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Law Update:


2009 to 2004


[October 2009]

Intentionally-Flaw Law: Susceptible for Revocation. Chairman of the Indonesian Constitutional Court suspected that recent Indonesian flaw-laws are made not because the parliament or law makers are less comprehensive, but merely of political cheating and pressures from time to time. This has significantly seen as the law are not well tailored with a consequence  to be being inharmonious or are in contrary to the Indonesian Constitution as a paramount of law. The law then may result in an unfair law, discriminative, breaching the principle of collectivity and the law firmness. The Indonesian Chairman Constitutional Court is in hope that the predecessor parliament member of 2009-2004 shall work carefully and seriously to maintaining the law tailoring.

New Law on Anti Corruption Courts is susceptible to be Revoked. The said statement was released by the National Law Reformation Consortium (KRHN), Indonesia Corruption Watch (ICW), together with a numbers of other anti-corruptions civil societies. The new laws was tailored and released by the Indonesian parliament a week prior to its tenure, where then the law are not well tailored and are subject to be challenged before the Indonesian Constitutional Court. Points of article are (1) unclear definition of public prosecutors (Article 1 (4)) a definition said to be defined under (unclear) national law, (2) Article 28 on compulsory requirement of court permission for tapping of suspect corruptors, which indeed in contrary to the commitment of a good governance, (3)  Article 26 of judges composition for corruption case defined by the Chairman of First Instance Court, a double standard on the management of a corruption cases, and finally (4) Article 35 on the establishment of anti corruption court at every provinces in Indonesia, which is doubtful due to its bad reputation and mal-administration, including poor judges qualifications and poor performances in fitghting corruption.

Keris, Wayang and Batik, an Indonesian original Common World Heritage of Mankind. Following the UNESCO Recognition of Indonesia original cultural world heritage of Keris and Wayang since 2003, now UNESCO agreed Batik (an Indonesian traditional sheets used for clothing) as Indonesia� original cultural world heritage since September 2009, a ceremony to be held in Abu Dhabi 2 October 2009.  The Common World Heritage of Mankind of UNESCO is one of three lists made under the UNESCO 2003 on the Protection of Cultural Heritage of Mankind, where Indonesian is one of the ratifying country. The recognition is part if the effortless Indonesian government attempt since 2008, though projects of intensive researches in the field, involving the community and Batik experts at 17 out of 33 provinces all over Indonesia. The UNESCO after 2 years of considerations by 6 countries, considers that Batik indeed is originally an Indonesian nation cultural icon with unique of symbols and philosophy of human life cycle. It represents not only Indonesia, but also mankind. Batik is considered a traditional art with rich of cultural values maintained for generations. The Indonesian Minister of Culture is now attempting to include Angklung (a traditional bamboo music instruments), to be the next recognition by the UNESCO.

[September 2009]

Dispute Over Songs between Indonesia and Malaysia. The Indonesian song titled �Terang Bulan� and Malaysian national anthem called �Negaraku�, are exactly same in its introduction and intonation, except for the lyrics and patriotical beat for the Malaysian Anthem. According to Lokananta, an Indonesian State Enterprise in recordings, the Indonesian �Terang Bulan� song was recorder by Lokananta in a choir version at the Republic of Indonesia Government Radio in 1956, a year earlier to Malaysia independence. The recorded song was copied into phonograph and sited in Lokananta Archive in 1965. Lokananta Archive only stated that the said song is an entertainment song or a popular public song, in Keroncong genre categorization, on 11 minute and 15 second duration and without a composer name. The said song rerecorded to a phonograph on 16 March 1965, together with 3 other keroncong genre songs. �Terang Bulan� was popular in Indonesia years before recorded. The old generation who lived on the era of the said song must be agree that the Malaysian national anthem �Negaraku� was copied from �Terang Bulan�.

[August 2009]

The Constitution Court � MK, Reject Plaintifs' Request over the Presidential Election Improper Conduct. The panel of judges decision was delivered 12 August 2009, to serve the request from two other presidential candidates, Megawati Soekarnoputri �Prabowo Subianto and Jusuf Kalla-Wiranto, in respond to evidences brought with an assumption that the election was falsely held structurally and systematic, causing the loss of voters of the other candidates by the unprofessional conduct by the Indonesian Election Commission � KPU. After thorough investigations over the facts and laws, the MK found that legal grounds are insufficient, that evidences brought are incomplete and most are merely based on assumption, shall however be neglected by the court. The MK decision confirms the triumph of Susilo Bambang Yudhoyono and Boediono, and therefor to rule for the period of 2009-2014.

[July 2009]

The Indonesian Constitutional Court (MK) permitting the use of ID card or passport to participate in the 2009 Presidential Election 8 July 2009. The said MK final decree stated by Mahfud MD, the head of MK on the court session in the MK building, and signed by 9 constitutional judges. MK stated that every Indonesian nationality who hasn�t registered on the final election participant list can show their valid ID or passport for Indonesian nationals out of the country to use their rights on the 2009 Presidential Election.

[June 2009]

Material Transfer Agreement agreed by the World Health Assembly (WHA). Indonesian Minister of Health figured that 90% success has been reached by the Indonesian party. It is expected that with the SMTA, Indonesia can get direct access for the utilization (the progress, the research, for vaccines uses and the party who uses) of Indonesian viruses or materials being shared to the WHA. WHA is the highest World Healthy Organization hearing forum. Standard Material Transfer Agreement (SMTA) is an agreement to share viruses or sample.

Law No.10/2008 on the Public Information Transparency will enter into force on 1st May 2010. The said Law will stipulate on public institution obligations, such as the executive, the legislative, and the judicative bodies to provide public information regarding the governance they conduct. Three major main obligations for the public institution must be fulfilled: first, is to announce and provide public information regularly. Second, is to provide information concerning the public needs. An example is that, the National Meteorology an Geophysics Body must provide public information on the weather condition, the Public Works institution on the road condition, the Food and Drugs Supervision body on the food that circulate on the market. Third, is to provide report, especially on finance through the web sites or announcement board. For that reason, all public institutions must have a department functioning on the institution performance publication.

[May 2009]

Indonesian Constitution Court (MK) Refused Judicial Review over the Law of Electronic Transaction and Information.  The refusal are for request to annul article 27 paragraph 3 and article 45 paragraphs 1, where MK judges consider those articles  are not in contradiction with the democracy, human rights, and law state principles based on the 1945 Constitution. It also emphasize, that article 27 par 3 is not in contradiction with the principle of law state, where in such respect it is meant as a tool to simplify life in this digital world and to secure the information traffic, which is in line with the art 28 (g), art 1, or art 2 of the 1945 constitution on the protection of humanity value and dignity, further to avoid from lawless community in the digital world. In response to the final and binding judgement, the applicant shows its disappointment, and warned all journalists to be extra careful. He stated that the court decision was twisted, where it only based merely on a private right.

[March 2009]

Indonesian and Australian Government signed MOU on Visa. The annual 100 double -function visa is particularly designed for Indonesian students both for holiday and work, valid for students age of 18-30 years old subject to requirements the ability to speak both countries languages, healthy, good behavior, and single.  The aim of this MOU is to provide chances for Indonesian students to travel and learn about the life, culture, economy of the neighboring country, while working as their source of fund during holiday. Indonesia is the 7th country in agreement on the implementation of this double function visa. The 100 initial visas is subject to examination the upcoming year.

Indonesian and Australian Government signed MOU Human Trafficking. The MOU is to avoid the case where Indonesia has become a pivot point for this trafficking to Australia. Both Indonesian Minister of Law and Human Rights, Andi Matalata, and Australian Minister of immigration and Citizenship, Chris Evans agree to discuss the details in the upcoming Bali Peace Meeting, such as Rohingya tribe from Burma. For the latter particular case, Indonesia has its policy to provide an immigration detention house in Tanjung Pinang,  while seeks for  an integrated solution in a short time.

New Regulation for Foreign Pharmacy. The new regulation issued by the Minister of Health Number 1010 year 2008, are a compulsory to establish a pharmacy plant in Indonesia to be called as Pharmacy Industry, where pharmacy industry are now entitled to register drugs, drugs containing narcotics for medical use, patent drugs, be it locally manufactured or directly imported. The regulation also refuses suggestions as proposed by group of international pharmacy corporation to change their member status form big seller into pharmacy industry, since they do not have factory in Indonesia. The major goal are to protect society from drug circulation to meet qualifications, such as condition, security, quality, and benefit. Under this new regulation, foreign pharmacy who do not own a factory falls under the category as a big pharmacy seller (PBF), where they activity are limited to importing drugs from the original factory, running administration and dispensary.



[December 2008]

WHO Benefit Sharing Finally Agreed. The World Health Organization (WHO) finally agrees the new mechanism, as strongly proposed by Indonesian Minister of Health replacing the old one sided affairs-mechanism called 'Global Influenza Surveillance Network' to solving bird flu under the WHO Influenza Network Mechanism. The new mechanism will share virus samples implemented under full and transparent Standard Material Transfer Agreement (SMTA), an agreement to put the party such Indonesia parties into first priority in medicine support for free. The Agreement was made during The Intergovernmental Meeting on Pandemic Influenza Preparedness/IGM-PIP in Geneva, Switzerland, on 7-13 December 2008, which was represented by the Indonesian Minister of Health, Ms Siti Fadillah Supari. The previous mechanism applied for 40 years has put developing countries into jeopardy, where virus sample was sent to a private pharmacy company under the WHO for research and to find the cure, but then commercializing and sell them back at high price instead for humanity.

New Regulation for Foreign Pharmacy. The new regulation issued by the Minister of Health Number 1010 year 2008, are a compulsory to establish a pharmacy plant or factory in Indonesia to be categorized as Pharmacy Industry, where this Pharmacy Industry are now entitled to register drugs, drugs containing narcotics for medical use, patent drugs, be it locally manufactured or directly imported. The major goal are to protect society from drug circulation to meet qualifications, such as condition, security, quality, and benefit. Under this new regulation, foreign pharmacy who do not own a factory falls under the category as a big pharmacy seller (PBF), where they activity are limited to importing drugs from the original factory, running administration and dispensary. The regulation also refuses suggestions as proposed by group of international pharmacy corporation to change their member status form big seller into pharmacy industry, since they do not have factory in Indonesia.

