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

Sunday, November 29, 2009

Level Of Trust On The Legal Institution In Indonesia

It had been quite a while that I visit this blog. I just wanted to say hello and greetings from Jakarta Indonesia. How is business at your end. I hope everything is ok. There is an important element which had to be settled in Indonesia in this coming  days. The Level of Trusts on the Legal Institution In Indonesia must really be healed. All the elements of Indonesia including the Business Society and Business Lawyer needs some assurance from the Top Level Government of Indonesia,  that they are really serious in supporting   the  Law Certainty and the Level Of Trust on the Legal Institution in Indonesia.

Without such assurance, the Business Investment Climate and the people welfare will be jeopardize. The People of Indonesia are really fed up and frustrated with the non-seriousness of the Authorized Legal Officers in handling the Corruption cases in Indonesia. Accordingly we are  all relying on the President of Indonesia to seriously instruct the Police Officers as well as The District Attorney Officers to accomodate the desires of the Indonesian People to conduct their tasks in a trusty, honest, Justice  and High Integrity manner. 

Saturday, November 28, 2009

Independent Business Lawyer

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You never can tell what kind of  business legal works will you be doing if you are on your own. If you are working as in-house Lawyer your legal work can be detected and be predicted which shall be within the surroundings of the business field of company that you are working. But if  you are Business Lawyer  on your own you cannot predict and expect what kind of  business legal works that you are doing.

You will be experiencing several Independent Business Legal Works which may range from preparing  MOU or Letter of Intent, or conducting Legal Due Diligence or drafting a complex agreements such  as Shareholders Loan Agreement, and other related business legal transactions.  It could be just  a meeting with your prospective Clients, which will tell you stories about their current business ventures and experiences including their stories and venture of  still trying to seek business ventures. The Prospective Clients who will contact you or who you contact may also be unpredictable.

They can be your former Clients who had experienced the Legal Services that you have once rendered. It may be Clients that you have contacted and asked whether they needed  any Legal Assistance in their business. There are even times that you do not have any legal services to do. The cash in  of your Firm  depends on the Legal Fess for the Legal Services  you are providing, which  may also unpredictable. 

Accordingly, if  you are on your own as an Independent Business Lawyer you may also have an uncertain cash flow,  where the cash-in really depends upon the condition of the Load work in your Legal Law  Firm. The size of your Legal Firm may also be different with the size of the other Law Firms. This really depends upon when you started establishing your Legal Law Firm . The  motivation, background  and circumstances of the Founder or Partner of such Law Firm may differ from one to the other shall influence such Firm.

For myself  as a Business Lawyer, the reason and background was because I wanted to be  more independent and have freedom in  shaping and  establishing my life style. Since my specialty happens to be shaped as a business Lawyer either as In-House lawyer and Legal Consultant or Partner in a Law Firm, the Vehicle that I have in mind, to accommodate my need back to  1st June 1998  was  establishing such "independent Vehicle" which is establishing and running an Independent Business Law Firm.

Accordingly, if I elect the life style more of an independent type, I had elected to use an Independent  Business Law Firm as a Vehicle to accommodate my independence. Besides  being  a Partner and Founder of the Law Firm of Suleiman Agung & Co for more than 11  1/2 Years since 1st  June 1998 , when I left being as In-House Legal Counsel of PT Freeport Indonesia Company (one of the biggest Copper Mining Company who operates in Irian Jaya Indonesia), I also enjoyed writing  about my life experiences related to my profession as a Business Lawyer  and also experiences about travel, spiritual and experimental movements.

I had also recently joined  Squidoo and Hubpages community,  who like to write  and  hopefully can also gain  some earnings from such Blogs which are being  linked  with Google Adsense, Ebay, Amazon and other affiliates and advertisement,  where we elect to be Publisher.


Cheers

Revised 27th November 2009

Agung Supomo Suleiman        

Monday, November 23, 2009

Interesting Development

There is a very interesting development in Indonesia after the Indonesian Constitutional Court had allowed the disclosure and hearing of the tapped phone discussion between certain businessman and Indonesian Law Officers which strongly indicates of involvement of the businessman with such  Indonesian Officers in the law procedures process of conspiracy in framing a certain honest  Chairman of the KPK ( Indonesian Corruption Eradication Commission (KPK) ), who are trying to abolish the Corruption in Indonesia, as if  they received  bribery  monies, which was openly broadcast  by  TVONE Channel and MetroTV and could be watched by 200 million viewers in Indonesia.

