Revealing the unexplained wealth in Indonesian corporation. A revolutionary pattern in non-conviction-based asset forfeiture
| DOI | https://doi.org/10.1108/JFC-11-2018-0116 |
| Pages | 29-42 |
| Date | 15 January 2020 |
| Published date | 15 January 2020 |
| Author | Anastasia Suhartati Lukito |
| Subject Matter | Financial crime,Accounting & Finance,Financial risk/company failure |
Revealing the unexplained wealth
in Indonesian corporation
A revolutionary pattern in non-conviction-
based asset forfeiture
Anastasia Suhartati Lukito
Faculty of Law, University of Surabaya, Surabaya, East Java, Indonesia
and Department of Legal, Martin Suryana and Associates, Surabaya,
East Java, Indonesia
Abstract
Purpose –The purpose of this paper is to analyze the unexplained wealth inside thecorporation and to
initiate and apply unexplained wealth order in the Indonesian corporation based on the Indonesian legal
system and prevailing laws. An effectivetool needs to be implemented because of the facts that numerous
corporate illegalactivities lead to economic and financialcrime. Meanwhile, there are difficulties to implement
the corporate criminal liability. Non-conviction-based asset forfeiture will be a way out to deal with the
current condition.
Design/methodology/approach –This paper explores and analyzes the Indonesian legal system,
particularly a non-conviction-based asset forfeiture for corporate illegalactivities. This paper is based on the
researchpaper conducted with the legal normative approach.
Findings –Non-conviction-basedasset forfeiture through unexplainedwealth order will be an effective tool
and a revolutionary pattern in the crime prevention perspective dealing with corporate crime. Corporate
criminal liability in anti-corruption regime can be viewed from two perspectives by combining and
integrating crime prevention approach as well as the repressive approach. The Indonesian Supreme Court
Regulation number 13of 2016 is a breakthrough in the criminal justice system to redesign case handling
procedure toward corporatecrime. It needs to be supported by precise asset forfeiture law. Furthermoreit is
necessityto strengthening and built corporations with moral and ethicalbusiness values.
Practical implications –This paper can be a source to explorethe unexplained wealth that can occur in
the corporationand the way to overcome it through unexplainedwealth order and non-conviction-based asset
forfeiture.
Originality/value –This paper contributes by initiatinga non-conviction-based asset forfeiture, which is
implementing the in rem proceeding,to make sure the crime does not pay and the victim and society suffer
less becauseof the corporatecrime.
Keywords Unexplained wealth, Non-conviction-based asset forfeiture, Unexplained wealth order,
Corporate crime
Paper type Research paper
1. Introduction
With the fast growth of the economy in Indonesia, cases of economic crimes such as
corruption and money laundering have grown tremendously and become an important
issue. According to the Corruption Eradication Commission Annual Report 2017, the
The author would like to acknowledge the support provided by the Indonesian Minister of Research
Technology and Higher Education for funding the 2018 Higher Education Excellent Research based
on the contract number 120/SP2H/LT/DRPM/2018 dated January 30, 2018.
Revealing the
unexplained
wealth
29
Journalof Financial Crime
Vol.27 No. 1, 2020
pp. 29-42
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-11-2018-0116
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