ANNEX I.23 LAW OF THE REPUBLIC OF INDONESIA NUMBER 31, YEAR 1999 REGARDING ERADICATION OF CRIMINAL ACTS OF CORRUPTION

ANNEX I.23 LAW OF THE REPUBLIC OF INDONESIA NUMBER 31, YEAR 1999 REGARDING ERADICATION OF CRIMINAL ACTS OF CORRUPTION 1

LAW OF THE REPUBLIC OF INDONESIA NUMBER 31, YEAR 1999 REGARDING ERADICATION OF CRIMINAL ACTS OF CORRUPTION WITH THE GRACE OF GOD THE ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA Considering: a. Corruption is detrimental to the finances of the state or the economy of the state and inhibits national development, hence it must be eradicated in the context of creating an equitable and prosperous society based on Pancasila and the 1945 Constitution; b. The consequences of recent corruption, in addition to being detrimental to the finances of the state or the economy of the state, also inhibit growth and the sustainability of national development which demand the highest of efficiency; c. Law No. 3/1971 regarding the Eradication of Criminal Acts of Corruption is no longer applicable in light of developments in the legal needs of society. Therefore it must be replaced with a new law regarding the Eradication of Criminal Acts of Corruption and is hence expected to be more effective in preventing and eradicating corruption; d. Based on the considerations as referred to in letters a, b, and c, a new law regarding the Eradication of Criminal Acts of Corruption shall be required. In view of: 1. Article 5 paragraph (1) and Article 20 paragraph (1) of the 1945 Constitution: 2. The Stipulation of the People's Consultative Assembly No. XI/MPR/1998 regarding a Clean and Corruption-free, Collusion-free and Nepotism-free State Administrator; With the approval of THE PEOPLE'S CONSULTATIVE ASSEMBLY OF THE REPUBLIC OF INDONESIA HAS DECIDED: To stipulate: LAW REGARDING THE ERADICATION OF CRIMINAL ACTS OF CORRUPTION. Referred to in this law as: CHAPTER I GENERAL PROVISIONS Article 1 1. A corporation shall be an organized group of persons and/or assets both as legal entities as well as nonlegal entities. 2. Civil Servants shall comprise: a. Civil servants as referred to in the Law Regarding Employment; b. Civil servants as referred to in the Criminal Code; 2

c. Persons receiving salaries or wages from the state or regional treasury; d. Persons receiving salaries or wages from a corporation receiving assistance from state or regional treasury; e. Persons receiving salaries or wages from other corporations using capital or facilities of the state or the public. 3. Every person shall be considered an individual or a member of a corporation. CHAPTER II CRIMINAL ACTS OF CORRUPTION Article 2 (1) Anyone unlawfully enriching himself and/or other persons or a corporation in such a way as to be detrimental to the finances of the state or the economy of the state shall be liable to life in prison, or a prison term of not less than 4 (four) years and not exceeding 20 (twenty) years and a fine of not less than Rp 200,000,000 (two hundred million rupiah) and not exceeding Rp 1,000,000,000 (one billion rupiah). (2) In the event that corruption as referred to in paragraph (1) is committed under certain circumstances, capital punishment may be applied. Article 3 Anyone with the intention of enriching himself or other persons or a corporation, abusing the authority, the facilities or other means their disposal due to rank or position in such a way that is detrimental to the finances of the state or the economy of the state, shall be liable to life imprisonment or a prison term of not less than 1 (one) year and not exceeding 20 (twenty) years and/or a fine of not less than Rp 50,000,000 (fifty million rupiah) and not exceeding Rp 1,000,000,000 (one billion rupiah). Article 4 Compensation for losses inflicted upon the finances of the state or the economy of the state shall not annul the punishment of the perpetrator of a criminal act of corruption as referred to in Article 2 and Article 3. Article 5 Any person committing a crime as referred to in Article 209 of the Criminal Code shall be liable to a prison term of not less than 1 (one) year and not exceeding 5 (five) years and/or a fine of not less than Rp 50,000,000 (fifty million rupiah) and not exceeding Rp 250,000,000 (two hundred and fifty million rupiah). Article 6 Any person committing the criminal acts as referred to in Article 210 of the Criminal Code shall be liable to a prison sentence of not less than 3 (three) years and not exceeding 15 (fifteen) years and a fine of not less than Rp 150,000,000 (one hundred and fifty million rupiah) and not exceeding Rp 750,000,000 (seven hundred and fifty million rupiah). Article 7 Any person committing the criminal acts referred to in Article 387 or Article 388 of the Criminal Code shall be liable to a prison term of not less than 2 (two) years and not exceeding 7 (seven) years and/or a fine of not less than Rp 100,000,000 (one hundred million rupiah) and not exceeding Rp 350,000,000 (three hundred and fifty million rupiah). Article 8 Any person committing the criminal acts referred to in Article 415 of the Criminal Code shall be liable to a prison term of not less than 3 (three) years and not exceeding 15 (fifteen) years and a fine of not less than 3