On this day  23 November 2009 everybody is waiting for the Presidential response and action relating to this case after Team 8 which was formed by the President had submitted their recomendation. The President indicates an of out of Court Settlement shall be approached. The significant element in this issue is that  the whole people of Indonesia is focused on the outcome of the status of the 2 KPK officers which is indicated as being  framed based on the hearing of the tapped phone discussion which was broadcast by the TV media during such hearing in  the Indonesian Constitutional Court. We will wait for the action from the President on this day around 20.00 hours tonight.    

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.

Cheers,
Jakarta, 15th November 2009
Agung Supomo Suleiman 

   

Thursday, November 12, 2009

Business Lawyer On Your Own

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We do not realize that as a Business lawyer if you are setting up your own Law Firm you will also be experiencing to be a Businessman selling your Professional Skill in Providing the legal Services as a Business Lawyer. However at the same time you are tight to the legal profession where you have to be honest in conducting your Legal profession. Thus the cash flows -cash in depends upon the Clients that are using you as a Business Lawyer. But at the same time in rendering the Legal Services you must observe and honor the laws and regulations as well as the Ethics and morals as a Business Lawyer.
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You must not breach the Law especially if your inner feelings can detect that something is against your deep consciousness. Accordingly, your rendering Business Legal Services to your Clients  besides the laws and regulations must also take into consideration  upon   the code ethics and morals which are felt, practiced  and accepted by the stakeholders in the business society within your places and jurisdictions .

The above is based on the experiences where sometimes as a Business Lawyer who are serving our Clients in the Business Circle,  we feel that Power  tend to manipulate  certain  situation and circumstances which is against  our Hearts and consciousness and common sense  being  felt by the common people who are seeking for equal treatment and fairness in the struggle for their day to day life.

Therefor even though Business Lawyer are Businessman who make their living  from their   Legal Professions  you are also at the same time a Professional  Lawyer who must give  advise on the proper legal and rulings as well as following and listening to your heart consciousness,  which may play an important significant role in making a decision to give advise and giving legal opinions which has to be within the high moral professional standards as a Conduct Of Honour of the Business Lawyers.       

The Truth sometimes is relative which depends upon which angle or side are you in the reality of life in this world.


Jakarta,  November 12, 2009
Agung Supomo Suleiman 
           



Monday, November 09, 2009

Serious Steps Must Be Made

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During this past 1 week, all the Indonesian People are focusing on the work by the Team 8 which are being requested by the President to make Facts Finding upon the allegation made by the Police Department against the framed Corruption Abolition Committee (KPK Officer ), which based on the media perception,  there is  actually no case, since the legal basis are merely made upon the report from Antasari ( the Previous KPK Officer) based upon the testimony made by a certain Businessman he called Anggoro, claiming that he had been pressed to give monies by certain KPK Officers,  which according to Antasari in the TV Media,  the information gathered by him from Anggoro, are still having many doubted and uncertain data.

This weak testimony which was made into a report by Antasari to the Police Department, are being used to put the Charges against CH and B as KPK Officer by the Police Department.  

Based on such above significant development, all our energy are thrown into this frustrated weak allegation, which many people are not convince with such allegation made by the Police Department, since there are really "no hard evidence", but is merely based on assumption and has no any strong legal ground evidence at all.

Ary Muladi, which had made the Minutes Procedure Investigation, being used by the Police Department  to make such charges and allegation, had actually revoked his previous statement, which  said that he had made  payments directly to the KPP officer, but, he  made correction statements saying  that  the payment was made through certain man, he called Yulianto, which until this present moment such name is never known and traced by the Police.

As we are aware,  Indonesia needs a Total Serious Mental Legal Reformation within the Indonesian Legal Institution, if it wants to develop a Healthy Investment Climate in Indonesia, so that the Indonesian and Foreign Investors could feel comfort upon the Investment that they are investing in Indonesia.

As a Business Lawyer  we have to be concerned in pushing the legal system to be more transparency and accountable to enable providing Legal Justice and Equality for all the people of Indonesia without any discrimination. 

It really takes and consumed a  lot of time and energy for the Indonesian people,  to develop such Certain Legal System where the President of Indonesia as the Leader of this Country has to have strong political will and consistent to gear  the conducive condition for establishing Good Legal Practices and Conduct within the Indonesian Legal Institution to be really implemented and  enforced in Indonesia.

Without this Strong Political Will from the Indonesian Government, it is really hard for us to have a dream of Legal Certainty In Indonesia to become reality.

The people of Indonesia are really fed up with the acrobatic Mafia Legal System, and therefore are perceiving Distrust to the Legal Institution Bodies  and therefore they are putting Chandra Hamzah and Bibit as their Hero Representing Honest Person who are being Criminalized by the Indonesian Legal System, or the War between The Crocodile ( Buaya ) and Cicak ( small reptile).       

