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Anti-corruption In Indonesian

1. Bribery in the home (private to public)


1.1 The Legal Environment

The Indonesian Anti-Bribery and Anti-Corruption Law prohibits bribery of public officials. In reality, however, bribery cases in Indonesia are usually prosecuted under the country’s more modern Anti-Corruption Law.


1.2 What is the definition of bribery?

Bribery is defined by the Anti-Bribery Law as the act of providing or promising something to someone with the goal of persuading the recipient to do or not do something that is contrary to the recipient’s authority or duty and is in the public interest. The beneficiary is not limited to civil servants or public authorities under the Anti-Bribery Law. Rather, it applies to anyone in a position of authority over a matter of public concern, such as a private surveyor tasked with validating a fiscal facility applicant’s eligibility. The giver and the recipient are both accountable under the Anti-Bribery Law.

Note that where the Anti-Corruption Law and the Indonesian Criminal Code already apply, the Anti-Bribery Law does not apply.

Bribery is one of the acts defined as corruption under the Anti-Corruption Law. Bribery is defined as I giving or promising something to a civil servant or state administrative official with the intention of the recipient doing or not doing something in his position that is contrary to his obligations; and (ii) giving something to a civil servant or state administrative official because of or in connection with s. The fundamental theme of Article 5 is the corrupt giving of a present (or pleasure) in exchange for a specific action or non-action on the part of the recipient, in violation of his obligations or duties.


1.3 What is a public official?

Employees and officers of corporations supported by or using state or public facilities are included in the Indonesian Anti-Corruption and Anti-Bribery Laws, which have a fairly broad definition of public authorities. Even though a person is not on the government payroll (the conventional civil servant), he or she can be considered a civil servant if they work for a state-funded enterprise (i.e., the Republic of Indonesia or a region within the Republic of Indonesia). For the purposes of the Anti-Corruption Law, state administrative officials who perform executive, legislative, and judicial duties are also considered public authorities (e.g., members of the House of Representatives, ministers, judges and head of a state university).


1.4 Bribery’s Consequences

Anyone who breaches Article 5 of the Anti-Corruption Law faces a minimum of one year in prison and a maximum of five years in prison, as well as a fine of IDR 50 million and a maximum of IDR 250 million.

(a) In the case of the people involved

  • The Indonesian Anti-Corruption Law imposes the same sanctions on public officials as it does on people who bribe them. The following are the penalties:

  • A sentence of up to five years in prison is possible.

  • A fine of at least IDR 50 million and up to IDR 250 million will be imposed.

(a) For the corporation/legal entity in question

  • The Indonesian Anti-Corruption Law stipulates that criminal charges against a corporate or legal body, as well as its management, may be issued.

  • Penalties for the company’s executives.

  • Penalties for the corporation as a whole.

  • If it is established that the corporation’s officers committed a criminal act of corruption while doing their duties for the corporation, they will be imprisoned.


1.5 Contributions from politics

The Indonesian Political Parties Law governs contributions to political parties. The following contributions to political parties are permitted in general:

  • Individuals who are not members of a political party may make contributions of up to IDR 1 billion in a single financial year.

  • Contributions of not more than IDR 7.5 billion in a single financial year for corporations and legal organizations.


1.6 Hospitality expenses are subject to a limit (gifts, travel, meals, entertainment, among others)

Gifts, trips, food, and entertainment are all considered gratification under the Indonesian Anti-Corruption Law. Note that every gratification given to a public official is potentially a bribe under the Indonesian Anti-Corruption Law, but it must be given with some connection to the public official’s position and involve a quid pro quo by the recipient to do or not do something in violation of his obligations or duties to be an actionable crime. The following is the penalty for a public official who obtains bribe-like gratification:

  • Consequences range from four to twenty years in prison.

  • Life imprisonment is also a possibility, depending on the circumstances.

  • A fine of IDR200 million to IDR1 billion is possible.

This clause applies to gratification received both within and outside of Indonesia. The beneficiary of gratification is exempt from punishment under Article 12 C of the Indonesian Anti-Corruption Law if he notifies the gratification to the Indonesian Corruption Eradication Commission (KPK) in a timely way. After that, the KPK must rule whether the public official can keep the gratification or if it belongs to the state.


2. Bribery in the home (private to private)


2.1 The Legal Environment

Bribery in the private sector is not particularly prohibited under Indonesian law. Article 378 on fraudulent activities is the clause that best reflects the conduct of bribery between private companies.


2.2 Bribery in the private sector

There is no explicit definition of private bribery in the Indonesian legal system.


2.3 Private bribery’s Consequences

Fraudulent activities are punishable by up to four years in jail under Article 378 of the Indonesian Criminal Code.


2.4 Hospitality expenses are subject to a limit (gifts, travel, meals, entertainment, among others)

The notion of hospitality expenses between private businesses is not recognized by the Indonesian legal system.


3. Foreign public officials’ corruption

The practice of corruption involving foreign public officials is not particularly regulated under Indonesian law. The provision of the Indonesian Anti-Corruption Law that applies to the act of corruption of public officials also applies to the party who bribes or commits the act of corruption of foreign public officials, as long as it can be proven that the purpose of the alleged corruption harms the public interest.