Bagir gives go-ahead for int'l arbitration

Bagir gives go-ahead for int'l arbitration

Tiarma Siboro, The Jakarta Post, Jakarta

Despite claiming to do his best to restore the image of the
country's judges, Supreme Court head Bagir Manan said on Tuesday
that he would not prevent foreign investors from taking disputes
with their domestic partners to international courts.

"If any parties -- either foreign or local businesspeople --
are involved in a dispute, we shall leave it to them as to
whether they wish to take the case to our courts or to
international arbitration for settlement," he told The Jakarta
Post after briefing prospective judges at the Supreme Court.

Bagir denied that the move by foreign investors to frequently
settle their disputes with their Indonesian partners through
international tribunals was due to the poor performance of the
country's judicial system.

"It has nothing to do with their lack of trust in our national
courts," he said, responding to some recent cases in which
foreign businesspeople preferred to take their disputes overseas
rather than settle them at home.

The controversial case of PT Manulife Asuransi Jiwa Indonesia
was one of the examples, and it had tarnished the country's legal
system due to its failure to protect foreign investment.

Then president Abdurrahman Wahid ordered the Attorney
General's Office to halt the investigation into the case against
the major Canadian insurance company, arguing that not only did
the dispute damage Indonesian relations with foreign creditors,
but also threatened the national interest.

Bagir also rejected the condition set by donors from the
Consultative Group on Indonesia (CGI) for Jakarta to swiftly
reform the country's corrupt judiciary in order that some US$3.14
billion in loans and US$586 in grants could be disbursed.

"If the CGI urges us to do it within two days ... it's just
not possible," he said.

Pledging to disburse the loans, the creditors urged Indonesia
to accelerate its judicial reforms, including creating a
comprehensive reform strategy with clear milestones to establish
the rule of law and reduce corruption in the courts.

The CGI emphasized that many foreign investors had lost their
trust in Indonesian courts due to massive corruption here.

Bagir said the Supreme Court had been trying to improve the
courts' performance, including the recruitment process for new
judges. He claimed it would take time to implement the reforms.

The demanded reforms were inevitable as the country did not
want to dissolve the courts, he added.

"I don't mind if the CGI has accused all judges here of
practicing corruption because I can still find several good
judges in the courts," Bagir said.

"Not all court verdicts have been condemned by the people.
Only those dissatisfied with certain verdicts have lodged
protests."

When asked about the fact that many court verdicts in
politically charged cases had often ignored the public's sense of
justice, Bagir simply said, "What people do you mean? Many people
can easily claim that they represent public opinion."