Tuesday, March 08, 2016

SNAPSHOTS OF OIL PRICES PLUNGGING ISSUES - URGENCY REQUIREMENTS TO SOLVE THIS OIL CRISIS

As a Freelancer Independent Business Lawyer you are sometimes very busy working long hours because of the load of  work  requested  by Client,  among others  Drafting Oil Business Agreements relating to the sale of some portion of  Equity by the Owner of an  Oil Company to Investors, to  pursue it's business Operations.
  • However  there are times, where we are not too busy, perhaps   due to the Collapse of Oil Prices Globally. We all experienced that within this 2 Years since June 2014, the Oil Price  plungged from U$D 100 / per Barrel  into U$D 50  and than  U$D 27. This Crude Oil Prices have fallen more than 70%  from Serbia to the Arabian desert, which caused Oil Producers Countries and Oil Companies loosing money. It is not only an Economic issue but also a Geopolitical issue.  We  remember that in the 1980-ies  the Oil Prices also tumbled down  causing  the collapse of Sovyet Union  and the break down of the Berlin Wall. From the news we read,  we understand  there was sort of a Geopolitical Warfare, in which the Russian had blamed the West. 
At this present Oil Crisis, we can also observe from the Media that Russia was also claiming that there is a conspiracy by the Saudi Arabia and US to punish Iran or influence the economy of Russia who supported the Regim in Syria. Such claim maybe have a point  to argue or it may not be the case. From analysis in the media, we understand  there maybe 2 (two) sides of a Coin in this kind of situation. It depends who you are and where you are. For Oil Importing Countries actually it's good because they can reduced their cost for buying such Oil to fill in their State Budget.  In this case Europe is gaining some benefits of the Low Oil Prices and also Natural Gas is going to be cheaper.
But for the Oil Producers and Oil Country exporters which  are selling Oil this really hurts their financial condition.  Russian Oil Companies are selling Oil  below production costs,  where people are just exploitating from the on going projects existing whatever reserve they have and nobody is planning for long period of time.  
From the media we got the information that Saudi Arabia has U$D 600 Billion Worth of  Revenues stached away in some places, to a relative extent,  but it can quickly burn out  Saudi's  long saving due to its Deficits. We observe that Russia is pumping its production on its  maximum, before sitting and negotiation with Saudi Arabia; According to the expert analysis  this is a normal strategy used by Oil Producers in negotiation to stop the over supply of oil in the market which are also frequently used by OPEC members.
  • We can also see that  from the Geopolitically perspective, Europe is facing flood of imigration from the Middle East particularly primarily from the crisis in Syria. We can watch in the media television there are many imigrants coming to Greece through Turkey.  So there exist Immigrant crisis in Europe. From  the media, according to the analyst, Saudi uses its saving to fund Yaman, Egypt, Oman, Bahrain, therefore it is not only using its monies  for its Domestic requirement. 
Thus, we can see that according to the analyst in the media there is also an urgency requirement to  resolve this Crisis,  where it is a net minus for everybody in the macro economic level as well as in the Geopolitical level.  We observe OPEC, including Saudi controls nearly 40% of World's Oil Supply.  Geopolitics seemed to make a deal problematic. As we can see Russia is helping President Bashaar Assad and the Saudis are suppporting the Assad Opposition fighters. However both have a common economic interest to stabilize the Global Oil Price; They both agree to freeze their production. In the Doha Agreement it appears that Venezuela and Qatar was also party to the Agreement, however the question may arise :  are they able to pursuade the rest of the Opec members to agree upon a production freeze. The other issue is Iran, whereby Iran will defend it's right to raise oil exports to the level that they prevailed before Western Sanctions was imposed in 2011.     

  • How about in Indonesia ? Indonesia is no longer just Exporting Oil and gas but Indonesia is also a Net Importer of Oil. Indonesia produced 790,000 barrels per day (b/d) of Crude Oil and condensates   in 2014, the 3rd Lowest level among OPEC members. Indonesia originaly joined OPEC in 1962 but suspended its membership at the begining of 2009. Indonesia's decision  to suspend   in Opec membership was due to the growing internal demand for energy, declining crude oil and condenste production in mature fields, and limited investment to increase production capacity. 
As we know  Indonesia had become a Net Importer of Petroleum and other liquids by 2004 after domestic demand exceeded production, as Indonesia's production of petroleum and other liquids had declined since the mid-1990's. We noticed that  OPEC had notified  Indonesia that it plans to accept Indonesia's request to re-activate its membership. Based on Opec's statute, it allows as a member any country that is substantial net crude oil exporter, has similar interests to Opec, and and is accepted by 3/4 of full members. Although Indonesia is a net Oil Importer, Indonesia continues to export crude oil and condensates. Despite of it's Oil demand, we can observe that Indonesia's Oil and Natural gas sectors continue to play as  an important element of the Country's economy. Indonesia is in present purchasing crude oil and petroleum product through 3rd Parties or Traders and desries to have a direct acces to long term crude oil supply contracts through negotiations between  National Companies of OPEC members. 

