Concern over foreign lawyers' practices

Concern over foreign lawyers' practices

By Kartini Muljadi

JAKARTA (JP): Many articles have been written about the stance
of a group of Indonesian lawyers over the way certain foreign
lawyers practice in the country. We wish to take this opportunity
to clarify our concerns and the issues which are at stake. Having
said that, it is equally important that we clarify that which
does not rank among the concerns of our group. We said the same
thing at a media conference held a week ago in Jakarta.

Foreign lawyers have worked in Indonesia as advisers for many
years. Indonesian lawyers do not fear or resent their presence.
On the contrary, we welcome them. We believe there is much to be
gained, on both sides, from the exchange of ideas, cooperation
and mutual assistance. However, and this is true in every other
jurisdiction that we know of, foreign lawyers, whether styled as
attorneys, practitioners, advisers, or consultants, are obliged
to conform to rules established by the national government, bar
association, immigration and tax authorities. There can be no
argument about this.

At issue is who shall be allowed to practice law and provide
legal advice and assistance in Indonesia, and under what terms,
conditions and guidelines. There are precise rules covering
foreign lawyers' participation in these activities in Indonesia,
as in all other jurisdictions. Rules and regulations covering
this area have been tailored to suit local requirements and the
sophistication of legal education and development.

In Indonesia, the relevant rules were most recently clarified
in Minister of Justice decree no.01.HT.04.02, dated 14 July,
1997. Regulations issued by the Ministry of Manpower, tax
authorities, and immigration authorities complement these core
regulations. We believe the rules and regulations in Indonesia
are fair, reciprocal and clear.

Foreign lawyers with the proper credentials and permission are
welcome to work as advisers and consultants with Indonesian law
firms. However, foreign lawyers and firms are not permitted to
practice Indonesian law through a licensed Indonesian limited
liability company, or through a technical assistance agreement,
or by acting as a business consultant with an Indonesian company
operating under the foreign capital investment law.

These practices have regrettably become increasingly
widespread. They not only violate the spirit and letter of the
prevailing rules, but reduce the welfare and activities of the
Indonesian legal community and may give rise to misunderstandings
over foreign lawyers' qualifications and license to practice in
Indonesia.

It is for these reasons that we, in tandem with several
important Indonesian legal organizations, have urged that these
practices be brought to an end.

Lawyers regularly visit Jakarta for short periods of time to
address the needs of a range of clients. Such lawyers work from
hotels or in the offices of their Indonesian clients. We often
meet them during negotiations concerning joint venture projects
and meetings to discuss security arrangements under Indonesian
law. These lawyers often undertake work from bases outside
Indonesia, such as Singapore and Hong Kong.

We are not complaining about foreign lawyers coming to Jakarta
for a week or less to assist foreign clients prepare for a
transaction or overcome contractual problems. Such foreign
lawyers do not regularly visit Indonesia. They only come when
their client requires and they only serve one client per visit.
This is not what we object to. We understand this is necessary in
an increasingly global environment. These lawyers are not
"practicing law" in Indonesia.

Finally, we wish to emphasize that this is not a personality
clash or a dispute with particular individuals. Disputes between
foreign and Indonesian lawyers are not the concern of our group,
and that is not why these issues have been raised. Such disputes
should, and we trust will be, handled in the proper manner by the
appropriate authorities, with due respect for the rights of all
parties concerned.

The writer is a prominent legal practitioner based in Jakarta.