[October 2008]

Indonesian Parliament Delayed Draft of Bill of Supreme Court. The bill has been a controversy for the last 2 weeks, only at the articles stipulating the Supreme Court judges to serve the office until age of 70, 5 years longer than the current law. Some people perceive it as at least 30 of the members of justice soon are on retirement this year. The Supreme Court Chairman, Professor Bagir Manan himself previously succeeded a decree extending 2 years additional retirement in June 2006 benefiting 9 judges on retirement. This decree sparked controversy where he is on a 'special agenda', such as to the 2009 election ahead, to maintain the court mafia versus KPK actions and other NGO movements to curb court mafia involving most of the judges, as Berlin Based Transparency International list the Indonesian Supreme Court among the country's most corrupt institution. Currently, there are 48 justices, of whom eight are set to retire in 2008, ten in 2009 and nine in 2010. Bagir himself shall retire 6 October 2008, but if the bill pass the parliament before it, all the judges will remain in the office until 2011.

Two Advocates Organization: in search for legitimacy. It has been a hard time for the Indonesian advocates, particularly the law fresh graduates who seeks for advocate license since May 2008, pinpointed by the competition of two different advocates organization: Kongres Advokat Indonesi (KAI) vs Perhimpunan advokat Indonesia (Peradi). Tracking down the competition, it has been a long story since 1980 until the Advvocate Law Number 18 year 2003 was introduced, stipulating the 8 existing law associations to merge into one organization, namely Peradi. It was also unfortunate for the Peradi who legally failed the basic legal requirement to held a national congress prior to its establishment, failing to meet limitation 2 years after the inception in 2003, meaning passing the limit in 2005. This failure is the basic acclaim by KAI, where KAI further accused Peradi's exclusiveness and not transparent of high fees charges for new members. The KAI then held its own national recruitment in August 2008 at 24 provinces claiming 11,000 existing and new members, and issuing its new card members acknowledged by a number of courts in late September 2008. The initial case was culminated by the Peradi' revocation of a senior lawyer advocate license in May 2008, for some see it merely of a business competition between both, but then triggered other member who dissatisfied with the Peradi' policies so far. The Indonesian Constitutional Court, Minister of Justice and the President Susilo Bambang Yudhoyono suggested both organizations to unite.

[August 2008]

Indonesian Broadcasting Commitee Team Published 4 Improper TV Programs.  The programs breached the Law 32/2004, are film with title Bleach (Cartoon), Detective Conan (Cartoon), Naruto (Cartoon), and other High School TV Programs, notably such program did not suit and did not protect students and teenagers morality. Further, the Team found other 84 TV titles of 316 episodes broadcasted by 9 private TV stations (Indosiar, SCTV, TPI, RCTI, Global TV, ANTV, TransTV) and one government TV (TVRI), breach the abovementioned law. Such TV programs contained non-rated of visualization and substance including coarse language, verbal and non verbal violence (physical and non-physical), no rating of norms and classification of audiences.

20 percent Annual Budget for Education Sector. The Indonesian Constitutional Court has its decision in 13 August demanding the Indonesian government to raise up to 20 percent of state annual budget allocated for education sector as  addresses by the Indonesian Constitution 1945. The budget shall raise from Rp 154.2 trillion to Rp 224 trillion next year, where in 2005 was Rp 78,5 trillion. The current 2008 budget of Law 16/2008 was challenged against the Constitution 1945, since Law 16/2008 provide only 15,6% budget portion. The budget is expected to meet education standard all over Indonesia. In line with the decision, two days priori to the 13 August 2008, the President addressed a speech confirming his administration to set higherbudget for education the next annual state budget 2009.

Legal Notes: The Indonesian Constitutional Court decision and government commitment over 20% education budget for 2009 hailed positive responses from teachers and education institutions, particularly state owned-universities. People now noted that 57 state owned-universities (providing 99,360 seats for undergraduate degree leading bachelor degree, annually) all over Indonesia are receiving a very low budget since year 2000, compelling them to set out new independent financial and budgetary as allowed by the National Education Law through BHMN concept. Under the BHMN, 6 state universities (ITB, IPB, UI, UGM, Airlangga and USU) are free to set their own fees and tuitions, which is considered high. Other state universities follows later in 2004. Previously, students are fully funded by the government during 5 to 7 years study period, provided they passed the national examination. Unfortunately, such conception with fee orientation now provide more rooms for the haves but lesser portion below 20% of seats (out of 99,360) for the poor students, who  may not be able to pay high tuition as much as private universities. While it remain undisputable, that prior to the BHMN concept in 2004, the National Entry Exam to Indonesian State Universities are very tough, with annual from 400,000 contestants out of 750,000 high school graduates, the competition rate are 1 to 20 to 1 to 300 (depending on the reputation of state universities and favorite faculties), where the best and the brightest high school graduates are those who studied at state universities filling total 99,360 seats. As for its good reputation, state graduates received positive job market within and outside Indonesia, a university for thousands of foreign students, mostly from Malaysia who studied engineering and medicine. However, as a result of its current independent financial and policy, now state universities orientation are merely of benefit where bright students but poor are given limited access and seats, where in the future its reputation may be at stake.

[July 2008]

Indonesia must Refuse WTO Agreement. The refusal are based on the exclusion G33 of developing countries represented by Indonesia as spokesman, during the WTO meeting in Geneva ending 30 July. Transparency are the keyword where developing countries must be involved during negotiation attended by G7 members Australia, Brasil, China, European Union, India, Japan and the United States. Indonesia on behalf G33 compelled 'Special Products` (SP) and `Special Safeguard Mechanism` (SSM) to be accommodated in the modality draft for agriculture to protect developing countries farmers at villages being the least protected under the WTO Agreements in Agriculture. The WTO mechanism under the scheme allows developed countries to pour big subsidies to its farmers, subsidy not allowed by developing countries. Further, the scheme of trade liberalization is also unfair where duties differs. At the end, food defense are the most vulnerable for most developing countries. However, disagreements between developed countries, existed, such as India and China vs the US and EU. France as member of the EU request EU's clarification and transparency. The WTO meeting has been delayed for 7 years already due to a number of disagreements.

Indonesia - Timor Leste Concluded on Timor 1998. The result issued by Truth and Friendship Commission (KKP) established by both countries, primarily suggested, that both government institutions are those responsible for the human rights violation during the East Timor Poll between the pro-East Timor independence versus pro Indonesia integration in September 1999. Since 11 August 2005 the KKP team members recommendations are drawn in seven chapters and one special chapter, emphasize not on legal grounds, but more on the future commitments by both countries to set up a good relationship.

[May 2008]

Temasek of Singapore lost the Case against KPPU. The award by the Indonesian Business Competition Commission - KPPU penalized 9 of cellular telephone operators in Indonesia for monopoly through share ownership at a number of cellular providers in Indonesia. The 9 companies are Temasek Holdings Pte Ltd, Singapore Technology Telemedia Pte. Ltd,  STT Communications Ltd., Asia Mobile Holding Company Pte. Ltd, Indonesia Communications Limited, Indonesia Communications Pte, Singapore Telecommunications Ltd., and Singapore Telecom Mobile Pte. Ltd and PT Telkomsel. The KPPU award are that the 9 companies are found for breaching article 27 Law 5 year 1999 on Competition Law (for unfair competition), KPPU also ordered Temasek and its 8 subsidiaries to sell all of its shares at either PT Telkomsel or PT Indosat within 12 months, where prospective buyers must not have an afiliation with Temasek, and finally fines Temasek (and 8 subsidiaries) and PT Telkomsel to each pay fine of Rp15 billion. The Temasek then also found thier lost at the Appeal Court, where the award are tougher than the KPPU Award.

[March 2008]

Malaysian Subsidiary Company in Media Content Accused for Unfair Trade Practices
. The Indonesian Fair Trade Competition - KPPU identified the Astro All Network Plc (Malaysia) - AAMN breached article 19 paragraph c of the Indonesian Competition Law. AAMN has intentionally through its business contract defined and limit distribution and trade of service and/or goods based on the initial investigation, where AAMN monopolized and took control the distribution of the said TV program during the England Football League 2007.

Indonesian Supreme Court Verdict for Australian Heroin Smuggler. Schapelle Corby, one of other member of Bali 9 appeal was accepted but the Court of 3 members of supreme judges rejected her request, where her sentence remain 20 year in jail for smuggling 9,3 kg of heroin to Bali last 2006.

Government Expects ASEAN Charter to be Ratified by July. The Charter is expected to be ratified by July after receiving informal approval from the House, according to a foreign ministry official. The ramification and thorough explanation documents as requested by the House will be submitted in April or May, where the House are very concerned of  decision making, consensus, voting,  the promotion and protection of rights.

[February 2008]

Lombok Treaty Signed. The Agreement between Indonesia and Australia was signed in Lombok in November 2006, came into force Thursday 7 February 2008. The Treaty cover �greater collaboration� in areas such as defense, law enforcement, counter-terrorism, maritime security and emergency preparedness, where it includes a key from Indonesia to demand Australia not to support separatist causes in its giant neighbor� sprawling archipelagic country. The Treaty was signed both minister of foreign affairs, Hassan Wirayudha and Stephen Smith.

[September 2007]

Indonesian New Foreign Investment Law 25/2007 under challenge for Annulment. The Indonesian Constitution Court received an application to annul the law on the ground that the articles are in contrary to the article 33 of the Indonesian Constitution. The particular articles are article 4 paragraph 2 and 21, governings equal treatment between domestic and foreign investors, which is perceived unfair. Further, the applicant parties argued, that domestic investors also do not have the access for special treatment in land titles, immigration issues and import licenses. Therefore, the investment law
25/2007 substantially do not protect domestic investors in real sectors and peasants for land rights. The applicants YLBHI, PBHI and NGOs.

[August 2007]

Indonesian Independent Candidate allowed in the Provincial Governor Election. The judicial review released by the Indonesian Constitution Court (Mahkamah Konstitusi - MK) is to respond the request by pro democracy group, supported by Partai Keadilan Sejahtera (PKS). The request is for the amendment of the law 32 year 2004 by inserting independent candidates clause during provincial election of a direct elected governor in Indonesia. this breakthrough will empower civil rights and democracy, where candidates may not only those from political parties, but also independent person. The request shows, that people of Indonesia are reluctant to support current candidates from political parties but shall also aware for artificial politicians in full democracy system. This judicial review marks another pillar of democracy in Indonesia, the only most democratic country in the region, an archipelagic country of 5,000 populated island with 240 millions of population and 580 different ethnics/dialogues.

[July 2007]

59 local regulation revoked. The number is for the year 2007 out of the total 659 revoked since 2002. The figure was released by the Information Desk of the Department of Domestic Affairs. Most of the revoked are local and provincial regulation of levies and taxes- related, which falls into 4 categories of Budget for Income and Expense for Local Government, local tax, local levies and spatial/territorial management. The above regulations by law are in contrary to President' Regulation number 80 year 2003 and are untraceable/ corrupted by local government officers.