  • We observed from the news in the media  that  Indonesia plans a number of upgrades and expansions to existing refiniries to become operational. From the media-news,  we noticed that Indonesia has also proposed to build 4 New Refineries each having a capacity of 300,000 b/d. Since Indonesia struggles with the level of Investment needed to offset the declining of the Oil and Natural Gas production and the lack of adequated infrastructure, Indonesia is really striving hard to attract  Investment in both upstream and downstream sectors with OPEC members. We can observe that Indonesia is currenntly in discussions with several OPEC members concerning the Crude Oil Deals as well as Investments in Refinery Projects.  
In the other side due to the plungging Oil Prices, after previously taking effeciency measures to minimize the impact of the plungging Oil Prices we may see several  Oil and Gas Companyies are now being forced to take a stiffer action of Lay-Offs and streamlining it's staff members. This also are being suffered by Services Companies, globally. 
  • Apart from the above issues, there seems to be kind of a tug of war and different approaches concerning the Development of the Masela Blog in Maluku,  between Ministerials level from the Cabinet, which emerged in public media, as to whether it is more efficient performing off-shore scheme or onshore,  which we feel  must be immediately solved by the Highest Authority of this Nation, to give Certainty to Oil/Gas Investors.                
Jakarta, 8 Maret 2016 Agung Supomo Suleiman

Saturday, March 05, 2016

WORK PROFESSIONALY SMART

The "Real Exiting Challenging Experience"  of the Writer of this Blog  practicing as an Independent Business Lawyer Self-Employed for more than 17 Years  and nearly reaching 18 Years since 1 June 1998,  is that  you are really freedom to choose the place to perform your work it could be in your home or in the cafe or any other places and free to elect  the time  to perform your Legal Service for your Client.
  • Please don't get me wrong the freedom of being an Independent Business Lawyer or Freelance Lawyer is not that you are lazy to work hard, but it is more of a matter of  how to "Work Professionaly Smart" as an Independent Business Lawyer who is responsible to render the most best effort high quality of services to your Client. 
There are many types of manner in seeking to be a smart worker, There are individuals who likes to be free and independent and choose not to be like a "Robot" being forced and programmed  to always be in the office from 8.00 until 17.00,  but without actually doing anything having value added to the Company that you work with nor increase  your professional talent and just pretending to appear as if you are busy to satisfy your so called " Boss"....and sometimes you feel  there are plenty of hours that are waisted and could  be more optimized to gain value added to the quality of life. Well frankly speaking the Writer's professional Journey had been  a combination of Experiencing as (i) Employed personal as Lawyer in a Law Firm and In House Legal Counsel in Companies for 15 Years and (ii) Self -Employed practicing and Venturing his own Experimental Life in pursing as Independent Business Lawyer for more than 17 Years since June 1st, 1998.    

He   started  his career as a Self-Employed Professional Independent Business Lawyer,  when  he   reached the age of 46 Years old  reaching 47  where  based on his past work experiences, he felt strongly that he has  to be Free and Independent and Self-Employed to enable challenging  his further career professional path in pursuing his obsession to be a  Professional Independent Business Lawyer. 

