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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Rofiq Hidayat, Hasyry Agustin
Foreign Lawyers Taking Bar Exam in Indonesia. Photo by: RES
The government and the House of Representatives (House) are being urged to jointly formulate a new regulation in strengthening the operation of foreign law firms in Indonesia. It is hoped that such guidelines will eventually be incorporated into the Draft Bill and will revise Law No. 18 of 2003 on the Legal Profession (Draft Bill). Unfortunately however, the Draft Bill has failed to make it onto this year’s Priority National Legislation Program list (2016 Priority Prolegnas).
The possibility remains though that the Draft Bill will ultimately be incorporated into a future Prolegnas. Lawmaker Arsul Sani from House Commission III, speaking at the House Building on Wednesday, 3 February 2016, asserted that under the current regulatory framework, foreign law firms were prohibited from directly establishing offices in Indonesia. According to Sani however, such provisions can be by passed in practice if foreign firms enter into cooperation agreements with domestic law firms.
Mr. Sani admits that both the House and the government need to undertake in-depth deliberations into the issue of possible regulation, so that a more suitable framework for the legal profession can be finalized, specifically as it relates to domestic and foreign law firms. Such deliberations will also need to take note of the various international, regional, and multilateral agreements which have been ratified by the government.
“Personally, I believe that the kind of legal policy ultimately decided upon by the country’s lawmakers [the government and the House] is not really significant. What is important is to prevent foreign law firms from having free-reign in Indonesia and turning this nation into a mere marketplace [from which they can gain profits],” asserted Mr. Sani.
By way of example, Mr. Sani pointed to the need for a stricter taxation regime to cover law firms. Such a measure should minimize the possibility of foreign law firms obtaining clients in Indonesia, or of them offering legal services on Indonesian soil while client payments are submitted to foreign law firms located outside Indonesia.
Mr. Sani further clarified his opinion by asserting that normally, foreign lawyers were only allowed to offer their services in the countries in which their practice licenses were issued. This means that foreign lawyers are prohibited from offering their services within Indonesia without firstly securing a license from an institution authorized to issue legal-service practitioner licenses. Furthermore, foreign lawyers are also prohibited from appearing before Indonesian courts as a part of any litigation process.
“They [foreign lawyers] are not allowed to appear before an arbitration institution here, because arbitration procedures utilize Indonesian civil procedural law,” asserted Mr. Sani.
Tjoetjoe S. Hernanto, the President of the Congress of Indonesian Advocates (KAI), is of the same opinion as Mr. Sani, and stated his regret that Law No. 18 of 2003 (Advocate Law) had yet to provide any detailed provisions pertaining to law firms.
“This is the reason why my colleagues and I have in the past suggested the establishment of an umbrella organization of law firms. At present, there is only an organization of lawyers in Indonesia, however there should also be an organization of law firms in my view,” Mr. Hernanto said.
Mr. Hernanto elucidated that such an organization of law firms would classify law firms into a number of levels. Much as hotels are, law firms could be classified under a star-ratings system (ranging from one star to five stars). Under such a mechanism, the law firms allowed to hire foreign workers would be strictly regulated.
According to Mr. Hernanto, the regulatory framework governing law firms will inevitably be relaxed as the ASEAN Economic Community (AEC) era is established across the region. Hernanto stated that we should remember that the current era of globalization has enabled domestic lawyers to compete with foreign lawyers and vice versa.
“It’s important to remember that foreign workers may enter the Indonesian marketplace and that Indonesian workers may also do same in other countries, according to free-market rules, so we shouldn’t be afraid. It is not fair to prohibit them [foreign workers] from plying their trade here during this AEC era,” asserted Mr. Hernanto.
Hasanuddin Nasution, Secretary General for the Indonesian Advocates Association and a member of the Juniver Girsang faction, has also expressed his support for the revision of the Advocate Law. Mr. Nasution emphasized that any revisions should focus on foreign lawyers in the country, as there is as yet no strong legal basis for the presence of foreign lawyers here. The end result of this uncertainty is that foreign lawyers have to be cautious and secretive when offering their services in Indonesia.
“Foreign lawyers need to be regulated more specifically, because at present there is nothing that can be done which pertains to any oversight,” asserted Mr. Nasution.