48 Sectors are Open to Domestic Investment. The Indonesian Government has decided those sectors must be 100% owned by Indonesians, where nominee scheme are not allowed and become null and void accordingly. The said new regulation of President' Decision are number 76/2007 and 77/2007, were just released early this month.

[June 2007]

New President Instruction number 6 year 2007. The regulation called  'the Policy on the Acceleration of Real Sectors and the Empowerment of Micro Small and Medium Enterprises', aimed at to increase growth and reduce unemployment and poverty. Of 141 guidance for direct actions, over 60 will be handled by the Finance Ministers. The said regulation 6/2007 is expected to reach 6,3% growth this year, following 6% the first quarter of 2007.

[May 2007]

New Presidential Regulation (PP) for Governor Report. The obligatory PP no. 3 year 2007 stipulate the governors and local governors to submit their performance reports periodically and upon their termination of period to the central government, provincial house of representatives and the community, through local newspapers and electronic media. The community may respond and challenge for further responsibilities of the report under the state administrative law, criminal code and other related laws available to secure the governors and all of its staff works correctly and to secure people's right.

[April 2007]

Indonesia - Singapore Concluded the Extradition Agreement. The signing of agreement took place in Bali, Indonesia, 27 April 2007, covers 31 models of crimes, mostly crime in economy, including extradition of corruptors and the return of its assets in Singapore. The agreement applies retroactivity principles for 15 years (or since 1992), and Indonesian nationality principle when the crime occurred. Singapore (was called 'Temasek' in the past, a place where pirates hid) has the international reputation for 'the heaven for corruptors and bank criminals' and money laundering, mostly from Indonesia, by Indonesian bureaucrats and Indonesian Chinese businessmen/bankers (see: Andy Xie). The agreement however, still requires national legislation by the signing parties, according to the Vienna Convention on the Law of Treaties 1969. 

[March 2007]

Bill of Foreign Investment Soon Released. The final summit meeting of the house on 29 March will decide to or delay the release of the 39 article laws. A number fraction in the house objects the soft laws on the issue of foreign corporation crime, as proven by current number of cases on trial under various laws, committed by foreign investors. The law will now provide single entry for licensing at the BKPM, which is now shall directly responsible to the president instead the minister of trade. The law will provide facilities for those investing in remote areas and able to employ more workers, to enjoy land title, import license, and special fiscal rights.

[February 2007]

Indonesian Middle Class must promote Law Supremacy. An inauguration speech at the Gadjah Mada State University addressed by Profesor Boediono (current Coordinating minister for Economy), warns that a sustainable democracy for Indonesia for the next 9 years must be promoted by the Indonesian middle class. To secure its sincere intention toward reformation, the typical of middle class are expected those particularly who grew free from past corruption collusion and nepotism, instead those who previously enjoyed royal treatment and fed by social and economic priviledges prior to the 1998 reformation. The typical of such Indonesian middle class remain small in numbers, where it is represented by the professionals, NGO, and private entities. In terms of Indonesia's economy these days, it is likely that law supremacy must take place  for a sustainable democracy.

New Bill of Anti Corruption. The draft will impose minimum 5 to 20 years imprisonment and life sentence (replacing death sentence) applied to those who corrupted the budget for natural disaster, social disaster and economic crisis. The law also covers corruption by private entities and public international institutions. Maximum of 9 years imprisonment applied to other corruption cases. No more minimum sentence. This new law will replace the law 31/1999 and 20/2001 of Extermination of Corruption Criminal Action (Tipikor).

[December 2006]

The Indonesian Constitution Supreme Court (MK) revoked some Criminal Code Articles. The three articles are of the Defamation towards the Head of State, which are against article 28 (f) of the Indonesian Constitution on the Right and Freedom of Expressions. 4 out of 9 Judges of the MK are of the opinion to dissent the said ruling. Other considerations are, the said articles stipulated during the Dutch Colonialism, historically to protect the Queens' good will and royal dignity. Ever since Indonesia' independence in 1945, big numbers of colonial laws has been annulled and new national law systems introduced. The MK also annulled the laws of Truth and Reconciliation.

[November 2006]

President Susilo Bambang Yudhoyono Establishes a Working Unit. The Presidential Working Unit of 5 major tasks are to accelerate reformation in law, investment, SMEs, bureaucracy administration and economy. The Unit composed of a number of eminent person having integrity, clean background, professional and commitment to progressive reformation, such as Marsilam Simanjuntak (ex General Attorney and State Secretary), Agus Widjojo (Ret. Army General) and Edwin Gerungan (ex Chairman of IBRA). The establishment based on a Presidential Decree, however built up controversies where this extra body is suspected to have more power to touch those the untouchable in corruption.

Bill on Anti Human Trafficking, soon released. The said law of 207 articles will still need another 113 articles to be approved by the parliament, expecting completion end this year. According to the Indonesian Ministry of Woman Empowerment and Affairs, there are 480.000 Indonesian workers illegally recruited abroad, annually. The most illegal entreport are Bali and Batam, which also applied to illegal drugs and smuggling from and to Australia and Singapore.

[October 2006]

Government Officers Must not Accept Parcels: a Policy. The said policy has been effectively implemented since 2004 under the President Susilo Bambang Yudhoyono' administration, where such policy are in order to avoid from indirect bribery or gratification from anyone towards government officers. This policy gained full support not only by the people, but also followed by the business community at large. The KPK this year implement a reverse paradigm, that parcels are given to the staffs and those the less fortunate.

The Bill of Government Ethics. The bill emphasize more on moral, ethics and norms applied to all government officials covering from the president and the vice president, members of the parliament, office of the central banks, and all other government institution funded by the state budget. The bill  is to respond the community' complains on bad public services, nepotism in recruitment and low quality of human resources at some institutions. The bill is also expected to change the new paradigm 'to serve the public', instead of the other way around.

[September 2006]

Revision of the Law of the Supreme Court. This is in line with the revision of the Judicial Commission Law planned by the parliament right after its annulment by the Constitution Court due to inconsistency to the Indonesian Constitution, where the said laws allows both institution to take control of judges manners and behaviors. The annulment creates many responses from the legal reformist, where it is well known that 40% Indonesian judges are involved in court mafias, according to a report. A number legal reformist compels the issuance of interim laws by the president to keep the consistency of the law and legal reform.

[August 2006]

Private and Business Entity are Subject to Corruption Charges of article 21 UN Convention. This is a new issue to be applied in the revised Indonesian anti corruption law to conform with the article 21 of the UN Convention Against Corruption (UN CAC). The UN CAC stipulates, that corruption charges do apply not only to public officers but also to any parties involved in corruption, directly and indirectly, including private entities. The punishment will cover criminal code and private law.

[July 2006]

New Citizen Law.  The bill passed the parliament approval, where the law reformed on statehood of Indonesia. Statehood of Indonesia remains for Indonesian lives abroad, Indonesian women married to foreign nationals and their marriage give birth to a child born in Indonesia. The important is that a revised definition of so-called 'Indonesian' from its previous law number 62 year 1958.

New Ruling from the Indonesian Constitution Supreme Court. The Court  ruled on article 2 of the Corruption Law. The ruling was that formal evidence is required instead of material evidence for submitting an alleged corruption case before the Anti Corruption Court. The said ruling is final. However, the said ruling was legally not requested by the applicant, which by law is weak in theory, and has never been a case before. The said ruling received a number of protest from the Indonesian General Attorneys, the Indonesian Chief Police and the KPK (the Indonesian Corruption Eradication Commission), which they said the said ruling is in contrary to law teachings and practices.

New Banking Regulation on Single Presence Policy. The policy will be in force in August 2006, expecting adoption by end of 2008. The policy are based on bad experiences of high non-performing loan, unfortunately occured mostly at bank with Single Presence ownership. The policy applies to private and government ownership, to allow the central bank to effective monitor and encourage bank consolidation.

Bill on Witness and Victim Protection, passed the parliament. The new law is expected also to disclose crimes at various entities such as in state offices, state enterprises, judicial bodies, police and public attorneys office. The law will support KPK, where the law covers protection to also whistleblowers, and do not limit crime reported. Any parties threating witness are subject 1 to 7 years imprisonment plus fine of Rp40 million to Rp500 million. Additional one third crime penalty applied if threat is conducted by agovernment officer. According to ICW, there were 39 witness, victim and whistleblowers under threat for defamation charge during 1996 to 2006.

New Citizen Law.  The bill passed the parliament approval, where the law reformed on statehood of Indonesia. Statehood of Indonesia remains for Indonesian lives abroad, Indonesian women married to foreign nationals and their marriage give birth to a child born in Indonesia. The important is that a revised definition of so-called 'Indonesian' from its previous law number 62 year 1958.

[May 2006]

59 laws released in 18 months administration of  Susilo Bambang Yudhoyono. This is to compare to previous administration of ex President BJ Habibie (1998-1999), Abdurrahmah Wahid (1999-2001) and Megawati Soekarnoputri (2001-2004 ) which are 66, 51 and 82 laws, respectively. However, according to a research institute, 62% out of 193 law during 1999-2004 significantly bear more political interests than community interests, such as additional political seats orientation. Only 27% of laws having economic and finance interests, 8% community interests, and 7% industrial and development orientation. The new National Legislation Program in 2004 will integrate the legislative and the executive initiatives in releasing new laws emphasizing on community interest.

Government Procurement. New Presidential Decree number 8 year 2006 amended some article of previous Presidential Decree number 80 year 2003, released. Any goods and services procurement and government�s projects conduct and procedures must be transparent and open to public to access. This law will reduce KKN (Corruption, Collusion and Nepotism) between government officials and business entities.

[April 2006]

Intellectual Property Rights Ratifications. The Government of Indonesia had ratified a number of international conventions since 1995, such as the Paris Convention for Protection of Industrial Property, Paten Cooperation Treaty (PCT), Trademark Law Treaty, Berne Convention, WIPO Copyright Treaty and WIPO Performances and Phonograms Treaty. These had been adopted into national laws, such as the Patent Law, Trademark Law, Copyrights Law, Trade Secrets Law, Industrial Design Law, Integrated Circuit Design Law and Plant Variety Law. All are based on the WTO TRIPs, ratified under Law no. 7 year 1994. 

[March 2006]

Bank mediation Dispute Settlement. This entity soon will be established , where the mediation mechanism will provide rooms for bank customers from various disputes with the bank products.

[February 2006]

Draft Bill on Ethnic and Race Elimination. The law will impose to anyone in Indonesia territory a fine Rp100million at most and/or 1 year imprisonment at most for those who intentionally treat better or worse somebody causing injury rights in civil, politic, social, economy, and culture. Indonesia consist of 300-500 different ethnics where 15 major ethnics spread in the west and central part of Indonesia, while other small number of ethnics are in the eastern part of Indonesia.

