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Indonesia LawUpdate 2018

[January 2018]

Each Indonesians Bear Rp16 million (usd1,200) Debt. The figure was released by 'AKSES', an Indonesian NGO 'Strategic and Socio-Economic Cadre Access' early February being released end 2017, where Rp16 million are the figure of immediate debt to be paid by each Indonesians since they are born to cover State Debt reaching Rp4.274 trillion or equal to USD 32,135 billion being broke down to 257 million Indonesian populations. AKSES reminded the risks current Indonesian economy structure is still fragile, where it also figure out that 0.02% Indonesians owned 25% PDB or equal to Rp 3,100 trillion. The point is that these 0.02% population figure intentionally save their wealth outside Indonesia but left their debt in Indonesia particularly during crisis. Further the current government of Indonesia in speeding its infrastructure development are merely to increase as 'endorsement factor' for foreign investment only. It also known that investors remain a party who wish to seek for profit from the Indonesian resources. This include food and energy sectors being controlled and treat domestic as market only. Meanwhile the US government has taken an adequate move to tighten foreign investment to curb debt.


Indonesia LawUpdate 2017

[December 2017]

Appeal Court Rejected, cartel pricing must end. The Indonesian Appeal Court at the Local Court of North Jakarta on December 5 2017 rejected the appeal submitted by two Indonesian major motorcycle manufacturers Yamaha Indonesia Motor Manufacturing ('YIMM') and Astra Honda Motor ('AHM') and as such the court is in agreegemt with the decision rules by the Indonesian KPPU - Indonesia Commission for Fair Trade. KPPU in its decision 4/kppu-I/2016 last February rules both companies being wrongfull breaching article 5 Law 5 year 1999 on particular pricing arrangement for motorcyle 110cc-125cc where both considered as cartel pricing practices prohibited by such article.Both companies are fined each Rp25 billion (USD 1,88 million) and Rp22.5 billion (USD 1,7 million) to the Ministry of Finance. YIMM responded its plan to appeal to the Supreme Court as the final decision maker.

National Election Neutrality breaches by Government Officer. The Indonesian politic calendar of year 2018 will mark as the year of elections for provincial and local government held altogether in June 2018, whereas earlier findings sees a number of government officials/civil servants has been caught for being not neutrals to candidates along the year 2017. There are currently 27 civil servants where 18 has been caught breaching the law tough the government has repetitively warned for being neutral as stipulated under article 33 law number 5 year 2014. the above figre however still considered very low, nationally. the 10 month preparations nationally will manage 171 elections altogether at once on 27 June at 17 provinces, 39 cities and 115 municipals.

[November 2017]

WTO: Indonesia lost beef appeal case in WTO. The case was submitted by the Indonesian government in 2015 by releasing an arrangement to save local business but this was considered as harming the WTO Secission on beef which appeal was taken later in December 2016, but again Indonesia lost the case at this second round. The case was submitted by the US and New Zealand for particular compulsory license and permit being unlawful. The appeal WTO decision has resulted in the  increase of the volume of imported meat and therefore decrease the meat prices in the Indonesian market. Statistically in 2016 imports of beef and derivative products from the US into Indonesia has reached 10,783 tons with a value of USD 39.4 millionof which after Rupiahs currency the price of US imported meat reached around Rp 47,000 per kg at the level of importers (at the retail market is around Rp 116,000 per kg). In fact, in some areas, such as Banda Aceh, Tanjung Pinang, Tanjung Selor, and Jayapura, the price of beef can reach Rp 130,000 per kg. US beef prices are low due to subsidies. In the wake of 1995-2016, the US Department of Agriculture subsidized 10.3 l; billion dollars for farmers. Consequently, the price of meat the cattle in the US retail market is only 8.4 dollars per kg.

Press Index: Increased, the Indonesian Press Feedom Index. Tough may not be considered as good and sufficient, the increase remain a new hope as supported by press professionalism, strong capital and non technical aspects beyond the media management. The index was the objective situations at 30.provinces out of 34 in Indonesia. The figure is 68,95 in 2017 (only for the province of Banten, North Sulawesi, West Jawa, West Sumatera, and Sulawesi as to figure of 67,92 in 20016 which both remain within the scale 56 to 69 as adequately free (70-89 for quite free) and 90-100 for a complete freedom which points covers political, economy and law supports. The above figure, however remain with notes as most parts of Indonesia press are less and less professional namely an imbalanced sources of news, intolerant and narrowed doubtful views in a wide multicultured country like Indonesia. Others are the known for 'strings attached' news by media owned by corporate or conglomerate while it is known that Indonesian press qualities are questioned. The Press law year 1999 is considered very liberal for press for they need not to be licensed and worst are low paid. This of course may cause news being broadcasted or published are questionable. The law 1999 on media itself require only a legal entity for a media to establish its media business  where there are only 1.800 entities are registered out of 47.000 who potentially spread hoax news.




