Introduction
Indonesia’s new Criminal Code, which was enacted on 2 January 2023 and shall enter into force on 2025, has introduced a number of significant changes to the country’s criminal justice system. One of the most notable changes is the introduction of a new fining system, which replaces the previous system of imprisonment as the primary form of punishment for certain offenses. Prior to the new Criminal Code, fines were imposed as a penalty for certain types of criminal offenses, but the crime and to provide an opportunity for the offender to make amends.
The new fining system is designed to be more efficient and effective than the previous system of imprisonment. Fines are generally easier to enforce than imprisonment, as they can be collected directly from the offender’s assets, whereas imprisonment requires the costly and time-consuming process of detention and incarceration. Additionally, fines are considered to be a more proportionate form of punishment, as they are based on the offender’s ability to pay and the severity of the offense.
The introduction of the new fining system is also intended to address the issue of overcrowding in Indonesia’s prisons, which has been a longstanding problem in system was not consistent and often resulted in lenient penalties for offenders. The new Criminal Code aims to address this issue by introducing a more comprehensive and consistent fining system. This article will discuss the key features of the new fining system and its implications for the enforcement of criminal law in Indonesia.
Under the new Criminal Code, fines are now the primary form of punishment for a wide range of offenses, including corruption, embezzlement, and tax evasion. This represents a significant shift in Indonesia’s criminal justice system, as fines have traditionally been seen as a secondary form of punishment, used in conjunction with imprisonment for non-violent crimes. This new system is based on the principle of “restorative justice,” which aims to repair the harm caused by the country. According to data from the Ministry of Law and Human Rights, as of 2020, the prison population in Indonesia stood at around 250,000, with an occupancy rate of over 130%. This has led to poor living conditions and a lack of access to basic services such as healthcare and education.
The new fining system aims to alleviate this problem by reducing the number of people being sent to prison and instead imposing fines on offenders. This will not only reduce the pressure on the prison system but also provide a more effective form of punishment for certain offenses.
Fining System in the Old Criminal Code
Criminal fines are set as one of the main types of punishment regulated in the old criminal code. The old criminal code itself, based on Law No. 1 Year 1946 and Law No. 73 Year 1958 is derived from Wetboek van Strafrecht voor Nederlands Indie which came into force in Indonesia on 1 January 1918, back when Indonesia was a colony of the Netherlands known as the Dutch East Indies.
As the value of Rupiah changes over the years, the nominal of the fines in the Criminal Code needed to be adjusted. The first change occurred in 1960 through Government Regulation in lieu of Law No. 16 of 1960 and Government Regulation in lieu of Law No. 18 of 1960. Since then, the fine punishment has not changed anymore. This causes the implementation of fine punishment to be ineffective.
Under the old criminal code, law enforcement prioritize imprisonment for non-violent crimes, as it was based on the principle of punishment, where the offender would serve a prison sentence as a way to pay for their crime and to deter others from committing similar crimes. The length of the sentence would depend on the nature of the crime and the offender’s past criminal record.
The old system had several drawbacks. The first was that there is no provision regarding other measures to ensure the implementation of the fine, for example by confiscating or seizing the property or wealth, except by substitute confinement for the fine. Maximum substitute confinement is only 6 months which can be increased to 8 months if there is an aggravation of the fine, even when the judge imposed maximum/heavy fine for the offender. This resulted in a high number of individuals being incarcerated for non-violent crimes, which led to overcrowding in the country’s prisons. Article 30 and Article 31 of the old criminal code do not set a definite time limit when the fine must be paid by the convict. In addition, the old criminal code does not regulate other measures that can ensure that the convict can be forced to pay the fine, for example by seizing or confiscating the property or wealth of the convict.
Furthermore, there are no guidelines or criteria for imposing fines, either in general or for special cases (e.g. fines imposed on minors, those who have not worked or are still dependent on their parents). It is also worth to note that confinement in lieu of fines in the old criminal code can only be applied to individuals and cannot be applied to corporations. Based on this, laws outside the old criminal code that make corporations the subject of criminal offenses cannot use Article 30 paragraph (2) of the old criminal code if the corporation does not pay a fine.
