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Anti-Corruption Risk Map – Indonesia

By Timur Sikurno and Reno Hirdarisvita (Hadiputranto, Hadinoto & Partners)

Primary anti-bribery legislation and enforcement agencies

Law No. 11 of 1980 on Bribery (Anti-Bribery Law)

Law No. 31 of 1999 on the Eradication of Corruption, as lastly amended with Law No. 20 of 2001 (Anti-Corruption Law)[1]

Prohibits bribery of civil servants and state administrative officials

Investigating agency: Police, prosecutor and Komisi Pemberantasan Korupsi (KPK) [2]

Prosecuting agencies: Prosecutor/KPK

Offenses

Bribing Civil Servants or State Administrative Officials (Article 5 of the Anti-Corruption Law)

A person is guilty of an offense if:

  • he or she offers or promises something to a civil servant or a state administrative official, with the intention that the recipient do or not do something in his or her position that is contrary to his or her obligations; or
  • he or she gives something to a civil servant or a state administrative official because of or in connection with something that is contrary to his or her obligations, whether or not performed in his or her position.

Corporate liability arises under the Anti-Corruption Law if the corruption is committed by or on behalf of a corporation.

Extraterritorial application – Yes, under the Anti-Bribery Law if the bribery was committed outside Indonesia; the Anti-Corruption Law does not specifically extend its coverage to foreign jurisdictions. However, it imposes criminal liability for anyone outside the territory of the Republic of Indonesia who provides aid, opportunity, means or information to enable corruption. The penal sanction is the same as that imposed on the perpetrator. Furthermore, the general Criminal Code’s rules on jurisdictions should be applied. Criminal Code doctrine states that foreign parties who commit a crime outside of Indonesia can be held liable if the effect of the crime is felt in Indonesia.

Penalties – Criminal and/or Civil liability

For an individual (Article 5 of the Anti-Corruption Law) – Imprisonment for at least one year up to five years and/or a fine of at least IDR50 million up to IDR250 million

For bodies corporate (Article 20 of the Anti-Corruption Law) – A fine of up to the maximum amount of fine for an individual plus one-third of that amount.

[1] In practice, prosecutions of bribery in Indonesia generally invoke the more recent Anti-Corruption Law.

[2] KPK has the authority to investigate and prosecute corruption cases that: (i) involve law enforcement officials, state administrative officials or other people that are related to the corruption committed by law enforcement officials or state administrative officials; (ii) attract the public’s attention; and/or (iii) involves state loss of at least IDR1 billion.