Monday, October 01, 2012

Glimse of New Hopes Emerging Nation of Indonesia

We are proud of being a Business Lawyer and founder of SACO LAW FIRM (Suleiman Agung & Co)  where the Business Lawyer is an Indonesian Business Lawyer who managed to run its Strong Characteristic Determined Law Firm; During this 14 Years of experience in running our firm, we "Do not YET have any Foreign Lawyer in our Firm, however we are eager to establish and maintain good team work relation with Foreign International Law Firms to establish synergy in expanding our International Networks. 
  • Based on our experience during the 32 Years of Experience  as Business  Lawyer  in Indonesia, where for 15 Years since 1st June 1998  me as the Founder of this Law Firm called  SACO LAW FIRM, we understand  that  Indonesian Law will be potential to mastered Indonesia Laws Product and Policy since we understand and are fully aware upon the background culture, way of thinking of  different of ethnics, political  parties and interest, and the national interest of  Indonesia which created and shapes the Indonesia Laws and rulings;  
In the drafting such laws there are several points which needs some international perspective which can cope foreign aspects and elements where usually consultants sponsored by the World Bank and other Foreign Donors may representing and accommodate the foreign interests being the donors of funds or loans borrowed by Indonesia; But if the Drafting or the results of the contents are against the spirit of the wants and wishes of the General Public of Indonesia, problems might arise in the implementation of such rules and laws;        

  • In practice, there are instances where  Indonesian Lawyers needs Foreign Lawyers to assist them in marketing themselves to International Business Clients, in order to be able to capture foreign Clients who are doing business in Indonesia; Your Ad Here
We understand that Foreign Lawyers masters foreign elements and aspects in a Business Transactions, depending on the Regional Area where they experienced practicing their law. However relating to Indonesian aspects,  they just merely view it from the eyes of an outsider who does not know and master  the background thinking of the Indonesian people, desires wants and the national interest of Indonesia;  This is similar for Indonesian Business Lawyer, where they do not fully understand and master the foreign view, desires, wants of the foreign investors in pursuing  said respective foreign investment 's interest in  doing business in Indonesia;
  • What I know,  and is fully aware,  from an  Indonesian Business Lawyer perspective is that every  foreign  investors,  where ever they come from, always wants to have and insist of having the  full and  major  control  on doing their business in Indonesia,  in the Equity / Shareholder portion level, as well as in the management, financial and key positions in the business, which is fair enough, if you view  it from the foreign investors perspective, depending on the share portion  of their monies being funded, injected and contributed in the respective business.  

