Companies Face New Compliance Challenges in the Era of AI and Digital Transformation

Photo: Special

JAKARTA - Indonesia Regulatory Compliance Awards (IRCA) 2026 as an appreciation forum and strategic space to strengthen the culture of compliance and corporate governance in Indonesia is held again. In its third year of implementation, IRCA 2026 was attended by company leaders, legal and compliance practitioners, regulators, academics, and stakeholders from various industrial sectors.

Chief Executive Officer of Hukumonline Arkka Dhiratara said that increasingly complex global challenges have encouraged legal and compliance functions to take a much more strategic role within the company.

According to him, compliance is no longer seen as merely an administrative obligation, but has become an important foundation for business sustainability and corporate competitiveness.

"Currently, legal and compliance are no longer behind the scenes. Their role is not only to ensure that companies comply with regulations, but also to help companies move faster, more adaptive, and more confident in the midst of change," said Arkka in the Indonesia Regulatory Compliance Awards series which took place at Le Méridien Jakarta, Friday, May 22.

He highlighted that global geopolitical uncertainty, supply chain fragmentation, slowing world economy, acceleration of digital transformation and Artificial Intelligence (AI), as well as increasing demands for Environmental, Social, and Governance (ESG) transparency, data protection, and corporate governance have presented increasingly complex regulatory challenges for the business world.

In the midst of this dynamic, Arkka sees the company's awareness of the importance of a culture of compliance continues to increase. This is reflected in the number of IRCA 2026 participation which reached more than 130 companies from various industrial sectors.

"This high participation shows that the culture of compliance in Indonesia is increasingly developing into an important part of the company's strategy," he said.

In addition to presenting award events, IRCA 2026 has also been expanded into a more comprehensive strategic forum through the holding of the Regulatory Compliance Summit and Regulatory Compliance Breakout Sessions.

Both forums are a series that presents discussions on regulatory developments, corporate governance, risk management, ESG, data protection, to cross-jurisdictional compliance challenges.

IRCA 2026 Jury Council representative Natalia Soebagjo assessed that there were positive developments in corporate compliance practices in Indonesia. According to him, more and more companies are beginning to view compliance as an integral part of business sustainability, more than fulfilling formal obligations.

"As a jury, we not only look at documents or procedures, but how the culture of compliance is actually carried out in daily practice," said Natalia.

He added that this year's judging process was dynamic because of the high quality of the submissions received. The assessment was carried out thoroughly through evaluation, in-depth analysis, and discussion between the jury with consideration of business characteristics and regulatory challenges in each industry sector.

Hukumonline Chief Media and Engagement Officer Amrie Hakim revealed that the number of IRCA 2026 participants increased by 23 percent compared to the previous year. This year, as many as 131 companies from 23 industrial sectors participated in the event.

According to Amrie, the increase is not only seen in terms of the number of participants, but also the quality of the implementation of corporate compliance.

"More and more companies in Indonesia have a strong commitment to strengthening corporate governance, improving compliance standards, and building a culture of sustainable integrity," said Amrie.

In this year's implementation, Hukumonline also continues to refine the assessment methodology through the PROSPER classification framework based on industry regulation levels, business risks, business complexity, and company operational scale.

The classification is used to ensure that the assessment process is more fair, objective, and contextual based on the level of regulatory complexity and the complexity of each company's business.

Amrie emphasized that IRCA is not only intended as an award event, but also as a joint learning space to encourage the emergence of more adaptive, strategic, and sustainable compliance practices in Indonesia.

"In the end, building a culture of compliance is not the work of one party alone, but a shared responsibility for the entire business ecosystem and governance in Indonesia," he said.

IRCA 2026 is supported by ASP Law Firm "Your Trusted Partner in Bankruptcy and Restructuring", Soemadipradja & Taher, Manurung Fachrulian Siregar Law Firm, Ail Amir & Associates Law Firm, InJourney Tourism Development Corporation (ITDC), PT Adaro Andalan Indonesia Tbk, PT Alamtri Resources Indonesia Tbk, PT Prodia Utama, PT Amartha Mikro Fintek, PT Bridgestone Tire Indonesia, PT Geo Dipa Energi (Persero), PT Bank Rakyat Indonesia (Persero) Tbk, PT Pegadaian, PT Sarana Multi Infrastruktur (Persero), PT Terminal Petikemas Surabaya, PT Nindya Karya, Bank Jakarta, PT ALTO Network, PT Nusantara Regas, PT Pupuk Indonesia Utilitas, PT PLN Energi Primer Indonesia, PT PLN Indonesia Power Services, PT Jasa Marga (Persero) Tbk, PT Pelayaran Nasional Indonesia (Persero), and PT Bukit Asam (Persero) Tbk.