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Indonesia LawUpdate 2019

[January 2019]

Critics for Jokwi administration from the Economist:  The critics conveyed by an international circulation magazine ‘the Economist’ reminded, that Indonesia has missed a good potential for economic growth of 5.5% through investment by expanding the manufacturing of global chain. However, after 4 year of administration, the figure gets worst. The Economist suggest the Indonesian administration to make a great self correction and is likely to lost its moment, while year 2019 is seen as a political year heading for new presidential election in Aril 2019. Investors tend to hold its investment the whole long year 2019 until October for inauguration of the elect-president and may extent until a new composition of the economy ministerial cabinet. The year 2019 is less likely to a good look for the economy since the Indonesian Central Bank -BI has increased its interest for 6 times within 9 month in a row to compromise the steep low currency value. Secondly, the development of infrastructure was the keypoint being promised in early 2014 as part of the campaign, which the Economist found that Jokowi administration suddenly changed its view with new focus at subsidies instead of infrastructure which caused a number big projects idle. Third is the business licensing seen as half-hearted, where the central government stepped back to the threat posed by the national investors. Fourth is manpower, where Indonesian worker are 45% are paid higher than its close–compete neighbour country like Vietnam in attracting investment from China.

[February 2019]

Facebook Banned Indonesian Hoax Factory Facebook in early February 2019 has released its findings and banned permanently a number of facebook accounts confirmed being a source of hoax, slander and fake account and fake opposition of an Indonesian well-known individual with code name Saracen. In response, the account owner submitted a subpoena of Rp 1 trillion (USD 70 million) to CEO of Facebook. The said account owner is an Indonesian social media activist known as Abu Janda with real name Permadi Arya whose FB account where FB Artificial Intelligence has found Permadi Arya' unnatural behaviour intentionally defaming Indonesian religious majority through code name Saracen. Saracen historically is a name of the old Turkish who fought during the war in Europe. Permadi Arya is member team for the Joko Widodo winning team in the upcoming presidential election in April 2019, on TV he also is well known for his militant and excessive slanders and fake news causing rages to Indonesian religious majority. Saracen' 3 activists once been arrested by the Police in August 2017, but the case is uncertain. Some other of the deleted related FB accounts owned by Permadi Arya are Permadi Arya (page), Citizen Word (page), Darknet ID (page), today's news (Group), Indo milo ac (Group). Head of Cybersecurity Policy Nathaniel Gleicher, through his official statement, stated that hundreds of deleted accounts were related to Saracen syndicates. Previuosly the Chairman of Saracen part of Permadi' link has been punished for 10 months imprisonment for fake news and slanders. 2 years ago an Indonesian internet analyst has warned that the government or at least its supporter  are a potential factory source of hoax, slander and fake news with various models. Facebook Inc previously has deleted 207 pages, 800 Facebook accounts, 546 groups, and 208 Indonesian Instagram accounts allegedly related to fake news syndicates, Saracens.

[February 2019]

New Trend: Extra Education Institution for High School Students extra Learning. The so called Bimbel - BImbingan Belajar or After Class Study Group is seen merely a business and commercialized education and learning for high school students. Students are slowly forced to attend these groups to obtain additional in-depth comprehension teaching taught by university students of subject materials they already learn at school. The Bimbel took 2-3 hours a week or more, depends on course material taken. The subject materials are within the curriculum, but mostly are to prepare for National Exams and Public University Exam on students' 12th grade, which in fact is not within the curriculum but more of first year' university student subject materilas. And this comes with a price, the more competitive the higher price the price list is. These are the trends starting in early 1980 where students, teachers and parents become more aware of the competitiveness to enter public schools and state universities, which become more and more prestigious and hard to access from time to time. The government accepts those phenomena by acknowledging this practices into Law 20 year 2003 as Non Formal Extra School Education - Pendidikan Sekolah Non Formal - PNF This PNF is part of Course and Training Institution - LKP under the said law. The Indonesian Bureau for Statistics - BPS noted that PNF in 2016 hits 619.947 LKP units, which 1,866 are PNF. This PNF is the most popular, take over the archaic computer and language trainings being popular only in late 70s to late 90.