Offering further insight into the issue, Mr. Nasution also stated that the oversight of foreign lawyers should be delegated to lawyers’ organizations, as the Ministry of Law and Human Rights, as a government institution, was only authorized to offer recommendations in regard to this matter. In contrast, professional issues are the domain of the lawyers’ organizations.
“It [the Advocate Law] only stipulates that foreign lawyers operating within Indonesia are prohibited from appearing before the Indonesian courts. Before they commence operating within Indonesia, they must also first secure a recommendation from us [lawyers’ organizations],” concluded Mr. Nasution.
Standardization of Law Firms
Another provision that needs to be incorporated into the Draft Bill, according to Mr. Hernanto, is the standardization of the country’s law firms. The current Advocate Law does not regulate law firms, and even lawyers with no experience can establish law firms here. Mr. Hernanto asserted that lawyers should have at least five to ten years of experience in the profession before they are allowed to establish law firms.
“There should be some minimum requirements that have to be met by new lawyers before they are allowed to establish a law firm. Lawyers who have only had a year’s experience should not be allowed to set up in business. Law firms engage in the serious activity of drawing up legal opinions, and so new lawyers should acquire plenty of experience [in the lawyer business] before setting up shop,” asserted Mr. Hernanto.
Mr. Hernanto also believes that provisions regulating hard-cash transactions undertaken by law firms are necessary. Such provisions should facilitate the auditing of law firms in order that the tax-collection process can be simplified. Such provision would also reduce the possibility of any lawyers engaging in acts of bribery, and would serve to keep lawyers in check during the carrying out of their duties and responsibilities as regards the offering of legal assistance to people seeking justice.
Mr. Sani admits that both the House and the government need to undertake in-depth deliberations into the issue of possible regulation, so that a more suitable framework for the legal profession can be finalized, specifically as it relates to domestic and foreign law firms. Such deliberations will also need to take note of the various international, regional, and multilateral agreements which have been ratified by the government.
“Personally, I believe that the kind of legal policy ultimately decided upon by the country’s lawmakers [the government and the House] is not really significant. What is important is to prevent foreign law firms from having free-reign in Indonesia and turning this nation into a mere marketplace [from which they can gain profits],” asserted Mr. Sani.
By way of example, Mr. Sani pointed to the need for a stricter taxation regime to cover law firms. Such a measure should minimize the possibility of foreign law firms obtaining clients in Indonesia, or of them offering legal services on Indonesian soil while client payments are submitted to foreign law firms located outside Indonesia.
Mr. Sani further clarified his opinion by asserting that normally, foreign lawyers were only allowed to offer their services in the countries in which their practice licenses were issued. This means that foreign lawyers are prohibited from offering their services within Indonesia without firstly securing a license from an institution authorized to issue legal-service practitioner licenses. Furthermore, foreign lawyers are also prohibited from appearing before Indonesian courts as a part of any litigation process.
“They [foreign lawyers] are not allowed to appear before an arbitration institution here, because arbitration procedures utilize Indonesian civil procedural law,” asserted Mr. Sani.
Tjoetjoe S. Hernanto, the President of the Congress of Indonesian Advocates (KAI), is of the same opinion as Mr. Sani, and stated his regret that Law No. 18 of 2003 (Advocate Law) had yet to provide any detailed provisions pertaining to law firms.
“This is the reason why my colleagues and I have in the past suggested the establishment of an umbrella organization of law firms. At present, there is only an organization of lawyers in Indonesia, however there should also be an organization of law firms in my view,” Mr. Hernanto said.
Mr. Hernanto elucidated that such an organization of law firms would classify law firms into a number of levels. Much as hotels are, law firms could be classified under a star-ratings system (ranging from one star to five stars). Under such a mechanism, the law firms allowed to hire foreign workers would be strictly regulated.
According to Mr. Hernanto, the regulatory framework governing law firms will inevitably be relaxed as the ASEAN Economic Community (AEC) era is established across the region. Hernanto stated that we should remember that the current era of globalization has enabled domestic lawyers to compete with foreign lawyers and vice versa.
“It’s important to remember that foreign workers may enter the Indonesian marketplace and that Indonesian workers may also do same in other countries, according to free-market rules, so we shouldn’t be afraid. It is not fair to prohibit them [foreign workers] from plying their trade here during this AEC era,” asserted Mr. Hernanto.
