Saturday, December 05, 2009

Do YOU WANT TO DO BUSINESS IN INDONESIA

If  you are answer is yes. this Country is eager to invite Foreign Investors to come to Indonesia. Indonesia is an archipalego with thousands of Islands from Aceh to Irian Jaya or Papua. There are many ethnics and immigrants coming to this Country. In terms of Certainty of its Law, this Country is trying hard within itself to establish Law and Justice or Law Fairness in its Society. I have been practicing as Business Lawyer in the Business Law in Indonesia for more than 30 Years, since 1979 and I am fully aware that Law Certainty is always the issue raised by Foreign Investors who comes to Indonesia. They always say that Indonesia does not have Law.

Foreign Investors has the perception that there are no consistency in the Indonesian Policy and the Rules between the Central Government and the Regional Government.  There is no good nor well coordination between the Technical Departments in Indonesia. The Laws between different Departments are overlapping and contradictory to each other which reflects weak coordination between such  Departments. They even laugh and make jokes out of the uncertain condition of Laws in Indonesia. I know such perceptions because I was assigned  as  In House Lawyer in Foreign Companies who do business in Indonesia.

So what are the Indonesian Government Response to the above?  Why is the perception like that ? Indonesia has reached a staged being a Democracy country after the students movement toppled the Suppressive Regime in  the Year 1998, when the Asian Countries was hit by the First Financial Crisis. Now the  Second Round of the Peoples Voices in Indonesia are Claiming for Equal Justice Treatment by the Indonesian Court System, where it starts from the Frame of the KPK Anti Corruption Institution  which  was strongly indicated from the Taped Recorded Conversation between Several Indonesian Legal Institution, Mafia Court Brokers and Certain Businessman  which was publicly heard in the Constitutional Court in Indonesia.

Thus the Second Agenda in this New Era of Indonesia is the Loud Out Cry to Have Legal Equal Treatment and Justice by the People of Indonesia.  The Freedom  of press in Indonesia is really  occurring these days. Even me as Business Lawyer can establish my own Blog where I can say my sayings through this blog of mine. Facebook members Voices are also having great influences and impact against the Unfair Legal Treatment to the KPK Anti Corruption Frame Victims. So the Era of Democracy and Pressure from the People through the Internet Media is really occurring in Indonesia. Yes, of course it  still needs a long process to establish Legal Fairness and Equality Before the Law.

However, since Indonesia is a Freedom Democracy Country with more than 200 Millions People, the People's Voice can no longer be ignored by the Parliament who frequently has to be pressured by the Independent Voices in  Indonesia, either by the Television Media, News Paper,  Facebook members  and all of us the people of Indonesia who NO LONGER  wants to be suppressed by the Executive, Parliament, Court Officers, District Attorneys  nor any other Institution if UNFair Treatment is felt.

In these Recent Years, many High Ranking Indonesian Officers are being captured and trialed after being  alleged by KPK  of conducting Corruption. But there are still many rumors that political involvement and discrimination upon who is being proccessed are attached to such process. The Member of the Political Parties are making political pressures  and bargaining through the Parliament among the Political Parties in making its moves against issues blow up in the Public.     

Apart of the above if you view   Jakarta, there are many High Rise Buildings being constructed,  which reflects that there are many  Construction Developers and monies being planted and parked in such High Rise Buildings, which Funds is indicated not  coming from Bank Loan but rather fresh monies. These means that  the Person who have  monies in Indonesia no longer wants to put  or  parked  their money out side  Indonesia, but they rather put their monies  in such High Rise Buildings in Jakarta, Indonesia .

These  may reflects that even though Indonesia is still uncertain in its Law and is still fighting hard to develop, Law Justice and Equality before the Law,  the Real Money owners prefer to put their money in Indonesia rather than parking it outside of Indonesia. This may occur  due to the  Global Economic  Financial Crisis  occuring  in the International Society including the USA for example which hits Lehman Brothers.

Thus Foreign Investors need also to consider the above factors and progress  developing in Indonesia and outside of Indonesia when they decide to invest their monies in Indonesia.

Cheers.
5 December 2009
Agung Supomo Suleiman   

Monday, November 30, 2009

Legal Certainty AFTA 2010

No country in this world can avoid the requirement of Legal Certainty. In this rapid Global Era, if a country wants to create Healthy Business Climate, Legal Certainty is a must. The Gaps between the Poor and the Rich in Indonesia must be narrowed, if not the Poor People will  surely be frustrated with the ongoing Unfair System. 

In the Year 2010 AFTA ( ASEAN FREE TRADE AREA) will be applied, meaning that  Indonesian Business Investors are forced  to compete with foreign Investors from the AFTA region. The following are some information articles about AFTA occuring om Ist January 2010, from the above web :
Quote:

ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries.
The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises ten countries of ASEAN. All the four latecomers were required to sign the AFTA agreement in order to join ASEAN, but were given longer time frames in which to meet AFTA's tariff reduction obligations.
The primary goals of AFTA seek to:
  • Increase ASEAN's competitive edge as a production base in the world market through the elimination, within ASEAN, of tariffs and non-tariff barriers; and
  • Attract more foreign direct investment to ASEAN.

 Unquote:

Based on the above development, we all in Indonesia must be fully aware that corruption  occuring in Indonesia results :  High Costs for Business  Investors Players in Indonesia. Thus,  if Corruption is not seriously tackled by the Indonesian Authority in Indonesia, the Indonesian Business Investors will loose its leverage of  competitiveness from the AFTA Business Players in this AFTA Region. We are than Forced  to fight Corruption, to enable the Indonesian Business Players to compete with the other AFTA members in this AFTA Region. This is also significant for increasing the social welfare of the poor People in Indonesia.

Real Significant Action must be made to reform the Legal System in Indonesia. This  must be applied to all level within the Police Department, The District Attorney, The Legislative, The Advocats and Lawyers and Businessman. The President had indicated its message to make such fight against the Court Mafia in Indonesia.

Jakarta, 1 December 2009
Agung Supomo Suleiman

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