Indonesia Law Update 2016


[January 2016]

2015 Corruption Report:  drug bribes, Cartel. Corruption Eradication Commission have long alleged kissing gratuities from pharmaceutical companies to doctors. But, until the current KPK had never handled the matter of corruption related to the kongkalikong between the Pharmacy and doctors about prescribing the drug. Nevertheless, KPK Deputy Chairman Johan S.P. Budi says, the money received from pharmaceutical companies can be categorized as a gratuity. However, with a record of fulfilling some of the elements of which are doctors who receive money from the pharmaceutical company status as civil servant or State organizers. "The meaning of civil servants here have already expanded i.e. someone who receives a salary from state money," said Johan, last October. Secondly, pharmaceutical companies give money to person, not to the institution. And third, the money or the goods received the doctor at least worth Usd 500 thousand. "This is already provided for in the regulation of KPK," he said. The case of the alleged gratuities or bribes, uncovered on the basis of the findings of the investigation team of the magazine Tempo. According to financial records of the pharmaceutical company PT Interbat obtained due, as many doctors accept money with 2,125 values between Rp 5 million to Rp 2.5 billion. They are scattered in five provinces, namely Jakarta, West Java, Banten, East Java and South Sulawesi. Most physicians are recipients of money from Interbat it a status of civil servants and work in government-owned hospitals. As for the motive of the grant money is allegedly so that doctors prescribe drugs company within a certain period. Most doctors recognize it as a form of cooperation Interbat related to the sale of the drug. The cooperation was in the form of Interbat, giving money to the doctor who referred to as drug discount, then the doctor will prescribe medicines production Interbat to the patient. Due to this cooperation, the doctor suspected of prescribing medications that the patient is not required, or medicines that cost avail expensive. In fact, there are similar drugs with price cheaper. According to Johan, if there are any doctors who receive something from pharmaceutical companies and meet the third element of the previously mentioned, the doctor in question is obliged to report it to the KPK as acceptance of gratuities. According to article 12 paragraph 2 C of Act No. 31 of 2001 About the eradication of criminal acts of corruption, mentioned that submission of the report of the gratuities at least 30 working days counted from the date of accepted gratuities. "If there is a report to us, then certainly the KPK will review them in advance whether it meets the elements of such a gratuity is set out in the Act," said Johan.

Chicken Cartel. Chicken entrepreneurs will reject accusations of cartels by the Commission's competition Watchdog effort. "We will reject. The destruction of parent chicken stock that government regulation, "said Senior Vice President of PT Japfa Comfeed Indonesia Tbk Budiarto Soebijanto in the Office, Jakarta, Thursday, March 9, 2016. Today for the first time staged a trial of the alleged cartel matters preliminary examination broiler (broiler) where Japfa became one of the reported. Council agenda is the submission of the report of alleged infringement (LDP) by Investigator. Next week, the trial will resume with the agenda the submission of responses by the reported. The cartel accusations stated budiarto pointed unfounded. For, the destruction of 6 million parent or parent chicken stock by Ranch enterprises last year was done on the recommendation of the Government so that prices are not falling. That policy, according to Budiarto, contained in the circular letter number 15043/FK. 010/F/10/2015 subject population adjustment parent stock. The letter diteken the Director General of the Ministry of Agriculture Farm Muladno on October 17, 2015. At that time, the price of chicken in some areas of Rp 12-16 thousand per tail. "The price is reasonable inasmuch as not assessed under the cost of goods production Rp 17 thousand," he said. In addition to the 11 other companies Japfa implicated cartels are PT Malindo Feedmil Indonesia Tbk (MAIN), PT Charoen Pokphand Jaya Farm, PT Satwa Borneo, PT Wonokoyo Jaya Corp, PT-PIA CJ (Cheil Jedang Superfreed), PT Obedient Beautiful shine, PT Indah Sari Cibadak Farm, CV. Missouri, PT Nasuba, PT Ekspravet Perkasa, PT and Reza Hybro Indonesia. In the investigation that has been undertaken, there are cartel suspect CHOCOLATE or chicken supply arrangements in the market by 12 corporate farms. They are suspected of deliberately doing the destruction indukan afkir or chicken. This is done so that supplies chickens chicks or day-old-chicken (DOC) reduced so the price goes up. It violated section 11 of the Act No. 5 of 1999 on the monopoly and competition of business.