If we focus and narrow down the business field to the Oil /Gas and General Mining Sectors in Indonesia, we then have to view it from a more general comprehensive prospective, since based on the Indonesian Concept and Principals, which are embodied in Article 33 (3) of the Indonesian  Constitutional; Law Year 1945  all these Hydrocarbon, Mineral and Coal and Geothermal Natural Resources are actually owned by the People Of Indonesia as a whole, where, in the process of exploring, exploiting and producing,  it must consider that the "End Result" of such Product must  be for "the Utmost  Social Welfare  Benefit" of the People of Indonesia as a whole; I think, that in every country in this world , there must be a Strategy to be  conducted, where said Natural Resources has to  have the "Utmost Benefit "to its People  or  "National Interest" to the Nation,  where the Natural Resources are Located, particularly due to the fact that such Hydrocarbon, Mineral and Coal are Non-Renewable; 
  • Accordingly, Indonesia must also have a long plan strategy that said  Natural Resources, must not only be treated as a Commodity to be sold, and become a Source of Income for the State Budget,  to develop  the Nation,  but must also be treated as as Energy to generate and fuel the  Power Plant to generate Electricity for Industry, houses, buildings, hospitals, Universities, Public Schools  and the need for fuel of  Public Transportation;                 
As Indonesian Business Lawyer, we for sure want to establish and are striving to  establish Law Certainty in  Indonesia; We are also having the desire and wishes that Indonesian Entrepreneur  has the chance to develop their capability and performance in their business ventures; In the level of professionals, managements, business lawyer, tax, human resources, technical level, and other professional skills,  there are many Indonesian professional,  who already gained knowledge in their respective professional  fields; 
  • Relating to  this empowering Human Resources, from  our experience we  understand that we have to fight and gain for our knowledge,  in the know how in whatever field and professionals and we  really must realize and be aware that we cannot rely and depend on the mercy or transfer of  know how nor transfer of equity from foreign investors or professional, because in the real world there is no such kind of Party or Person who are willing to give up their power in the Equity/Shareholder Level as well as in the Management and Professional level in the Corporate phase; This  "Rule of thumb " applies every where and in every country,  in the real International Community;  
As   Indonesian Business Lawyer,  we are fully aware that Indonesia as a Developing Nation, who is  still facing  itself to "fight  corruption" which are indicated  involving certain  greedy Government Officials who are only thinking of their short minded abuse of powers,  in many levels of their positions,  in  collusion  with Political Parties and Businessmen, as shown in several Corruption Cases being handled by KPK;  As Indonesian we are,  however "happy now",  since there are several Genuine Honest Governor and Vice Governor" who have succeeded in wining the Governor's  Election in Jakarta in September 2012,  which we hope could have a "snow ball" affect  and  be used as a "Barometer of  New Hopes Emerging The Beginning of Honest and Public Servant Government Officer"   in Indonesia which are good sign to establish Healthy Good Governance Climate in Indonesia;

Jakarta, 1st October 2012
Agung S.Suleiman                    

Saturday, September 29, 2012

Laws are Political Products

The Laws in Indonesia seems to be more of a political result, since the Law is a product  made by the People's House Of Representative (or Dewan Perwakilan Rakyat- DPR - Parliament) (consisting of members from Political Parties who are having seats in the DPR)  together with the President. 
  • Since Indonesia is really a large archipelago consisting of hundreds of Islands stretching from Sabang to Merauke, then   in reality, in  order to establish a Party you have to have certain "financial capability" to establish and penetrate  your political network to be known to the 250 million people  of  Indonesia as your political target;  Of course there are already electronic media in the internet as well as TV stations which can broadcast  your  Political  Party "existence"; 
From the media news and rumors, we observe  that the source of the funds for political party to campaign are from business people who already had some source of  funds  generated from  their Business Projects; The problem which occur nowadays, according to the news and rumors,  in several parts of Indonesia, is that several Bupati's (Head of the Provincial District)  and Governor's  are  striving  monies sponsors  from  Company's  in their campaign  to be elected in the of Governor and Bupati's Election,  which in  return  promised to give projects from Government Projects, as well as  granting certain Business Licences needed by the Companies in their  District  Area;
  • These "Very Bad Practices"  also appeared  to be occurring in the Parliament,  where according to  rumors,  or so  called "Public Secret" that for several Departments,  who are proposing  for  having a Draft of Law,  which has to be channeled to the Parliament as the Legislative Institution, must   give  certain amount of monies  to the members of Parliament as a "trade of"   to  agree accepting and drafting such laws;  Since Indonesia  is  more transparency in this Democracy Era,  the above bad practices, are really being exposed in the Media,  where many members of the Parliament  as well as Governor /Bupati,  are being trialed  in the Court,  as result  of  the investigation  pursued  by KPK (Komisi Pemberantasan Korupsi - Corruption Eradication Commission);  This Corruption Eradication Commission is established by Law in Indonesia,  since  the people of Indonesia  has lost their "Trust of Level"  to the existing Judicial Institution; 

