Restorative Justice and Out-of-Court Settlement of Corporate Criminal Offenses in Indonesia: Philosophical Foundations and Regulatory Reform

Abstract

The regulation of corporate criminal liability in Indonesia has predominantly adopted a repressive and retributive paradigm, positioning criminal prosecution as the primary enforcement mechanism. This approach is reflected in Supreme Court Regulation Number 13 of 2016, which emphasizes formal adjudication despite corporate sanctions being largely financial in nature. Such a model often disregards the broader socio-economic impact of corporate punishment, including consequences for employees, shareholders, consumers, and public interests. This article aims to analyze the philosophical and normative foundations of resolving corporate criminal cases outside the court system, shifting from retributive justice toward corrective, rehabilitative, and restorative justice models in accordance with contemporary criminal law developments. This study employs normative legal research using statute, conceptual, case, and comparative approaches. Legal materials are analyzed qualitatively to assess coherence between positive law, legal principles, and emerging paradigms of corporate criminal responsibility. The research finds that the enactment of Law Number 1 of 2023 on the Indonesian Criminal Code signifies a paradigmatic shift toward restorative and rehabilitative justice in corporate sentencing, particularly under Article 56. This study proposes an out-of-court corporate crime settlement model grounded in proportionality, efficiency, and social justice, offering a novel framework that balances law enforcement objectives with corporate sustainability and public welfare.