Banking Consolidation. The Indonesian Central Banks will soon release new regulation to allow more foreign banks to conduct its business in Indonesia. Currently, out of 131 banks in Indonesia, 41 are foreign shares dominated, with 48,51% ownership of total industry asset compared to 37,45 by the Indonesian government ownership. 12 foreign banks are owned by ultimate shareholders.

[January 2006]

Indonesian Labor Court, established. Under the law 2 year 2004, this court will replace the Committee of Labor Dispute Settlement. The Labor Court consist of 99 career judges and 160 ad hoc judges, having office at 33 places. This court will run on the Civil Procedure Law instead of the previous procedure law under the labor law. This court will provide more room for argumentation and a firm judgement both for disputing parties in rights, interests and termination.

3 New Laws Soon Released. The three new laws are Laws on Minerals, Energy and Coal (UU Minerba), law on Forestry (UU Kehutanan) and Law on Regional Autonomy (UU Otonomi Daerah).

News Draft of supporting Laws on Good Governance. The set of draft of laws aims at an efficient and effective governance, such as the draft of law of Ethics of Governance. The laws is expected to be released upon approval from the House. Other related new draft of laws are Draft of Public Services, Draft of Law of Nationality, and Draft of Law of Civic Administration. The latter law is expected to cover the basic rights for civil for good, services and administration services by the government officers. Current  Law on Good Governance Law is Law 28 year 1999.

[December 2005]

Law of Medical Services Released. The law 29/2005 released on 20 October 2005. Licensing for medical practitioners are the core issues, followed by the patient's protection. Graduates of medical school will be subject to serve in the remote area in Indonesia to support government health program.

Law on Teacher and Lecturer, Released. The law will be in force in 2007 and oblige a tight qualification to obtain a license for teachers and lecturers within the next 10 years. The law also emphasize the welfare of teachers and lecturers by doubling its salaries. Currently, there are 2,7million teachers at public and private schools, excluding 261.000 additional teachers and 600.000 contract teachers all over Indonesia. There are at least 1 million high school graduates, annually, which only 75,000 seats per year are available at public universities and 500,000 seats at private universities all over Indonesia.


[November 2005]

Draft of Law of Freedom of Acces to Public Information will soon be released. The draft of the said law (since 2001) will empower the people to be involved in public decision making process and avoid public and government officers from corruption-collusion and nepotism through the enforcement of the access of public informations by public. The law will also impose government officer for 6 months of improsenment and 5 million fine for any case to hinderance to access the public information.

Draft of Law of Intelligence under Talks. The law mainly aims as a legal basis for the Indonesian secret agents operation and counter-terrorism. The law will allow not only the police, but also the Indonesian government agents to arrest a terrorism suspect for 3x24 hours, anyone residing within the territory of Indonesia.


[October 2005]

Government of Indonesia ratified two international covenants. The two covenants are  'the civil and political rights' and 'the economic, social and culture'. Indonesia joint them as the 155 and 152 member, respectively. The Phillipines, Thailand and Vietnam are the only other member in the ASEAN region.


[May 2005]

Indonesian Constitutional Court rules 46 Judicial Review Requests. In general, the court sessions usually go between 2 to 8 until decision is made within 8 months, in 2003. Out of the 48 rulings, 16 requests was granted, 14 request unaccepted and 10 requests denied. This do not include 252 cases dispute over election results. The Indonesian Constitutional Court ruling was based on the authority to make judicial reviews over a law in contrary to the constitution, dispute over elections results and dispute over public authority, on the ground of the Indonesian Constitution 1945.

Draft of Foreign Investment Law. The Minister of Finance of the Republic of Indonesia has send the draft of foreign investment law (RUU PMA) to the Indonesian parliament for review and approval. Some issue for the new bill will are, to reduce investment application process into 30 days, assurance that foreign investment will not be nationalized (except through passing new laws by the parliament), and more access for foreign businessmen on working permit and immigration. The bill is expected to pass this year.


[April 2005]

Telecommunication. New investment in telecommunication services regulation will be released, that foreign investor ownership will be limited to 49% only. However, the government still prefer to keep up to 95% foreign ownership to investments with high technology and high investment in infrastructure content only, under the PP 20/1995.


[February 2005]

Extradition Law. President Susilo Bambang Yudhoyono and Singapore PM held talks over extradition for 12 Indonesians bank owners ruled as criminals by the Indonesian court who are now residing in Singapore, who stole the Indonesian government loan liquidity at 112 trillion Rupiah (USD 12,07 billion) during the crisis 1998. The trend is positive, the next signing of agreement is planned in March 2005. Some Indonesian bank criminals also stay in Australia.


[January 2005]

55 Draft of Bills. The Indonesian parliament and government will release 55 new bills consisting of  laws (Undang-undang), 22 amendment of laws, and 6 ratification of international conventions in 2005. The total number of the proposed new laws for 2005-2009 are 284.

Foreign Lawyers. New RI-MLHR regulation issued on the requirement of the use of foreign lawyers in Indonesia, which requires recommendation from Indonesian Advocate Organization, prove of individual Indonesian tax file number (NPWP), obligation to teach law for 10 hours per month within 12 months, limited to deliver legal services of foreign laws (other than Indonesian laws) or international laws, and will only act as an expert or staff in an Indonesian Law Firm.

Anti Corruption. New Government Regulation (Perpu) will be released, called the 'Acceleration Action to Exterminate Extraordinary Corruption'. The law is tougher, covering corruption and bribe by and/or towards any public officials, civil person and non-civil persons, which are subject to serious criminal charge. The KPK has the authority to revoke passport, tapping any communication means, blocking bank accounts and arrest persons within 24 hours without notice anyone regardless their nationality residing in Indonesia. Bribery to public officers is also subject to criminal charge, a penalty of Rp 200 million to Rp 1 billion and 4-20 years imprisonment, live sentence in jail up to death sentence.

[December 2004]

Articles on Gas and Oil Law Ammended. The Judges of the Indonesian Constitutional Court amended part of the law, 3 articles of 12(3), 22(1) and 28(2)  of the Oil and Gas Law 22/2001, considering those articles have no legal ground and are against the Indonesian Constitution. The revoked articles are considered the principle or ground of the law.

Law on Electricity Revoked. The Law 20/2002 on electricity is revoked by the Indonesian Constitution Court on 15 December 2004. The previous Law 15/1985 remains and become in force on 15 December 2004. The ground was that the Law 20/2002 is in contrary to the Constitution 1945 and injured people's constitutional right. The right to appeal is not possible. Currently, the Court is also in session for request to revoke the Water Resources Law 2004 as requested by 7 NGOs.

[November 2004]

Investment. Coordinating Minister of Economy Aburizal Bakrie said, that BKPM (Investment Coor-dinating Board) will play its new role mainly as a promotional entity for investment and a single-entry for all licensing for investment. This new role differs from past bureaucratic single- roof where licensing will take 150 days compared to single- entry system that slash down bureaucracy and license will be obtained within 20 days. (Source: Kompas 13/11/2004).

Extradition and Sea Territorial Demarcation. Indonesia and Singapore talks over on sensitive issues between two neighboring countries on adjacent sea territorial lines, extradition, mining and lifting ban on sea sand exports. Talks held in Jakarta, 8 November 2004. A Joint Cooperation Council will be established to further discuss the issue. This the second visit of PM Lee Hsien Loong to Indonesia after the inauguration of President Susilo Bambang Yudhoyono in October 2004. (Source: Kompas 9/11/2004).

Territorial Demarcation. The Government of Indonesia shall set up new laws on Territorial Demar-cation between the adjacent countries, according to the Lemhanas Governor (Council of State Defense). This law is to avoid from past case of loosing two islands of Sipadan and Ligitan which case won by Malaysia in 2002, based on the ICJ rulings. Currently, the applicable law is Space Arrangement Law 24 year 1992 and other Government Regulations which is deemed less accomodated and less updated. (Source: Kompas 9 Nov 2004).

[September 2004]

Law of the TNI. the Indonesian Parliament pass new bill on Indonesian National Military Law (UU Tentara Nasional Indonesia - TNI). The law emphasize more on the professionalism of the Indonesian Military Force.

Limitation of Gratification to Public Officers. New laws will be released on limitation of gratification for government and public officers. Penalty and years of imprisonment applies to both wrong doers. This law aims to avoid from bribery and  to put more public control on public officers in the spirit of good and clean government of Indonesia.

Public Prosecutor Watch. the Indonesian Parliament agreed to release new laws on the possibility to establish an independent body to watch over the Indonesian public prosecutor while on duty, to avoid public prosecutor from deviation conducting the laws. Currently, some NGO are also watching over the Indonesian courts proceeding and the judges.

[June 2004]

Environmental Law. The Parliament of the Republic of Indonesia passed  the draft bill to legislate the Kyoto Protocol, a protocol within the UN Framework Convention on Climate Change. Indonesia was the 124th member ratifying the said protocol.

[January - April 2004]

Supreme Court, Judicial Body Laws. Indonesian Parliament passed new bills: the Law of the Supreme Court (Law no. 5/2004), the Law of the Judicial Body (Law no. 4/2004) The major issue for both laws was that the judicial body is now under the authority of the Indonesian Supreme Court (Mahkamah Agung RI). The law also allows any person/legal entity to sue any legal officials (policemen, judges, prosecutors)  from illegal arrest, groundless judicial decision and wrongful imprisonment.

State Defense Law. New Law no. 3/2004 on State Defense was also released, regulating the integrity and state sovereignty over the territory of the Republic of  Indonesia. The defense components consist of the main components, reserve components and supporting components by the Indonesian Military Force (Tentara Nasional Indonesia - TNI) and the people of the Republic of Indonesia. The law will also call Indonesian civil to take part the Indonesian military services as a supporting component.




Law Update:


2015 to 2010



Financial Service Alternative Dispute Settlement Institution - LAPS to be in operation 2016. The Lembaga Alternatif Penyelesaian Sengketa or LAPS service will be effective on 1 January 2016 to serve as an alternative dispute settlement mechanism in financial services according to Mr. Agus Sugiarto of the Ministry of Finance of the Financial Service Authority - Otoritas Jasa Keuangan - OJK. The LAPS currently is only available for banking and capital market, where the other 4 services such as insurance will come effective on that date as part of public financial literacy and awareness. Agus further claimed that OJK received thousands of complains toward many financial industries, and as a result the OJK institute these claim settlement body into LAPS. The LAPS will be self-established by each financial industry concerned while the OJK will stand as regulator and will keep watching the procedures. The LAPS will also reduce court and tribunal cases of consumer’ protection rights under the Consumer Protection Law 1999 so as to bring the claim internally. LAPS will take role as an alternative to other settlement such as arbitration and commercial court with known characteristic of a long, detailed, and costly, while LAPS is more convenient, cheap and fast.

