Reform of the Criminal Procedure Code (KUHAP) and Its Implications for Corporate Cases

Jakarta, January 23, 2026 — Law Number 20 of 2025 on the Criminal Procedure Code (KUHAP) introduces significant changes to Indonesia’s criminal justice system, particularly in handling cases involving corporations. One of the main reforms is the implementation of a double-track system.

Acting Deputy Attorney General and simultaneously the Deputy Attorney General for General Crimes, Prof. Asep Nana Mulyana, explained that this new system allows for penalties not only in the form of principal punishments but also additional sanctions and specific measures against corporations.

According to Prof. Asep, this approach differs from the previous system, which primarily recognized a single track of sentencing. With the new KUHAP in effect, the procedures for handling corporate criminal cases now have a clearer legal basis, fully integrated into statutory law.

Prof. Asep further stated that before the latest KUHAP, the prosecution often relied on internal regulations and technical guidelines in managing corporate cases. These provisions are now formally incorporated into KUHAP, providing stronger legal certainty.

The new KUHAP also changes the coordination pattern between investigators and prosecutors. Previously multilayered, the coordination mechanism has now been simplified, with clear deadlines and structured processes.

As a follow-up, the Attorney General’s Office has issued new guidelines to align law enforcement practices with the applicable regulations, including provisions on the transitional period for implementing the new KUHP and KUHAP.

Substantively, prosecutors are now required to exercise greater precision in evaluating criminal acts, as the new KUHP introduces changes in the formulation of offenses. Some acts that were previously punishable are no longer classified as criminal offenses.

The new KUHAP also emphasizes illegal profits obtained from criminal acts. The state is not only focused on losses suffered by victims or the government but also on seizing unlawfully obtained corporate assets.

Additionally, a Deferred Prosecution Agreement (DPA) mechanism has been introduced for certain corporate cases. Through this mechanism, prosecution may be deferred if the corporation admits its wrongdoing, cooperates fully, and agrees to implement internal reforms.

If the corporation fails to meet these conditions or refuses to acknowledge its wrongdoing, the DPA cannot be applied. In practice, the agreement may also include obligations to improve corporate governance to prevent recurrence of offenses.

The government states that the DPA mechanism in Indonesia adopts international best practices while maintaining judicial oversight to ensure accountability and legal certainty.

With these reforms, the new KUHAP is expected to strengthen law enforcement against corporate crimes while promoting sustainable improvements in corporate governance.

 

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