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.