Corporations Can Now Be Prosecuted for Corruption

The Corruption Eradication Commission (KPK) has named four companies as corporate suspects in corruption and money laundering cases between 2017 and June 2018. First, the KPK named PT Duta Graha Indah (DGI) as a suspect in alleged corruption in the construction project of a specialized education hospital for infectious diseases and tourism at Udayana University. This company, which changed its name to PT Nusa Konstruksi Enjinering (NKE) in 2012, is considered to have caused state losses in 2009-2010.

Second, the anti-corruption commission also charged PT Nindya Karya (NK) and PT Tuah Sejati (TS) as corporate suspects in alleged corruption in April 2018. NK and TS are considered to have caused state financial losses in the construction of a cargo dock in the Sabang Free Port's free trade zone between 2006 and 2011.

(Read Databoks: Indonesia's 2018 Anti-Corruption Behavior Index Decreased)

Third, the KPK also named PT Putra Ramadhan (Trada) as a suspect in money laundering in May 2018. As a corporate suspect, principal penalties such as imprisonment do not apply in the case involving Trada. In money laundering cases, there are provisions for heavier sanctions, which can include the closure of the company.