Indonesian Parliament Approves New Criminal Procedure Code

Enhanced Legal Certainty for Businesses

The Indonesian Parliament (DPR) has officially passed the new Criminal Procedure Code (KUHAP), marking a significant development in the country's legal framework. This new legislation is expected to enhance legal certainty for businesses by providing clearer guidelines and mechanisms for law enforcement. The updated code aims to create a more transparent and predictable legal environment, which is crucial for business operations and investment decisions.

Minimizing Abuse of Power

One of the key aspects of the new KUHAP is its potential to minimize potential abuse of power by law enforcement agencies (APH). By establishing more stringent checks and balances, the law seeks to prevent arbitrary actions and ensure that legal processes are conducted fairly and transparently. This is particularly important for businesses, as it reduces the risk of unfair treatment and enhances their confidence in the legal system.

Business Community's Response

The business community has generally welcomed the new legislation, viewing it as a positive step towards improving Indonesia's legal infrastructure. The increased clarity and predictability in legal processes are seen as beneficial for business operations and investment climate. Ditha Wiradiputra, Executive Director of the Competition and Business Policy Studies Institute (LKPU) at the Faculty of Law, University of Indonesia (FHUI), noted that while some parties felt the approval process was rushed, the substance of KUHAP has been discussed extensively over time.

Implications for Indonesia's Investment Climate

The passage of the new KUHAP is expected to have positive implications for Indonesia's investment climate. By enhancing legal certainty and minimizing the risk of arbitrary law enforcement actions, the country becomes a more attractive destination for both domestic and foreign investors. This development aligns with broader efforts to improve the business environment and promote economic growth.