Indonesian Supreme Court to Establish Small Claim Tribunal. This proposed tribunal is a model already adopted in Australia, Canada, Ireland, England and other countries. The tribunal will handle small claims with lesser court procedures, cheap and shorter period of settlement time. This is to respond a number of civil claims at the court who took a long procedure and costly, such as a recent case where an airplane passenger lost her bag and just won the case after 3 years in civil court.

[July 2015]

Urgency to a Limited Revision of the Indonesian Internet Law 11 year 2008. The revision is in urgency to avoid from wide interpretation by the law enforcer namely the police in handling argument over the internet by persons, particularly articherle 27 paragraph 3. This article is in conjuction to the Indonesia Criminal Code, where the law enforcers are much in favor to penalize and criminalize report of an unsettled argument over the internet by netizens, especially to those public servants as one part who feel being disgraced in public. The law enforcer then treated the report as a personal disgrace that lead to crime, while article 27 paragraph are in the contrary side of the meaning. Statistically this in fact occurred since its inception 7 years ago with 74 criminal cases and in 2014 only there are 39 cases, composing 53% out of the total 74 case only. It means there are 4 cases monthly, where 92% are on attack of personal good faith with 37% reported by public servants mostly on the unveiling of improper public services. The Ministry of communications said there is a need of an extra and prudent treatment towards article 27 paragraph 3, instead of a short cut to apply criminal code. In lieu to that the Supreme Court has its release of jurisprudence where a critic of public service and unveiling for public purposes shall not be treated as an attack but merely a social control and internal self control through Supreme Court Decision number MA 412K/PID/2010 and MA 519 K/PID/2011.

[May 2015]

     May 2015. US Chamber of Commerce Objection over 40% Local Content Regulation. The American Chambers of Commerce (AmCham)  wrote to the Indonesia Minister of Technology and Higher Education for its objection to new regulation to apply 40% local content for cell phone manufacturing to be sell in Indonesia. AmCham wrote its concern that the regulation may cause particular effect in Indonesia due to the limitation access towards new technologies, then these may increase prices, triggered black market and other consequences as a result. The major concern is Indonesia lack of supply chain to manufacture such high-end cell phone. However Indonesian Minister Rudiantara insist on the regulation that will become effective January 2017 at any cost, with December 2016 is set as a limit of direct selling of cell phones made outside Indonesia. Indonesia has long been a basis for high technology manufacturing of famous IT brand from Japan, South Korea, China internationally a number of well known domestic IT manufacturer, not to mention the capacity to manufacture airplanes, satellite and communications.

[February 2015]

Revoked: the Law of Water Natural Resources. The Mahkamah Konstitusi - MK - the Indonesian Constitution Court in early February 2015 revoked the Law No. 7/2004, and as result the previous law on Water Distribution year 1974 is back in force. The MK in its decision has considered that water deployment must be in a very limited manner for the benefit of a sustainable environment for life and therefore, the management must be under full responsibility and sole discretion of the state. MK further emphasized limitation for foreign state or entity in the water management, which can only be granted subject to prerequisite the fulfillment of domestic needs. The motion of the annulment was submitted by community organization Muhammadiyah, the largest moderate Moslem  community organization in Indonesia.

[January 2015]

Anti Torture Bill under consideration. The release by the Indonesian Institute for Criminal Justice reported that, along the year 2014 remain a dark year for tortures with 36 recorded cases, 6 were dead as a result. The agent responsible for 33 cases is the Indonesian police. The figure of 2,200 reports of torture by public shows an extreme figure of torture, with North Sumatera province on top with 6 cases, followed by west Sumatera then Jakarta. The torture by the Indonesian police mostly happened at the police station during investigation to be summed for a release of investigation report thereof. The Indonesian government soon will ratify the Optional Protocol on the Convention Against Torture.

2014: Supreme Court 18.926 cases, Constitution Court 1.044 cases. The release at the Media Center by Hatta Ali , the Chairman of the Mahkamah Agung Indonesia - Supreme Court, the highest court under the Indonesian legal system, shows that the MA reach its highest historical performance in 2014 ruling 14.415 cases, with leaving only 4.015 cases yet. The 2014 cases reaches 12,511 cases, plus 6,415 of the 2013 cases left, a very significant performance ever in the MA history. The above figure also explain 26,62% (of total 6,415) in year 2013 cases has been reduced and are still under judges portfolio to be soon settled. As a result, 2014 cases at the MA leaves only small cases to be settled the following year 2015, the lowest in the history of MA in the last decade. It was noted in early 2014, that MA was loaded with 20,000 cases since 2004. ‎In spite of its achievement, the MA Secretariat was also awarded for its achievement for creating basis for new regulation by the Ministry of Law and Human Rights' under the 'National Legal Documentation and Network Center' for MA' great works to develop and to maintain MA internal Legal Information Network. In tax area, MA also obtained a tax status as 'Normal Without Exception' for year 2013 from the Badan Pemeriksa Keuangan BPK - State Financial Investigation Body, where BPK perceive the MA has reach its qualification of highest accountancy standar and government financial report. Financially, the MA also prudnetially reach 97,15% of the current year budget spend for its annual activities. Another MA' achievement is also for services, where Religion (Islamic) Court‎ of Stabat in Sumatera awarded the ISO certificate 9001:2008 as a symbol for best court services, with international standard. The MA successfully establish, maintain and updated informational system at 350 courts all over Indonesia at 3 levels, being implemented with excellent synergy vertically and horizontally in structure. While MK - Constitution Court in 2014 handled 1044 cases with classification of 140 cases on bills material examination, 903 cases on elections and 1 case on dispute over state authority.


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September 2014

122 Laws Urgency to be Revised. The Indonesian KMP - Koalisi Merah Putih, the Red and White Coalition addressed the issue the urgency to revise 122 laws currently in force, emphasizing revisions on major crucial laws namely Law no 22/2001 on Gas and Oil, Law no 4/2009 on Mining and mineral, Law no 10/1998 on Banking and Law no 39/1999 on Telecommunication. The rationale of such revisions are due to its update period of cycle, and to adjust with current change of economy in Indonesia. The Red and White coalition are political group of interest led the majority legislative seats in the House of Representative (DPR) and the Upper House (MPR) who happen to be the opposition to the current politic party supporting the executive, the administration of the president Joko Widodo who suspects there are too many personal and bad interest are within the plan in running his administration. The Red and White coalition argued, such revision of laws idea are based on deep and thorough academic researches, where in facts the 122 Law gives less and less positive benefit and interest to the good of the people of Indonesia, since inception of such laws. The recent case was High Court final ruling in mid 2014 to fine USD 1,1 billion to a subsidiary company of a major cellular GSM operator for corruption, not to mention the tapping and eavesdropping of Indonesians lines by foreign entities. The operator once was the first and leading government owned-company prior to 1998 who happen how controlled by foreign entity allowed by the Telecommunication Law 39/1999. Mining is also another issue, where new regulation has effectively ban since may 2013 all mining company to export raw minerals previously allowed under the Mineral and Gas Law. In banking, there is also an immediate and clear threat of free flow of currency by the foreign banks operated in Indonesia, not to mention free operation to remote are as in Indonesia for deposit - a very liberal banking practices where most other country strictly disallow. Portion of 99% ownership is also other main issue. These issues are only some being known by public and has become a great homeland security concern as well.

April 2014

Trade Law, Released. The bill passed the parliament On 11 February 2014, with full acclaimed not only by majority of the   political parties, but also all Indonesian economy community components being represented. There are some important notes, namely of the trade preferential, Importation liberalization and import substitution. The bill has gone along chronological events, since its Inception in 1972. The Indonesian parIiament early  days rejected the bill in 1979, then it relapse in 2010, then finally found its acceleration in 2013. The new trade law will replace the archaic Dutch Trade Law 'KUHD' being tought at law schools until today, which most of its articles has been impaired by tens of partial new articles, regulation and new laws. Indonesian Deputy minister of Trade Bayu Krishnamurthy is very proud and optimist, that this new trade law gives more power to the government in managing, controlling and put punishment to all trade matters. Misleading in export and import will be punished (article 43), e-commerce is tighter (article 65-68), consumer protection is even more detailed, including protection and development of small to medium enterprises and cooperative (article 73). The parliament is also empowered in establishing and annullment of International trade agreement (article 83). Generally this new trade law is a controlled-regime, rather than a liberal one.

February 2014

Bills of Engineering. The new bill mainly will serve to secure engineer professionalism, covering management of engineer professional certification, work licens procurement up to service stabdar, according to Mr. Tjipto Kusumo a member of legal drafter for the bill. The Bill also to secure consumer who employ the service of engineer, to prevent consumer of a qualified works and engineer� competence profession working in Indonesia. The bill is seen to be urgent domestically in protecting Indonesian engineers, but also to avail and make competitive Indonesian Engineer abroad.The bill is expected applicable to foreign engineers as well. Chairman of Indonesian Engineer Association further emphasize competitiveness matter where Indonesian engineers often found their actual job is not related to their academic achievement due to incompetence in workplace, including but not limited to lack of integrity, professionalism, and discipline. Ethic nd broad-minded is also crucial in a world of competition, added a senior lecturer.

April 2014

Trade Law, released. The bill passed the parliament On 11 february 2014 with full acclaimed not only by majority otth  political parties, but also all economy community components. There are some notes, namely of the trade preferential, Importation liberalIzation and import substitution. The bill has gone along chronological events, since its Inception in 1972. The parIiament rejected the bill in 1979, the become an issue in 2010, then found its acceleration in 2013. The new trade law will replace the archaic Dutch trade law 'KUHD', which most of its articles has been impaired by tens partial new laws. Deputy minister of Trade Bayu Krishnamurthy is proud that this new trade law gives more power to the government in managing, controlling and punishment to all trade matters. Misleading in export and import will be punished (article 43), e-commerce is tighter (article 65-68), consumer protection is even more detailed, including protection and development of small to medium enterprises and cooperative (article 73). The parliament is also empowered in establishing and annullment of International trade agreement (article 83). Generally this new trade law is a controlled-regime, rather than a liberal one.