150,000,000 (one hundred and fifty million rupiah) and not exceeding Rp 750,000,000 (seven hundred and fifty million rupiah). Article 9 Any person committing the criminal acts as referred to in Article 416 of the Criminal Code shall be liable to a prison term of not less than 1 (one) year and not exceeding 5 (five) years and a fine of not less than Rp 50,000,000 (fifty million rupiah) and not exceeding Rp 250,000,000 (two hundred and fifty million rupiah). Article 10 Any person committing the criminal acts as referred to in Article 417 of the Criminal Code shall be liable to a prison term of not less than 2 (two) years and not exceeding 7 (seven) years and a fine of not less than Rp 100,000,000 (one hundred million rupiah) and not exceeding Rp 350,000,000 (three hundred and fifty million rupiah). Article 11 Any person committing the criminal acts as referred to in Article 418 of the Criminal Code shall be liable to a prison term of not less than 1 (one) year and not exceeding 5 (five) years and/or a fine of not less than Rp 50,000,000 (fifty million rupiah) and not exceeding Rp 250,000,000 (two hundred and fifty million rupiah). Article 12 Any person committing the criminal acts as referred to in Article 419, Article 420, Article 423, Article 425 or Article 435 of the Criminal Code shall be liable to life imprisonment, or a prison term of not less than 4 (four) years and not exceeding 20 (twenty) years and a fine of not less than Rp 200,000,000 (two hundred million rupiah) and not exceeding Rp 1,000,000,000 (one billion rupiah). Article 13 Any person rendering gifts or promises to civil servants in view of the powers and authority attached to their respective ranks or positions, or deemed by the person rendering such gifts or promises to be attached to the aforementioned rank or position, shall be liable to a prison term not exceeding 3 (three) years and/or a fine not exceeding Rp 150,000,000 (one hundred and fifty million rupiah). Article 14 Any person violating the provision of the law which clearly states that violations against the provisions of the aforementioned law shall be regarded as corruption shall be liable to the provisions of this law. Article 15 Any person attempting, abetting or maliciously conspiring to commit criminal acts of corruption shall be liable to the same penalties as referred to in Article 2, Article 3, Article 5 up to and including Article 14. Article 16 Any person outside the territory of the Republic of Indonesia rendering assistance, opportunities, means or information to enable the commission of criminal acts of corruption shall be liable to the same penalties as referred to in Article 2, Article 3, Article 5 up to and including Article 14. Article 17 In addition to being liable to the punishment referred to in Article 2, Article 3, Article 5 up to and including Article 14, a defendant may be liable to additional penalties as stipulated in Article 18. Article 18 (1) In addition to being liable to additional penalties as referred to in the Criminal Code, further additional penalties shall be as follows: 4

