Flawed law enforcement

Flawed law enforcement

What has made domestic and foreign investors afraid of doing
business in Indonesia? The answer is law enforcement, the lack of
tax holidays, electricity and skilled workers.

Anxiety has likely been confirmed by the Central Jakarta
Commercial Court's verdict on PT Asuransi Jiwa Manulife Indonesia
(AJMI), a life insurance company.

The court declared AJMI bankrupt as the latter failed to pay
dividends to its partner PT Dharmala Sakti Sejahtera (DSS).

The verdict has been strongly protested by Canada-based
Manulife Financial Corporation. Canada's government has also
protested the verdict. They said the court's judges must have
been bribed.

It is hard to imagine that the company, which was declared
solvent by the finance ministry, has suddenly been declared
bankrupt. It is also difficult to imagine that the company, which
has assets worth more than Rp 3 trillion, was unable to pay
dividends totaling just Rp 32 billion.

It is thus high time to review the country's legal system.

-- Kompas, Jakarta