[ 2 0 1 3 ]

May 2013

Money Laundering retroactive applied to corruption. The Indonesian Anti Graft Commitee - KPK confidently will move forward in its third case of the application of retroactivity conception in corruption cases thru the implementation of money laundering practices. the recent case is the police general (active) djoko susilo accused for corruption of over Rp 100 billion during his duty as a coordinator of traffic management at the indonesian police headquarter, particularly at the project of driving simulator in 2011 - 2012. the criminal case has been through over the last one year investigation by kpk, including the involvement of a number of high profile public officers, police officers, private individuals, private compnies, followed by the subsequent seizures of a number of Djoko� liquid assets known to be illegal during its possession prior to the year 2011. the seized assets of Djoko�s has include not only lands, houses, farms, cars, but also a zoo on behalf  by a number of his relatives, close relatives and two other wives informally married for the last 10 years. The KPK investigation indicated a suspicious illegal possession as it did not meet to djoko�s salary profile as a police officer. the KPK is confident to keep forward with the case with the basis of the Constitution Court � MK� verdict in the said case in 2004 (Verdict No. 069/PUU-II/2004), where retroactive is not against the Constitution, and therefore retroactivity is out of the question. The law of money laundering law 25 year 2003 and law 8 year 2010 article 77 on (in support to the article 51 UNCAC) is the basis of such retroactivity, including a reverse argument is a compulsory to the defendant. The verdict to allow the implementation of the conception of retroactivity concluded the years of discussions between Indonesian lawyers with lex generalis and lex specialis basis of arguments, including presumption of innocent which is swept away due to the extraordinary crime classification of corruption. The lawyers then agreed that the other principle basis is at the article 1 (2) of the archaic Indonesian Criminal code, that article 1(2) exclude the nullum delictum in extra ordinary case. KPK spokesmen in it release early May 2013 admitted, they still receive enormous public support through report of Djoko�s and other suspects of corruptor possessions and wealth they knew, until today.

July 2013

Supreme Court Judicial Review Dismiss Local Regulation on Alcoholic Beverage. The dismissal Regulation is the Presidential Regulation � PR No. 3 year 1997 on Alcoholic Beverege Control, a slightly license to sell alcoholic beverage in public. The Supreme Court right to dismiss a lower regulation the law level again has become another legal paramount in the Indonesian legal history. The Court is in view the PR is not in conform to the public needs of order and security, where alcohol consumption and traded in public has caused more negative than positive impact in Indonesia, therefor must be minimized as much as possible. Thus, alcholol beverage allowed to be sold in class B and C with over 5 alcohol content can only be trade in registered restaurants and hotels instead in public shops or general stores. Other laws in consideration is Health Law No 36/2009, Consumer Protection No 8/1999 and Law on Food No 7/1996. Further the court view that the central government has the sole authority on alcholoc beverage regulation instead local government. As part of legal consequences, the existing local laws prohibiting alcoholic beverages remain in force, as long in concordance to the higher law.

May 2013

The Urgency of State Asset Recovery Institution. The recent talk over the need to establish a government body - so called state asset recovery, was drawn by a number of law academics due their concern of the lack of legal basis to secure many state assets being lost and could not be recovered. The talks has grown stronger due to the slow progress made by the government to recover assets of 1997 to year 2001 economy crises and wrongful government officer practices, mainly caused by the uncertain regulation and the absence of state independent authority to recover assets being lost to cover the national crisis. The only authority currently in charge to keep is the Indonesian Ministry of Finance through Directorate General of State Asset. The current regulation is seen to be general and limited.

Money Laundering Retroactive Conception Applied to Corruption Cases. The Indonesian Anti-Graft Committee � KPK confidently will move forward in its third case of the application of retroactivity conception in corruption cases in parallel with the money laundering law. The current case is the mega corruption at the Indonesia Police Headquarter, Directorate of Traffic involving the chairman Police General (active) Djoko Susilo, who became suspect for corruption of over Rp 100 billion during his duty, particularly of the driving simulator project in 2011 - 2012. the investigation rolled over the last one year, drawing huge public attention, pulled a number of new suspects of public figures and the subsequent seizures of a number of Djoko� liquid assets known to be illegal during its possession prior to the year 2011. The seized assets of Djoko�s has include not only lands, houses, farms, cars, but also a zoo on behalf  by a number of his relatives, close relatives and two other wives informally married for the last 10 years. The KPK investigation indicated a strong indication of illegal possession as it did not meet to Djoko�s salary profile as a police officer. The KPK is confident to keep forward with the case on the basis of the Indonesian Constitution Court � MK� verdict in 2004 (No. 069/PUU-II/2004), where retroactive (in corruption) is not against the Constitution. The law of money laundering law 25 year 2003 and law 8 year 2010 article 77 on (in support to the article 51 UNCAC) is the basis of such retroactivity, including a reverse argument is a compulsory to the defendant to support such 'ownership' of assets beyond their salary profile. KPK spokesmen in its release early May 2013 admitted, they still receive great public support and information of Djoko�s and other suspects of corruptor assests in possessions they knew, until today.

Note: The MK�s verdict allow the implementation of the conception of retroactivity become an end of debate over years of discussions between Indonesian lawyers with lex generalis and lex specialis legal basis of arguments, where extra ordinary crime is the rationale. The latter also applied to the exclusion presumption of innocent concept of law. The lawyers then agreed that the other principle basis is at the article 1 (2) of the archaic Indonesian Criminal code, that article 1(2) exclude the nullum delictum in extra ordinary case.



[December 2012]

KPK Performance through 2012. The Indonesian KPK - Anti-Graft Commission has been at the main stage of the Indonesian law enforcement in combating corruption, since the era of Reformation 1998. Two previous solid team generations has put KPK at the top performance in imprisoning a number of corrupt high rank officials, including generals, ministers and judges. The current KPK directors was named the third generation to take lead since December 2011, chaired by Abraham Samad and four other deputies, namely the prominent senior anti-corruption figure Busryo Muqqodas. At the beginning, public expectation was turned down, since none of those in the team were the 8 high profile persons listed as proposed by the independent team. Public suspicion spread become inevitable as parliament� hidden agenda to weaken KPK is clear during the previous generation, as can be seen rivalry between the police department and KPK. However, in fact public disappointment was not proven and can expect more for its first year performances of this new team. Active Police General Djoko Susilo, Senior Deputi Central Bank Miranda Gultom and Minister Andi Malarangeng are only of few names that shocked public for their mega corrupt, then torn down from its top seats into a jail. The team also imprisoned other 74 number of senior parliament members, businessmen, active police generals, senior deputies of the Indonesian central banks, high rank political party officers, majors, governors, and ministers, who found their misfortune luck at the anti corruption court for the last 12 months, where 44 of those had been under investigations, 33 prosecuted, 24 had been legally firmed and 26 executed. Compared to the previous year 2011, the figure was 78-39-40-34 and 35, respectively. One particular identified in this year was, that up-ladder investigation mechanism were adopted to trace the grand actor of a mega corruption cases.

Ailianz to pay fine us 12.4 mil for bribery. The US security Commission (SEC) ruled that Allianz has breached the US anti corruption practices (FCPA) as Allianz has been found guilty for bribing Indonesian goverment officers at USD 650,000 to win 295 Indonesian government insurance contracts between 2001 to 2008. For such contractcs made, the German-based Company took benefit at USD 5.3million.

Indonesia is better than the US in Transparancy of Public Information. Indonesia ranked the 20th, better than Great Britain (27), the US (36), Australia (38) and France (61). As a result, Indonesia become the leader in open government together with the Great Britain in the UN Forum for Open Government Partnership, where 4 commitments haa been put forward, namely the increase to provide information availability, supporting public participation, high integrity applicability, and the increase technology access. Indonesia' reputation are based on transparency managed with accountibility, supported by a critical community, with many information references available, which do not necessary in line with the mainstream.


[November 2012]

Bill of Asset Seizure. The draft has reached its final stage at the parliament, as the draft has been proposed by the Indonesia PPATK - Center of Financial Transaction and Analysis. The law will empower the government through the court to be able to seize assets in Indonesia, which has proven not been obtained legally. The seized assets are those proven obtained from corruption, and will be taken over re-owned by the government and a given legal title as public domain. The bill is expected to support corruption extermination and other related laws namely Law of Money Laundering. However, negative responses spreads from a number of political parties in the parliament.

[October 2012]

Defamation Case Overturned. The Prita Case has been turned over by re-appeal (Peninjauan Kembali - PK) court decision at the Mahkamah Agung (MA) - Indonesian Supreme Court, the highest appeal level in the Indonesian legal system, where a defamation case is annulled. The MA dismissed three charges previously submitted by the office of the district attorney for being error and groundless, and hence subsequently MA recover Prita�s good faith under the MA Decison number 22 PK/Pid.sus/2011 released on Monday, 17 September 2012. The case was initiated by a hospital patient name Prita for complains in 2009, but her complains found no luck of responses by the Omni Hospital, where she was a victim of malpractice and Omni' Hospital bad services causing her partial loss of health. Her complains however was secured under the Consumer Law 8/1999. In search of second opinions and supports, Prita then spread her e-mail complain to her peer groups, but unfortunately her email then was treated differently by the Omni Hospital. She instead in turn was charged for defamation under both the civil code and under the Information and Transaction Law � ITE Law 11/2008, and tort for material injury under the Civil Code submitted by Omni Hospital to the Registrar Office in Tangerang, outwest of Jakarta. The case exploded and triggered public rage against Omni Hospital, through support of funding once was famously called �Coinage of Justice�. Public found that justice is a matter of who pays more. The rage increased where then it is lately found that the police and public attorneys enjoyed priviledges health services provided by the Omni Hospital, including a number of lawyers and academic found both the police and legal officers at the court charges are on a weak ground. As for the tort case, Prita loss at two courts, namely the first instance court and appeal court, but then this was overturned at the MA, where Prita was released and discharge from any material claim. As for the 3 criminal charges, Prita won at the first court but lost at the appeal and re-appeal at the MA, then finally she won at the re-review appeal process at the MA. According to analysts and academics and practitioners, the set of laws of ITE Law11/2008 contained twofold protections both for the right and freedom to express and also protects good faith and reputation at the other end. However one must be aware the existing Consumer Law 8/1999, where consumers rights gains the utmost protection, and the producer bear responsible of the provided goods and services. However, the public attorneys and police and court legal officers in practice are prone to protect the reputation side only, which of course are academically much easier to understand rather than to understand and to comprehend and put into details of a complicated legal issue stipulated under the ITE 11/2008 and Consumer Law 8/1999. The MA decision in parallel has put another paramount decision, namely the freedom of speech is again, the utmost right protected by the law.