a. The confiscation of tangible or intangible movable assets or fixed assets used to commit or being the proceeds of criminal acts of corruption, including the guilty party's corporation where the criminal acts were perpetrated, and the same shall apply to the price of the assets used to replace the aforementioned assets; b. The payment of compensation, the amount of which shall not exceed the amount of assets obtained through such criminal acts of corruption; c. The winding up of the entire company or parts thereof shall take no longer than 1 (one) year; d. The revocation of all or certain rights or parts thereof or the abolishment of all or certain benefits or parts thereof obtained or to be granted by the government to the guilty party. (2) In the event that the guilty party does not pay compensation as referred to in paragraph (1) letter b within 1 (one) month following the legal effect of a court verdict, the assets of such person may be seized by the prosecutor and auctioned off to cover the aforementioned restitution. (3) In the event that the guilty party does not have sufficient assets to pay the compensation as referred to in paragraph (1) letter b, the guilty party shall be liable to a prison term which shall not exceed the principle penalty in accordance with the provisions herein and duration of such penalty must already have been stipulated in a decision of a court of justice. Article 19 (1) The decision of a court of justice regarding the seizure of assets not belonging to the guilty party shall not be applied if the interests of third parties acting in good faith would be harmed thereby. (2) In the event that a decision of a court of justice as referred to in paragraph (1) also includes the assets of third parties acting in good faith, such third parties shall be entitled to submit a letter of objection to the court of justice concerned by no later than 2 (two) months following the pronouncement of the sentence in a public court session. (3) The submission of such letter of objection as referred to in paragraph (2) shall not postpone nor terminate the execution of the court verdict. (4) In the event intended in paragraph (2), the judge shall request a statement from the prosecutor and the parties concerned. (5) An appeal against the stipulation of the judge as referred to in paragraph (2) may be filed with the Supreme Court. Article 20 (1) In the event that corruption is committed by or on behalf of a corporation, prosecution and sentencing may be conducted against the corporation and/or its managers. (2) Criminal acts of corruption committed by a corporation are action by persons either in the context of a working relationship or other relationships, undertaken within the environment of the aforementioned corporation, either singularly or jointly. (3) In the event that a corporation is prosecuted, the aforementioned corporation shall be represented by its managers. (4) Managers representing corporations as referred to in paragraph (3) may be represented by other persons. (5) Judges may order that managers of a corporation appear before the court themselves and may also order that the aforementioned managers be escorted to court hearings. (6) In the event that criminal charges are brought against a corporation, a summons to appear before the court and the dispatch of such summons shall be addressed to the place of residence of the managers or their offices. 5

(7) The principle charges that may be brought against a corporation shall only be in the form of fines providing that the maximum punishment be increased by 1/3 (one-third). CHAPTER III OTHER CRIMINAL ACTS RELATED TO CRIMINAL ACTS OF CORRUPTION Article 21 Any person intentionally preventing or obstructing, or directly or indirectly sabotaging investigations, prosecution and examinations of suspects or defendants or witnesses in corruption cases in a court of justice shall be liable to a prison term of not less that 3 (three) years and not exceeding 12 (twelve) years and/or a fine of Rp 150,000,000 (one hundred and fifty million rupiah) and not exceeding Rp 600,000,000 (six hundred million rupiah). Article 22 Any person as referred to in Article 28, Article 29, Article 35 or Article 36 refusing to provide information or providing false information shall be liable to a prison term of not less than 3 (three) years and not exceeding 12 (twelve) years and/or a fine of Rp 150,000,000 (one hundred and fifty million rupiah) and not exceeding Rp 600,000,000 (six hundred million rupiah). Article 23 In corruption cases, violations against the provisions as referred to in Article 220, Article 231, Article 421, Article 422, Article 429 or Article 430 of the Criminal Code shall be liable to a prison term of not less than 1 (one) year and not exceeding 6 (six) years and/or a fine of Rp 50,000,000 (fifty million rupiah) and not exceeding Rp 300,000,000 (three hundred million rupiah). Article 24 Witnesses not complying with the requirements as referred to in Article 31 shall be liable to a prison term not exceeding 3 (three) years and/or a fine not exceeding Rp 150,000,000 (one hundred and fifty million rupiah). CHAPTER IV INVESTIGATION, PROSECUTION AND HEARING IN A COURT OF JUSTICE Article 25 Investigation, prosecution and hearing in a court of justice of corruption cases must have priority over other cases for prompt settlement. Article 26 Investigation, prosecution and hearing in a court of law in corruption cases shall be conducted in accordance with the applicable criminal procedures, unless determined otherwise herein. Article 27 In the event that a case of corruption is found to be difficult to prove, a joint team under the coordination of the attorney general may be formed. Article 28 In the interests of an investigation, a suspect shall be obligated to provide statements regarding his entire wealth and the wealth of his spouse and children and the wealth of persons or corporations known or suspected of being connected with acts of corruption allegedly committed by the suspect. Article 29 6