Jakarta 9 November 2009
Agung Supomo Suleiman

       

       

Saturday, November 07, 2009

Historical New Legal Breakthrough by The Indonesian Constitutional Court

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There was a Historical New Breakthrough made by the Indonesian Constitutional Court,  where The Indonesian Constitutional Court had allowed to publicly openly hear  the contents of the  tapping of the Phone Conversation between certain businessman, and indicated certain Officers from the Legal Institution  and several "Case Broker", which indicated that there was  a scenario to frame the Chairman of the KPK ( Indonesian Corruption Eradication Commission (KPK) ), who are trying to abolish the Corruption in Indonesia, as if  they received  bribery  monies, which was openly broadcast  by  TVONE Channel and MetroTV and could be watched by 200 million viewers in Indonesia .

It was really a Historical New Breakthrough  on  this  Openness  Era in Indonesia, because the People of Indonesia who are very eager to establish  Legal  Justice  can watch  lively on the TV Media directly from the Indonesian Constitutional Court,  the phone tapping conservations which strongly indicates scenario of so Called Court Mafia  in Indonesia between such business man, and several officers indicated from the Legal Institution Bodies.

Immediately after such TV Broadcast was made, demonstration had rapidly spread in many cities in Indonesia by students and the people who are concern of  Legal Justice, including many signatures to support the Victim Chairman of the KPK who were perceived as being Criminalized,  as if such Honest Chairman from KPK called CH and B had conducted bribery, which was Strongly Denied by such Respective Victims.

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What made the people mad, was that there was "Distrust from the People" upon the Legal Institution in Indonesia who appears not to be on the side of the People's want of  Law Justice. This KPK Institution was actually established,  in response to the "distrust of the People of the Republic of Indonesia "upon the Indonesian Legal Institution" in handling the Corruption Cases.

We as Business Lawyer, are also really concerned in  the Law Justice and Equality before the Law in Indonesia, that is why some of the Alumni of the Indonesian University  had signed the support for the Victims of this Criminalization.

In order to build a Healthy Business Climate in Indonesia, Law Certainty is really important and significant. We noticed that the wages and the living standard of the Indonesian Legal Institution had to be increased and taken care by the Government and the Parliament, so that they can  fully concentrated on doing their task and duties  in serving the Peoples Hunger for Law Justice and not trying to find out a way to cope their needs for their day to day Living Costs.

In respond to the above development The President had established the so called Team 8, who is responsible to conduct  the Findings Facts  of this Case and make a Recommendation to the President within this 2 weeks time.

The above developments of making the Breakthrough by the Indonesian Constitutional Court was a Historically Breakthrough made by the Indonesian Constitutional Court as the Indonesian Legal Institution in this New   Era of Openness in  Indonesia who is striving hard to establish Legal Justice and Abolishing Corruption in Indonesia which is really significant to establish Healthy Business Climate in Indonesia particularly Law Certainty.

Jakarta, 5 November 2009
Agung Supomo Suleiman

       

Wednesday, November 04, 2009

Legal Aspects relating to Financing Business Projects

  • Financing  Business Projects are very interesting from the legal aspects for a Business Lawyer. From my experience in practicing as as  Business Corporate Lawyer in Indonesia, we are frequently involved in giving advise and assisting our Clients to draft or review their financing arrangement which are covered by a Loan Agreement. This  was  being experienced by the Writer as a Business Lawyer since Year 1980 ies, starting as a Junior Lawyer who  assisted the Senior Layers  in drafting the finance transactions and arrangement relating to financing their  Vessels including air planes 
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  •  What makes us attractive to such finance arrangement as Business Lawyer is because there are several  elements that have to be taken into considerations. Business Lawyers must be aware that before the Debtors are approved to get this  Funds from the Creditors, based on  the Indonesian Business common practices, such Creditors  shall firstly  conduct the Legal Due Diligence,  which shall be conducted by Independent Lawyers; This Legal Due diligence covers the checking of all the corporate documents  Licenses, Agreements with other Parties, including any Credit Agreements and its Collateral, the amounts of Labors, The Company Rules, The Employment Agreements, Title ownership of its assets, Certificate of Lands/Buildings, the potential Litigation or Arbitration cases ( if any) which involved such Debtors. Based on the Legal Due Diligence, the Independent Lawyers may be requested to make the Report Result of their Legal Due Diligence and may be requested to issue and make a written Legal Opinion addressed to the Creditor/Bank
  • Besides the Legal Due Diligence, the business prospective of such Investor including the technical aspects are also being conducted by the Bankers as the Creditors. The Creditor will usually request the Investors to make their business presentation, and business cash flow projection  in order to get the overall and comprehensive business prospective in particularly, the cash flows, cash out and cash in streams of such respective credit applicant, to ensure the repayment of the Loan. The most significant element in business is the trust worthiness of such loan applicant, and the capabibilty to repay any and all of the Loan Amount being granted by the Creditor.
  • In other words, the most relevant questioned raised by the Bankers or the Financiers are whether the applicant's cash flow prospect are bankable or not. These initial steps are really important and significant, because once the Monies or the Funds are being disbursed by the Bankers in accordance wityh the agreed repayment schedule as shall be stipulated under the Loan Agreements , the Bankers shall be in the risk of non- repayment or default of payment by the Debtor.