 

 

 

   

 

 

Indonesia Law Update 2018

 

[January to December 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.

Indonesian Manpower rank 7th in 2030. Indonesia is predicted to source world rank 7th of human resources after China, US, India, Japan, Brasil and Rusia due Indonesia' assets of big domestic market, lot of resources and a demogrphic bonus 10 years ahead. Today Indonesia's human resources has filled various work forces around the world for the last 50 years through transmigration since last 1970s. However Indonesian govenrment now must increase its competence through licensing in knowledge, vocation and specialization according to Professor H Mohammed NAsir PhD Ak at the Minstry of Research and Technology. OTher include conncetivity, career path and responsive education into the market. A number of foreign countries namely Canada has funded USD 75 million support through PEDP a Project of Polytehcnic EducationDevelopment for the year 2013 and 2019 and an establishment of a COT- Center of Technology in Indonesia. PEDP will also build an institution called as Professional Certification Institute with a place to conduct examination being licensed by the Indonesian BNSP -  (National Certification Board) and Profession Certification Authority (for a national and international scope) supported by associations of professions.

[February 2018]

Indonesian Millenials in need for house. The release from the Indonesian central banks shows that millenials of Indonesia are in deep needs of housing, but the hike prices are getting incomparable to buy. The price hike range from 3,41% to 7% annually for the smallest 36m2 house 20-50km away from Jakarta. These remote and small houses are the lowest price at Rp300 million. Such price can only be obtained with monthly income of Rp25millon with assistance of funding lease from a bank scheme for 15 years with 10% interest. This is best scenario available while in fact there are backlog of available houses. Recently the last 3 years the Indonesian property prices has gone down around 25% to 35% but still incomparable to its rise of 300% since 2008.

Indonesia to Gain Support from the Pacific States. The support for Indonesia from countries in the Pacific is in order to build the east-most provinces of Indonesia: West Papua and Papua through friendly visit and provide deep information about social development the Indonesian government has attained so far. The release was in conjunction to an important official visit by the Indonesian Coordinating Minister of Politics, Law and Homeland Security - Menkopolkam Mr. Wiranto to the Republic Nauru last January 2018. The visit was attended by Presiden Vanuatu Tallis Obed Moses, Prime Minister Tuvalu Enele Sopoaga, President of Nauru Baron Divavesi Waqa, President of Fiji George Konrote, and President Micronesia Federation of States Peter M Ch. Wiranto admitted that Indonesia need to increase their relationship with the pacific countries to convey more and more correct formal information about Indonesia. These countries has a significant votes in the UN in delivering regional issues in the pacifics.

[February 2018]

Indonesian Migrant Workers Abroad: Problems Underpaid. The Indonesian Legal Aid - LBH pointed out that there were too many of the Indonesian migrant workers are trapped into a dangerous and long period to solve in human trafficking as in 2017 LBH efforts took 6 months for a trafficker brought to jail in Indonesia. The case was a migrant worker trapped in Malaysia being promised to work as a maid but upon the arrival she was pushed to work as a prostitute instead, joining other 5 girls already arrived. LBH was successful to bring the working agents of husband and wife in Indonesia to jail. LBH emphasize, tough currently there exist the LTSA - Agent of One Roof Services (for migrant workers), it is important the agent to tell the working conditions and salaries, then managed to cover its services deep down to villages in providing a correct informations to prospective migrant workers. The Indonesian National Employment Services for Migrant Worker - BPN2TKI responded by showing there is a significant decrease of cases from 2016 to 2017, tough the number is still high. Most of the cases are migrant worker with improper documents (254 workers), overstay (33 workers) and overcharging (33 persons). Along the year 2016-2017 there is an increase of contractual breach to 1501 cases, not to mention abuses and violances, trafficking and sickness. JBM, another media watch also released another figure, namely undocumented workers (6,300 cases), human trafficking (1,083 cases) and death (217 cases).