(1) For purposes of an investigation, prosecution or hearing in a court of justice, investigators, prosecutors or judges shall be authorized to request statements from banks regarding the financial condition of the suspect or defendant. (2) Requests for information as referred to in paragraph (1) shall be submitted to the governor of Bank Indonesia in accordance with the applicable laws and regulations. (3) The governor of Bank Indonesia shall be obligated to comply with such requests referred to in paragraph (2) by no later than 3 (three) working days from the complete receipt of the aforementioned request documents. (4) Investigators, public prosecutors or judges may request that banks freeze any accounts in the name of the suspect or defendant if said accounts are thought to contain the proceeds of criminal acts of corruption (5) In the event that the results of investigations into suspects or defendants yield insufficient evidence, upon the request of investigators, public prosecutors or judges, banks may rescind the freezing of accounts. Article 3 Investigators shall be entitled to open, examine and confiscate letters and consignments delivered through postal services, telecommunications or other means suspected of being connected to corruption cases being investigated. Article 31 (1) In investigations and examinations in a court hearing, witnesses and other persons concerned with corruption cases shall be prohibited from mentioning the name or the address of the informant, or other matters which may reveal the identity of the informant. (2) Prior to the convening of a trial, the witnesses and other such persons shall be notified of the prohibition as referred to in paragraph (1). Article 32 (1) In the event that investigators find and deem there is insufficient evidence in one or more elements of the criminal acts of corruption, while it is clearly evident that there have been financial losses suffered by the state, investigators shall turn over the files of the investigations to the prosecutor/state attorney to file a civil suit or yield in favor of the office suffering the loss to file such suit. (2) Acquittals in corruption cases shall not annul the right to file suit against the party for causing losses to the state. Article 33 In the event of the demise of the suspect during investigation, whereas it is evident that there were without doubt losses suffered by the state, investigators shall then hand over the resulting dossiers to the prosecutor/state attorney or to the office suffering the loss to enable the filing of a civil suit against the heirs. Article 34 In the event of the demise of the defendant during trial, whereas it is evident that there were without a doubt losses suffered by the state, investigators shall then hand over the resulting dossiers to the prosecutor/state attorney or to the office suffering the loss to enable the filing of a civil suit against the heirs. Article 35 (1) Every person shall be obligated to testify as a witness or an expert if called upon, with the exception of the father, mother, grandfather, grandmother, siblings, spouse, children or grandchildren of the defendant concerned. 7

(2) Persons released as witnesses as referred to in paragraph (1) may be examined as witnesses upon their consent and upon the express approval of the defendant concerned. (3) They shall be able to provide testimony without being sworn in, without the approval as referred to in paragraph (2). Article 36 The obligation to testify as referred to in Article 35 shall also be applicable to those according to occupation, dignity and status or rank, with the exception of religious clergymen, whose faith obligates them to maintain confidentiality. Article 37 (1) Defendants shall be entitled to prove that they were not involved in acts of corruption. (2) In the event that defendants are able to prove that they were not involved in corruption, such information shall be used in their favor. (3) Defendants shall be obligated to provide information regarding their entire wealth and the wealth of their spouse and children and of persons or corporations known to be or suspected of being connected with the case concerned. (4) In the event that defendants cannot justify the discrepancy between their wealth and their income or means of enrichment, such information may be used to support existing evidence that the defendant was involved in corruption. (5) Under the circumstances as referred to in paragraph (l), paragraph (2), paragraph (3) and paragraph (4), the public prosecutor shall remain under the obligation to prove the charges. Article 38 (1) In the event that a defendant who has been duly summoned is absent from the court hearing without a valid excuse, a judgment may then be passed in the absence of the defendant. (2) In the event that a defendant is absent during the following session prior to the handing down of a verdict, the defendant must then be examined, and all testimonies of witnesses and letters read out during previous sessions shall be deemed to have been read out in the current session. (3) Verdicts passed in absentia shall be announced by the public prosecutor in a notice on the bulletin board of the court, regional government office, or notification given to legal representatives. (4) Defendants or their legal representatives may appeal against verdicts as referred to in paragraph (1). (5) In the event that a defendant passes away prior to the passing of a verdict and there is sufficient evidence that the defendant did indeed participate in corruption, judges, upon the request of the public prosecutor, shall then stipulate the confiscation of previously seized assets. (6) No appeal may be filed against such stipulation of confiscation as referred to in paragraph (5). (7) Every person concerned may submit objections to the court stipulating such stipulation as referred to in paragraph (5), by 30 (thirty) days as from the announcement referred to in paragraph (3). Article 39 The attorney general shall coordinate and control the inquest, investigation and criminal prosecution of corruption conducted jointly by persons liable to trial in a general court or a military tribunal. Article 40 In the event there is sufficient cause to press corruption charges in the environment of a military tribunal, the provisions as referred to in Article 123 paragraph (1) letter g of Law No.31/1997 regarding military tribunals shall not be applicable. CHAPTER V 8

