LEARN SMART FROM OTHERS TO DEVELOP GROWTH

Yes, as a Business Lawyer we have to learn from others particularly, how to increase our professional qualifications and capability to catch up with the International Business Professional standards so that we can satisfy the legal curiosity of our Foreign International Clients who are conducting business in Indonesia. If we can meet the high expectation of our Client in handling the legal aspects to protect their business interest particularly to protect their investments which they have pursued to achieve their business goals and targets, we might be rewarded by our International Clients by achieving good and qualified team work and partnership with our Clients. 

•   Our Law Firm now called SACO Law Firm (Suleiman Agung & Co)  is striving to survive and as a professional Law Firm, and we are really eager to establish and maintain good professional relation with Foreign International Law Firms. For more than 15 (fifteen) Years since 1st June 1998, our Law Firm had been practicing Business Law within the Business Community in Indonesia. The Founder and partner of this Law Firm had experienced serving International Foreign Clients as well as Local Indonesia Clients. Based on such depth experienced, we believe and is confident  that we really understand the wants and needs of our Clients to ensure legal certainty to enable them to develop sustainable business venture in Indonesia.

We must be aware that the world is flat in the sense that all countries are dependent on each other including maintaining good understanding between the Various Business Players and Professionals  in all level of Business Society. Besides mastering the English language every Business Lawyer have to always learn the effective business communication particularly how to talk the same business language with your Business Lawyer skills in passing the message of legals aspects and legal exposures which is understood by every level of professionals with your Clients including the management and shareholders level.

• As a Business Lawyer,  we have to learn from the hard way and by experiencing also the difficulties and obstacles in our cash flows and learn smart from our ups and downs in running and managing our Business Law Firm and we must also establish high level of trust and comfort to our Clients. Indonesia is growing and striving hard  to be at the same level of attitude with other advance countries who had reached a certain level of quality and service which can be accepted by International Standards. We can observe and watch this from our day to day experience in Indonesia  where one of the Good samples which are shown by the New 1 Year Governor of Jakarta, where the Governor and the Vice Governor of Jakarta are really doing professional tasks including how to get the MRT Project done to cope with the Terrible Traffic Jam and crowd in Jakarta and the hard work to cope and handle the Floods in Jakarta.      

So we really must learn from our advance neighbor countries and learn smart from them to develop growth in this open transparant era.

That's all folks for this episode snapshots

Jakarta, 18th October 2013

Agung S.Suleiman 

HUKUM UNIVERSAL SABAR TANGGUH TAK PUTUS ASA DARI RAHMAT ALLAH BERSYUKUR

Yah kita sebagai manusia Harus Sabar, tangguh,  tidak boleh putus asa dengan Rahmat ALLAH BERSYUKUR kepada ALLAH. 

• Rejeki sudah ada Jatah dan takaran dari ALLAH bagi kita selama kita masih diberi kesempatan hidup, namun syaratnya agar dapat rejeki Berkah, adalah Jujur, Mengikuti Perintah ALLAH dan Menjauhi Larangan ALLAH, berdoa, berusaha keras dengan banyak mau belajar dari pengalaman jatuh bangun diri kita maupun orang lain termasuk wadah kita dan wadahnya orang lain, dan berusaha untuk juga kerja cakap dengan tidak mengulang-ngulang  kesalahan yang kita lakukan. 

• Penulis merasakan bahwa  meskipun sudah berumur 61 tahun menuju 62 Tahun, namun jika ALLAH masih memberikan kesempatan untuk hidup didunia ini, dan jika sudah bersusah dengan semaksimal mungkin, ternyata manusia ada takaran rejeki sesuai dengan kemampuan dan kegigihan yang dimiliki orang tersebut, dimana untuk Penulis adalah  memberikan "Brand Name" pada wadah Penulis dengan nama Suleiman Agung & Co yang Penulis singkat SACO LAW FIRM;

Tidak mudah memang membangun dan memelihara serta mempertahankan untuk dapat Survive, selama lebih dari 15 Tahun ini dengan ganti Partner maupun berganti keluar masuk pegawai. Namun karena Penulis mulai dari "Nol alias Scratch" istilah bahwa Inggrisnya, pada tanggal 1 Juni 1998,  Penulis syukur ALHAMDULILLAH telah banyak mengalami jatuh dan bangun termasuk Cash Flow dari Wadah ini yang tentunya berpengaruh kepada Cash Flow dapur pribadi rumah tangga; 

