Mon, 20 Apr 1998

Foreign lawyers

In The Jakarta Post, April 13, Attorney Kartini Muljadi presented clearly the rationale for the position taken by Indonesian lawyers' groups on foreign lawyers working in Indonesia. Other countries have similar restrictions on the employment of foreign attorneys within their borders. The bar associations of my own country (the U.S.) certainly have tight controls on foreign lawyers. In her article, Ms. Muljadi refers to those who attempt to circumvent the restrictions by working as "business consultants with an Indonesian company operating under the foreign capital investment law". As someone who is licensed to practice law in the U.S. but who is authorized to work in Indonesia in the field of management consulting, may I address a gray area?

Many attorneys in America do not practice law as such, but work as business consultants in a broad range of ventures. So, instead of practicing law in New York, where I am licensed to practice, I might decide to work as a business consultant in California, where I am not licensed to practice law. I would have no more right to give advice on California law or to represent a client in court in California than Ms. Muljadi would, because in the eyes of the State of California I, too, am a "foreign" lawyer. But I may work as a business consultant in California.

The specific substantive expertise of lawyers lies in understanding and interpreting law. But lawyers are also trained in skills of fact-gathering, questioning, analysis and document drafting.

Political scientists, economists, researchers and business consultants all need to be adept at these skills. But because the practical training of lawyers emphasizes these skills, they are often in demand as consultants. Consultants, whether Indonesian or foreign, capitalize on those factors in their academic and professional backgrounds which enhance their appeal to clients. As a consultant who is also an attorney, I refer to my legal background when meeting clients because I think it supports a consultant's credibility. I also explain that I am not authorized to practice law here.

The gray area: If a foreign attorney has a work permit to work here as a consultant, when and how does the consultant cross the line into the forbidden land of practicing law? Guidelines need, perhaps, to be more defined if they are to protect the interests of Indonesian lawyers, of local clients who engage foreign consultants, and of foreign consultants who want to do the right thing.

Ms. Muljadi also referred to practices which "violate the spirit and letter of the prevailing rules." Unfortunately, here, it is sometimes easy to avoid compliance with the spirit of the law because officials themselves rely heavily on the letter of the law when enforcing compliance. The tendency to interpret regulations and laws so legalistically invites abuse, by dissembling foreigners and disingenuous officials alike.

The problem is larger than that of foreign lawyers engaged in the unauthorized practice of law. Indonesian English teachers, managers and other professionals are also disadvantaged: passed over in favor of relatively cheap foreigners who work here without the proper credentials and permits. These other professionals do not have the visibility and strong lobbying power of lawyers' groups.

Self-styled foreign "consultants", managers, English teachers often are employed quite openly without benefit of a work permit. Doesn't this give an unfair business advantage to those who avoid the US$1,200 per person/per year tax?

While some employers who have gone to great lengths (and expense) to obtain work permits are victimized by corrupt immigration officials because of innocent mistakes in documents, other foreigners work openly for years without obtaining the proper sponsorship and permits.

Some employers want to comply with the immigration law, but eventually ignore visa and work-permit regulations because the rules are so obscure, or the bureaucracy is so slow, or some local officials and agents demand exorbitant unofficial fees, or it is finally easier and cheaper to pay off a lower-level immigration inspector than to go through proper channels. This is old news. Where are the new solutions?

DONNA K. WOODWARD

Medan, North Sumatra