The above bad practices for sure caused high economic costs in Indonesia, since marked-up  are forced  to be made by business  companies to keep and maintain their profit margins; The people of Indonesia are already fed up with the Political Maneuver of the Political parties in the Parliament,  as well as the Governor and Bupati who are abusing their power for their own financial interest, and are really frustrated with the  bad attitude of this Political Clowns; This feeling of  frustrations are shown in Jakarta, recently  in September 2012, who had voted on the election of Jokowi - Ahok - who appears to be an honest couple of Governor - Vice Governor who had shown their honest intergrity - public servant during their respective former position in Solo - for Jokowi and Ahok ( Basuki) in Belitung;        
  • We all really  hope that  this will be a good start for Honest Government Era in Indonesia; The Parliament day to day attitude are being controlled by the Media - Press including us as owner of  Blogs, where we can also be part  the elements of controlling and monitoring the Executive- Judicial - Parliament, by posting our own version of perception in their actions and moves; 
Jakarta, 29 September 2012
Agung S.Suleiman

Wednesday, September 19, 2012


Relating to the development of the Mineral and Coal Regulations in Indonesia, there appears to be different  of perceptions, expectations between the Indonesian Investors, Foreign Investors, the Government of Indonesia, the People's House of Representative and  the People of Indonesia as a whole who are the real significant stakeholder  of the Natural Resources extracted  through the General Mining Activities within the General Mining Territory in Indonesia who wishes to increase their social welfare and quality of life;
  • As we are all aware in every country in this World there are Visions, Wishes, Wants, Goals, Targets, Dreams and Plans made by the people, who had decided  in the first place  to establish a country where they could live together to increase their social life, quality of life as an independent nation. 
 For Indonesia  the Basic Principal Concept relating to  Natural Resources is  that the Natural Resources found within the Indonesian Mining Territory in the Republic of Indonesia  has to be developed for the Utmost Welfare of  all the People of the Republic of Indonesia  as embodied in Article 33 paragraph 3 of the Indonesian Constitution  so called Undang-undang Dasar 1945 or the Basic Constitution Law 1945, as the Highest Law that must  be used as the Basis in establishing  the other lower laws including the Oil  and Gas Laws as well as the Mineral Law  ; 
  • When Indonesia declared its independent in the Year 17 Agustus 1945, the Basic Concept and the Visions of the Founders of this Young Developing Country Indonesia was to make sure that the Natural Resources founded and located in Indonesia based on the Indonesian Constitution Basic Constitution Law 1945 Article 33 paragraph 3 is to be "developed and managed"   for the utmost benefit and welfare of the Indonesian People within the Territory  of the Republic of Indonesia. Thus, this is the actual "National Interest" of Indonesia as a Nation.
We all are fully aware that in the progress and journey of  every Nation, the most significant element of every country  to increase the quality of life to achieve social welfare  is by "Making Priorities" on  the Primary Needs of its people which  in general are  :
    • (i) Free Education until the University for each and every single people, 
    • (ii) Free Health Care for each and every single People covering Hospitalization, Doctors, Medicare, 
    • (iii) Housing afforded by the People
    • (iii)  Easy, Smooth and Safe, Clean  and afforded Public Transportation,   
  • The sources of  funds and monies to achieve such Goals and Targets of each and every  Nation and Country  has to be from the Nations Wealth and Assets which for Indonesia among others are from the Natural Resources that must be explored, exploited, extracted and produced from the Indonesian Mining Territory. 
It is the task of the the Government as the Executive Level together with the People House of Representatives  as the Legislative Institution to establish  Laws which must be in favor to the Social Welfare, benefit and interest of the  People of Indonesia. Thus they have to ensure and secure  that such primary needs  of the people are well protected under the established Mineral and Coal Mining Laws.  
  • In light of the above "Basic Concept and Principal",  the Government of Indonesia in the Central and Local Level as well as the People House Of Representative  must ensure and secure to implement the above Primary Needs of  all (each and every People)  of Indonesia which amounts around 250 Million scattered within the Indonesian Archipelago Territory consisting of  Big  Islands and small Islands from Sabang to Merauke;      
 Indonesia had experienced  its journey as a free and new Independent Republic Country  from a Non-Democracy Country to become  a Democracy Nation, which in fact is really not easy to achieve such above Goals and Targets,  due to the reasons that  there are always "Many Vested Interest Parties and elements" either from within Indonesia itself  which consists of various ethnics, background cultures, belief system, traditions, religion background, different level of educations, military history views and interest, political parties,  as well as from outside of Indonesia, which may be Foreign Nation, Country as well as Multi National Companies, Foreign Financial Players such as IMF, World Bank, ADB, World Trade Organization  who had  their own Agenda,  National  Interests, which has affect and  influence the journey of this New Developing Nation.            
During the First Indonesian Financial Crisis in the end of Year 1997 {not long after the World Bank issued the annual report which praised the Indonesian Economic GDP growth  averaging 7,7 % (1991-1994), 8,2% (1995) and 7,8% (1996)}, which was resulted starting from the depreciation of Thailand Bath, which spread to Indonesia and hits Indonesia's fundamental national economy,  IMF had forwarded several Points  (around 51 points) to be followed by  Indonesian as a "Pre- Conditionilities"  for IMF to assist  granting Loan / Funds to Indonesia to cope with the Financial Crisis  suffered by Indonesia during the 1998 Financial Crisis; The Banking was nearly bancrupt and rupiah falls to become Rp.14.800 per USD Dollars.