Cartel on Text Messaging. The previous Commission decisions strengthen MA Supervisor Competition Efforts in case of cartels SMS service. Thus, the six mobile operators had to pay a fine totaling to Rp 77 billion. The appeal filed after the Central Jakarta District Court granted the application for objection filed the reported, i.e. PT Excelcomindo Pratama Tbk, PT Telekomunikasi cellular, PT Telkom Tbk, PT Bakrie Telecom, PT Mobile-8, and PT Smart Telecom. This has been disconnected the case in June 2008. The six operators were convicted of violating article 5 of the Act No. 5 of 1999 concerning the prohibition of Monopolies and competition Practice Efforts is not healthy. In its decision, the Commission was wearing a fine to XL and Telkomsel each Rp 25 billion, PT Telkom obliged pay a fine of Rp 18 billion, Bakrie Telecom to pay a fine of Rp 4 billion, and PT Mobile-8 to pay a fine of Rp 5 billion.

[February 2016]

Two New Basis for the judge's ruling, Dropped. The issue of correctional facility could not be released from the spirit of enforcement officers punished the perpetrators of criminal acts. Based on research, 70 percent of criminal imprisonment formulated singly in either the CRIMINAL CODE or legislation outside the PENAL CODE. In addition, 20 percent of formulating alternative jail or criminal fines. In General dropped criminal law judges remain in prison, instead of a fine. As a result, 90 percent of people who were punished were sent to prison. The result he said, jail the more full. The prison capacity is insufficient. Professor of the Faculty of law of the University of Diponegoro Barda Nawawi Arief rate there is nothing wrong in the way of formulating a system of punishment in the criminal code. The formulation singly criminal, he said, implies duties of law enforcement officers. As if there is no alternative for law enforcement officers in addition to the prison. Prison sentence becomes imperative, something that is mandatory. "A prison seems only remedy," said Prof. Barda in training organized criminal law Mahupiki and FH Lambung Mangkurat University in Banjarmasin, Tuesday (17/5). To remedy the confusion, the team of framers of the CRIMINAL CODE BILL contains guidelines for the judge dropped the imprisonment. Guidelines in the form of basic pored it on article 72 of the BILL. The first is the principle of parsimony (parsimony principle). This principle means law enforcement officers do not mengobral the prison penalties. The judge must consider many things including alternative sanctions to imprisonment before dropping another. This became the basis of the guidelines so that a judge reduce a craving for imprisoning people. Don't get all plaku criminal acts from all types of crime should be pointed to the prison. The prison sentence is supposed to be the last (last resort) "Do nothing directly to imprisonment," he said. The second principle is the refrain (restraint principle). That is, law enforcement officials, especially judges, should be careful to use imprisonment. Theoretically, imprisonment can positively impact such a deterrent effect and reduce the potential perpetrator of the crime committed. But it could also be negative if used carelessly and imposing. In addition, in the process of drafting and discussions about the BILL the PENAL CODE appear concept rechterlijke pardon, the concept of permaafan of the judge. National Symposium and training in criminal law III held Mahupiki-law faculty, Unlam (16-19/5), the concepts of permaafan and peace in many criminal law to the forefront. Apologies and peace was considered in line with the purpose of appropriate Pancasila. Professor of criminal law at Gadjah Mada University in Yogyakarta, Marcus Priyo Gunarto says basic mastery of the law is one of the conditions that must be met in addition to mastery of the law degree means the law, legal system, and legal discovery. The legal basis can help you find the law in a legal question that has not been clear law. "Any rule of law resting or stem from the basic law, that is, a value that was believed to be related to the structuring of society as right and fair".