When he entered the Faculty of Law at the University of Indonesia he was actually planning  to be a Diplomat,   where he took the International Law as his speciallity thesis; However for one and other reason he was initially trapped becoming a Legal Consultant/ Lawyer, when he was preparing and finalizing his thesis. The lovely thing being in this profession is that back in his  mind  he had this "wild idea"  that at one day he  can be freedom in practicing his  Law Profession by daring to "jump out of the Box" or "Comfort Zone" in order to follow his  real passion which is to become a real Professional Independent Business Lawyer.        
So the "real object issue"  which the Writer wanted to Focus and highlight in this article  is not the type of Professional that he chooses, but more to the "Freedom Chances" being  Independent Accountibility Professional Independent Business Lawyer, where you must be really Independent and not trapped with the Characteristic of  the Corporation that you are dealing with. 
  • In principal  the Writer of this Blog feels and is very much inspired and influenced by the teaching and reminder under the Holy Book of Al Quran, which was actually confirming (the relevations) which came before it (Taurat which was send down by ALLAH to the previous Prophet Moses and Injil which was send down by ALLAH to Prophet Isa (the son of Maryam) and corrections to the wrong interpretation made by the followers of the said above  previous Prophets upon the Holy Books to emphasize that Monotheisme Concept of Worshiping the One and Only Creator of this Whole Universe - including who creates  the Sun, the Moon, the Stars, and the World we live in,  and  making the rain falling from the Clouds which showered the Dry Land so that all the Plants, animals, which are created and dedicated for  human being,  can live,  which are the real signs of the Greatness and Mercifulness of ALLAH the Creator of this World as referred under the Holy Books including the Holy Al Quran.   
The sharing of the contents of this Holy Book  must be conducted through wise Enlightment to all the believers of ALLAH, the Holy Books, The Hereafter,  so that our Life Journey at the end of the day could be Blessed and Guided by ALLAH the Most Merciful, so that we can make this World a better Place to live in under the Blessing of ALLAH as taught by all  Prophets which were sent by ALLAH to this World; 

  • In light with such set of mind and believes in our Heart without any Doubt,  we have to  build and continously maintain and guard  this "Faith" firmly, to enable us with the Permit and Help of ALLAH,  to get, reach  and gain the "Light"   which are needed  by whatever our profession  are,  to unable to see and reach the End of the Tunnel of our Life Journey, whereby each of us  will be really  taking our own Responsibility  to the Creator  in the Day of the Hereafter, in the Day Of Judgemnent,   for which each of us  consequently must be able  to  obtain  and get  the "Right and Proper" answer upon the Hard Questions which will be raised by ALLAH as the Creator in the Hereafter, as shown in the Wordings of ALLAH in the Holy Books,  among others :
  • How was our Asset being accumulated ? Were or was it gathered in the Rightious Manner in accordance with the Honesty and fairness and fairplay principle and spirits as guided under the Holy Books ?   Did we obtained it by stealing from other Individual or party's  right ? or by Falsifying the data unfairly ? 
    Are we  making Good Deeds in this World  or are we only following bluntly and blindly to our Client's request,  in running their Business Operations for pursuing profits to capitilize their  Wealth -  without taking any consideration upon the Moral,  Ethics, reminder, fairness, and teachings  to  not becoming "Too Much Greedy"  by taking in force of other  people's Natural Resources which was created and granted by ALLAH the Creator in their Mining and Mineral Resources Location,    like Faraoh during the Egyptian Empire which was reminded by Moses over and over again not to be cruel, unjustice and unfair to the Bani Israil Tribes? Thus in this real life there must be a real and solid implemention in bringing  Down to Earth upon the teachings and the moral, ethics  under the Holy Books in the real work in our temporary life in the Earth;
    For instance in the real world  you may frequently find  Signifcant Gaps between the Real Cash -In  in terms of Company's fasilities for the the Management Level and the Employees Level, which therefore Labour Union is needed to narrow such Gaps; We can also frequently  observe  strikes made  by the Labour Union against the Company, in the mass media, if the Employees feels that they are  being treated unfairly  in terms of their salaries and benefits;

    In the Management level there are also  struggle to be choosen as member of the Management team where Corporation Politics frequently are also  being felt when you worked as an employee in a Corporation; There may also be differences of expectation between the shareholders of the Corporation; These all arises due to the real facts that in every human being there are "animals instincts animals spirits" which has to be tammed not to be too greedy in achieving their needs and goals. As an In House Legal Counsel  you have to manage yourself not to be too one sided bluntly to the Management as well as to the employees which are being presented by the Labour Union. For sure the  Directors are being hired and fired by the Shareholders General Meeting.  Below the Directors are the CEOs From President of the Corporation the Senior VPs, VPs to Managers.        
    If  the Corporation is a Mining Company for instance than based  on the Contract Of Work -  or  IUP licences issued by the Government who are representing the People of Indonesia as the owner of the Minerals  based on Article 33 (3) of the Indonesian Constitutional Law,  you have to viewed it from several angles.  
    From the Mining Corporation prespective they of course wants to achieve Return of their Investments and for sure gain Profits immediately from such Mining Operations. But on the other hand from the Government's side, their goal is to Optimize the Government-take  from the Cash - in Flow  from such Mining Operations to increase the  Social Welfare  of the 250 million people of Indonesia, where the State Budget in a running  year depends on the Cash - in flow from the Mining Operations, if Commerciality occurs and Explotation and Production commences; But we have to remember that the Economic Value of the Minerals if it is not explored and exploited by the Mining Investors,and left below the Ground the Value   remains " Zero". Thus we as Independent Business Lawyer have to face the fact and reality  in balancing these perspectives. 

