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