The Draft Bill on Criminal Adjustment (Draft Bill) marks a pivotal move for Indonesia and will align the countrys various sectoral laws with the updated framework of Law No. 1 of 2023, which sets out Indonesias new Criminal Law Code (Kitab Undang-Undang Hukum Pidana/KUHP). This move resolves sentencing inconsistencies and removes outdated provisions. In addition, the Draft Bill revises corporate criminal liability by clearly distinguishing between the responsibilities of corporations and individuals who work for them.

Indonesia's ongoing efforts to put in place a unified framework for asset forfeiture signal a growing awareness that the currently fragmented rules are insufficient in terms of efforts to adequately reclaim criminal proceeds. In this regard, while Law No. 31 of 1999 on the Eradication of Corruption, as amended by Law No. 20 of 2001 (collectively referred to as Law 31/1999), permits confiscation of corruption-related assets, its reach remains limited. However, the new Draft Bill ("Draft Bill") on Asset Forfeiture Related to Criminal Offenses introduces a dedicated non-conviction-based mechanism that ultimately offers a more flexible approach that encompasses blocking, seizure and in rem proceedings in ways that are in line with United Nations Convention Against Corruption (UNCAC) standards and that are supported by cross-border case experience.

As the number of Non-Performing Loans (NPL) in Indonesia continues to rise, banks have increasingly used auctions to recover debts. However, these auctions often lead to lawsuits asking for their cancellation. From 52 court decisions between 2015 and 2025, about 75% of such lawsuits were rejected. The findings indicate that courts generally uphold auctions that comply with procedural requirements and proper documentation, giving less weight to arguments based on fairness considerations.

Artificial Intelligence (AI) is becoming ever more integral to our daily and professional activities, including legal work. However, these new systems pose challenges in terms of data security and confidentiality. In response to these challenges, countries such as Indonesia have begun to establish various ground rules, including the various ethical values that should be adhered to whenever utilizing AI technologies. However, regulations alone may not prove sufficient within this contentious realm, ultimately leading to businesses establishing their own stricter internal policies and measures aimed at safeguarding confidential data and ensuring the responsible implementation of AI.

Law No. 12 of 2022 on Crimes of Sexual Violence (Tindak Pidana Kekerasan Seksual - "TPKS") marks a significant step in addressing sexual violence in Indonesia by defining nine TPKS offenses and focusing on victim protection and recovery. However, implementation remains challenging due to societal stigma and low legal understanding among law enforcements. To address this, the government introduced several regulations to provide victim support and prevention programs. However, services and infrastructure limitations highlight the need for improved coordination and stronger public awareness.

The Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board has officially issued Regulation No. 5 of 2025 on Guidelines and Procedures for the Implementation of Risk-Based Business Licensing and Investment Facilities Through the Electronically Integrated Business Licensing System (Online Single Submission OSS). This new framework introduces a number of new OSS subsystems, strengthens Investment Activity Report (LKPM) obligations and enhances compliance mechanisms, reflecting the governments continuing efforts to enhance the national investment climate through processes of digital integration and regulatory simplification.

This second part of this two-part edition of Indonesian Law Digest (ILD) on Regulation of the Government No. 40 of 2025 ("Regulation 40/2025") explores 28 updated supporting policies that underpin Indonesia's National Energy Policy (Kebijakan Energi Nasional/KEN). In contrast with the previous framework, Regulation 40/2025 organizes these policies into a number of thematic clusters that are in line with foundational policy areas. This new framework also integrates initiatives such as decarbonization, energy transition, market and pricing reforms, and technological oversight, offering insights into how these align with existing regulatory frameworks and long-standing government initiatives.

Regulation of the Government No. 40 of 2025 ("Regulation 40/2025") now officially serves as the latest framework to outline Indonesia's National Energy Policy (Kebijakan Energi Nasional - "KEN"). Applicable until 2060, this most recent version of the KEN sets measurable targets for energy use, supply and mix, while emphasizing reduced reliance on fossil fuels and increased use of renewable energy. Regulation 40/2025 also brings the country's energy goals into line with national priorities such as economic growth, sustainability, decarbonization and emissions reduction, thereby creating a comprehensive and long-term energy roadmap.

Indonesia's manufacturing sector remains one of the country's economic backbones. Unfortunately, though, the country is currently navigating a period of mixed signals. On the one hand, there is undoubtedly solid structural weight within the economy. However, pockets of stagnation, supply-chain disruption and regulatory friction persist and are materially affecting business operations and investment decisions. Therefore, this second edition of Hukumonline's occasional and ongoing Business Regulatory Impact Report series focuses on the various issues and problems that are most frequently faced by business actors operating within the manufacturing sector. This report places a specific focus on disruptions and issues that relate to Indonesia's regulatory frameworks.

The legal framework on industrial land use that applies within Indonesia underscores the governments obligation to balance economic development with environmental protection and food security. In this regard, Law No. 41 of 2009 on the Protection of Agricultural Land for Sustainable Food Production (Lahan Pertanian Pangan Berkelanjutan/LP2B) prohibits arbitrary land conversions, while Law No. 26 of 2007 on Spatial Planning and Law No. 3 of 2014 on Industry emphasize compliance with spatial planning (Rencana Tata Ruang Wilayah/RTRW), licensing procedures and legal mechanisms. This reflects the vital role that the law has to play in ensuring legal certainty, protecting communities and safeguarding environmental sustainability.