Hasanuddin Nasution, Secretary General for the Indonesian Advocates Association and a member of the Juniver Girsang faction, has also expressed his support for the revision of the Advocate Law. Mr. Nasution emphasized that any revisions should focus on foreign lawyers in the country, as there is as yet no strong legal basis for the presence of foreign lawyers here. The end result of this uncertainty is that foreign lawyers have to be cautious and secretive when offering their services in Indonesia.
“Foreign lawyers need to be regulated more specifically, because at present there is nothing that can be done which pertains to any oversight,” asserted Mr. Nasution.
Offering further insight into the issue, Mr. Nasution also stated that the oversight of foreign lawyers should be delegated to lawyers’ organizations, as the Ministry of Law and Human Rights, as a government institution, was only authorized to offer recommendations in regard to this matter. In contrast, professional issues are the domain of the lawyers’ organizations.
“It [the Advocate Law] only stipulates that foreign lawyers operating within Indonesia are prohibited from appearing before the Indonesian courts. Before they commence operating within Indonesia, they must also first secure a recommendation from us [lawyers’ organizations],” concluded Mr. Nasution.
Standardization of Law Firms
Another provision that needs to be incorporated into the Draft Bill, according to Mr. Hernanto, is the standardization of the country’s law firms. The current Advocate Law does not regulate law firms, and even lawyers with no experience can establish law firms here. Mr. Hernanto asserted that lawyers should have at least five to ten years of experience in the profession before they are allowed to establish law firms.
“There should be some minimum requirements that have to be met by new lawyers before they are allowed to establish a law firm. Lawyers who have only had a year’s experience should not be allowed to set up in business. Law firms engage in the serious activity of drawing up legal opinions, and so new lawyers should acquire plenty of experience [in the lawyer business] before setting up shop,” asserted Mr. Hernanto.
Mr. Hernanto also believes that provisions regulating hard-cash transactions undertaken by law firms are necessary. Such provisions should facilitate the auditing of law firms in order that the tax-collection process can be simplified. Such provision would also reduce the possibility of any lawyers engaging in acts of bribery, and would serve to keep lawyers in check during the carrying out of their duties and responsibilities as regards the offering of legal assistance to people seeking justice.
(rfs/sp)
Marcell Sihombing, Rofiq Hidayat, Hasyry Agustin
Foreign Lawyers Taking Bar Exam in Indonesia. Photo by: RES
The government and the House of Representatives (House) are being urged to jointly formulate a new regulation in strengthening the operation of foreign law firms in Indonesia. It is hoped that such guidelines will eventually be incorporated into the Draft Bill and will revise Law No. 18 of 2003 on the Legal Profession (Draft Bill). Unfortunately however, the Draft Bill has failed to make it onto this year’s Priority National Legislation Program list (2016 Priority Prolegnas).
The possibility remains though that the Draft Bill will ultimately be incorporated into a future Prolegnas. Lawmaker Arsul Sani from House Commission III, speaking at the House Building on Wednesday, 3 February 2016, asserted that under the current regulatory framework, foreign law firms were prohibited from directly establishing offices in Indonesia. According to Sani however, such provisions can be by passed in practice if foreign firms enter into cooperation agreements with domestic law firms.
Mr. Sani admits that both the House and the government need to undertake in-depth deliberations into the issue of possible regulation, so that a more suitable framework for the legal profession can be finalized, specifically as it relates to domestic and foreign law firms. Such deliberations will also need to take note of the various international, regional, and multilateral agreements which have been ratified by the government.
“Personally, I believe that the kind of legal policy ultimately decided upon by the country’s lawmakers [the government and the House] is not really significant. What is important is to prevent foreign law firms from having free-reign in Indonesia and turning this nation into a mere marketplace [from which they can gain profits],” asserted Mr. Sani.
By way of example, Mr. Sani pointed to the need for a stricter taxation regime to cover law firms. Such a measure should minimize the possibility of foreign law firms obtaining clients in Indonesia, or of them offering legal services on Indonesian soil while client payments are submitted to foreign law firms located outside Indonesia.
Mr. Sani further clarified his opinion by asserting that normally, foreign lawyers were only allowed to offer their services in the countries in which their practice licenses were issued. This means that foreign lawyers are prohibited from offering their services within Indonesia without firstly securing a license from an institution authorized to issue legal-service practitioner licenses. Furthermore, foreign lawyers are also prohibited from appearing before Indonesian courts as a part of any litigation process.
