The Effectiveness of Articles 374 and 378 of the Indonesian Criminal Code in Dealing with Corporate Internal Fraud: A Legal Analysis of Corporate Losses
DOI:
https://doi.org/10.25217/jm.v10i2.7385Keywords:
Internal Corporate Fraud, Embezzlement, Criminal Code Enforcement, Corporate Losses, Economic Criminal Law, Fraud PreventionAbstract
The classification of nusyuz resolution in sacred texts, coupled with a conceptual void in Indonesian Internal fraud within the company is a serious threat to the sustainability of the organization and economic stability, especially if it is committed by employees or managers who take advantage of positions of trust. This study aims to analyze the application and effectiveness of Articles 374 and 378 of the Indonesian Criminal Code in dealing with internal fraud and protecting corporate financial losses. Using normative juridical methods, this study applies a legal approach and court decisions to examine relevant criminal provisions and court decisions related to embezzlement and fraud in the corporate environment. The analysis shows that Article 374 of the Criminal Code is applied more frequently and effectively because of its clear focus on the abuse of authority arising from employment relationships. In contrast, Article 378 faces significant challenges in practice, particularly in proving fraudulent intent and subjective elements in routine corporate transactions. These findings suggest that the existence of criminal norms alone is not enough to ensure effective protection against internal corporate fraud.
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