PUBLIC PARTICIPATION Article 41 (1) The public shall be able to participate in assisting efforts in the prevention and eradication of corruption. (2) Participation of the public as referred to in paragraph (1) may be realized in the following forms: a. the right to seek, obtain and provide information regarding suspicions of the occurrence of acts of corruption; b. the right to obtain services in seeking, obtaining and providing information regarding suspicions of crimes of corruption having occurred to law enforcement authorities handling criminal acts of corruption; c. the right to convey advice and opinion in a responsible manner to law enforcement authorities handling criminal acts of corruption; d. the right to obtain answers to questions regarding reports submitted to law enforcement authorities within 30 (thirty) days; e. the right to obtain legal protection with regard to: 1. implementing their rights as referred to in letters a, b, and c; 2. summoned to be present during the inquiry, investigation process, and in court sessions as witnesses, expert witnesses, in accordance with the applicable laws and regulations. 3. The public as referred to in paragraph (1) shall have the right and responsibility in an effort to prevent and eradicate acts of corruption. 4. The right and responsibility as referred to in paragraph (2) and paragraph (3) shall be conducted with due adherence to the principles and provisions set forth in the applicable laws and regulations and with due adherence to religious and other social norms. 5. Provisions regarding the procedures on the implementation of public participation in the prevention and eradication of criminal acts of corruption, as referred to in this article, shall be further stipulated by a government regulation. Article 42 (1) The government shall grant commendations to members of the public who have rendered their assistance in efforts to prevent and eradicate acts of corruption. (2) Provisions regarding commendations as referred to in paragraph (1) shall be further stipulated in a government regulation. CHAPTER VI MISCELLANEOUS PROVISIONS Article 43 (1) By no later than 2 (two) years from this law taking effect, a Corruption Eradication Commission shall be formed. (2) The commission as referred to in paragraph (1) shall have the task and authority to coordinate and supervise, as well as to inquire, investigate and press charges in accordance with the provisions of the applicable laws and regulations. (3) Membership in the commission as referred to in paragraph (1) shall comprise elements from the government and the public. 9

(4) The provision regarding the formation, organizational structure, work procedures, accountability, duties and authority as well as membership as referred to in paragraph (1), paragraph (2), and paragraph (3) shall be set forth by law. CHAPTER VII CLOSING PROVISIONS ARTICLE 44 As from the time this law takes effect, Law No. 3/1971 regarding the Eradication of Criminal Acts of Corruption (State Gazette Year 1971 No. 19, Supplement to the State Gazette No. 2958) shall be null and void. ARTICLE 45 This Law shall be applicable as from the date of its stipulation. For public cognizance, ordering the stipulation of this Law by its announcement in the State Gazette of the Republic of Indonesia. Validated in Jakarta on August 16, 1999 THE PRESIDENT OF THE REPUBLIC OF INDONESIA Signed BACHARUDDIN JUSUF HABIBE Stipulated in Jakarta on August 16, 1999 STATE MINSTER/STATE SECRTARY REPUBLIC OF INDONESIA, Signed MULADI STATE GAZETTE OF THE REPUBLIK OF INDONESIA YEAR 1999 NUMBER 140 Issued as true copy CABINET SECRETARY 0F THE REPUBLIC OF INDONESIA Second Acting Head of Bureau of Laws and Regulations [Signed and stamped; stamp reads: CABINET SECRETARY- REPUBLIC OF INDONESIA] Edy Sudibyo 10

