1.Criminal Code Offences
Law No. 31 of 1999 on the Eradication of the Criminal Act of Corruption ("Law No. 31/1999") as amended by Law No. 20/2001, expands upon and adds to these criminal offences and, not surprisingly, increases significantly the penalties for breach of the Criminal Code provisions (which, to a large extent are now fully incorporated into Law No. 31/1999).
2.Management Responsibility for Corporate Actions
Law No. 31/1999 has important implications for the Board of Directors of all Indonesian companies as Article 20 states that "In the event that the criminal act of corruption is committed by or on behalf of a corporation, the lawsuit and the sentence may be instituted against and imposed on the corporation or the board". Judges can order that the board of directors to be brought to the court. Directors of companies under investigation should also be aware of further provisions of Law No. 31/1999 which impose heavy custodial sentences and fines on those who prevent, hinder or foil, investigations and lawsuits, or who provide false information to the authorities or to the court. 3.Investigation and Prosecution of Corruption
The government acknowledges that investigating corruption is not easy and bringing successful prosecutions is extremely hard. With this in mind, the drafters of Law No. 31/1999 and Law No. 20/2001 tried to ease the burden on prosecutors and the courts by introducing a number of (in some cases, somewhat controversial) measures : Investigators are authorised to use wire-tapping. The Government are presently preparing a draft regulation regarding wire-tapping. The prosecuting authorities and the court may request financial information on the suspect or the accused from banks and request that deposit accounts be blocked (both requests to be made through Bank Indonesia). Suspects can be required to provide information on their and their family's assets. Investigators are given...