“They [foreign lawyers] are not allowed to appear before an arbitration institution here, because arbitration procedures utilize Indonesian civil procedural law,” asserted Mr. Sani.
Tjoetjoe S. Hernanto, the President of the Congress of Indonesian Advocates (KAI), is of the same opinion as Mr. Sani, and stated his regret that Law No. 18 of 2003 (Advocate Law) had yet to provide any detailed provisions pertaining to law firms.
“This is the reason why my colleagues and I have in the past suggested the establishment of an umbrella organization of law firms. At present, there is only an organization of lawyers in Indonesia, however there should also be an organization of law firms in my view,” Mr. Hernanto said.
Mr. Hernanto elucidated that such an organization of law firms would classify law firms into a number of levels. Much as hotels are, law firms could be classified under a star-ratings system (ranging from one star to five stars). Under such a mechanism, the law firms allowed to hire foreign workers would be strictly regulated.
According to Mr. Hernanto, the regulatory framework governing law firms will inevitably be relaxed as the ASEAN Economic Community (AEC) era is established across the region. Hernanto stated that we should remember that the current era of globalization has enabled domestic lawyers to compete with foreign lawyers and vice versa.
“It’s important to remember that foreign workers may enter the Indonesian marketplace and that Indonesian workers may also do same in other countries, according to free-market rules, so we shouldn’t be afraid. It is not fair to prohibit them [foreign workers] from plying their trade here during this AEC era,” asserted Mr. Hernanto.
Hasanuddin Nasution, Secretary General for the Indonesian Advocates Association and a member of the Juniver Girsang faction, has also expressed his support for the revision of the Advocate Law. Mr. Nasution emphasized that any revisions should focus on foreign lawyers in the country, as there is as yet no strong legal basis for the presence of foreign lawyers here. The end result of this uncertainty is that foreign lawyers have to be cautious and secretive when offering their services in Indonesia.
“Foreign lawyers need to be regulated more specifically, because at present there is nothing that can be done which pertains to any oversight,” asserted Mr. Nasution.
Offering further insight into the issue, Mr. Nasution also stated that the oversight of foreign lawyers should be delegated to lawyers’ organizations, as the Ministry of Law and Human Rights, as a government institution, was only authorized to offer recommendations in regard to this matter. In contrast, professional issues are the domain of the lawyers’ organizations.
“It [the Advocate Law] only stipulates that foreign lawyers operating within Indonesia are prohibited from appearing before the Indonesian courts. Before they commence operating within Indonesia, they must also first secure a recommendation from us [lawyers’ organizations],” concluded Mr. Nasution.
Standardization of Law Firms
Another provision that needs to be incorporated into the Draft Bill, according to Mr. Hernanto, is the standardization of the country’s law firms. The current Advocate Law does not regulate law firms, and even lawyers with no experience can establish law firms here. Mr. Hernanto asserted that lawyers should have at least five to ten years of experience in the profession before they are allowed to establish law firms.
“There should be some minimum requirements that have to be met by new lawyers before they are allowed to establish a law firm. Lawyers who have only had a year’s experience should not be allowed to set up in business. Law firms engage in the serious activity of drawing up legal opinions, and so new lawyers should acquire plenty of experience [in the lawyer business] before setting up shop,” asserted Mr. Hernanto.
Mr. Hernanto also believes that provisions regulating hard-cash transactions undertaken by law firms are necessary. Such provisions should facilitate the auditing of law firms in order that the tax-collection process can be simplified. Such provision would also reduce the possibility of any lawyers engaging in acts of bribery, and would serve to keep lawyers in check during the carrying out of their duties and responsibilities as regards the offering of legal assistance to people seeking justice.
Mr. Sani admits that both the House and the government need to undertake in-depth deliberations into the issue of possible regulation, so that a more suitable framework for the legal profession can be finalized, specifically as it relates to domestic and foreign law firms. Such deliberations will also need to take note of the various international, regional, and multilateral agreements which have been ratified by the government.
“Personally, I believe that the kind of legal policy ultimately decided upon by the country’s lawmakers [the government and the House] is not really significant. What is important is to prevent foreign law firms from having free-reign in Indonesia and turning this nation into a mere marketplace [from which they can gain profits],” asserted Mr. Sani.