I. GENERAL ELUCIDATION OF LAW OF THE REPUBLIC OF NUMBER 31 YEAR 1999 REGARDING ERADICATION OF CRIMINAL ACTS OF CORRUPTION The aim of national development is the development of the Indonesian man as a whole, and an entire Indonesian society which is equitable, wealthy, prosperous and orderly based on Pancasila and the 1945 Constitution. In order to achieve the aforementioned equitable, wealthy, prosperous and orderly Indonesian society, it is necessary to improve continuous efforts to prevent and eradicate criminal acts in general and specifically criminal acts of corruption. Amid efforts of national development in various sectors, the aspirations of the people to eradicate corruption and other forms of deviations is on the increase, because in reality, the existence of acts of corruption has caused the state to suffer enormous losses, which in turn resulted in the occurrence of crises in various sectors. In this matter, efforts for the prevention and eradication of crimes of corruption need to be increased and intensified by upholding human rights and the interests of the public. This Law is intended to replace Law No. 3/1971 regarding the Eradication of Criminal Acts of Corruption, which is expected to be able to comply with and anticipate developments in the legal requirements of the public in the context of preventing and eradicating in a more effective manner, all forms of crimes of corruption which are extremely detrimental to the finances of the state or the economy of the state specifically, and the public in general. The finances of the state referred to shall mean all state assets in any form whatsoever, either separated or not separated, including within it, all parts of state assets and all rights and liabilities incurred due to: a. being under the control, management and responsibility of a state institution official, both in the central government as well as in the regional government. b. being under the control, management and responsibility of state-owned or regional-owned enterprises, foundations, legal entities and companies having third party capital based on agreements with the state. Whereas, referred to as the state economy shall be the economic life organized in joint efforts based on the principle of amity or independent endeavors based on government policy, both centrally or regionally in accordance with the provisions of the applicable laws and regulations, having the intention of providing benefits, prosperity and welfare to the entire life of the people. In order to encompass the various modus operandi regarding deviations against the finance or the economy of the state which have become increasingly sophisticated and complicated, the crimes set forth herein shall be formulated in such a manner as to include "unlawful" actions to enrich oneself and/or other persons or corporations, in the formal as well as the material sense. By such formulation, the definition of "unlawful" in crimes of corruption shall also encompass contemptible actions for which, according to the public's sense of justice, the perpetrator must be prosecuted and punished. In this Law, criminal acts of corruption are explicitly defined as a formal crime. This is very important in terms of substantiation. By having its formulation in a formal sense adopted herein, even when the proceeds of corruption are returned to the state, the perpetrators shall still be brought before a court of justice and punished. 11

These new developments regulated herein shall be corporations as a subject of criminal acts of corruption which shall be liable to sanctions. This was not stipulated in Law No. 3/1971. In the context of achieving a more effective objective in preventing and eradicating criminal acts of corruption, this Law includes criminal provisions unlike those of the previous Law, namely the inclusion of special minimum penalties, higher fines and capital punishment, which shall be applicable to serious corruption offenses. In addition, this law also encompassing prison penalties for perpetrators of criminal acts of corruption who are unable to pay the additional penalty in the form of compensation for state's losses. This Law also expands the definition of civil servant, which, among other things, shall include persons receiving salaries or wages from corporations using capital or facilities from the state or the public. The facilities referred to shall be the special treatment granted in various forms, for example, unreasonable interest rates, unreasonable prices, the granting of exclusive rights, including reductions on import duties or taxes in violation of the applicable laws and regulations. Another new feature is that in the event of corruption cases which are difficult to prove, a joint team under the coordination of the attorney general may be formed, whereas the investigation and prosecution process shall be conducted in accordance with applicable laws and regulations. This is intended in the context of increasing the efficiency in utilizing the time of corruption cases and at the same time protecting the rights of suspects and defendants. In order to expedite the process of investigation, prosecution and examination of criminal acts of corruption, this Law regulates the authority of investigators, public prosecutors or judges according to the level of case handling in order to directly obtain information regarding the financial condition of the suspect or defendant to banks by submitting the aforementioned matter to the governor of Bank Indonesia. In addition to the above, this Law also applies reverse authentication in a limited or balanced manner, namely the defendant shall be entitled to prove that the defendant did not commit such criminal act of corruption and shall be obligated to include information regarding the defendant's entire wealth and that of the spouse and children and the wealth of all persons or corporations suspected of involvement in the case concerned, and the public prosecutor shall remain obligated to prove the accusations. This law shall also grant the broadest opportunity to the public to participate in efforts in the prevention and eradication of criminal acts of corruption, and to members of the aforementioned participating public shall be granted the protection of the law and commendations. In addition to granting public participation, this Law also mandates the establishment of a Corruption Eradication Commission to be set forth in a separate Law by no later than 2 (two) years as from the stipulation of this Law. Membership in this commission shall comprise elements from the government and the public. Based on the aforementioned considerations, Law No. 3/1971 regarding the Eradication of Criminal Acts of Corruption needs to be replaced with this Law. II. ARTICLE BY ARTICLE Article 1 Article 2 12

