Vol. 5, No. 9, September 2024

E-ISSN: 2723-6692

P-ISSN: 2723-6595

http://jiss.publikasiindonesia.id/

Jurnal Indonesia Sosial Sains, Vol. 5, No. 9, Month 2024 2245

a collection of people and assets (Anjari, 2016; Naldo et al., 2022).

individuals. Corporations, as legal entities, must be considered legal subjects who can be held

accountable for criminal acts. This approach requires changes in the legal framework to ensure that

corporations can be subject to appropriate sanctions. Corporations are legal institutions and non-

Jurnal Indonesia Sosial Sains, Vol. 5, No. 9, Month 2024 2246

legal entities consisting of individuals with the same status in the law as persons and can carry out

legal actions (Widyaningrum & Wijaya, 2022).

punishment. The definition of criminal liability is the responsibility of a person for the criminal acts

he commits (Ali, 2022), criminal liability determines whether a person can be held criminally

accountable for his actions (Sianturi & Kanter, 1996).

corporate entities. The development of information technology is accelerating in various

civilizations, not only in developed countries but also in developing countries (Siregar et al., 2024).

Corporations as legal subjects are recognized through Supreme Court Regulation Number 13 of

2016 concerning Procedures for Handling Corporate Crime Cases (Perma No. 13 of 2016) (Azhar &

Mahyani, 2022).

approaches, namely: 1) the allocation of responsibility for corporate crimes must be based on the

understanding that corporate actions are not just the sum of the actions of individuals in a

corporation, but must be seen as being in the form of actions of the corporation itself; 2) Allocation

of Responsibility for Corporate Crimes must be able to allocate the responsibility to each party,

indirectly. Corporate crime can majorly impact society, the environment, and the economy, so it is

important to understand and regulate criminal liability for corporations that violate the law

(Shanty, 2017).

For example, the United States and some European countries have specific provisions in their laws

to address corporate crime. These provisions include heavy fines, operational restrictions, and even

the dissolution of corporations.

implementing corporate criminal liability still faces various challenges. These include a lack of

understanding of the prosecution mechanism and obstacles in proving corporate involvement in a

encouraged to implement effective internal control and compliance systems to prevent law

violations. This can include employee training, code of conduct implementation, and periodic audits.

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increasingly prominent roles in economic activities. The expansion of corporate influence has

brought with it a rise in corporate crimes, where entities engage in illegal activities to gain financial

benefits. Unlike individual crimes, corporate crimes present unique challenges in law enforcement

due to the complexity of corporate structures and the difficulty in assigning responsibility. This

raises the need for a clear legal framework that holds corporations accountable for their actions.

to challenges in prosecuting corporate crimes effectively. The specific problem this study seeks to

address is the misalignment between existing laws and the practical difficulties of law enforcement

in cases involving corporate crime.

Indonesia, which pose significant threats to economic stability and public trust. High-profile cases,

such as the PT Jiwasraya financial scandal, have revealed significant weaknesses in Indonesia's legal

and regulatory frameworks. The failure to hold corporations fully accountable not only undermines

the rule of law but also affects victims, including the general public, who suffer from corporate

misconduct. Moreover, the global shift towards corporate accountability, exemplified by

international legal frameworks like the U.S. "vicarious liability" doctrine, puts additional pressure

inconsistencies within Indonesia’s legal framework and its implications for law enforcement. By

incorporating a comparative analysis with countries like the United States and European nations,

where corporate criminal liability is more clearly defined, this research offers new insights into how

Indonesia can strengthen its laws. Additionally, the study goes beyond a purely legal analysis by

suggesting practical reforms, including better coordination between regulatory bodies and

improved compliance systems within corporations. This differentiates the research from earlier

studies that primarily focused on theoretical aspects of corporate crime.

corporate criminal liability. By highlighting the specific problems, emphasizing the urgency, and

presenting a novel perspective, this study aims to contribute to the development of a more robust

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Jurnal Indonesia Sosial Sains, Vol. 5, No. 9, Month 2024 2249

shows the need for the right strategy in dealing with corporate crime in accordance with each

country's legal context.

acts committed by business entities. This concept differs from individual liability because a

corporation is a legal entity with no physical form. Therefore, the system focuses on actions taken

by or on the corporation's behalf, including management decisions and operational activities.

company's direction are also responsible for illegal actions (Retnowinarni, 2019).

fines, business restrictions, or corrective actions. Fines can be imposed significantly to prevent

future violations, while business restrictions may include prohibitions on certain activities or

industries. Corrective actions can involve changes in organizational structure or policies to prevent

repeated violations.

in the case of multinational corporations. International law and bilateral treaties often enforce

criminal liability and ensure corporations cannot evade sanctions simply by operating in various

jurisdictions. This shows the importance of global coordination in enforcing criminal law for

corporations to be prosecuted as legal subjects subject to criminal sanctions (Kartika, 2015).

