The issue of punishment in Indonesia Criminal Code 2023, responds to emerging issues related to the shift in the paradigm of punishment from retributive to rehabilitative and resocialisation, overcrowding of inmates in the correctional institutions, the negative impact of deprivation of liberty, disparity in sentencing, and issues of discrimination and corruption in the prison. The advantages are the availability of alternative sanctions such as supervision sentence, fine, social work sentence, intermittent prison sentence (conditional punishment or probation), and judicial pardon. The effectiveness and implementation of various alternatives to imprisonment will very much depend on the clarity of provisions and the various supporting factors. Indonesia and Australia can cooperate and collaborate in strengthening the implementation of alternative sanctions in order to achieve the objectives of punishment stipulated in the new Criminal Code 2023 which will take effect in January 2026.