Flaw laws: MK. Many laws flaws since its initial drafts, a recent statement relased by the Mahkamah Konstitusi � MK (Indonesian Constitution Court) identifying a number of review of law requested by citizens over a new release-law. The tendency to submit a review at one side is a good sign, an identification of an awakening of law consciousness in the community in order the build a solid and order state. In spite of that, it is also a fact that laws passed by the parliament are drafted with flaws, be it in the substance, in contrary to the constitution, unsynchronized to other relevant laws. Statistics at MK shows only 27% submission are rejected by the MK, or in other words most new passed laws are eligible for review. The MK Law provided a new passed law may be subject for review within 12 months from it become into force. According to MK, the worst law drafted is the law of natural resources laws, where the court found a load political transactions and unprofessional conduct during drafting. MK suggest to increase the control over the draftkng until the finak stage prior to the release of the law, including the urgency of a good coordination between legal officers. An academic review over the law of natural resources once has released an opinion of 7 points required to synchronize laws and make it works. However, MK also admitted most Indonesian laws passed these days are excellent.

[September 2012]

Indonesian Constitution Court - MK ruling over the Law of Intelligent. The MK refuses 3 points of submission to review material of the Law of Intelligent 17 year 2011. The MK are in the view the intelligent law shall remain as it is and is more than important to exist in order to secure citizen of Indonesia from any hinderance of security, threat and will also serve as a protection from abuse of human rights. The court further emphasize grounds of the law to exist, namely the function, authority, role, state secrets are far more important, but the law itself has its frame of reference in terms of protection. The law provide rule of conduct, professionalism, respect of human rights and are in line with the constitution. Therefore, the court decided not to accept the request by the applicants, a representation of a number of non government organization and 18 individuals who claim themselves as victim of the excessive security treatment by the secret agents during the new order era in Indonesia prior to year 1998. Ground of submission to review are 16 articles of the law bearing the characteristic of abuse-prone, excessive and threat. The law 17 year 2011 was enacted in October 2011, become effective on the date of the stipulation.

[June 2012]

Indonesian International Standard School Regulation on Trial. The citizen lawsuit trial was submitted by group of citizens, lecturers, teachers, and non government organization requesting the Constitutional Court - MK to revoke article 50 paragraph (3) of the National Education System Law number 23 year 2003 in particular regulation of  so-called 'the international standard education system' - RSBI as this article is against the Indonesian Constitution 1945. The 7th sessions at the MK has been held to hear experts' views, namely the Indonesian Minister of Education in 1980, Mr. Daoed Joesoef. His 5 points of view has been widely covered as his opinion considered to be deep and logic, that RSBI must be anulled. He first pointed out he RSBI conducting English language as a medium for both math and science subjects are against the artcile 36 of the Indonesian Constitution 1945 on national language Bahasa Indonesia, where it pnly recognizes Bahasa Indonesia as the only single language to be conducted at school in Indonesia. Further the Constitution 1945 article 31 para 2 has put a clear guidance to the government to conduct a good education for the citizen based on the existing law. Secondly, Daoed Jusuf is in view that values being taught in RSBI in other language than Bahasa Indonesia is merely groundless in Indonesia,  a common adopted values in every nation. The real values embedded in Bahasa Indonesia, as this language has been considered by the UNESCO as a modern language with full ability to construct detailed and complicated meanings in a simple way. Thirdly, Language may not however be a basis of a successful academic achievement standard, where it is found that many Indonesians graduated from foreign universities with flying colors regardless of their foreign language ability. Therefore, the RSBI mechanism is seen as a bad approach in enhancing education in indonesia. Finally, there is a clear misorientation of RSBI' legal basis, as in fact  RSBI was in practice is a special class for students integrated into public school as this is contrary to the law where RSBI shall be another new institution to be established to serve as special school outside the public school. Finally and most importantly, RSBI itself creates new social classes within the school right from the elementary level, as it separates between the smart, less smart, the rich and the less rich students. School must serve as a ground for children to learn togetherness.

[April 2012]

4000 Local Regulations revoked. The Indonesian Ministry of Law and Human Rights revoked 4,000 local regulations being inappropriate, discriminate and are against the higher laws of Law 28 year 2008, a replacement of Law 10 year 2004. In spite of the above, the government loose Rp1,2 trillion (USD 1,35 billion) budgets allocated to set up the 4,000 local regulations, where later it was also found the regulations give even a loss to the local government, instead benefits. Rp 100 million is the budget to draft one local regulation. Therefore, the Ministry establish the Local and Centre Office of Assistance for Law and Human Rights to assist local government in drafting local regulation in order the local regulation to synchronize with other parallel and superior laws and regulations. Statistic shows, that 407 regulations has been revoked (2010), and other 175 expected follows in the first semester in 2011. Along the year 2002 to 2007, 1,878 has been revoked, which are close -related to illegal levies and retribution payments to the local governments. An academic is in view local government autonomy is merely as a freedom to put additional and illegal levies in an instant way regardless the substance. However, good responses to revoke has been shown by the local government.

[March 2012]

MK revoked the Right to Appeal in Pre-trial. The articles revoked by the Indonesian Constitution Court (MK) were both 83 paragraph 1 and 2 the Indonesian Criminal Procedural Code (KUHAP), as those articles are against the Constitution 1945 article 27(1) and 28 D (1). The major rationele are this KUHAP codes do not however properly provide equality before the law for citizens and do not provide a simplified and efficient legal procedure embodied in the Indonesian Constitution 1945. Both articles stipulate the pre-trial, where pre trial is merely a legal procedural mechanism provided for a citizen to sue the police for misappropriate and improper procedure of arrest on the ground of human rights. The court may then conduct the pre-trial, however the particular article 83 is seen unfair as it entitled only to the state officer, the police in this matter, a right not entitled for the citizen in turn. Therefore, the MK revised the unjustified articles of both 83(1) and (2). Both the said articles has long been a legal controversy for its inequality before the law, repressive and unjustified at all. The MK decision overturned this triumphly, another MK paramount decision to a better legal equality in the history of Indonesia.

Smart Consumer is a Must. Along with the trade liberalization followed by imported goods with no standards, the Indonesian Food and Drug Authority - BPOM, warned Indonesians to be more cautious in consuming imported products, mainly foods in the domestic market. The main concern is related to serials of consumer laws, namely the Consumer Protection Law 8 year 1999, Food Law 7 year 1996 and Industrial Law 5 year 1984. BPOM so far can only control improted foods through mechanism of SNI - the Indonesian National Standard covering only 83 product composing only 1 percent products in the domestic market. The SNI is mainly for wheat flour, tyre, gas stove etc. out of thousands illegal products with no labels, manual books or even being registered. Therefore, as for consumer�s internal protection, it is strongly suggested to conduct an internal-defensive consumer mechanism. BPOM suggested 5 steps prior to consuming, first is to be critical, second is to read the products label/manual book/guarantee/expiry date, thirdly is to be aware of the SNI attached label, four is to consume appropriately, and lastly to uphold their own rights under the law. Currently there are identified 1,133 illegal product categories in the domestic market, with 99,9% foods are illegal, which in turn potentially may threat consumer�s right. The business of such illegal foods reached Rp1,7 billion, according to BPOM.

Law 13 year 2003 on Outsourcing, Annulled by MK. The articles ruled being in contrary to the Constitution are article 65(para7), 66 (para 2b), where employer must treat equally those outsource labor to permanent labor with regard to tenure, salary and packages. Previously, companies tend to shift permanent to non permanent status for labour (outsourcing) for efficiency. The new MK decision include the prohibition to outsource labor for its core business (source: MK websites)


[December 2011]

Judicial Committee: Judges breaches formal law. The release was based on the 2009-2011 research of numerous court decision made by judges all over Indonesia, a research conducted with universities network. The finding indicate 5 major breaches, namely that there are numbers of the accused not being represented by lawyers during trial, decisions not in proportion in considering parties, more and more judges are less able to elaborate witnesses information which in fact is material and factual to the case, the appeal court neglected breach of formal law and being rushed for delivery identified by same day final decision being delivered with the judges closed door decision.

[August 2011]

Immigration Law 2011 under Review. The law released earlier April 2011, is now under judicial review before the Indonesian Constitution Court for particular article of the right of a person for moving as submitted by the 7 Indonesian national advocates, where article 16 of the Immigration Law is against to the Indonesian Constitution article 28A and 28D. During the hearing session of experts, two experts are heard for their opinion, Denny Indrayana (currently deputy for minister of law and human rights) and Ahmad Ramli (academic, state law academic), both are in disagreement with the substance submitted. Denny� point are under the International Law regime, where it is true of principal for political and civil rights under the ICCPR article 12 point 3 as has been ratified and regulated under the law 12 year 2005, both are adopting the same principles of such freedom, but however also implied of declination and limitation of such right of movements. Ahmad Ramli� opinion emphasizes more on the state responsibility as part of state sovereignty. The state is performing its task to protect the territory through immigration law by managing the movement of persons outside or inside the territory in order maintain public order. Therfore, the immigration law may not be construed as a breach of human rights as all other governments in the world implements the sam value in protecting their entry gate from international world.

New Laws, released in late 2011. A number of new laws are released by the Indonesian parliament, namely Law of Supporting Component for State Defense, Law of Intelligence, Law of Judicial Committee (revised), Law of Legal Assistance, and Law of Apartment. The law of Supporting Component for State Defense mainly governs the obligatory of civilians to join the military forces during the time of peace and war. While the law of intelligence governs state authorities to conduct transnational crime, personnel and counter intelligent conducted by state authority such as the police, public attorney and the Indonesian military towards any domestic or foreign threat.  The Law of Legal Assistance managed practicing lawyers to provide pro bono legal services for the needs, funded by state budget and controlled by the minister of law and human rights. Finally the law of Apartment stipulates classification of new high rise housings into general, public, commercial and private use, including obligations for developers.

[May 2011]

Indonesia' Energy Souvergnity is in Danger. The danger is merely of the exclusion energy mining from strategic energy sources into commodity, where Presidential or parliament approval is no longer compulsory. Under the new legal regime of regional autonomy, approval now can be obtained from local government to mine energy, coal, gas and oil in particular. As a result, foreign investors are free to mine anywhere without central government approval. This in turn threat Indonesia' energy independence until 2025. Statistic shows, the incontrollable licenses reaches 8.000 mining locations, approved by the local governments, which are controlled mostly by China and India companies. Both countries aggressively supplies their domestic needs of energy, whilst their domestic energy reserve is kept for future domestic needs.The British Petroleum Statistical Review shows, that Indonesia coal reserve is only 4,3 tones (equal to 0,5% world coal reserve), as to compare with China' of 114,5 tones (13,9 world reserve). Indonesia' gas mining data shows, that 28 blocks are under the government control, 77 under joint venture scheme of local-foreign investors, 120 fully foreign ownership and 225 under contract with non-government. The government-foreign investor portion of shares are 25-75 until 2025.


