2 January 2026 marks a historic milestone for Indonesia’s criminal justice system. On that date, three pieces of legislation took effect simultaneously: Law No. 1 of 2023 on the Criminal Code (the National KUHP), Law No. 20 of 2025 on Criminal Procedure (the new KUHAP), and Law No. 1 of 2026 on Criminal Adjustment. Together, they formally close the era of the colonial-era Dutch Wetboek van Strafrecht (WvS), which had served as the backbone of Indonesia’s criminal law since 1946.
For businesses, individuals, and corporations alike, this transition is far more than a renumbering of articles. It brings shifts in philosophy, types of punishment, and dispute-resolution mechanisms that directly affect how criminal matters are handled. Here are the key points.
1. A Shift in Philosophy: From Retribution to Restoration
The old Code rested on retributive justice — punishment as proportionate retribution for the offender’s wrongdoing. The new Code redirects this toward three simultaneous aims: corrective justice for the offender, restorative justice for the victim, and rehabilitative justice for both.
Article 51 of the new Code expressly sets out the purposes of sentencing — something absent from the old Code — namely to prevent crime, to rehabilitate offenders into good citizens, to resolve conflict and restore social balance, and to foster genuine remorse. As a result, imprisonment is no longer the only path.
2. A Broader Range of Punishments
Article 65 of the new Code expands the principal punishments to include imprisonment, confinement (pidana tutupan), supervision, fines, and community service. The last two are significant breakthroughs:
- Community service (Article 85) may be imposed for offences carrying a prison threat of under five years, where the judge would otherwise consider imprisonment of up to six months or a light fine. It can be served in hospitals, schools, social institutions, and the like, with due regard to the defendant’s consent and capacity.
- Supervision allows guidance outside correctional facilities — comparable to the old system’s conditional sentence, but within a clearer framework.
Both sanctions are designed, among other things, to ease prison overcrowding while making punishment more humane.
3. A Systematic and Flexible Fine Regime
The new Code organises fines into eight categories, from Category I (up to IDR 1 million) to Category VIII (up to IDR 50 billion). These amounts can be adjusted through Government Regulation without amending the statute, keeping fine levels relevant to economic conditions. For corporations, fines start at a minimum of Category IV, with asset seizure and auction available if unpaid.
4. The Death Penalty as a Special Punishment
One of the most striking changes concerns the death penalty. Under the new Code, it is no longer a primary principal punishment but a special one, imposed with a ten-year probationary period. If the convicted person demonstrates good behaviour, the sentence may be commuted to imprisonment. This approach reflects respect for human rights while preserving legal certainty.
5. Corporate Criminal Liability and Recognition of Living Law
The new Code affirms corporations as subjects of criminal liability in greater detail, meaning businesses must take compliance and governance seriously. In addition, Article 2 recognises the living law within society, giving limited room to customary law — a concept absent from the old Code.
6. Transitional Principles: Non-Retroactivity and the Criminal Adjustment Law
The principle of non-retroactivity is maintained: matters occurring before 2 January 2026 are, in principle, governed by the old provisions, while those arising afterward fall under the new Code. At the same time, the lex favorabilis principle (applying whichever provision is more favourable to the defendant) remains an important consideration during the transition.
To avoid friction with sectoral laws, the government simultaneously enacted Law No. 1 of 2026 on Criminal Adjustment, which contains roughly 55 points of amendment to Law No. 1 of 2023 — including harmonisation with criminal provisions in the narcotics and health sectors.
Impact and Closing Notes
The transition carries real consequences. Individuals and businesses now face a more varied sentencing framework — one that opens avenues for resolution outside prison, but also demands a fresh understanding of legal risk. Corporations should revisit their compliance policies. Meanwhile, legal practitioners and law enforcement face an adjustment period that calls for care, particularly in determining which law governs a given case.
In a transitional period like this, early legal guidance is crucial. Our Dispute Resolution team is ready to help navigate the implications of the new Criminal Code — from risk analysis and defence strategy to leveraging restorative-justice mechanisms.
This article is prepared for general information purposes only and does not constitute legal advice. For specific matters, please consult our team.