Code (KUHP), specifically through Articles 67 to 74. These articles regulate the possibility of

corporations as perpetrators of criminal acts, with the principle that corporations can be considered

legal subjects subject to criminal sanctions. The Criminal Code provides a general framework for

understanding how corporations can be involved in criminal acts and how accountability can be

exercised.

regarding corporations in Law No. 8 of 1981 concerning the Criminal Procedure Law. The law

provides guidelines on the prosecution and evidentiary process in corporate cases, ensuring that

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corruption sectors, showing that corporate criminal law in Indonesia does not rely on only a single

source of law but also on relevant sectoral regulations.

held responsible for criminal acts committed by their management or employees. This liability

arises if the action is carried out for the corporation's benefit or within the scope of its work. This

principle ensures that corporations cannot avoid responsibility simply by blaming individuals.

or within the scope of the company's duties. This means that if an employee or administrator

commits a criminal act that benefits the corporation or in the course of carrying out their duties,

then the corporation can be considered liable. This is different from individual criminal liability,

where only individuals who commit criminal acts can be sanctioned.

Corporations must have adequate internal systems and controls to prevent criminal acts from

occurring. If corporations fail to implement adequate prevention and control systems, then they can

be considered negligent in their legal obligations, and this can be the basis for criminal liability. This

principle encourages corporations to be more proactive in ensuring that their operations are in

accordance with the law and do not violate applicable legal provisions.

Fines are the main sanctions imposed on corporations as financial punishment for

2. Freezing or Revocation of Business License

This sanction involves temporarily freezing or permanently revoking the corporate

Jurnal Indonesia Sosial Sains, Vol. 5, No. 9, Month 2024 2251

Asset confiscation sanctions can be applied to confiscate corporate goods or assets that are

6. Prohibition of Engaging in Certain Activities

Another sanction that can be applied is prohibiting corporations from engaging in certain

process (Rodliyah et al., 2021).

investigation by law enforcement officials, such as the police or prosecutors. This investigation aims

to gather evidence showing the involvement of corporations in criminal acts. During this stage, the

authorities will identify key individuals within the corporation who may be involved in illegal acts,

such as administrators, managers, or employees, and analyze relevant documents and transactions.

the prosecution process. The prosecutor will decide whether there is enough evidence to proceed

with the case to court. If so, they will draft an indictment that includes allegations against the

corporation and the individuals involved. The trial process then takes place in court, where

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complies with the remediation order and does not engage in further violations (Rodliyah et al.,

2021).

corporate structures and the difficulty of proving malicious intent. To overcome this, it is necessary

to strengthen regulations and increase the capacity of law enforcement officials. In addition,

improving the legal framework and international cooperation are also important in handling cases

of corporations operating across borders.

2. Proof and Legal Process

Proving a criminal act involving a corporation is often difficult because it requires evidence

3. Improving Regulations and Law Enforcement Capacity

Developing a legal system to handle corporate crimes requires improving regulations and

cooperation must be developed. The legal system must be updated to align with current business

practices and technology and correct weaknesses in existing regulations. International cooperation

is very important because many corporations operate in different countries, so criminal acts

involving corporations often involve cross-border jurisdictions. Bilateral agreements and

cooperation between law enforcement agencies in different countries will strengthen law

enforcement efforts and prevent violations involving multinational corporations.

enforcement. Implementing technology-based audit systems, big data analysis, and artificial

intelligence (AI) can simplify the process of investigating and monitoring corporate crimes. This

there are allegations of corruption and bribery against officials to get support for adverse

investment activities.

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investigated this case. The investigation revealed the involvement of several executives and officials

in the misappropriation of funds and manipulation of reports. The suspects face charges of fraud,

embezzlement, and corruption.

well as improve the financial management system. The executives involved were sentenced to

prison and required to pay fines. This case also triggered reforms in Indonesia's insurance industry

corrective measures aimed at deterring future violations. The main challenges in this process stem