  • In order to secure the full repayment of the Loan by the Debtor to the Creditor, there are several collateral known and recognized under the Indonesian Laws and regulations among others  the Fiduciary upon the movable as well as immovable assets, the Hak Tanggungan (or in other countries are known as Mortgage) upon the land owned by the Debtor.The Fiduciary Deeds shall be registered in the Fiduciary Office, at  the places where the assets are located.
  •  Once the Pre-Condition under the Loan Agreement are being completed, by the Debtors, as being advised by the Business Lawyer, the Bankers will disburse the amount of Loan in accordance with the disbursement schedule under the Loan Agreements pursuant to the mechnisme of drawndown under such Loan Agreement.  The actual disbursement of the Monies made by the Bankers to the Debtor are the most significant matter for the Debtor, since this Loan is really needed by the Debtor to perform its business operations. Normally there will be a certain Grace Period granted to the Debtor before repayment obligation of the Loan are to be made by the Debtor, pursuant to the terms and conditions of the Credit /Loan Agreement.   
  • If the progress  track record and the outcome of the business is a successful one, than such respective success Investors has shown a good re- payment loan performance , and the Bankers shall be willing to offered again further loan to such respective Debtor. From the Writers experience as a Business Lawyer who frequently assisted Clients on seeking funds from Banks to support their business operations, it shows that the Bankers may also need some expertise within themselves to understand the business culture or business nature of our Clients. If our Clients happens to be business players in the oil, gas or Mining sectors, the Bankers may  need some education from the oil/gas and mining business players as to the nature of the oil/gas and Copper Mining or Coal Mining business operations including the exposed risks that might occur and the laws and regulations surrounding the business nature in such sectors.
  • The Business Lawyer must advise the Bankers, that Banker  who are granting loan to Oil/Gas or Mining Companies conducting operations in Indonesia, must fully be aware that the oil/gas as well as the minerals which "had not yet passed the point of export", cannot be secured as collateral for the repayment of the Loan or Financing transactions, since such minerals/coal and oil and gas are still owned by the People of Indonesia based on the Concept  adopted under the Indonesian Oil/Gas Laws as well as the Mineral and Coal Law.Thus we have to remember that under the Indonesian Legal system regulating the oil/gas and General Mining sectors, the Oil/ Gas Product  as well as the Mining  Products may only be owned by the Investors, if such product already passed "the point of export", where transfer of title on such oil/gas product occurs.
  • Accordingly,  the Bankers have to really conduct the economical commercially  aspects of such Debtors business, which may need some inputs from the technical people who are expertise in giving ideas and inputs on the oil/gas and minerals/coal deposits in the Oil/Gas and Mining Block in Indonesia.
Agung Supomo Suleiman
Partner Law Firm Suleiman Agung Co
AGUNGSS BUSINESS LAWYER NOTE

BUSINESS LAWYER Jakarta, Indonesia,
30 October 2009

Monday, November 02, 2009

Business Lawyer must honor Honesty and Good Corporate Governance





  • Financing  Business Projects are very interesting from the legal aspects for a Business Lawyer. From my experience in practicing as a  Business Corporate Lawyer in Indonesia, we are frequently involved in giving advise and assisting our Clients to draft or review their financing arrangement which are covered by a Loan Agreement. This  was  being experienced by the Writer as a Business Lawyer since Year 1980 ies, starting as a Junior Lawyer who  assisted the Senior Lawyers  in drafting the finance transactions and arrangement relating to financing their  Vessels including airplane.