    • The Government and the House of Representantive in establishing the rules has also  to view the prespective that all the Minerals are actually formed and exist based on a Universal system and mechanism under the process of creation which was designed and created by ALLAH as the Only Creator of this Universe including the World we live which is one of the several  Planets which is rotating and circulating the Sun in its orbit where there is also (1) one Moon that rotates around Our 1(one) World  which is referred under Surat Yasin Verses 37 - 38 -39 - 40 of the Holy Quran.  
    Accordingly, based on the Writer's real experiences for 30 Years,  there must be a "certain distance" that you have to maintain in order to  enable you to be "Freedom Independent Professional Business Lawyer"  for making this Temporary World to be a Better World as being Wished by ALLAH the Creator when ALLAH sent Down Adam and Eve from Heaven; Thus The Real Boss that we have to really "worship" is ALLAH the Creator of this Temporary World, because we have to be Fully Aware that life in this World is "Just a Test" - for us - to be challenged which of us are really in Faith :

  • (i) Following the Wishes of the Creator by Firstly - Worshipping the Real and Only One Mighty ALLAH as the Creator of this Universe, and  than must be intergratedly  
    (ii) followed by the reflection and implementation in doing the real Good Deeds - Down To Earth - as shown in the Teachings and Reminders under the Holy Book  during the periode of life-time of each of us Who are being trusted and choosen by ALLAH to make this Temporary World a Better Place to leave in by fencing ourselves with the Teachings of "What Must be Done" and "What Must Not be Done" by us as being taughted by us in the  Holy Books which was sent down to us through the Messengers  of ALLAH. 
             
    Jakarta, 5 March 2016 revised 26 March 2016
             Agung Supomo Suleiman
      .              

Friday, March 04, 2016

FOREIGNERS CAN OWN LANDED HOUSES IN INDONESIA

Based on the Government Regulation No.103/Year 2015, the Government of Indonesia had signed and issued this Government Regulation on 22 Desember 2015 concerning House Ownership of Foreigners Residing in Indonesia which allows foreigners to own landed houses in Indonesial; The right to own this Landed House by Foreigners are so called "Right of Use" ("Hak Pakai") for an initial period of 30 Years,  which can be extended for an addional of 20 Years and further renewal for 30 Years; Thus  the ownership can reach a total of 80 Years; Please be noted that there are certain requirements and conditions which are important to be taken into considerations.


Significant Points : 
  • Foreigners who hold a legal stay permit ( diplomatic stay permit, official stay permit, residence stay permit, limited stay permit or permanent stay permit) who gives benefit, conduct business, work or invest in Indonesia may own the landed house/apartment unit in Indonesia.
  • Houses /Apartement owned by a foreigner in Indonesia may be passed / inherited by the foreigners offspring; Hwoever such hear must also have a legal stay in Indonesia
  • If the foreigner leaves Indonesia to reside in another country, then the foreigner must sell their house/appartement  to a qualifying person within a year after departing from Indonesia;
  • Indonesian Citizens marrying foreigners can own title over a land as long as the title to the land is not part of the Joint Martial Property; This must be eveidenced by a prenuptial agreement in a Notarial Deed. 
  • The Land National Authority will issue regulations concerning the procedures for granting, releasoing or transfering the ownership of a house by a foreigner;
This Government Regulation is designed by the Indonesian Government to provide more legal certainty for Foreigners regarding property owenership in Indonesia;
This Government Regulation takes into effect on 28 Desember 2015 according to the statement on the website of the Indonesia's Cabinet Secretary  