• Namun ada "Hal penting yang Penulis alami, setelah dicampur antar pengalaman pengalaman perjalanan hidup Pribadi selama 61 tahun lebih dengan 15 Tahun menjalankan Wadah Suleiman Agung & Co yang Penulis singkat SACO LAW FIRM adalah,  terasa ada ke"Yakinan Kuat" yang dirasakan oleh Penulis bahwa  ada hukum Universal yang dibuat oleh ALLAH Sang Maha Pencipta, khususnya disebabkan  Penulis sudah diizinkan oleh ALLAH Sang Maha Pencipta untuk selama  15 Tahun untuk dapat survive, dengan cara Self Employed dengan pengertian, tidak ada Fixed - Income atau gajih, melainkan berjuang dan berusaha mengharapkan rejeki Cash-In meraih Karunia ALLAH dari Proyek memberikan Jasa Hukum melalui Wadah Suleiman Agung & Co yang Penulis singkat SACO LAW FIRM,  maka  banyak ilmu dan pelajaran yang dapat Penulis petik;

Ilmu dan Pelajaran Penting ini antara lain yang penting adalah bahwa jika kita kaitkan dengan Keimanan dan Kepercayaan atau Faith, bahwa ada suatu Dzat Maha Kuasa diluar diri kita yang telah menciptakan ALAM semesta ini termasuk Bumi yang kita tinggali terasa Sangat Kuat  ada "Hukum Universal" yang bersumber dari Kitab Suci yang diturunkan ALLAH,  melalui para Nabi  dan para Utusan Rasul dari ALLAH bahwa ALLAH akan memberikan cobaan kekeringan - tandus - dimana dalam hal menjalankan wadah adalah "Masa Sudah Sidekit atau Minimnya Cash Flow, serta disisi lain Rahmat dan Berkat berupa Rejeki Karunia ALLAH berupa Cash - In yang akan datang setelah kita benar2 kepepet, yang datangnya seringkali dari Arah - atau Klien yang kita tidak- sangka2, dan biasanya tepat dengan Jumlah Uang yang kita benar2 Butuhkan untuk dapat menyirami kekeringan Cash Flow tersebut;

• Jika hal ini hanya terjadi sekali dua kali maka mungkin kita menyebutnya Kebetulan, namun jika hal ini seringkali kita alami, maka harusnya ini membuktikan : "Tidak Ada Faktor Kebetulan" melainkan haruslah ada faktor Hukum Universal dari suatu Sistem Mechanisme Jatuh bangun dala kehidupan didunia ini,  yang memang telah didesign dan dibuat oleh ALLAH, dimana kita harus pandai belajar menimba ilmu ini, dan mengamati, perjalanan hidup kita agar kita In Sya ALLAH dapat menjadi manusia yang lebih Bijak dan Cakap dan Pandai Bersyukur untuk tidak merasa Sombong jika berada di"Atas", dan tidak putus asa dikala kita berada "dibawah. 

Sekian dahulu tulisan Penulis ini, pagi setelah kemarin bekerja dan rapat sampai malam dengan Klien .....

   Jakarta 17, Juli 2013 

Agung S.Suleiman 

                     

 

Certain Universal Rules

Well, its quite a while that I visited this blog of mine; It is really exiting being the founder of a Boutique Law Firm, now called Suleiman Agung & Co ("SACO Law Firm") particularly if you are trying to connect your self with the Creator of this World that we are living; From my life experience, I  strongly feel that there are certain Universal rules that applies to all human beings as well as self employed professionals players whatever the professionals might be in this 1(one) world that we are living; 

• If you are allowed by the Creator to survive being an Independent individual or professional where you are self employed in the sense that you are not attached to a certain fixed income, you than start on trying with your best efforts to find a way out to cope with your cash flow; 

For sure and certain we understand that  there are  Certain Universal rules and principals which taught us  that we cannot just sit in our office and wait for a falling star or a basket of monies pouring  to our office or our pocket, but we have to market out and seek information within our networks to get some business deal done;

• From our life experience, we strongly feel that there is a big and huge difference between someone who in the process of life develop the awareness in the faith and believes that there is a Great Element Creator, outside of our selves, who had created this huge Universe including the 1(one) world that we are living, which is  that we as believers upon the Creator, are educated by our actual live journey experiences to really explore such live journey and by trying really hard to balance our day to day actual life, with God's Words in the Holy Books that had been sent down to us through the Creator's Messenger; 

We can found for example that the wind which blows is not just blowing by itself, but is actually a Good Blessed Message from the Creator, that the wind will blow Clouds into the Direction of a certain Land which are dry, by which water in the form of rain will be sent down and poured  to the dry land being part of the earth, so that living can start again after such long dry land, where seeds of the plants can grow resulting fruits and vegetables as God's kindness to us, so that we and all the animals can survive living and start to live again after suffering such long dry seasons;

