like a criminal suspect? In Indonesia, the answer is now a clear yes. With the enactment of Law No. 20 of 2025 on Criminal Procedural Law (KUHAP), alongside the Criminal Code (KUHP) under Law No. 1 of 2023 and Law No. 1 of 2026 on Penal Adjustment, Indonesia has built a comprehensive legal framework for prosecuting corporations.

This blog breaks down the three most critical areas businesses should understand: (1) the evidentiary framework, (2) the sanctions and sentencing changes, and (3) the rules on asset seizure and management.

1. Evidentiary Framework: What Counts as Evidence?

The new KUHAP now recognizes eight types of admissible evidence, applicable to both individual and corporate criminal cases:

1.      Witness testimony (in-person or via audiovisual tools)

2.      Expert testimony (under oath, with institutional assignment letters)

3.      Documents (official records, expert opinion documents, and other valid documents)

4.      Defendant's statement

5.      Physical evidence (tools, objects, or proceeds of crime)

6.      Electronic evidence (digital data, recorded information, electronic systems)

7.      Judge's observations

8.      Other elements that may be used for evidentiary purposes

All evidence must be proven authentic and lawfully obtained. Judges have the authority to assess validity, and any evidence found to be inauthentic or unlawfully obtained will be excluded from court proceedings.

Technical Assistance and Reverse Burden of Proof

The KUHAP provides six types of technical assistance for investigations, including forensic laboratories, digital forensics, forensic medicine, identification procedures, forensic psychology, and other necessary technical support.

For corruption cases specifically, the reverse burden of proof applies: defendants have the right to prove they did not commit a corruption offense. They must also disclose the totality of their assets, including those of spouses, children, and connected persons or corporations. If assets cannot be explained, they are deemed to have originated from criminal activity and may be confiscated by the state.

2. Corporate Sanctions: What Penalties Can Be Imposed?

Corporations can only receive fines as their principal punishment (not imprisonment, obviously). However, the KUHP now allows several additional penalties:

•         Corporate takeover

•         Placement under supervision or guardianship

•         Payment of compensation or restitution

•         Confiscation of goods or profits from criminal acts

•         Revocation of licenses

•         Closure of business premises or termination of activities

•         Suspension or permanent prohibition of certain activities

•         Dissolution of the corporation

Key Shift: Lighter Fines, More Flexibility

Generally, the new regime imposes lighter fines and eliminates minimum penalties across many offense categories. The use of "and/or" formulations gives judges greater discretion. However, for offenses directly impacting state finances (such as tax and corruption cases), the financial emphasis remains strong.

An important provision: if a court considers a Category VIII fine (IDR 50 billion) insufficient, the judge may impose an additional fine of up to 10% of the corporation's profits from the preceding financial year.

Execution of Sanctions

Key rules for enforcement:

1.      Judgments can only be enforced after they become final and binding.

2.      Fines must be paid within one month, extendable by one additional month.

3.      Installment payments are now permitted based on judicial discretion.

4.      If fines remain unpaid, the prosecutor may seize and auction corporate assets. If auction proceeds are still insufficient, the corporation faces a partial or total business freeze.

3. Asset Seizure: How Are Corporate Assets Handled?

What Can Be Seized?

Objects meeting the following criteria may be seized for investigation, prosecution, and court examination:

1.      Objects belonging to the suspect/defendant that are suspected of being obtained through or constituting the proceeds of a crime

2.      Objects used to commit or prepare a criminal act

3.      Objects used to obstruct an investigation

4.      Objects specifically created or used to commit a crime

5.      Objects created as a result of a criminal act

6.      Objects suspected of constituting the proceeds of a crime whose owner is unknown

The total value of seized objects must not exceed the value of losses resulting from the offense. Seizure requires authorization from the Head of the District Court. For assets located abroad, jurisdiction rests with the Central Jakarta District Court.

Storage and Disposal of Seized Assets

Seized objects are stored at the State Confiscated Property Storage House (Rupbasan), or at locations provided by investigators or prosecutors. The management process covers storage, security, maintenance, and safeguarding. Perishable or hazardous items must be auctioned promptly and cannot be purchased by the suspect, defendant, or their close relations.

Conclusion

The new KUHAP represents a deliberate move toward a more structured and adaptive criminal procedural framework. Corporations operating in Indonesia must take these changes seriously. The expanded evidentiary rules, flexible sentencing mechanisms, and detailed asset seizure procedures signal that regulators are equipped with stronger tools to hold businesses accountable.

Whether the new framework achieves its goals will depend on consistent enforcement by law enforcement, prosecutors, and the judiciary. For businesses, the message is clear: proactive compliance is no longer optional.

Keywords: #KUHAP  #corporate #criminal liability  #asset seizure  #criminal sanctions  #Astayuda

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