  • What makes us interesting to such finance arrangement as a  Business Lawyer,  is because there are several  elements that have to be taken into considerations. Business Lawyers must be aware that before the Debtors are approved to get this  Funds from the Creditors, based on  the Indonesian Business common practices, such Creditors  shall firstly  conduct the Legal Due Diligence,  which shall be conducted by Independent Lawyers; This Legal Due diligence covers the legal checking of all the corporate documents,  Licences, Agreements with other Parties, including any Credit and its Collaterals, Title ownership of its assets, Certificate of Lands/Buildings Agreements, the amounts of Labors, The Company Rules, The Employment Agreements, the potential Litigation or Arbitration cases ( if any) which involved such Debtors. Based on the Legal Due Diligence, the Independent Lawyers may be requested to make the Report Result of their Legal Due Diligence and to issue and make a written Legal Opinion addressed to the Creditor/Bank.
  • Besides the Legal Due Diligence, the business prospective of such Investor including the financial  and technical aspects are also being conducted for the interests of the Bankers as the Creditors. The Creditor will usually request the Investors to make their business presentation, and business cash flow projection  in order to get the overall and comprehensive business prospective in particularly, the cash flows, cash out and cash in streams of such respective credit applicant, to ensure the feasibility of the Debtors business and to ensure the repayment of the Loan. The most significant element in business is the trust worthiness of such loan applicant, and the capabibilty to repay any and all of the Loan Amount being granted by the Creditor.
  • In other words, the most relevant questioned raised by the Bankers or the Financiers are whether the applicant's cash flow prospect are bankable or not. These initial steps are really important and significant, because once the Monies or the Funds are being disbursed by the Bankers in accordance with the agreed repayment schedule as shall be stipulated under the Loan Agreements, the Bankers shall be in the risk of non - repayment or default of payment by the Debtor.
  • In order to secure the full repayment of the Loan by the Debtor to the Creditor, there are several collateral known and recognized under the Indonesian Laws and regulations among others  the Fiduciary upon the movable as well as immovable assets, the Hak Tanggungan (or in other countries are known as Mortgage) upon the land owned by the Debtor.The Fiduciary Deeds shall be registered at  the Fiduciary Office, at  the places where the Assets   are located.
  •  Once the Pre-Condition under the Loan Agreement are being completed, by the Debtors, as being advised by the Business Lawyer, the Bankers will disburse the amount of Loan in accordance with the disbursement schedule under the Loan Agreements pursuant to the mechnisme of drawndown under such Loan Agreement.  The actual disbursement of the Monies made by the Bankers to the Debtor are the most significant matter for the Debtor, since this Loan is really needed by the Debtor to perform its business operations. Normally there will be a certain Grace Period granted to the Debtor before repayment obligation of the Loan are to be made by the Debtor, pursuant to the terms and conditions of the Credit /Loan Agreement.   
  • If the progress  track record and the outcome of the business is a successful one, than such respective success Investors has shown a good repayment loan performance , and the Bankers shall be willing to offered again further loan to such respective Debtor. From the Writers experience as a Business Lawyer who frequently assisted Clients on seeking funds from Banks to support their business operations, it shows that the Bankers may also need some expertise within themselves to understand the business culture or business nature of our Clients. If our Clients happens to be business players in the oil, gas or mining sectors, the Bankers may  need some education from the oil/gas and mining business players as to the nature of the oil/gas and copper mining or coal mining business operations including the exposed risks that might occur and the laws and regulations surrounding the business nature in such sectors.
  • The Business Lawyer must advise the Bankers, that Banker  who are granting loan to Oil/Gas or Mining Companies conducting operations in Indonesia, must fully be aware that the oil/gas as well as the minerals which "had not yet passed the point of export", cannot be secured as collateral for the repayment of the Loan or Financing transactions, since such minerals/coal and oil and gas are still owned by the People of the Republic of Indonesia based on the Concept  adopted under the Indonesian Oil/Gas Laws as well as the Mineral and Coal Law.Thus we have to remember that under the Indonesian Legal system regulating the oil/gas and general mining sectors, the Oil/ Gas Product  as well as the Mining  Products may only be owned by the Investors, if such product already passed "the point of export", where transfer of title on such oil/gas product occurs.
  • Accordingly,  the Bankers have to really conduct the economical commercially  aspects of such Debtors business, which may need some inputs from the technical people who are expertise in giving ideas and inputs on the oil/gas and minerals/coal deposits in the Oil/Gas and Mining Block in Indonesia.
Those are among others the legals aspects surronding the Finance transactions in Indonesia.
Agung Supomo Suleiman
BUSINESS LAWYER Jakarta, Indonesia

November 2, 2009

Drilling Rig

Drilling Rig
oil gas

AMAZON