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American Professor Research on Islam Journalism in Indonesia. The researcher name is Janet Steel, Professor from University George Washington tells that the stigma label of hard liner journalist is not correct, that in fact the Islamic journalism in Indonesia did not contain Islamic theology but merely a journalist who happen to be Moslem. This turns back the image made the western of a typology of a Middle  Eastern-taste of Arabic culture including a fully controlled media by the government that leads to terrorism. Janet further observed one of the printed national circulation media ‘Sabili’ magazine and two national circulation newspapers ‘Tempo’ and ‘Republika’ for 8 years, and two other in the region Malaysia are Al Hujurat and Harakah (owned by Malayisa Islamic Party - PAS). Sabili is merely a media representing  Islamic scripturist with basic understanding that journalism means preaching, where the preachers are the Ustadz oral preaches are written down into printed matter. Tough it looks slightly provocative, however the magazine' editor are conducting a serious and professional journalism. Sabili was established in 1984 during the era where Indonesian Moslem as a majority felt abandoned by the government, established by students in campuses and tarbiah groups, which both experiences being labelled as right wing. Sabili perspective was Islam and Moslems are aware being surrounded by deviated sects, Islamic liberals, apostates, Cristianization and international politics commonly Palestine issues. ‘Sabili’ got bankrupt in 2013 after serving for 30 years due to mismanagement. ‘Republika’ is an Indonesian newspaper established in 1993 with a point to serve Islam as a market in a point of view of commercialism, and still exist until today as a major and leading Islamic papers with an approach keywords of modern, moderate, Moslem, nasionalism and populist. The newspaper is also in a view of ‘amar maruf nahi munkar’, that is to uphold the law and to stay away from anything bad. Its staffs are moderate in dresses as this is view as a personal choice. ‘Tempo’ is a weekly magazine being labeled as liberal Islamic led by Toriq Hadad, while maintaining its flexibility and skeptism. All of the above research by Professor Janet was drawn into a book titled, 'Cosmopolitan Journalism in the Southeast Asian Moslem States'.  Professor Janet wanted to overthrown Americans common perception to her fact finding that Islam is monolithic, and the media and the press in Indonesia are professionals, balanced, truth seeking, verification-basis and independent. She was drawn to one verse in Alquran Al- Hujurat 6 called ‘tabayyun’, a concept for anyone to cross check and ask directly of any news brought by anyone. She also found that critic exposed to the authority is open to anyone within the Islamic corridor related to the Islamic history during the Khilafa Umar bin Khattab. This is slightly to differ in the US where journalism is seen merely as secularism ‘to fight for freedom’, as to differ in Indonesia the journalism is ‘to fight for justice and independency’. Janet also praise Indonesian media for its democracy and uphold high the freedom of opinion, a sense that Islam was never being birth given-by the state as to differ from Malaysia where people are very cautious in discussing about religion. In Indonesia, no one is not afraid discussing about religion. She also found that Indonesian journalists really understand what journalism values are during the repressive 32 years of the new order era, until today. For example, news on intolerance where in balance Tempo report merely on the intolerance, while Republika reported on the causality of such intolerance, which both lines are complements each other.

