Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, Robert Sidauruk
While it is common to include criminal penalties and sanctions in laws and regulations, their inclusion in Law No. 7 of 2014on Trade (Trade Law) was controversial and the subject of much debate including resistance against them when discussed at House of Representative (House).
During the hearings at the House, the Indonesian Chamber of Commerce (KADIN) strongly opposed the inclusion of criminal sanctions in the Trade Law on the basis of a lack of reasonable consideration for reasons to do so. The House, however, rejected this notion and took the view that criminal sanctions are important because matters of trade concern the lives of many people.
When the Trade Law was finally passed, it incorporated some 13 types of violations that may result in criminal penalties including imprisonment and fines. These criminal sanctions are regulated in Articles 104 to 116, with prison terms ranging from 1 year to 12 years.
Article 104 of the Trade Law imposes a 5 year prison term (maximum) or a IDR 5 billion fine (maximum) if a business fails to use or affix an information label in the Indonesian language on their products.
Additionally, the company officers of a businesses that implements a pyramid trading scheme may be subject to 10 years imprisonment (maximum) or a IDR 10 billion fine (maximum) under Article 105 of the Trade Law.
Article 106 of the Trade Law provides for imprisonment to a maximum of four years or a fine of up to IDR 10 billion for a businesses that perform trading activities without the required business licenses.
Furthermore, according to Article 107 of Trade Law, a prison term of 5 years (maximum) or a fine of IDR 50 billion (maximum) may be imposed on a businesses that undertakes illegal stockpiling during a period of scarcity of goods in the market.
To ensure the supply of basic commodities in the market, the Trade Law provides for imprisonment of four years (max) or a fine for IDR 10 billion (max) if it is found a businesses provides false or misleading information on the supply of basic necessities, such as rice, sugar, etc. (Art. 108 of the Trade Law).
Article 109 of the Trade Law stipulates that producers or importers of unregistered goods for security, safety, medical, and environment matters will be punished with a maximum of one year imprisonment or a maximum fine of IDR 5 billion.
Article 115 of the Trade Law imposes imprisonment of 12 years, the longest imprisonment sanction under the Trade Law, for businesses that sell goods or services through electronic systems that do not comply with the predetermined data or information requirements under Article 65 (2) of the Trade Law.
Finally, Article 116 of the Trade Law imposes imprisonment to a maximum of three years or a maximum fine of IDR 5 billion for businesses that organize trade fairs and offer foreign products.
(For more information on the Bill on Trade, see: ILB No. 2342 and ILD No. 347)
(hot/kc)
Fitri Novia Heriani, Robert Sidauruk
While it is common to include criminal penalties and sanctions in laws and regulations, their inclusion in Law No. 7 of 2014on Trade (Trade Law) was controversial and the subject of much debate including resistance against them when discussed at House of Representative (House).
During the hearings at the House, the Indonesian Chamber of Commerce (KADIN) strongly opposed the inclusion of criminal sanctions in the Trade Law on the basis of a lack of reasonable consideration for reasons to do so. The House, however, rejected this notion and took the view that criminal sanctions are important because matters of trade concern the lives of many people.
When the Trade Law was finally passed, it incorporated some 13 types of violations that may result in criminal penalties including imprisonment and fines. These criminal sanctions are regulated in Articles 104 to 116, with prison terms ranging from 1 year to 12 years.
Article 104 of the Trade Law imposes a 5 year prison term (maximum) or a IDR 5 billion fine (maximum) if a business fails to use or affix an information label in the Indonesian language on their products.
Additionally, the company officers of a businesses that implements a pyramid trading scheme may be subject to 10 years imprisonment (maximum) or a IDR 10 billion fine (maximum) under Article 105 of the Trade Law.
Article 106 of the Trade Law provides for imprisonment to a maximum of four years or a fine of up to IDR 10 billion for a businesses that perform trading activities without the required business licenses.
Furthermore, according to Article 107 of Trade Law, a prison term of 5 years (maximum) or a fine of IDR 50 billion (maximum) may be imposed on a businesses that undertakes illegal stockpiling during a period of scarcity of goods in the market.
To ensure the supply of basic commodities in the market, the Trade Law provides for imprisonment of four years (max) or a fine for IDR 10 billion (max) if it is found a businesses provides false or misleading information on the supply of basic necessities, such as rice, sugar, etc. (Art. 108 of the Trade Law).
Article 109 of the Trade Law stipulates that producers or importers of unregistered goods for security, safety, medical, and environment matters will be punished with a maximum of one year imprisonment or a maximum fine of IDR 5 billion.
Article 115 of the Trade Law imposes imprisonment of 12 years, the longest imprisonment sanction under the Trade Law, for businesses that sell goods or services through electronic systems that do not comply with the predetermined data or information requirements under Article 65 (2) of the Trade Law.
Finally, Article 116 of the Trade Law imposes imprisonment to a maximum of three years or a maximum fine of IDR 5 billion for businesses that organize trade fairs and offer foreign products.
(For more information on the Bill on Trade, see: ILB No. 2342 and ILD No. 347)
(hot/kc)