The Indonesian Chamber of Commerce and Industry (KADIN) has called on companies in the country to strengthen their commitment to the new penal code that has been officially implemented, ensuring that corporate management aligns with modern laws. This statement was made during a seminar held in Jakarta, where the details of the law and its impact on various economic sectors were discussed.
In a statement, KADIN's Vice President, M. Aziz Shamsuddin, emphasized that this initiative aims to enhance a comprehensive understanding of the new laws among business leaders, noting that this step is essential for coordinating perspectives between the legal and economic sectors.
Event Details
The seminar took place on April 8, focusing on the significance of Penal Code No. 1 of 2023, which will come into effect on January 2, 2026. It was emphasized that this law has a significant impact on economic activities, particularly in the construction sector.
Experts pointed out that the new law redefines companies as legal entities that can be held criminally accountable, representing a major shift in how economic crimes are addressed. The discussion included how companies can adapt to these legal changes to ensure business continuity.
Background & Context
Historically, criminal laws in Indonesia have focused on individuals, making it difficult to hold companies accountable for illegal actions. However, recent changes aim to address this gap by introducing the concept of corporate criminal liability.
This shift comes at a time when Indonesia is experiencing notable economic growth, necessitating a robust legal framework that supports this growth and enhances the business climate. This law is part of the government's efforts to improve the investment environment and attract more foreign investments.
Impact & Consequences
Economic circles anticipate that the new penal code will have significant effects on how companies are managed. With the introduction of corporate criminal liability, companies will need to reassess their internal policies and procedures to ensure compliance with the new laws.
This law may also lead to increased legal awareness among business leaders, potentially contributing to reduced legal risks and greater transparency in business operations. Experts hope that this will enhance Indonesia's reputation as a safe investment destination.
Regional Significance
The Indonesian experience in implementing new laws is particularly significant for Arab countries, which can benefit from the lessons learned in enhancing compliance with laws and improving the business environment. Furthermore, increasing transparency and accountability could positively impact Arab investments in Indonesia.
In conclusion, the new penal code represents an important step towards improving the business climate in Indonesia and reflects the government's commitment to enhancing transparency and accountability in the private sector.