Sunday, November 15, 2009

Overlapping Business Operation

As a Business Lawyer you have to collect all the significant data and information to enable to give the proper legal advices which are being requested by your Clients. If it relates to certain laws and regulation you have to research the laws and regulation from your library, and you must also research to the relevant Technical Department particularly the Legal Division of such respective Department. In Indonesia besides the written rules there may also be policies made by the Officers from such Department.

  • This depends upon your research to such Officers which sometimes needs your critical legal mind because you may found that the information from such officer may differ from one source and the other sources. As we know the Highest level in a Department in Indonesia is the Minister, and below this Ministerial Level there are many bureaucracy level from the Director General, Secretary General, Head Bureau, Head Sub Directorate and many levels below it. If you make the legal research in particularly relating to the policies or interpretation of certain rules or implementation rules issued by the Department concern,  you have to be sure which level of bureaucracy are you getting such information  because sometimes it depends upon the person who is giving such information whether they are helpful or mastering the  questions and issues that you are seeking to get such clarification.

If the ruling involved several other Departments such as Mining /Oil -Gas and the Forestry Department related to overlapping activities such as Logging, Saw Mills and the Drilling or Mining activities in a certain area of operations in the  field, where two or more activities are occurring, this may frequently result overlaping policies and ruling by the inter-departmental sectors where we may found weak coordination between this different Departments. This overlaping  rulings and policies will affect the smoothness operation in the field between this two or more business operation activities.

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In my experiences as Business Lawyer in the Oil/Gas as well as General Mining Operations, this overlapping issues frequently exists and occurs, where several meetings between the several Departments such as The Directorate of Energy and Minerals, The Forestry Department The Local Government Institution, The Agrarian Department, and other related technical Department and the respective Oil/Gas or General Mining Companies which also involved the In-House Legal Counsel   and the Logging or Sawmill Companies shall be called and conducted . This may also involved other activities such as Plantation activities.

  • Each respective parties shall forward and made their argumentation which all are basing on the legal rights they have as well as the legal rules and policies issued by each of the confronting Officers from such Departments, which meetings will usually  takes place at the Regional Level where the overlapping activities occur;  If in the lower level Dead Lock occurs since all the different parties are claiming to have their Legal Rights in conducting their Overlapping Activities, it will then be brought to the Higher level within the Central Government in Jakarta, where the Ministerial Level might be called to coordinate and solve this overlapping activities. Accordingly the Coordination Minister might be required to solve such overlapping rulings and policies.

Well the above are some brief glance picture what might occur in the Overlapping Business Operation Activities in Indonesia.

Jakarta, 15th November 2009
Agung Supomo Suleiman 


Drilling Rig

Drilling Rig
oil gas