Article 3. Paragraph (2) Unlawful in this article comprises actions that violate the law both in the formal and material sense, namely, even though such actions are not set forth in the law, however, in the event that such actions are deemed contemptible, insofar as they are inconsistent with either the sense of justice or the norms of society, therefore such actions may be punishable. In this provision, the word "may" prior to the phrase "detrimental to the finances and economy of the state" indicates that criminal acts of corruption shall be a formal offense (delicti), namely the existence of corruption shall sufficiently be proven by the fulfillment of the elements of actions formulated, not by the occurrence of consequences. "Certain conditions" in this provision are intended as an encumbrance to the perpetrators of criminal acts of corruption, in the event that these criminal acts are conducted at a time that the state is in danger in accordance with the applicable laws, during the occurrence of a national disaster, the recurrence f criminal acts of corruption, or at a time the state is in an economic and monetary crises. The word "may" in this provision shall have the same meaning as in the Elucidation of Article 2. Article 4. Article 5 In the event that the perpetrator of acts of corruption as referred to in Article 2 and Article 3 have fulfilled the elements of the aforementioned articles, such compensation of losses of the finances or the economy of the state, shall not discharge the aforementioned perpetrator from punishment. The return of the financial or economic losses of the state shall only be a mitigating factor. Article 6 Article 7 Article 8 Article 9 Article 10 Article 11 Article 12 In this provision, the terms "Navy" or "Army" included in Article 388 of the Criminal Code must be read as the "Indonesian National Army." Self-explanatory Self-explanatory 13

Self-explanatory Article 13 Article 14 Self-explanatory The "provision applicable herein" referred to shall mean both material criminal law as well as formal criminal law. Article 15 Article 16 This provision shall be a special regulation due to the threat of punishment against the attempt and abetting of criminal acts in general shall be reduced by 1/3 (one-third) of the criminal punishment. This provision is to prevent and eradicate criminal acts of corruption which are transnational or cross-boundary in nature, hence all forms of transfers of finance/wealth resulting from international crimes of corruption may be optimally and effectively prevented. The "assistance, the opportunity, the means, or information" referred to in this provision shall be in accordance with the applicable laws and regulations and developments in science and technology. Article 17 Article 18 Self-explanatory letter a Self-explanatory letter b letter c letter d Self-explanatory The "winding up of all or part of the company" referred to shall be the revocation of the business license or the temporary termination of activities in accordance with the decision of a court of justice. Paragraph (2) Paragraph (3) Article 19 14

Article 20 Article 21 Article 22 Article 23 Paragraph (2) Paragraph (3) In the event that the objections of third parties are accepted by the judge following execution, the state shall then be obligated to compensate for losses of such third parties in accordance with the auction proceeds of the aforementioned assets. Paragraph (4) Paragraph (5) Those referred to as "manager" shall be the apparatus of the corporation operating the management of the corporation concerned in accordance with it article of association, including those who in reality have authority and participate in determining the policies of the corporation that may be classified as criminal acts of corruption. Paragraph (2) Paragraph (3) Paragraph (4) Paragraph (5) Paragraph (6) Paragraph (7) 15

