The Economic Analysis of the Penal Formulation and Its Maximum Prison Sentences Limitation for Economic Crimes in Indonesian Penal Code Books

Abstract

Objectives: Identifying the limitation in the prison sentence statutes for ordinary economic crimes in both the current Indonesian Penal Code Book and the 2023 Indonesian Penal Code Book using economic analysis to show the limits where the statute is no longer able to ensure criminal deterrent, which is when the statue cannot ensure crime does not pay to the perpetrator. This raised the question of the rationality of current penal sentencing formulation.

Method: Using a normative legal research method, this economic analysis study attempts to reveal the economic rationality of general society in assessing the severity of penal sentencing in the highest position provisioned by using the maximum value of the prison sentence threat to compare it with the possible benefits from the crime in the position of a crime with a significant loss value. This research analyzed the possible maximum outcome of a specific economic crime, analyzed it in both Indonesian Penal Code Books, extending it if any other sentencing can be imposed on the perpetrator, such as the tort law, showing the upper limit of economic value for each Penal Code Book’s prison sentence provisioned, and showing that value is meagre compared to the existing economic crime cases in Indonesia within past five (5) years.  

Result: In some cases that have a high economic loss value, the maximum prison sentence formulation for offences against ordinary economic crimes is not even able to handle the value of the crime’s losses, let alone a long-ensuring criminal deterrent. Thus, it is doubtful that the current penal sentence formulation, even at its maximum threat, can protect society and achieve criminal deterrents.