Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Pirhot Nababan, Mahinda Arkyasa
In less than three years, in 2015 to be exact, the Association of South East Asian Nations (ASEAN) will implement the ASEAN Economic Community (AEC). By implementing AEC, ASEAN countries will conduct free flow of goods, services, and capital amongst themselves. There will be no borders in South East Asia with this policy.
With respect to services sector, particularly legal services, Indonesia is currently preparing for the waves of foreign lawyers coming through Indonesia by the time AEC is established. This was confirmed by Amir Syamsuddin, Minister of Law and Human Rights.
“[The Ministry of Law and Human Rights] is currently revising the policy on foreign lawyers,” said Amir during the opening ceremony of the 25th Law Asia Conference in Nusa Dua, Bali, Monday (19/11).
Amir admitted that foreign lawyers contribute to the development of economic law. However, they must be clearly regulated.
“We should prevent foreign lawyers from using Indonesian lawyers as ‘puppets’, while they neglect their obligations, for example paying taxes,” he explained.
Otto Hasibuan, Chairman of Indonesian Advocates Association National Executive Council (DPN PERADI), is concerned that there will be many foreign lawyers who establish an office in Indonesia using Indonesian lawyer’s name as a front.
“If that is the case, taxes that are supposed to be collected in Indonesia will be gone. It can reach hundreds of billions rupiah,” Otto stated. He asserted that policy regarding foreign lawyers still refers to the Law No. 18 of 2003 on Advocates.
To prevent foreign lawyers from violating laws and regulation, Otto stated that PERADI will collect data on foreign lawyers who currently practice law in Indonesia.
“PERADI will interview each and every one of them,” he said.
Government Policy
President of Law Asia Malathi Das emphasized that the foreign lawyers issue depends on the government policy of respective states. Respective governments must involve their bar association and local lawyers to understand the country’s need of foreign lawyers before drafting a policy.
She explained that there are several important issues that must be addressed related to the foreign lawyers policy.
“The first issue is whether foreign lawyers can advise on local laws or only their country’s laws,” Malathi stated.
Practice where foreign lawyers can advise on local law is common in some states. In Singapore, for example, foreign lawyers can fulfill certain requirements to obtain a Foreign Practitioner Certificate (FPE) from the Attorney General of Singapore. The certificate will allow a foreign lawyer to practice in certain fields of law in Singapore.
As for Indonesia, limitation for foreign lawyers is currently stipulated under Article 23 of the Advocates Law, which allows Indonesian law firms to employ foreign lawyers, but prohibits foreign lawyers to establish their own firms in Indonesia.
The Advocates Law also mandates foreign lawyers to render free services for the educational sector and legal research in a certain period.
Article 23 is implemented by the Minister of Law and Human Rights Decree No. M.11-HT.04.02 of 2004 on Requirements and Procedures to Employ Foreign Lawyers and Obligation to Render Free Legal Service for Educational Sector and Legal Research Purpose.
Foreign law firms often affiliate with local law firms to outsmart Article 23. For examples, Baker & McKenzie (affiliated with Hadiputranto, Hadinoto & Partners); O’Melveny & Myers LLP (affiliated with Tumbuan & Partners); Herbert Smith (affiliated with Haswara Bunjamin & Tanjung); Allen & Overy (affiliated with Ginting & Reksodiputro); and many other foreign firms.
Although AEC will bring out the inevitable wave of foreign lawyers, Indonesian law firms should take advantage of the opportunity to expand through AEC. Such condition is highly possible because even without AEC, Indonesian law firms are able to reach Singapore.
As of 1 November 2012, The Law Society of Singapore recorded that there are five Indonesian law firms that have established so-called branch offices in Singapore: Ali Budiardjo, Nugroho, Reksodiputro; Mataram Partners; Mochtar Karuwin Komar; Soemadipradja & Taher; dan Yufendy & Partners.