Key Features of the New System
One of the key features of the new fining system is the use of a “fine matrix,” which sets out the minimum and maximum fines for each offense. The fine matrix is based on the offender’s ability to pay and the severity of the offense, and provides a clear and transparent system for determining the appropriate fine. In the matrix, fines are now imposed on a scale that ranges from a minimum of IDR 1,000,000 to a maximum of IDR 50,000,000,000. The scale is divided into five categories, each of which corresponds to a range of fines. The categories are as follows:
| Ketegori | Maximum Fine |
| I | IDR1,000,000.00 |
| II | IDR10,000,000.00 |
| III | IDR50,000,000.00 |
| IV | IDR200,000,000.00 |
| V | IDR500,000,000.00 |
| VI | IDR2,000,000,000.00 |
| VII | IDR5,000,000,000.00 |
| VIII | IDR50,000,000,000.00 |
The fine imposed on the offender will be determined by the gravity of the offense and the offender’s financial capacity. As a general rule, Article 54 stipulates that following matters must be taken into consideration in imposing sentences:
- the form of fault of criminal offenders;
- motive and purpose of committing the Crime;
- inner attitude of criminal offenders;
- the Crime is committed either planned or unplanned;
- methods of committing the Crime;
- attitude and actions of the offender after committing the Crime;
- curriculum vitae, social condition, and economic condition of criminal offenders;
- effect of criminal sentence upon the future of criminal offenders;
- effect of the Crime on the Victim or the family of the Victim;
- forgiveness from the Victim and/or the family of the Victim; and/or
- the values of law and justice that live in the community
Although not limitative, the sentencing guidelines may be a helpful tool for judges in considering the dose or severity of the criminal sentence to be sentenced, including the category and amount of fine. By taking into account the matters detailed in the abovementioned guidelines, it is hoped that the imposed criminal sentence will be proportional and understandable to both the community and the convicts.
On the other hand, the new Criminal Code also provides that the offender’s financial capacity will be determined by the court on the basis of the offender’s income, and liabilities.
Fines may also be imposed as an alternative to imprisonment in the new criminal code. If a person commits a Crime which is only threatened with imprisonment for under 5 (five) years, while the judge is of the opinion that it is not necessary to impose an imprisonment after considering the purpose of sentencing and guidelines for sentencing, the said person may be subject to a criminal fine. This includes offenses such as disorderly conduct, disturbing the peace, and causing public nuisance.
The new fining system also includes provisions on the deadline of the fine payment. Criminal fines are required to be paid within a certain period of time, as set out in court decisions, and may even be paid by way of installments.
If the criminal fines not paid within the determined period, the assets or
income of the convict may be confiscated and auctioned by the prosecutor in order to settle the unpaid criminal fines.
Implications
The new fining system has significant implications for the criminal justice system in Indonesia. One of the most significant implications is that it will reduce the number of individuals who are incarcerated for non-violent crimes. This will help to alleviate overcrowding in the country’s prisons and will also save the government money that can be used to fund other social programs.
Additionally, the new system will provide an opportunity for offenders to make amends for their crimes and to reintegrate into society. The rehabilitation programs that are required for major offenses will address the underlying causes of the crime and will provide the offender with the skills and resources needed to reintegrate into society.
Another potential benefit of the new fines system is the increased deterrent effect it may have on potential offenders. The higher fines may serve as a stronger deterrent for those considering committing a criminal offense, as the financial consequences of being caught and convicted are now much more severe. Additionally, the different levels of fines for different categories of offenses may also encourage prosecutors and judges to be more precise in their classification of offenses, as the punishment now reflects the severity of the crime.
However, there are also potential drawbacks to the new fines system. One concern is the potential for unequal application of the fines. For example, wealthy individuals or large corporations may be able to pay the higher fines without much difficulty, while individuals or small businesses may struggle to pay the same fines. This could lead to a situation where the wealthy are able to continue committing criminal offenses without much consequence, while those without significant financial resources are disproportionately affected by the new fines system.
Another concern is the potential for the new fines system to disproportionately impact certain groups of people. For example, individuals living in poverty or those with low income may be disproportionately affected by the new fines system, as they may struggle to pay even the minimum fines for minor offenses. This could lead to a situation where those who are already marginalized are further penalized, while those with more financial resources are able to avoid harsher penalties.
Additionally, it’s worth noting that the fines system, as outlined in the KUHP, is not the only form of punishment available for criminal offenses. The KUHP also includes provisions for imprisonment and community service as possible punishments, and it is important to consider how the fines system fits into the overall system of punishment. For example, some offenses may be punished more appropriately with imprisonment or community service, rather than with fines.
Conclusion
The new fining system introduced by Indonesia’s new criminal code is a significant step forward in the country’s criminal justice system. The system is based on the principle of “restorative justice” and aims to repair the harm caused by the crime and to provide an opportunity for the offender to make amends. This new fining system will reduce the number of individuals who are incarcerated for non-violent crimes and will provide an opportunity for offenders to make amends for their crimes and to reintegrate into society. Additionally, the new system will provide a more efficient and effective way of dealing with criminal offenses and will save the government money that can be used to fund other social programs.
However, it’s critical to analyze the potential drawbacks of the system, such as the potential for unequal application of the fines and the potential for the system to disproportionately impact certain groups of people. It’s also important to consider how the fines system fits into the overall system of punishment and to ensure that the fines system is used in a way that is consistent with the principles of justice and fairness.