Has Indonesia Turned the Economy Corner?

I really should get back to writing more dry analysis of business and economics news and the legal frameworks that impact those two areas in Indonesia. Sometimes, I miss writing for a captive audience. My previous life at hukumonline.com afforded me that opportunity.

The amount of money coming into Indonesia through 2010 is the most to be placed since 1998. The amount is a rather impressive USD 23.3 billion. This has been driven by consumers and resources. However, it is interesting that some are suggesting that the biggest factor in this surge of investment is thanks to President Susilo Bambang Yudhoyono (aka SBY). According to those in the know, foreign lawyers, the resurgent confidence is directly related to SBY's ability to fight corruption and terrorism combined with his drive to raise the levels of spending on critical infrastructure.

To be honest, I am not sure that a lot of others, who would also consider themselves to be in the know would agree with this assessment. There is no doubting that the Indonesian economy is going great guns in terms of investment. This might just as easily be attributed to the idea that some investors have reached a point where any risk is justified by the potential returns. It may be that it is simply no longer an option to wait and see and get left behind.

The idea that corruption is under control and that the Indonesian judiciary is sufficiently reformed to make business transactions certain is tantamount to burying one's head in the sand. A recent speech by the former Finance Minister of Indonesia, Sri Mulyani Indrawati, highlighted just how prevalent corruption is and how much of a threat it still is. I would argue she might know about these things, particularly when one considers most people believe that she moved to her current position at the World Bank after getting worked over by Aburizal Bakrie and a compliant SBY when she sort to clean house at the tax office.

The judiciary is still a long way from being an organisation that provides legal certainty to business players. Judges are still on the take. Police officers and prosecutors are also on the take. The recent case of Gayus Tambunan and his ability to get out of jail highlights.

Nevertheless, the surging business environment is providing plenty of legal work, and the numbers of accredited foreign lawyers working in Indonesia has risen from 20 to 50. I will need to make some calls and get the relevant data to substantiate this because as I recall there were like 40-odd accredited lawyers in the beginning of 2009. All foreign lawyers must be accredited through the Indonesian Bar Association (PERADI) if they are to work in Indonesia. It is worth noting that there are a significant number of foreign lawyers in Indonesia who are not accredited by PERADI. This is achieved through technicalities as the foreign lawyer is not employed as a lawyer, but rather in some other capacity.

With all these things to be considered, the question is "has Indonesia turned the economy corner?"

A Single Bar Association for Indonesia -- No Way!

Sometimes it is not the law in Indonesia that is the "ass" but the lawyers themselves!

I must add, I know a lot of Indonesian lawyers (maybe more than I will ever need to) and the thought of them standing toe-to-toe and slugging it out with their fellow lawyers is something I find mildly amusing. It brings a smile to my face for reasons I cannot properly explain, but just the thought of these upstanding citizens slugging it out....arghhhhhhhhhhh!

The law in Indonesia demands that there is a unified and single bar in Indonesia. This is designed to ensure that there is some degree of consistency and uniformity in the way that Indonesian advocates are certified and come to practice. After the enactment of the Advocates Law back in 2003, this is PERADI (Indonesian Bar Association). PERADI was set up in 2005.

PERADI is inherently infused with politics, some of them personal, and as such it was a no-brainer to expect that sooner or later, and probably sooner, that things would start to heat up around the fringes and then start to unravel, probably in increasingly ugly ways. And, they did. The reality was that the birthing of a new organisation from eight rival bar associations where those eight bar associations were not wound up and dissolved completely meant that simmering tension would remain.

A lot of what has transpired most recently is unbecoming for a professional bar association; it is an embarrassment to all involved. However, the events of today that has seemingly seen lawyers come to blows and the police get involved is a low-point that even some of the more seasoned lawyers might not have thought they would get to see. Some of the scenes were allegedly reminiscent of scenes more likely to be scene in a Taiwanese parliament than at an advocate swearing-in ceremony in a five-star hotel, the Gran Melia, in Jakarta.

Nevertheless, this is what happened when the more recently formed Indonesian Advocates Congress (KAI) turned up at the hotel to protest the swearing-in of the new PERADI advocates by the Chief Justice of the Supreme Court of Indonesia. KAI believes that it is the legitimate organisation to represent the interests of Indonesian advocates. This is based on an argument that PERADI from its inception has been legally flawed. However, this would not seem to be the case in the strictest of legal senses because in a Constitution Court decision from 2006 the Court states that PERADI is the one.

It might be time for the KAI to either suck it up and get on with life under PERADI or continue to pursue ever-dwindling legal options to overturn the PERADI monopoly on certificating Indonesian advocates practicing in Indonesian courts. It is time that KAI recognised, whether it wants to or not, that the Supreme Court has issued a Circular which is explicit in stating that KAI affiliated lawyers cannot practice in court until they have satisfied the PERADI requirements for certification. This Circular was hotly contested by KAI, but it only resulted in a mediated deal that still requires the establishment of a single bar association by 2012.

It really does not matter what the single bar association is called; PERADI, KAI or AA (Advocates Anonymous -- AA considering it is a bar association). What matters is that a unified bar can be formed. This will require a commitment to disbanding all rival associations and congresses once a unified bar can be agreed to. This process is not going to be an easy one; too many personalities and too much politicking, but it has to be done.

In many respects, the future of the Indonesian legal system demands that there is stability and that there is uniformity in the certification process for lawyers. This is necessary, of for no other reason, to ensure the rights  of those who enter the Indonesian legal system to seek justice for themselves or those that they represent.

Two rival advocate associations coming to blows in a five-star hotel is an embarrassment on a grand scale. Shame on you all!

Shame, shame, shame.

(The photo is apparently from twitter and comes via here)

Todung Mulya Lubis - Part II

I have been reading around as I do when there is a story that interests me! The TML story is one that interests me for a number of reasons. But prominent among these is that the decision to disbar the man seems excessive and it seems political and it sets a bad precedent. The decision has the hallmarks of a hatchet job...at least TML seems to agree with an assessment such as this one!

This is what TML is quoted as saying to the Asia Sentinel:

In a telephone interview with Asia Sentinel, Mulya Lubis called the decision “totally baseless and unlawful” and said he has little hope of winning an appeal.

“For me this is a conspiracy of corrupt lawyers who feel troubled and disturbed by my stand to play by the rules and consistently fight against corruption,” he said. “The judgment is outrageous and has killed my life, violated my right to practice law, and defied common sense and justice. I will appeal, but I am losing hope in the integrity of the Bar Association. The legal profession is rotten.”

The decision although a ban for life and in spite of the fact that TML himself feels like there is little hope on appeal, I have a sneaky suspicion that he will not be lost forever to the legal profession either here or Indonesia. If PERADI is seen to be too political and too concerned with vested interests, then it is going to come under pressure to either reform or be pushed aside.

There is a new advocates association in the making with a preliminary congress style meeting to be held in the very near future. So, perhaps this might not be the end after all for TML.

Anyone interested in this topic of ethics and ethical violations by Indonesian lawyers only need do a Google search to find that there are lawyers still practicing in Indonesia who have been alleged to have committed as serious, if not more serious, violations of the code of ethics...If you cannot find it on Google then drop me a note and I will drop some names for you to search for!