  • This Financial Economic Crisis had put Indonesia as a "patient" of the International Creditor Institutions such as International Monetary Funds (IMF), World Bank, and Asian Development Bank (ADB) which are participating in the Consultative Groups on Indonesia ( CGI).  
In the implementation of these Points  IMF and World Bank's, World Trade Organization (WTO) representatives were involved in drafting several Laws to ensure that Globalization, Liberalization, de-regulations in the financial sectors,  Free Open Trading,privatizing of State Assets  and non Discrimination rules are implemented in the Laws particularly involving Investments, Trading, as well as in the Oil and gas sectors including in the Mining Sectors including the establishment of the Bancruptcy Law to anticipate in the Loan Restructuring of the several Debtors which experienced troubles in repaying the Loan since the currency effects resulted from the Financial Crisis in the Year 1998;
For Indonesia itself in the General Mining laws, as of the Year 1965, during the President Soeharto Era, Foreign Investments are Invited to Indonesia where COW (Contract Of Work) was signed among others between Foreign Investors such as  PT Freeport Indonesia ( PT FI) and the Government of Indonesia; 

  • Whereas  for smaller mining area where local Companies are given the right to Mine by the Bupati was  covered under the KP (Mining Right) License;
In the COW of PT FI, simillar to the other COWs, which were signed by Foreign Investors and the Government of Indonesia,  there  exist a "Divestment Clause",  which stipulates that after 10 or 15 years,  51% of the Equity or Shares of the PT signing the COW,  has to be divested to Indonesian Shareholder;
  • Thus, these Divestment rulings are already agreed by Foreign Investors including PT FI Contract Of Work by the Parties, and therefore is actually not a "New Issue" and understandings between Foreign Investors and the Government of Indonesia in the General Mining Contracts; We can observe that this Divestment Clause which of course is the wants and desires of the Government of Indonesia as well as the People's House Representative as the Political Instruments in Indonesia to gain and increase its Local Business Players and contents; On the other hand Foreign Investors of course has their own Agenda to increase their share as Investors which they generally used the IMF, World Bank, World Trade Organization and other International Vehicle to assist their wants and business interests in securing their Business and National Interest.
  • We now observed that there is a changing maps of Economics strenghts, where China, India, Russia and Brazil as well as South Africa are emerging; We also view that Financial Crisis also are being experienced  by USA in the Year 2008 and Japan and Europe where  Spain, Portugal  and Greece are bailed out by the Central Bank of Europe to safe its financial problems; In the United States of America  where non intervention from the Government was made, had been applied the other way around, where the American Government had bailled out the Big Companies that suffered financial problems and crisis. Even though China, India, Brasil and Russia are developing, these countries are also be affected by the European Crisis;
Well, as the world are always moving into a Democracy and Transparency and Open Society , there may also be different of expectations from every Nation, Country, People, Investors in every country, in order to survive and maintain their respective interests, targets, goals and their respective National Interest including in the oil and gas as well as the General Mining Sectors;
Jakarta, 12 September 2011
Agung S.Suleiman  