[February 2016] Indonesian Constitution Court Monumental Decisions 2015. Of the four powers that belonged to him, practically throughout the year 2015 is, authorities tested the legislation against the Constitution very dominant coloring gait of the Constitutional Court (MK). Data refer to the matter on the official MK,, there are 140 petition for lawsuit testing the laws that teregister per 13 November 2015. Most of the supplications had been completed were severed following eight MK. verdict pulls that produced a successful 2015 MK all summed up Re:

1. The Cancellation Ruling Water Resources. Mid-February 2015, the efforts of the Constitution Muhammadiyah and coauthors to fruition. Because, the COURT cancels the entire contents of Act No. 7 of 2004 about the water resources that appealed. The reason, it's not yet guarantee beleid limitation of water management by private parties, so the votes opposed the CONSTITUTION 1945. Therefore, the COURT again enacted Act No. 11 of 1974 about Watering. As a follow-up to the verdict, the Government compiled a Draft Government Regulation (RPP) on water resources and the RPP about the water supply system of drinking (SPAM). However, APINDO objected to the content of a second RPP since the potential closing of the private pursuit of opportunities. Moreover, businessmen who still animate the water threatened criminal. Any Government initiative that compose the BILL SDA. A few months after the publication of the ruling of the Constitutional Court, among employers through a container of APINDO worry related implementation of the ruling of the CONSTITUTIONAL COURT in this field. This is because the ACT does not expressly regulate Irrigation model cooperation in Government and private business. Apparently, the issue of regulation in water management in 2016 will still be the public spotlight, particularly for lawmakers and the various stakeholders.

2. The ruling of the extension Object Pretrial. On April 28, 2015, may be a historic date for the world of legal practitioners. This is because the debate was terminated via a pretrial ruling object MK No. 21/PUU-XII/2014-related interpretation of the evidence of the commencement of the assignment and the suspect as objects of pretrial. This is because the object of pretrial regulated Article 77 a CODE of CRIMINAL PROCEDURE which are restricted to sah-tidaknya arrest, detention, investigation, termination termination penunutan more expanded including the determination of the suspects, penggeledehan, and foreclosures. Interestingly, this ruling was not taken unanimously because tinged dissenting opinion (opinions differ) and occurring opinion (reasons vary). Of the 9 justices of the Constitution, the Constitution of the 3 judges who filed a dissenting opinion i.e. I Gede Palguna Deities, Muhammad Alim, and Aswanto. While 1 kontitusi judge who filed a concurring opinion, namely Patrialis Akbar. This ruling claimed the power of corruption cases convict legal project biomediasi PT Chevron Bachtiar Abdul Fatah, Maqdir Ismail as a milestone to improve the condition of the carut-marutnya procedure of the determination of arbitrary suspects by investigators. Interestingly, the same time the verdict is pascaputusan debated ending pretrial PN South Jakarta which cancel the status of suspect Komjen (Pol) Budi Gunawan (BG) by the KPK. Often, the verdict of the CONSTITUTIONAL COURT is often made as "weapons" to cancel the process of determination of the suspect through a process of pretrial lawsuit.

3. The ruling of the Mating of religious Difference. Although the petition was rejected, the test article 2 paragraph (1) of law No. 1 of 1974 about marriage linked the constitutionality of marriage remained the religious ruling of the surgeon pulls in 2015 because of the sensitive issue of the public eagerly awaited. The Court considers marriage should not just be seen from a purely formal aspects, but also the spiritual and social aspects. Religion also has determined the validity of the marriage, while the legislation sets out the administrative legality by the State. In a trial that takes months of this initiative, the Court invited a number of religious organizations provide a view. There is also a related party who filed interventions, giving rise to long debate. However, with the decision of a MKbernomor 68/PUU-XII/2014 read this on June 18, 2015, the desire of some students and alumnus FHUI COMMISSIONER so that marries different religions legalised extinct.

4. The decision of a Sworn Advocate. Post publication No. 73 Letter KMA/KMA/HK. 01/IX/2015, dated September 25, 2015, four days later, the CONSTITUTIONAL COURT confirmed the constitutionality of article 4 paragraph (1) of ACT No. 18 of 2003 about the related authority to Advocate High Court (PT). Via putusanNo. 112/PUU-XII/2014 and no. 36/PUU-PUU/XIII-XIII, the COURT affirmed the oath of advocate of PT without looking at the origin of the Organization advocates from both the PERADI or KAI. This ruling is assessed in accordance with DECREE No. 73 of KMA it. This ruling at least strengthen the enactment of DECREE No. 73 of KMA when PT oath advocate from any organization. For the last few years the Organization advocates already fragmented. In fact, during this PERADI known as single organization container advocates already split into three camps. Post publication of this ruling, several PT already administer the oath of advocate without looking at the origin of the Organization advocates. For example, in last October, Surabaya has raised and take the oath about 303 advocate who hails from Congress Advocate Indonesia (KAI). A month later, PT Jakarta also has taken the oath of hundreds of advocates who came from PERADI and KAI.