By way of example, Mr. Sani pointed to the need for a stricter taxation regime to cover law firms. Such a measure should minimize the possibility of foreign law firms obtaining clients in Indonesia, or of them offering legal services on Indonesian soil while client payments are submitted to foreign law firms located outside Indonesia.
Mr. Sani further clarified his opinion by asserting that normally, foreign lawyers were only allowed to offer their services in the countries in which their practice licenses were issued. This means that foreign lawyers are prohibited from offering their services within Indonesia without firstly securing a license from an institution authorized to issue legal-service practitioner licenses. Furthermore, foreign lawyers are also prohibited from appearing before Indonesian courts as a part of any litigation process.
“They [foreign lawyers] are not allowed to appear before an arbitration institution here, because arbitration procedures utilize Indonesian civil procedural law,” asserted Mr. Sani.
Tjoetjoe S. Hernanto, the President of the Congress of Indonesian Advocates (KAI), is of the same opinion as Mr. Sani, and stated his regret that Law No. 18 of 2003 (Advocate Law) had yet to provide any detailed provisions pertaining to law firms.
“This is the reason why my colleagues and I have in the past suggested the establishment of an umbrella organization of law firms. At present, there is only an organization of lawyers in Indonesia, however there should also be an organization of law firms in my view,” Mr. Hernanto said.
Mr. Hernanto elucidated that such an organization of law firms would classify law firms into a number of levels. Much as hotels are, law firms could be classified under a star-ratings system (ranging from one star to five stars). Under such a mechanism, the law firms allowed to hire foreign workers would be strictly regulated.
According to Mr. Hernanto, the regulatory framework governing law firms will inevitably be relaxed as the ASEAN Economic Community (AEC) era is established across the region. Hernanto stated that we should remember that the current era of globalization has enabled domestic lawyers to compete with foreign lawyers and vice versa.
“It’s important to remember that foreign workers may enter the Indonesian marketplace and that Indonesian workers may also do same in other countries, according to free-market rules, so we shouldn’t be afraid. It is not fair to prohibit them [foreign workers] from plying their trade here during this AEC era,” asserted Mr. Hernanto.
Hasanuddin Nasution, Secretary General for the Indonesian Advocates Association and a member of the Juniver Girsang faction, has also expressed his support for the revision of the Advocate Law. Mr. Nasution emphasized that any revisions should focus on foreign lawyers in the country, as there is as yet no strong legal basis for the presence of foreign lawyers here. The end result of this uncertainty is that foreign lawyers have to be cautious and secretive when offering their services in Indonesia.
“Foreign lawyers need to be regulated more specifically, because at present there is nothing that can be done which pertains to any oversight,” asserted Mr. Nasution.
Offering further insight into the issue, Mr. Nasution also stated that the oversight of foreign lawyers should be delegated to lawyers’ organizations, as the Ministry of Law and Human Rights, as a government institution, was only authorized to offer recommendations in regard to this matter. In contrast, professional issues are the domain of the lawyers’ organizations.
“It [the Advocate Law] only stipulates that foreign lawyers operating within Indonesia are prohibited from appearing before the Indonesian courts. Before they commence operating within Indonesia, they must also first secure a recommendation from us [lawyers’ organizations],” concluded Mr. Nasution.
Standardization of Law Firms
Another provision that needs to be incorporated into the Draft Bill, according to Mr. Hernanto, is the standardization of the country’s law firms. The current Advocate Law does not regulate law firms, and even lawyers with no experience can establish law firms here. Mr. Hernanto asserted that lawyers should have at least five to ten years of experience in the profession before they are allowed to establish law firms.
“There should be some minimum requirements that have to be met by new lawyers before they are allowed to establish a law firm. Lawyers who have only had a year’s experience should not be allowed to set up in business. Law firms engage in the serious activity of drawing up legal opinions, and so new lawyers should acquire plenty of experience [in the lawyer business] before setting up shop,” asserted Mr. Hernanto.
Mr. Hernanto also believes that provisions regulating hard-cash transactions undertaken by law firms are necessary. Such provisions should facilitate the auditing of law firms in order that the tax-collection process can be simplified. Such provision would also reduce the possibility of any lawyers engaging in acts of bribery, and would serve to keep lawyers in check during the carrying out of their duties and responsibilities as regards the offering of legal assistance to people seeking justice.
(rfs/sp)