Tuesday, August 21, 2012


Yes, we have to be fully aware that a strong Country must be backed up by its Energy, where as an alternative besides Hydrycarbon Oil and Gas and Geothermal, we have to make sure that the Policy made by the Indonesian Government as well as the Rulings from the Legislator  have to support  increasing Coal Products to support the Energy in Indonesia;
  • As already practiced in the Oil and Gas Policy applied by the Government of Indonesia as reflected in the rulings,  DMO (or Domestic Market Obligation)  is obligated to Oil and Gas Companies operating in Indonesia to market and sell its 25% (twenty five percent)  of its Annual Oil Production in the Indonesian Territory to secure the Energy supply and need in Indonesia; 
This similar Policy shall and have to be ensured and secured by the Government of Indonesia as well as the Legislator in the People House Of Representative in the Coal Sector, where the Coal Producers are obligated by the DMO (Domestic Market Obligation) Policy to market portion of its Coal Production to be sold within the Indonesian Territory; This Policy is really significant for a Developing Country like Indonesia who has around 250 million of People who needs energy supply to support its standard of living; 
  • As we are aware  implementation of this DMO is  applied in the Mineral and Mining Law No. 40 of 2009 and the Ministerial of Energy and Mineral Resources No. 34 of 2009 which applied the prioritizing of the the domestic mineral and coal supplies, and the Directive of the Directorate General Of Mineral, Coal and Geothermal on the technical supervision on supervision on providing the minimum precentage of sales for domestic purposes; 
This Policy is aimed to at least secure the domestic coal supply to back up the Energy in Indonesia especially which is needed for the Power Plant operated by PLN (The State Electricry Enteprise) to support the Electricity need for the Industry as well as the people of Indonesia;  Accordingly, we have to be sure and certain that this Policy must  improve the Indonesian Country's capability  to compete in the National and International level.  Thus the  national interest must be put up front.
  • Since Indonesia is still considered a Developing Country, we have to manage our abundant natural resources to our Nations best interest,  especially to support the quality of life of the 250 million people living in Indonesia; We must prioritize our goal and target for the Indonesian Nation which is free education, and hospital for its people so that we can increase the educated and healthy person in Indonesia;
In order to achieve such target we have to think as Indonesian Inc. and must learn from other neighboring countries like India and China who has also huge numbers of population that have to be taken care by this Country, and have succeeded to seriously made a good Road Map Planning in their Energy Policy system which could back-up the needs of the Energy needed by their Power Plant to support the Industry and human household ;
  • Based on the above, we have to make sure the Policy and the Rulings made by the Indonesian Government as well as the People House of Representative,  must be geared to develop the Policy and Rulings which must support such goals and target;       

Jakarta, 21 August 2012
Agung  S.Suleiman

Monday, April 02, 2012

New Government Regulation No. 24 Year 2012

Recently, the Government of the Republic of Indonesia had issued Government Regulation No.24 Year 2012, which regulates amendment to the Government Regulation No. 23 Year 2010
  • In essence, this Government Regulation was issued to encourage and boost the Indonesian Participant to  participate in the Mining of Mineral and Coal within the Indonesian Territory;  The IUP or Mining Permit may not be transferred,  except if the Party receiving such IUP owns more than 51% shares of the PT holding such IUP; 
  • Pak Sony as the Legal Officer from the Ditjen Mineral and Coal in a Seminar  explained that the intention by the Government is that The Government can monitor the Party who controls such IUP holder who is responsible upon the performances of the Mining Operations in the given Mining Area under such IUP;
Furthermore under Article 7A of the Government Regulation No. 24 Year 2012, it is stipulated that if the applicant of the IUP is foreign capital company or foreign capital Investor, the Minister of ESDM approval is required; Thus, since the IUP is granted by the Bupati, than an IUP cannot be granted by the Bupati to a foreign Capital Investor;
  • We can see that in every country now a days, the Government in the Region of the Development Countries based on the development of China, India, Brazil, Russia,  South Africa are gaining confidence in encouraging the Local Participant or Local Investors including Indonesia to play a significant role to actively participate  in the business operations including in the Mineral and Coal business which could be shown by KPC in Kalimantan which is owned by Bumi Resources as the Indonesian Owned National Participant in the Coal Mining Project in Indonesia; 

