he newly passed Criminal Code (KUHP) has faced a groundswell of criticism at home and abroad, with the United States and Australia warning that some clauses could frighten off investors and tourists and the United Nations condemning elements of the law as “incompatible with fundamental freedoms and human rights”.
The update to the country’s colonial-era penal code has been mired in controversy over its reintroduction of a once repealed lèse-majesté clause and inclusion of other provisions that restrict civil discourse and individual liberties.
Since lawmakers passed the revisions on Tuesday, international criticism has steadily grown, highlighting potential risks to the nation’s ambitious target of attracting Rp 1.4 quadrillion (US$89.6 billion) in foreign investment next year.
The US, Indonesia's fourth-largest foreign investor, warned that the new legislation could make investors think twice about taking part in Indonesian ventures.
US Ambassador Sung Yong Kim said Jakarta should be prepared for a possible fresh wave of doubt from American investors, which could have consequences for climate-related investment.
He noted that the new prohibitions on cohabitation and sexual relations outside of marriage could “complicate deliberations” for US companies considering doing business in the country.
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