[June 2010]

New 2010 Investment Negative List. The list of Presidential Regulation No. 36 Year 2010, extend opportunities for business investors, which also amend limits of shares ownership in eight business sectors. The new list do not applied retroactively for business concluded prior to the new list, unless regulated otherwise. Some of the list are: special permit for Cyclamate and saccharin industry , increase from 55% to 67% to foreign ownership in construction service, maximum of 49% shares in technical movie products,  increased from 65% to 67% at all location for medical sector (specialist hospital, specialist clinic, health support service or clinic laboratory and medical check up), maximum 95% shares for electricity generator above 10MW and partnership required from 1 to 10 MW, maximum 49% for agricultural production in staple food (corn, rice, soy bean) with land above 25 hectare, maximum 49% for mail service with special permit. However construction data provider to BTS remain closed to domestic investment.

[May 2010]

Constitution Court Refuses the Request to Revoke Law on Religion Disgrace 1965. The basis of the ruling is that the government shall bear the sole authority in creating order in the community in the event conflict rose. If such law is revoked, then such authority is missing to conduct a necessary measure to keep the community back in order.  The applicant� further request is that such law was made in the event of state-marital law, responded by the Court, that all state martial laws have been sorted out through the TAP MPRS Number XIX/MPRS/1966, which law would had been applied, and partly had been revoked. However the Court� decision is not anonymous, since one judge made concurrent opinion and one other judge made dissenting opinion but all at the same basis of reasoning.

Constitution Court Refuses the Request to Revoke Law on Religion Disgrace 1965. The basis of the ruling is that the government shall bear the sole authority in creating order in the community in the event conflict rose. If such law is revoked, then such authority is missing to conduct a necessary measure to keep the community back in order.  The applicant� further request is that such law was made in the event of state-marital law, responded by the Court, that all state martial laws have been sorted out through the TAP MPRS Number XIX/MPRS/1966, which law would had been applied, and partly had been revoked. However the Court� decision is not anonymous, since one judge made concurrent opinion and one other judge made dissenting opinion but all at the same basis of reasoning.

KPPU: Nine flag carriers Condemned of Cartel Activity. Again, the Indonesian Fair Trade and Business Competition Commission (�KPPU�) decided nine airways companies guilty for cartel activity accusation on fuel surcharge for Rp.587 billion. The airways companies were said beyond reasonable doubt violated article 5 Law Number 5 Year 1999 which restricts collective costing. They are fined Rp.80 billion, calculated from excess of fuel surcharge applied by the airways companies which compared to the cost on May 2006 or reference from Transportation Ministry. KPPU mentioned that from 2006 to 2009, there are Rp.13.84 trillion excess of fuel surcharge applied by the airways companies compared to estimation reference cost. This reference itself was made according to the signed agreement between Head of National Aviation Association (�INACA�) and nine airways companies at May, 4th 2006 which mentioned the cost will be at average Rp.20 thousands per passenger. However, airways companies still apply the agreement, even it had been revoked. Meanwhile, there is Rp.5 trillion excess existed from the fuel surcharge compared to Transportation Ministry reference cost, from 2008 until 2009. The airways companies also forced to pay damage to the state for Rp.507 billion, as the excess has damaged the passengers ranging from fines of Rp.25 billion plus damages of Rp.162 billion (Garuda Indonesia) to Rp.9 billion fine and damage Rp.62 billion (Sriwijaya Air). All fines and damage costs will be used to renovate airport and public facility. The other charge mentioned that the companies has violated article 21 for infringement when decided production cost was not proven. KPPU mentioned some factors aggravated its decision, as Garuda has conducted the violation repeatedly. KPPU also blame the companies for still applying fuel surcharge nevertheless Minister Stipulation Number 26/ 2010 ordered to abolish fuel surcharge per April 14th 2010. The stipulation was the revision of Minister Stipulation Number 9/2002.

[April 2010]

Constitution Court: Law 9 year 2009 on Educational Legal Entity, Revoked. The revocation are based on the constitutional breach by the said law as identified that such law put new consequences that (1) people�s now has to fight and pay more for limited seats and proper education at public education institutions, which however such right is secured by the constitution that the responsibility is at the government to provide education, (2) compulsory uniformity for any education institution into so-called Education Legal Entity has lost the meaning of people� free right to provide proper education, which prohibited their constitutional right to gather and unite as guaranteed by the Constitution, also (3) the assumption made by the Law to consider that all educational institutions in Indonesia has the same quality, and provide six months chance for some less-qualified institutions to adjust their quality, is a mistake. In fact, even between state owned universities, the gap of quality is clear. The Court also unjustified the government defense that the said law will serve and create effectiveness in monitoring educational service. The Court also annulled one article serving as an umbrella article for the law 9 year 2009. Therefore, the Court ordered all regulation to refer back to the law of National System of Education number 20 year 2003. The Applicants were 6 associations representing a number of communities� interests against the Government of Indonesia, particlualry the MInistry of Education of Indonesia.

Constitution Court: the Law on Religious defame Act On Religions remain Relevant With Constitution. The Court rejected the applicants request to revoke the law  Number 1/PNPS/1965 by Applicants representing a number of people� interests. The Court ruling is based on the ground, that the government is the sole authority to put their people in order. The Court deemed that, when conflict rises in that particular circumstance, the government stands as the sole authority to apply force measure. Further, the Court deemed if the law is revoked, that government would have no basis to conduct necessary measures if a chaotic situation is occurred. Concerning the argumentation from Applicant stated that this law was made in state martial condition, the Court answered that all state martial laws have been sorted by TAP MPRS Number XIX/MPRS/1966, which law would had been applied, and which would had been revoked. The decision is not anonymous, since one judge made concurrent opinion and one other judge made dissenting opinion.

[March 2010]

22 Migrant Worker Placement Private Organizer License, Revoked. Ministry of Manpower and Transmigration Muhaimin Iskandar, has revoked mobilization permits of 22 Migrant Worker Placement Private Organizer (�PPTKIS�) for committing various infringements. The action was also taken as a warning to other PPTKIS, to bear responsibilities in case the migrant worker suffers damages, said by Minister Muhaimin Iskandar. Muhaimin stated that several infringements that frequently committed are deserved for sanction. Some of the infringements, among others, are placing workers without fulfilling 200 hours training, improper living place, permit misuse and indication of fraud to migrant workers recruit. Violation also occurred upon article 13 Law Number 39 Year 2004 for not depositing Rp.500 million used for responsibility guarantee to any probability of violation. Many migrant workers claimed from suffering damage and bad experiences during placement period caused by PPTKIS negligence. Protecting the migrant worker is obligatory to both government and placement organization, and that from 500 private placement organizations in Indonesia, only a half considered good. The rest are still able to be corrected but some must be shut down, according to the Minister. Thus, Ministry will cooperate with independent auditor to conduct audit to PPTKIS and standardize service to migrant worker. The actions were taken to increase service standard to develop PPTKIS. If violation are found during the audit, the implication are various depends on the violation level, whether correction to increase the service, warning, or assertive sanction measure. Violation in certain cases involving money and criminal aspect will be engaged by law procedure. Those 22 private placement organizations are: PT Fim Anugerah, PT Tulus Widodo Putra, PT Putri Bersaudara, PT Nour Mansour Abadi, PT Barokah Bersaudara, PT Zaya Abadi Ekasogi, PT Jasa Makmur Sejahtera, PT Maju Puta Dewangga, PT Irfan Jaya Saputra, PT Gabila Wadi Amed, PT Muara Mas Globa, PT Assalam Karya Manunggal Putra, PT Bafa Anugerah Persada, PT Permata Gobel Sejahtera, PT Amrita Mahesa Prima, PT Multi Sukses Putranto, PT Dwi Insan Setia Utama, PT Bintang Lima, PT Prime Global Manpower, PT Bin Hamoud Safarindo, PT Asia Primadona Pratama, PT. Assalam Bersaudara.

[February 2010]

Generic Medicine Drugs Regulation. According to statistics released by the Ministry of Health, Rp2,52 trillion are those market sold of generic drugs as to compared  to Rp 21,07 trillion of those patented drugs in year 2005, where in 2009 the figure is Rp 2,37 trillion to Rp30,57 trillion, respectively. The figure represents only 9-10%, annually. Currently, there are 8-12 generic drugs pharmacy companies where 3 are government-owned as to compare to 204 private companies (31 are foreign investment pharmacies).  To resolve the high price, the government has (out of 453 drug types) reduced prices of 106 types, 33 increased and 314 remain. The major problem according to private pharmacies are those generic is less popular, the cheaper price affect people� confidence over the effect to cure, the law is unenforceable and insufficient to control the distribution and finally that difference of pricing structure. As a result, consumers are drawn and compelled to buy patented 3.4 times higher prices than the generic drug with the equal cure effect, since most clinics and hospitals do not sufficiently promote and are much in preference to sell patented drugs due to free market system. The recent Ministry Regulation HK.0202/Menkes/068/2010 article 4 now stipulate a clause for doctors to compulsory include generic receipt for patients according their medical indications.

Government to Review Legal System for Children and Poor People. The Indonesian President is planning a permanent change in criminal legal system to allow the law to be closer to justice, especially for children and poor people, where the foundation is of a system that the fundamental policy is close-related to social justice and welfare of the people, where law serves better for those poor family, the neglected, disabled persons, under age children facing legal enforcement, children in drug rehabilitation centre, etc. The change shall be related to terms of imprisonment. Dispensation of imprisonment with tight regulation is needed when the criminal doer is an underage children, decrepit, poor people or disabled person. President said that the change is about giving justice to condition where justice is being trampled upon. He gave the example on how a kid stole cellular phone was imprisoned longer than a corruptor, or an old-poor person was imprisoned after stealing cassava for food, just to survive the life. The changes will also to the terms of imprisonment, particularly children inmates, so they can return to their family, instead of the adult inmates. President agrees to give parole by President for about 500 children inmates, including an existing permanent regulation regarding the children inmates.

[January 2010]

KPPU: 8 Indonesian Companies Suspected for Cement Cartel Pricing. The 8 cement companies are Holcim Indonesia, Semen Andalas Indonesia, Semen Padang, Semen Baturaja, Indo Semen Tunggal Perkasa, Semen Gresik, Semen Tonasa, and Semen Bosowa. The said indication was the initial findings by the Indonesian Anti Monopoly Commission (�KPPU�), which was seen by two companies raising its prices at the same structural level, a finding almost the same as previous investigation where the companies deliberately set up prices through idle of production at the factory. The practices caused price increase as a respond to increase of demand as the supply are limited, a practice since 2006 until today. The 8 companies production reached 56 million tonnes, while the consumption only 35 million, where the idle production capacity was approximately 21 million, the together set up a uniform prices, even higher when the coal prices gone down in the market. Coal is used as main energy in the factory. Such practices breached Law 5 year 2009 on Cartel.



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