What Is the Difference Between Fraud and Embezzlement Under Indonesian Law?

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has discussed about "What's The Difference Between Police Report and Public Complaint?", read also "How to Open a Police Report in Indonesia?", "How To Report Online Scammer Or Fraud To The Police In Indonesia", "Who Has the Authority to Report a Crime If the Victim Is a Company?". And on this occasion we will discuss about 'What Is the Difference Between Fraud and Embezzlement Under Indonesian Law?'

One of the most common criminal acts is fraud and embezzlement, Its happen also in Indonesia. This criminal act often occurs within the scope of commerce or the business world in general. When you feel that you are a victim of this criminal act, its better to know the difference between the two before you intend to report it to the authorities.

Fraud

Article 378 of the Criminal Code ("KUHP") regulates the crime of fraud as follows: "Anyone with the intention of unlawfully benefiting himself or another person by using a false name or false dignity (hoedaningheid); by deceit, or a series of lies, inducing another person to hand over something to him, or to give a debt or write off a debt, is threatened, for fraud, with a maximum imprisonment of four years".[1]

Embezzlement

Article 372 of the Criminal Code ("KUHP") regulates the crime of embezzlement as follows: "Anyone who knowingly owns against the rights of an item which wholly or partly belongs to another person and the item is in his hands not because of a crime, shall be punished for embezzlement, with a maximum imprisonment of four years or a maximum fine of Rp. 900,-".[2]

The Difference Between Fraud and Embezzlement Under Indonesian Law

The most effective way to know the difference between the two is to know the elements contain in. Because this is the object of legal study, of course it is not easy for the general public to know the difference between the two, but it is not impossible to learn. This article does not intend to examine this matter in depth, only to discuss these differences in general terms.

In the author's opinion, the most basic thing to know the difference between fraud and embezzlement is the transfer of the goods. Let's see the difference between the two:

1. Fraud: In the crime of fraud, transfer of goods is against the law. The illegal transfer of goods is carried out in ways such as manipulate other people, using all kind of deception, using false identities, and so on. For example, Person A claimed to be a prince from Saudi Arabia who has billions of assets but still has little trouble with the bank, and is looking for a life partner, then asks for a transfer of some money for accommodation to move to Bali for good.
2. Embezzlement: In the crime of  embezzlement, the transfer of goods is not against the law. The goods are already in the control of another person that is not against the law. Mastery of this item usually occurs because of his work, or because of an agreement. For example, Person A owns a motorcycle and rents it to Person B, then Person B sells it to Person C.

If examined more deeply, then the difference between fraud and embezzlement is real. In legal practice, there are often wrong habits by reporting a legal event that has not been investigated more deeply but is reported to the authorities as a criminal act of fraud and/or embezzlement. And if you have any issue with reporting the crime in territory of Indonesia to the relevant Police station, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

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References:

1. Criminal Code

2. Ibid.