[March 2018]

International Agrements Law 24/2000 challenged, the Parliament is Blamed. The statement was released after the submission for legal material evaluation before the Indonesian Constitutional Court – Mahkamah Konstitusi MK by 9 NGOs (Institute for Global Justice, Indonesian Human Rights and Social Justice, Indonesian Farmer Association, Union of Traditional Fishermen and Women Solidarity) and 5 salt farmers of group called as Economy Justice Advocacy Team. The Team argued articles 2,9,10 and 11 Law 24/2000 are in contrary to the Indonesian Constitution 1945 by knowing the parliament’ weak control towards time the government for its powerful role and executing international agreements. This simply says that the people lost its control over the government during the negotiation process of international agreements. An example of article 2 says that the minister may deliver its political consideration and take necessary steps in drawing and endorsement of international treaties with due consultation only with the parliament in respect to people' interests. The submission request outline the word 'consultation' in the paragraph is limiting parliament' power is in contrary to the Indonesian Constitution 1945 art 11 where full power of parliament is compulsory in respect to people' interest. Articles 9, 10 and 11 are also problematic where the minister has the full power to determine, which in turn is in contrary to art 1 the Constitution 1945.  Thus the team are in view all international treaties agreements,  mainly in trade, are unbeneficial to the welfare of Indonesia, namely the recent ASEAN Regional Comprehensive Economic Partnership (ASEAN-RCEP) marked by the existence of clause of ‘free flow of foreign workers/expats’ following the ‘free flow of technology transition being managed by expats (instead Indonesians)’. Flow of goods free importation are also the major concern by the recent minister of trade regulation 125/201 allowing massive salt importation giving bad impact to local traditional salt farmers. The team requested the MK judges to decide null and void the above articles in Law 24/2000 for the benefit of the peoples' interest.

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 [March 2018]

United Nations Focuses on Human Rights violation by Corporates in Indonesia. The High Commissioner of Human Rights for the United Nations in New York - UNHRHC urged the Indonesian government to assure that businesses by the corporations in Indonesia do not violates human rights due to reports received by the UN, recently. The UN HR further emphasize the violation locus are of customary laws, workers and farmers in Sumatera through Papua over frustration experienced in recent  years. He focused on the environment detrimental, water poisoning, land illegal take over and health hazards experienced by the locals where they were not party during the investment by the investing companies. Currently there are 200 land rights civil fighters are facing thread in court for rights they are fighting for. The businesses in violations are in farming and fisheries.

Increased, Corruption of Budget for Villages. At around 60 trillion  (USD 480 million) of 'Dana Desa' or ViIlage Budget since its introduction in 2015 has been misused by mean of corruption at village level within the last 2 years, a report says. ICW the Indonesian Corruption Watch studies shows the figure increased from 17 cases  (2015) to 41 (2016) and 96 (2017), which 127 out of the above total 154 corruption cases there are invloving village budgets covering various allocations namely 'village budget allocation', 'village budget' and 'village petty cash'. The corruption cases involves 112 chiefs, 32 village officers and 3 family members of the chiefs causing state loss of Rp47trillion. The government has been in great concern in combating corruptions, but the figure significantly increased from time to time. ICW suspected the increase are closely related to the funding for 2018 and 2019 elections ahead by the current majority political party in power who introduced and materialized the new concept budget. The Dana Desa was first introduced in early 2015, materialized in cash through bank transsfers of Rp 20,8 triliion (USD 170 million) for 74.910 villages all over Indonesiadirectly by the central government of Indonesia in 2015 and the number increased to Rp 46,8 trillion (2016) Rp 60 trillion (2017). The new scheme under the administration of Joko Widodo was aimed at increasing villages capacity for setting new local laws, human resources, capacity building for 220.000 officers, better management and village infrastructures projects.

[April 2018]

China Mainland  Workers Flourishing Indonesia Workmarket. The Indonesia Ombudsman has its release early this February 2018, noting that those workers are low qulified with no skills according to the Indonesian Ombudsman investigation in June to December 2017 at 7 Indonesian provinces namely in the Jakarta Greater Area – DKI Jakarta, Province of West Jawa, Province of Banten, Province of Southeast Sulawesi, Province of West Papua, Province of North Sumatera, and Province of Riau Island. Ombudsman found on those sites including airports commercial airplanes arrival from the cities of China mainland on daily frequencies of 70-80% passengers are loaded with China mainland people. The passengers are those who works at infrastructure projects funded by Cina businessmen from mainland. The problems found are those workers are paid higher than the Indoensian workers but with lesser skills, do not pay taxes and are unable to speak bahasa Indonesia to comply with the regulation. This investigation report has been forwarded to the Indonesian Ministry of Human Rights, the Indonesia Police, the Indonesian Investment Baord and MInistry of Manpower.