Article 24 Article 25 In the event that there are 2 (two) or more cases prioritized by virtue of the Law, the priority shall be determined by the respective authorized institution in each legal process. Article 26 The authority of investigators according to this article shall include the authority to conduct wire-tapping. Article 27 The "criminal acts of corruption difficult to prove" referred to shall be, among other things, criminal acts of corruption in the fields of banking, taxation, capital markets, trade and industry, perpetual commodities, or in the fields of finance and monetary which are: Article 28 Article 29 Article 30 a. trans-sectoral in nature; b. committed by using sophisticated technology; or c. committed by the suspect/defendant having the status of State Administrator as stipulated in Law No. 28/1999 regarding Clean and Corruption-free, Collusion-free and Nepotism-free State Administrators. Paragraph (2) Paragraph (3) Paragraph (4) Paragraph (5) This provision is intended to increase the effectiveness of investigations, prosecution and eradication of criminal acts of corruption with due observance of cross-sectoral coordination with related offices. The "savings account" referred to is funds entrusted by the public to banks based on fund savings agreements in the form of clearing accounts, deposits, deposit certificates, savings accounts and/or other similar forms, including custodian services and safe-deposit boxes. Frozen savings accounts shall include interest, dividends, bond interest or other benefits obtained from the aforementioned account. 16

Article 31 Article 32 Article 33 Article 34 Article 35 Article 36 Article 37 Article 38 This provision is intended to grant authority to investigators in the context of expediting the investigation process, which in accordance with the Criminal Code, the opening, examination and confiscation of letters require prior approval of the head of the District Court concerned. Paragraph (2) Paragraph (2) The "reporting party" in this provision shall be persons rendering information to law enforcement authorities regarding the occurrence of criminal acts of corruption and not the reporting party as referred to in Article 1 No. 24 of Law No. 8/1981 regarding the Criminal Code. The "clear financial losses suffered by the state" referred to are losses of the state, the amount of which can be calculated based on the findings of an authorized office or an appointed public accountant. The "acquittals" referred to shall be decisions of the court of law as referred to in Article 191 paragraph (1) and paragraph (2) of Law No.8/1981 regarding Criminal Procedures. The "heirs" referred to in this article shall be as intended in applicable laws and regulations. Those referred to as "religious clergymen" in this article shall be Catholic clergymen requested for spiritual solace, entrusted with confidentiality. This provision is a deviation from the provisions of the Criminal Code stipulating that it is the prosecutor who is obligated to prove the occurrence of a crime, and not the defendant. According to this provision, the defendant is entitled to prove that the defendant is not guilty of corruption. In the event that the defendant is able to prove that the defendant was not involved in corruption, it does not mean that the defendant is proven not guilty of corruption, because the public prosecutor shall still be obligated to prove the charges. The provision of this article is a limited reverse authentication, because the prosecutor is still obligated to prove the charges. The provision in this paragraph is intended to save the finances of the state, hence even without the presence of the defendant, the case may be heard and tried by a judge. 17

Paragraph (2) Paragraph (3) That referred to as "verdict" announced or notified shall be the excerpt from the court decision. Paragraph (4) Paragraph (5) The provision in this paragraph shall be intended to save the assets of the state. Paragraph (6) Paragraph (7) The provision of this paragraph is intended to protect third parties acting in good faith. The limitation of 30 (thirty) days is intended to ensure the implementation of executions of assets originating from criminal acts of corruption. Article 39 Article 40 Article 41 That referred to as "coordinating" shall be the authority of the attorney general in accordance with the provision as referred to in Law No. 5/1991 regarding prosecution. The provision referred to in this article is intended to increase the effectiveness of the prevention and eradication of criminal acts of corruption. Paragraph (2) Letter a Letter b Letter c Letter d Letter e 18

Article 42 Article 43 Article 44 Article 45 Paragraph (3) Legal protection for reporting parties shall be intended to give them a sense of security in accordance with the provisions of the laws and regulations. Paragraph (4) Paragraph (5) Paragraph (2) Commendations to citizens credited with the discovery of criminal acts of corruption in addition to evidence thereof shall be granted commendations in the form of citations as well as premiums. SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 3874 19