MK Decisions Versus Business Interests

Ali Salmande, Yanuar Pribadhie

Since its formation 10 years ago, the Constitutional Court (MK) has often produced decisions that are not in line with businesses interests. Such decisions include its decisions on customary forests, mining licenses,and BP Migas dissolution.

In response, the current prevailing view of businesses is that fighting for their rights and interests before the MK is of limited utility.

This issue was addressed by Fritz Siregar, attorney at Budidjaja & Associates Law Offices, during a seminar in Jakarta last Friday. Fritz pointed out that businesses may file their own judicial review petition at the MK .

“Actually, business entities have the same rights as NGOs to apply for judicial review at the MK. However, their willingness to do so is still low,” commented Fritz in Jakarta last Friday.

Yonathan Hermanto, the Head of the Legal Department at Bank Central Asia (BCA) believes that this is unfortunate because there are provisions in some laws that businesses could be requested be reviewed.

For instance, Yonathan highlighted Article 49 of Law No. 10 of 1998 on Banking which potentially criminalizes bank employees.

“We think that this is essentially an administrative not criminal matter. There are three of our employees that have been investigated based on this article,” said Yonathan.

However, Yonathan added that banks are reluctant to have this article reviewed, as its impact is more on individual bank employees than the bank as an institution.

Fritz further explained that banks have standing and could be an applicant for a review of this article, particularly considering the provision creates practical difficulties and could be seen to violate the constitutional rights of banks.

“However, it would be better if the harmed employee is also encouraged to be one of the applicants,” added Fritz.

(hot/kc)

Ali Salmande, Yanuar Pribadhie

Since its formation 10 years ago, the Constitutional Court (MK) has often produced decisions that are not in line with businesses interests. Such decisions include its decisions on customary forests, mining licenses,and BP Migas dissolution.

In response, the current prevailing view of businesses is that fighting for their rights and interests before the MK is of limited utility.

This issue was addressed by Fritz Siregar, attorney at Budidjaja & Associates Law Offices, during a seminar in Jakarta last Friday. Fritz pointed out that businesses may file their own judicial review petition at the MK .

“Actually, business entities have the same rights as NGOs to apply for judicial review at the MK. However, their willingness to do so is still low,” commented Fritz in Jakarta last Friday.

Yonathan Hermanto, the Head of the Legal Department at Bank Central Asia (BCA) believes that this is unfortunate because there are provisions in some laws that businesses could be requested be reviewed.

For instance, Yonathan highlighted Article 49 of Law No. 10 of 1998 on Banking which potentially criminalizes bank employees.

“We think that this is essentially an administrative not criminal matter. There are three of our employees that have been investigated based on this article,” said Yonathan.

However, Yonathan added that banks are reluctant to have this article reviewed, as its impact is more on individual bank employees than the bank as an institution.

Fritz further explained that banks have standing and could be an applicant for a review of this article, particularly considering the provision creates practical difficulties and could be seen to violate the constitutional rights of banks.

“However, it would be better if the harmed employee is also encouraged to be one of the applicants,” added Fritz.

(hot/kc)

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