  • This trend is also stimulated by the Growing Awareness of the Indonesian Democracy, which had encourage the Indonesian Investors to actively participate not only as broker, but as a real player in the Mining Minerals and Coal Industry in Indonesia; Time will demonstrate whether the Indonesian Player can really use this momentum in the Mining of Hard Mineral and Coal business operations, which is inspired by the Indonesian Investors in the Oil and Gas, such as Medco, who are  really growing and playing an important role in the development of the Indonesian Oil and Gas Sectors; 
Technology, Financial engineering and Knowledge is not only owned, controlled and managed by the Former players, but is beginning to be tapped by the Local Investors from the fast Growing Development Countries, which can be seen by the planning of establishment of  Alternate Banks by BRICSA (Brazil, Russia, India China and South Africa);

Jakarta, 2 April 2012
Agung S.Suleiman

Monday, January 02, 2012

Enjoying Being Independent Business Lawyer

Yes, sir I am really enjoying myself becoming an Independent Business Lawyer; It has been already more than 13 Years and 6 Months since 1st June 1998, that  I started my exiting venture being an Independent Business Lawyer.
  • I can set up my own definition as to becoming success which is really unconventional and non-traditional  by setting up my own definition of being success, among others by gaining more flexible time depending on my own set of rules as to where and at what time I wanted to do my work.This concept of paradigm is pursuant to the Book which I am now reading called Career Success without a Real Job written by Ernie J.Zelenski
I managed to be more independent by having my own Special Purpose Vehicle (SPV) which is an Independent Law Firm now called  Suleiman Agung & Co ( SACO LAW FIRM); 
  • After having been for more than 13 & a half  Years experiencing running this Law Firm, I realize that it really depends on our-self willingness and choice as to what do you want and prefer to be concentrating and focusing on your Career Success, which definition  of Success is being freely  set- up and design by you your self and no other person but you yourself
  • Your Ad Here
You are the only person who really knows what type of career path that you wanted to establish and venture in this life; Besides working you must also have "time" to  enjoy your life and being alive in this world; You have to venture and sometimes make certain experimental moves in your life;
  • In order to optimize your professional ideas in your field of professional you must really enjoy what you are doing and not because of being forced by others  perception in electing the life style that you really like;
The important and significant element that you have to do is that You must establish your hours of experience and track records  in serving your Clients which will certain be the Valuable Assets that you like to focus and sell as your expertise to your Clients;
  • You must seek the ways as how you can grab the  opportunities  to demonstrate your expertise which you master and are in  confidence with, which will  benefit and be an  advantage as an Added Value to your Client's business goals and objectives;
From my self experience in developing my so called Professional Career, I noticed that this can be achieved by each and everyone  of  us,  if you are having the freedom to set up your own established  flexible time and place which you allocate,  to learn  the merits and core of your Clients business transactions;
  • You have to focus with your best effort for example to make certain Brief Executive summary through a Scheme and a systematic bullet points at the right time and moment  which could help Giving Snapshots and Quick Glance of the Important Issues that your Client has to be aware of, because time is of the essence to make the right and proper business decision;
Well the above are some of the tips that I would like to share with you in the beginning of this Year of 2012, and I wish you a very Happy New Year 2012, New Hope, New Venture, New Spirit, New Venture

Jakarta 2 January 2012
Agung S.Suleiman 

Drilling Rig

Drilling Rig
oil gas