FREELANCE INDEPENDENT BUSINESS LAWYER

After having been permited by ALLAH to survive exploring my profession as an Independent Business Lawyer  for more than 17 Years since 1 June 1998, nearly reaching 18 Years,  if ALLAH permits me to be still alive in venturing my life journey in this Beautiful and Challenging World that ALLAH has created for us to leave, I did not realize that such  experimental venture  which I experienced was actually  "similar and has the same character as Freelance Independent Business Lawyer"  where I can apply Flexi Hours and Flexi Time in performing my enjoyable Profession as an Independent Business Lawyer;  
  • This started when I quit as an an In-House Legal  Counsel from PT Freeport Indonesia Company, a Copper and Gold Mining Company operating its Mining Operation in Indonesia,  after working as In-House Legal Counsel  in PT Freeport Indonesia for 5 Years (from 1993 until 1998). Of course there was a reason which triggered me to quit from this Mining Company, when my Former Boss who left Indonesia, went back to the United States,  but still held a weekly meeting with the Legal Department and Tax Department of PT Freeport Indonesia, whereby such teleconference was ceased and stopped  by another guy who was assigned in Jakarta to replace my Former Boss. 
This New Guy from the field  replaced my Former Boss and had instantly changed the program which was already made by my former Boss, where no more weekly Meeting will be held through teleconference between my Former Boss and the Legal Department and Tax Department, and will be replaced by this New Boss.
  • Apart from that, my carreer path program which was established and agreed by my Former Boss and myself was also being changed for which really upset me and  I directly told this New Boss that I am really  waisting my time and requested  to be compensated by owning a certain House which was under a House Loan Program plus a certain amount of money compensation; This House was actually rented by me to a certain Philipino Expatratiate when this matter emerge, since thank to ALLAH, I had already another house in Cipete which is the Southern Part of Jakarta, which me and my family already owned and  stayed; 
Luckily, thanks to ALLAH that  a portion of my claim was agreed including getting this House to be legally owned by me (which for 5 Years the Principal payment was paid by the house lease  amount and the interest was paid by a Certain Bank who has a Cooperation Agreement with PT Freeport Indonesia relating to this House Loan Program for the employees of PT Freeport Indonesia). There were no any outstanding payment of the House Loan that I had  to repay to PT FI, which for me this was  really a "Blessing in Disguise", since there is always to sides out of a "Coin".  
Thanks to ALLAH that this House was  used by me as the Safety Net and starting Working capital for me in practicing my new Exiting Venture as an Independent Business Lawyer. Lessons which I captured from my respective case appears to be that if you try to be honest there will be sort of a Blessing in Disguise which I felt  was really a great help from ALLAH to  me,  who loves to be "More Independent" in pursuing my further Experimental Venture in practicing my Law Profession as an Independent Business Lawyer. Of course there are the ups and downs in terms of Cash - In since you no longer has a guaranteed monthly payment for continuing your life. 
  • But on the other hand  we do not have a Boss who frequently have the controll and can easily changed the carreer path program which really can disturbed your life expectation in a certain fragmentation of your life journey. If you are Self - Employed, your only Boss will be ALLAH who created  you in the first place, and of course ourselve who has to manage our own cash-flow which is for sure uncertain from month to month in the running Years, for which there is always the Advantage and Disadvantage of every life chooices that you have picked among the many alternatives and option available in this life. 
But thanks to ALLAH the Mercifull that, I have survived practicing my venture in the Law Profession as an Independence Business Lawyer for more than 17 Years coming to 18 Years since 1 June 1998;  Back again to the Freelance Lawyer - we may observe from the Website that there are several stories of experincing as Freelance Lawyer  among others : Global Freelance Lawyer , 
This really comforts me  since as an Independent Business Lawyer, we no longer feel lonely in pursuing this profession which is more closer to the understanding of practicing as a Freelance - Independent Business Lawyer - which has the similar characteristic - in principal - More Flexilble in terms of time and Place where you want to optimize your Professional Services for the best interest of your Client since you are Independent and have the freedom to perform the Professional Services that you are required to render to protect your Business Client Interest from the Legal Business  Aspects of  your Clients Business Venture and Operation.  
The Disadvantage being Freelancer : 
  • There is no Guaranteed Fixed Monthly Income like if you are working in a Corporation
  • There is no Insurance for which you have to cover and seek for your own Health Insurance
  • There is no Pension for which your Pension is your accumulated Tangible Asset and Intangible Asset 
The Advantage being Freelancer : 
  • We are our Own Boss - Self Employed- thus you have to control and master your Freelance Career- Your Real Boss is ALLAH - for believers and has faith in ALLAH and the Hereafter.
  • Flexi Time and Flexy Place to perform your Professional Services
  • You are not Stuck in a Cubical Wall 
Well, folks I thinks I have jot down the Theme of todays Article which is Freelancing  
 Jakarta, 4 March 2014
Agung Supomo Suleiman
Cheers.....

Drilling Rig

Drilling Rig
oil gas

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