• So these are actually many signs from the Creator addressed to us, who wants to use our mind, brain, and see with our eyes, ears as well as  hearts to be thankful to the Creator who is ALLAH The Most Merciful and Kindness to all of us in this world; However, we have to be patient and do our best efforts within our best efforts to continue living in our unique respective fields of skills, talent, potential strength as well weakness to complement with other integrated professionals and different fields  within our choice of works and places to seek opportunities to survive, and for us Believers to pray and be thankful for ALLAH kindness to us.  

These kind of feelings are similar to the cash flows of our Professional Business, where if we are patient, focused, tough with our efforts in striving to survive, after marketing our selves through our networks, and after we felt dry season in our cash flows or feeling as if we are in the edge of the cliff, we can strongly feel as Believers that ALLAH as the Creator will guide us to contact one of our many networks that we have contacted and will pour water or provisions through such respective network by giving business deal in our respective professional skills to cope with our cash flows; 

The above are my writing for this night in the beginning of the Holy Month Of Ramadhan

Jakarta, 7 July 2013 

Agung Supomo Suleiman                         

                

Is Indonesia Ready To Face AFTA ( Asean Free Trade Area) 2015

As we are aware Indonesia is facing a new Era where its Economic Growth for this Year is targeted to be around 6,3 %; The population of Indonesia is around 250 million, which means that it is a significant  place to target Indonesia as the market place for products such as Ipad, Handpohone, Computers and other consumer products, electronics, Auto Cars, Motor Bicycles, Washing Machine, TV, Refrigerators and other consumer Goods; We can see that there are so many Malls selling such consumer products including in Jakarta and other growing cites in Indonesia; 

However, we have to be fully aware that  Indonesia is also currently facing the AFTA Year 1915, where  ASEAN Free Trade Area (AFTA) will be effective and takes place. As we are aware the AFTA Council has agreed that the target dates to achieve this free trade Area is 2015 for 6 original members and 2018 for newer members.This will create an intergrated market where there shall be free flow of goods and services within the Region; 

Thus, in the Year 2015,  Indonesia will face the Asean Free Trade Area where all the South East Asian Countries will eliminate intraregional tariffs and non tariff barriers among the members of this Southeast Asian Countries; It means that they plan to intergrate the ecomomies in this region into a single production base and regional market; AFTA goal is to increase Asean competitiveness  with the other Global Regional Integrated Area, to attract investments and jack-up the trade between members of this AFTA;         

The Real Big Question :  is Indonesia ready for these AFTA Era ? Compared to the  Asean members itself,  the business environment climate in Indonesia which includes the lack of  infrastructure, the long period to start up a business, the bureaucratic process, the inconsistency in the regulatory framework, the non-integrated communications between the inter department sectors, the mental attitude of the local as well as central government officers which needs more transparency, as well as switching their mentality from seeking power and respects as Government Officers  which  had caused non efficiency and high costs economy, and  results non competitiveness of Indonesia within the Asean region, to become into focusing to provide good quality public services to the business investors, stakeholders and players in speeding the processing permits, registrations process, approving Plan for Development (POD) in the Energy Sectors, Oil and gas and Mining sectors to enable to Indonesia to be more  competitive with the other Asean Member countries,

• As a Professional Business Lawyer practicing as Legal Consultant to Clients for more than 15 Years through his Law Firm, and 15 Years as In House Legal Counsel in Private Companies, and Law Firms,  the Writer of this Blog feels that Indonesia needs much more dedicated public servants who are really serious and have the strong mental behavior, attitude which must be far from arrogance in serving the needs of  the investors to have a more welcoming, non-bureaucratic attitude to enable Indonesia to reach the same level of professionalism  as we may found in other members of the Asean Countries in facing the coming AFTA 2015 Era.

These switching mentalities must also be applied by the Indonesian Professionals, as well as the Indonesian Private Companies who are engaged in selling goods, services as well as Investors and business players including its employees to be able to compete with other Asean Players in the   AFTA 2015 Era.  
Jakarta,  10 June 2013
Agung S.Suleiman


              

Glimse of New Hopes Emerging Nation of Indonesia

We are proud of being a Business Lawyer and founder of AgsS 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  AgsS 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; 

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                    

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; 

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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

                     

SIGNIFICANT PRINCIPALS TO BE NOTED BY MINING INVESTORS IN INDONESIA

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