(hot/jt)
Pirhot Nababan, Mahinda Arkyasa
In less than three years, in 2015 to be exact, the Association of South East Asian Nations (ASEAN) will implement the ASEAN Economic Community (AEC). By implementing AEC, ASEAN countries will conduct free flow of goods, services, and capital amongst themselves. There will be no borders in South East Asia with this policy.
With respect to services sector, particularly legal services, Indonesia is currently preparing for the waves of foreign lawyers coming through Indonesia by the time AEC is established. This was confirmed by Amir Syamsuddin, Minister of Law and Human Rights.
“[The Ministry of Law and Human Rights] is currently revising the policy on foreign lawyers,” said Amir during the opening ceremony of the 25th Law Asia Conference in Nusa Dua, Bali, Monday (19/11).
Amir admitted that foreign lawyers contribute to the development of economic law. However, they must be clearly regulated.
“We should prevent foreign lawyers from using Indonesian lawyers as ‘puppets’, while they neglect their obligations, for example paying taxes,” he explained.
Otto Hasibuan, Chairman of Indonesian Advocates Association National Executive Council (DPN PERADI), is concerned that there will be many foreign lawyers who establish an office in Indonesia using Indonesian lawyer’s name as a front.
“If that is the case, taxes that are supposed to be collected in Indonesia will be gone. It can reach hundreds of billions rupiah,” Otto stated. He asserted that policy regarding foreign lawyers still refers to the Law No. 18 of 2003 on Advocates.
To prevent foreign lawyers from violating laws and regulation, Otto stated that PERADI will collect data on foreign lawyers who currently practice law in Indonesia.
“PERADI will interview each and every one of them,” he said.
Government Policy
President of Law Asia Malathi Das emphasized that the foreign lawyers issue depends on the government policy of respective states. Respective governments must involve their bar association and local lawyers to understand the country’s need of foreign lawyers before drafting a policy.
She explained that there are several important issues that must be addressed related to the foreign lawyers policy.
“The first issue is whether foreign lawyers can advise on local laws or only their country’s laws,” Malathi stated.
Practice where foreign lawyers can advise on local law is common in some states. In Singapore, for example, foreign lawyers can fulfill certain requirements to obtain a Foreign Practitioner Certificate (FPE) from the Attorney General of Singapore. The certificate will allow a foreign lawyer to practice in certain fields of law in Singapore.
As for Indonesia, limitation for foreign lawyers is currently stipulated under Article 23 of the Advocates Law, which allows Indonesian law firms to employ foreign lawyers, but prohibits foreign lawyers to establish their own firms in Indonesia.
The Advocates Law also mandates foreign lawyers to render free services for the educational sector and legal research in a certain period.
Article 23 is implemented by the Minister of Law and Human Rights Decree No. M.11-HT.04.02 of 2004 on Requirements and Procedures to Employ Foreign Lawyers and Obligation to Render Free Legal Service for Educational Sector and Legal Research Purpose.
Foreign law firms often affiliate with local law firms to outsmart Article 23. For examples, Baker & McKenzie (affiliated with Hadiputranto, Hadinoto & Partners); O’Melveny & Myers LLP (affiliated with Tumbuan & Partners); Herbert Smith (affiliated with Haswara Bunjamin & Tanjung); Allen & Overy (affiliated with Ginting & Reksodiputro); and many other foreign firms.
Although AEC will bring out the inevitable wave of foreign lawyers, Indonesian law firms should take advantage of the opportunity to expand through AEC. Such condition is highly possible because even without AEC, Indonesian law firms are able to reach Singapore.
As of 1 November 2012, The Law Society of Singapore recorded that there are five Indonesian law firms that have established so-called branch offices in Singapore: Ali Budiardjo, Nugroho, Reksodiputro; Mataram Partners; Mochtar Karuwin Komar; Soemadipradja & Taher; dan Yufendy & Partners.
(hot/jt)