07
Anti-Corruption
1. LEGAL FRAMEWORK ON ANTI-
CORRUPTION IN INDONESIA
a. Overview
The key legislation in Indonesia which deals
with corruption is Law Number 31 of 1999 on
the Eradication of Crimes of Corruption in the
amended version of LawNumber 20 of 2001 (“Anti-
Corruption Law”).
Foreign companies investing and doing business
in Indonesia should, in particular, be aware of the
provisions in the articles 5, 13 and 20 of the Anti-
Corruption Law.
Whereas Article 20 Anti-Corruption Law
stipulates a criminal liability in case corruption was
committed by or on behalf of a company, the articles
5 and 13 Anti-Corruption Law define certain acts of
corruption.
The main authority to fight corruption in Indonesia
is the Corruption Eradication Commission
(KPK). According to Article 6 of Law Number
30 of 2002 on Commission for the Eradication
of Criminal Acts of Corruption, the tasks of the
KPK are the coordination and the supervision of
other authorized institutions in the eradication
of corruption, the enforcement of investigations,
indictments and prosecution against criminal acts
of corruption, the prevention of criminal acts of
corruption and the observance of the government
and the state budget. In performing these tasks, Law
Number 30 of 2002 provides the KPK with several
competences and authorizes the KPK respectively
to directly and indirectly, with the assistance of
Interpol or the police, perform the tasks.
b. Corruptive Practices
In order to trigger a criminal liability, a corruptive
practice in accordance with for example article
5 or article 13 Anti-Corruption Law has to be
committed:
(1) Article 5 of Law 20 of 2001
Article 5 Anti-Corruption Law describes two
alternatives for the violation of this provision:
• anybody who gives or promises something
to a civil servant or state operator with the
aim of persuading him to do something or
not to do anything because of his position in
violation of his obligations; or
• anybody who gives something to a civil
servant or state operator because of or in
relation to something in violation of his
obligation whether or not it is done because
of his position.
Themain difference between the two alternatives
is the sequence of events. While in the first
alternative something is given or promised to a
civil servant or state operator to persuade him
to do or to omit something that constitutes
a violation of his obligations, in the second
alternative the violation of the obligations has
been already committed and then something is
given to the civil servant or state operator. For
both alternatives, the sentences are a minimum
of one year imprisonment up to a maximum
of five years and a maximum fine of IDR
250,000,000.
(2) Article 13 of Law 20 of 2001
According to article 13 Anti-Corruption Law,
any person who renders or promises a gift
to a civil servant in the light of the power and
authority attached to the rank or position of the
civil servant shall be liable to amaximumof three
years imprisonment and/or a fine of maximum
of IDR 150,000,000. In contrast to article 5 Anti-
Corruption Law, article 13 Anti-Corruption Law
does not require that the civil servant receives
something because of or in relation to something
in violation of his obligation.
(3) Facilitation payment
Facilitation payments are payments which are
made to accelerate administrative procedures
or to reduce discomfort in the administrative
procedures. Facilitation payments may fall under
Article 5 and Article 13 Anti-Corruption Law.
(4) Gratification
According to Article 12B of the Elucidation
of Law Number 20 of 2001, a gratification is a
reward in a broad sense, includingmoney, goods,
discounts, commission, loan without interest,
travel tickets, accommodation, sightseeing
trips, free medication and any other facilities.
In general, gratifications can fall under the
articles 5 or 13 Anti-Corruption Law depending
on the intention and on the circumstances the
gratification was made.