5. The decision of a Single candidate for the elections. No less interesting, on 2 September 2015, the COURT gave way out over a single candidate in the polemic gubernatorial election, Governors, and mayors (of the elections) concomitant 2015. Pass verdict numbered 100/PUU-XIII/2015 in testing law No. 8 year 2015 about elections, the CONSTITUTIONAL COURT gave single candidate solutions that can still be following the elections. The passing of the Regulation No. 4 MK 2015 about settlement of the dispute a single Candidate in the elections, organised three important things yaknisiapa that has legal standing, filed a lawsuit on NOVEMBER decision related difference difference between the results of the vote count agree and disagree, and grace period filing suit 3 x 24 hours. As a result, the three areas have only one pair of candidates i.e. Blitar, Tasikmalaya, Regency North Central Timor who previously threatened to postponed the elections could still roll out the 9 December.

6. The verdict of Annulment Authority KY Recruit Judges. The following month on October 8th, 2015, the CONSTITUTIONAL COURT annul the authority in the selection of judges KY first level in three judicial environment through testing three Judicial Areas ACT package. In doing so, the authority of the selection of candidates of judges remains the sole authority of the Supreme Court (MA). The verdict was reaping the protests of Constitutional and legal Studies Forum (FKHK) as parties related to the Constitution of the four judges to sue the Board of ethics. The time of the trial, testing three Judicial Areas ACT package is quite a lot to hear the views of experts, particularly from the applicant and related parties of KY. MA ever undertook to give information as related parties. Hence, the process of testing the three Judicial Areas ACT package proposed was IKAHI invite institutional relations between MA conflict and KY. Moreover, both institutions had previously been long enough to plan the preparation of the implementation of the selection of the judge of first instance together to formulate draft Regulations along with the related selection the candidate judges. However, by the ruling of the COURT numbered 43/PUU-XIII/2015, called a halt seems wishful thinking KY to engage further in the selection process of candidates of judges in three neighborhoods of the judiciary.

7. The verdict of the Court's determination of the Passing of Workers on Contract Basis. Not long ago, on November 4, 2015, the COURT gave way over the legal deadlock of implementing the phrase "by law" in article 59 paragraph (7), article 65 paragraph (8), and article 66 paragraph (4) of LAW No. 13 of 2003 on Labor. A related rule it satisfy the terms of the agreement status change time (PKWT) to be a certain time doesn't work agreement (PKWTT) aka the contract workers (outsourcing) to become permanent workers automatically. Endorsement of the transitional process, the status of PKWT to PKWTT have to go through the Court assignment country. Prior to the Court both parties (workers and employers) have attended the negotiating efforts of bipartit, but did not reach an agreement and the presence of a supervisory employee of inspection results notes employment office Employment. Because, during this assignment written supervisory employees related employment transition workers PKWT to PKWTT never run voluntarily by employers. This assignment could not be requested a lawsuit to the Court of Industrial Relations (PHI) or PTUN. Pass verdict numbered 7/PUU-XII/2014 which labour activists petitioned this can at least be "capital" for outsourcing contract/worker is eligible to be appointed as a permanent employee in a company or a company user giver services jobs. Although this ruling was impressed labor/workers contracts, but until now there has been no technical rules of relevant agencies transition assignment submission procedure PKWT be PKWTT to the District Court.

8. The verdict an insult Officials Criminal Complaint. By end of the year 2015, by the ruling of the CONSTITUTIONAL COURT of 31 numbered/PUU-XIII dated December 10/2015 2015, MK 319 of the CRIMINAL CODE Article stated that set the contempt officials must be meant as criminal complaint. That is, the prosecution of top officials or insult civil servants could be made only on the basis of a complaint from officials or civil servants concerned. The verdict is considered consistent with the ruling of the CONSTITUTIONAL COURT No. 013-022/PUU-IV/2006 which States the enactment of article 207 of the CRIMINAL CODE, the prosecution solely on the basis of complaints from authorities. At least, this ruling could be the basis of liberating two activists Agus Slamet and Komar Raenudin indicted Article 319 of the CRIMINAL CODE because insulting the Mayor of Tegal via facebook over the public complaints or apply to citizens of other countries who have experienced similar cases.





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