Indonesian Millenials in need for house. The release from the Indonesian Central Bank shows that Indonesian millenials are in deep need of housing possession but the prices are getting incomparable to buy to their real income or salary. The price hike ranges from 3,41% to 7% annually, for the smallest 36m2 house 20-50km away from Jakarta, where the lowest price is Rp300 million. Such price can only be obtained with income of Rp25millon with funding lease from a bank scheme for 15 years with 10% annual interest. This is the best property ownership scenario available, in spite there is a fact of backlog of available houses ready to be owned. The new generation composed of 96% to 97% perceive that to own a house is a must, a research shows, regardless the long tenur of lease they have to pay to the bank

[May 2018]

Indonesia Aging Population. The research released on the National Elder Days 29 May 2018 shows that by 2020 the figure of aging population will reach 10% which will burden the industrious age. Indonesia is the 4th largest populous country where in 2015 the elderly rate has already surpassed the 10% figure, particularly in areas with high density of population in the island of Java, namely Jogjakarta (13.81%), Central Java (12.59%), East Java (12.25%), Bali (10.71%) and North Sulawesi (10.42%). he government need to prepare now for a quality elderly since they are in the womb, to anticipate sufferings from various diseases  which figure according to the Ministry of Health reach 28.6 elderly who are sick as to compare to the previous year figure of 27.8%. It is also important to note that there are only 11% those retirees who enjoyed benefits from a retirement plan. Currently Indonesian elderly stayed with their children's family who supervise their prosperity and health, but there are 2.1 millions elderly are being neglected and 5.2 millions completely neglected as unable to meet their basic life. The millenilas generation must take preparation to encourage the quality of basic needs, suppress maternal and child mortality and create a better environment for a healty citizen life.

[July 2018]

Lehman Brothers Drafted the BLBI MSAA. The BLBI stands for Indonesian Central Bank Liquidity Support to a number of private banks in crisis in 1999 during the economy turmoil in Indonesia which resulted in a gigantic financial scandals through MSAA, Master Settlement Acqusiton Agreement signed by all debtors. However this scheme become odd as the Release and Discharge agreement had been signed but the collateral has not been received in full by the Indonesian Central Bank - BI. This findings was conveyed by Rizal Ramli (once Minister of Finance also senior economist) knowing that the drafts was drawn by a foreign entity instead by the BPPN as the only authorized entity in Indonesian, thus the scheme become odd and as a result creates state loss for more than Rp180 trillion until today. The major problem with the MSAA was it is dran in English, with a legal settlement not acknowldeged under the Indonesia legal system and thus the settlement become unclear.

[August 2018]

KPK: 152,000 Indonesian White Collars not yet report its ASsets. The figure of obedience reached 52% for 162.000 (out of 320.000) who completely reported its assets, according to the Director for Registration and Investigation - LHKPN. Below are the figure in details of members obedience' rate: Executive agents: 53,15%, Judicial body: 41,10%, the Assembly (MPR) 50,00%, Parliament members 12,95%, Senatory : 47,76%, Local Parliament: 19,81%, newly-appointed Parliament : 40,00%, newly-appointed Senators: 66,02%, newly-appointed Local Parliament members:23,08%, state owned-enterprises at federal and local levels: 67,61%. Total obedience: 52,04%. Meanwhile, KPK appreciated the 100% high percentage of obedience rate of white collars for local government the Province of Yogyakarta, the Ministry of National Plan Development Board – BAPPENAS and the Indonesia National Train Company - PT KAI, followed by 100% rate of obedience of the municipalities of Pangandaran, Garut, Sumbawa and Boyolali.

 

 

 

 
 
 
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