Human trafficking, or Tindak Pidana Perdagangan Orang (TPPO), is a serious transnational crime and one of the most pressing human rights issues globally. In Indonesia, this offense is not only committed by individuals—it can also involve companies and corporate actors. This article explores how Indonesian law holds corporations accountable for human trafficking and what foreign stakeholders should know.

What Is Human Trafficking Under Indonesian Law?

Indonesia’s Law No. 21/2007 on the Eradication of the Crime of Human Trafficking (Anti-Trafficking Law) defines human trafficking broadly. It includes recruitment, transportation, and harboring of persons—either domestically or across borders—for the purpose of exploitation. Methods often include threats, deception, abuse of power, and manipulation of vulnerable individuals.

Companies—such as labor recruitment agencies—can be implicated when they facilitate illegal migration or exploit workers under false pretenses.

Corporations as Criminal Actors

Human trafficking involving corporate actors is regulated under the Anti-Trafficking Law in Indonesia. According to Article 1 point 4, the term “any person”—as used to define perpetrators of human trafficking—includes both individuals and corporations.

Furthermore, Article 1 point 6 of the same law defines a corporation as an organized group of persons, whether it is incorporated as a legal entity or not.

This concept is reinforced in the Criminal Code, particularly in Article 45 point 2, which broadens the definition of a corporate entity to include limited liability companies, foundations, cooperatives, state-owned enterprises, region-owned enterprises, and other associations, whether legally incorporated or not.

Under Article 46 of the Criminal Code, a criminal offense by a corporation is defined as an unlawful act committed by a person in a position of responsibility within the organizational structure, or by someone working under an employment or other relationship, acting in the name or interest of the corporation in the course of business operations.

To classify a corporate action as human trafficking, three key elements must be present as stipulated in the Anti-Trafficking Law:

Process

As defined in Article 1 point 1, the process includes activities such as recruitment, transportation, sheltering, dispatching, and transferring individuals. A common method includes recruiting workers through unauthorized labor agencies by promising high salaries and ideal working conditions—often a disguise for exploitative schemes.

Means

Under Article 1 point 12, trafficking is characterized by means such as threats, coercion, violence, abduction, fraud, deception, abuse of power or vulnerability, or payments or benefits to gain control over a person. These manipulative tactics are typical in organized trafficking operations.

Purpose

As described in Article 1 point 7, the ultimate purpose of trafficking is exploitation—whether material or immaterial. Victims are used for the economic benefit of traffickers through forced labor, sexual exploitation, or other forms of abuse.

In many cases, corporations involved in trafficking operate as unauthorized labor placement agencies for Indonesian migrant workers. These companies often function without proper licensing and resort to forging travel documents such as visas, passports, work contracts, and departure documents to appear legitimate and deceive victims.

Such actions clearly meet the criminal criteria outlined in the Anti-Trafficking Law. When the elements of process, means, and purpose are fulfilled, a corporation becomes a liable subject of the trafficking offense.

Case Study: Student Trafficking to Germany

A recent case highlighted by Metro TV News revealed that two Indonesian companies—PT CVGEN and PT SHB—were involved in sending over 1,000 students to Germany under the guise of internships (ferien job). These students were promised work experience but ended up doing manual labor, often without understanding the contracts they signed.

The companies charged students up to Rp 50 million for placement and falsified key documents like visas and employment permits. Upon arrival, students faced exploitation: wage deductions, unregulated working hours, and limited legal protection.

Also read: Protecting Female Workers Against Sexual Violence

Legal Consequences for Corporate Human Trafficking

Indonesian anti-trafficking law recognizes that corporate actors can be held liable for trafficking offenses. In the case study, two corporations—PT CVGEN and PT SHB—facilitated the recruitment and overseas deployment of Indonesian students under the guise of internship programs, but subjected them to labor exploitation in Germany.

Article 4 – Trafficking Conduct

PT CVGEN and PT SHB can be prosecuted under Article 4 of the anti-trafficking law, which applies to “any person”—defined in Article 1 point 4 as including both individuals and corporations. Here, both entities acted as corporate perpetrators, promising students paid internships abroad while concealing exploitative working conditions.

Further, the act of transporting Indonesian citizens outside Indonesia with the intent to exploit is clearly met. The students were sent to Germany but were forced to work under exploitative conditions, including unlawful wage deductions and additional living costs—constituting labor exploitation under the law.

Article 15 paragraph 1 – Corporate Criminal Responsibility

Under Article 15 paragraph 1, when trafficking is committed by a corporation, the legal entity itself may be held liable. Both PT CVGEN and PT SHB operated trafficking schemes disguised as internships, making them liable for organizing and executing trafficking as corporate actors.

If found guilty under Article 4, the corporate actors face:

Prison terms of 3 to 15 years for responsible individuals.
Fines ranging from Rp 120 million to Rp 600 million.

In addition, Article 15 paragraph 1 provides that if trafficking is committed by a corporation, the financial penalties can be tripled, increasing potential fines up to IDR 1.8 billion.

The case against PT CVGEN and PT SHB show that human trafficking is not limited to individuals—it can be facilitated by corporations. Under Indonesian law, corporate liability is firmly recognized, and trafficking crimes are treated as extraordinary crimes and transnational organized offenses.

Also read: New Correctional Law in Indonesia Issued

Why This Matters for Foreign Stakeholders

Foreign businesses, civil society organizations (CSOs), and investors operating in or partnering with Indonesian entities should conduct due diligence to ensure compliance with anti-trafficking laws.

Failure to vet local partners or recruitment agencies can expose foreign entities to reputational risk and legal complications under both Indonesian and international law.

Indonesia has developed its legal framework to hold corporations accountable for human rights violations. For companies operating in labor-heavy sectors like manufacturing or recruitment, understanding Indonesian laws on this issue isn’t optional—it’s essential.

Also read: Criminal Sanctions for Perpetrators of Domestic Violence

Regulations:

Undang-Undang Nomor 21 Tahun 2007 tentang Pemberantasan Tindak Pidana Perdagangan Orang (“UU Pemberantasan TPPO”).
Undang-Undang Nomor 1 Tahun 2023 tentang Kitab Undang-Undang Hukum Pidana (“KUHP”).

References:

Mengenal Istilah Tindak Pidana Asal yang Menjadi Tindak Pidana Pencucian Uang. Pusat Pelaporan dan Analisis Transaksi Keuangan (Diakses pada tanggal 07 Juli 2025 pukul 10.55 WIB)
Perdagangan Manusia. Hukumonline (Diakses pada tanggal 07 Juli 2025 pukul 13.58 WIB)
Mengenal Lebih Dekat Tindak Pidana Perdagangan Orang. Hukumonline (Diakses pada tanggal 07 Juli 2025 pukul 15.17 WIB)
Muh Abdul Qudus, Pertanggungjawaban Korporasi Terhadap Tindak Pidana Human Trafficking di Indonesia. Fakultas Hukum Universitas Diponegoro (Diakses pada tanggal 07 Juli 2025 pukul 15.20)
Polri Beberkan Kronologi TPPO 1.047 Mahasiswa di Jerman. Metrotvnews (Diakses pada tanggal 07 Juli 2025 pukul 16.56)

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Corporate Liability in Human Trafficking Cases Under Indonesian Law