Thu, 16 Apr 1998

Foreign lawyers' illegal practice?

Police questioned recently a number of expatriates who allegedly practice as counsels/lawyers through a limited liability company (PT).

This investigation should be praised and receive support from all Indonesian lawyers. Why? First, foreign lawyers practicing here is not in accordance with a reciprocity principle, which commonly applies in international law, and, in turn, results in unfair treatment to Indonesian lawyers. Unfairness is the main issue of this matter, since Indonesian lawyers cannot practice law in foreign countries unless they have met very strict requirements.

On the other hand, foreign lawyers are easily discharging legal services on Indonesian law in Indonesia. Is this the meaning of an open market in the globalization era, as promoted by developed countries?

Second, expatriates who use a PT as their business vehicle are obviously violating their work permits. Arguments that they only render advisory services in management, investment and business opportunity are questionable.

For instance, in Business Times, May 17, 1996, an advertisement of a law firm with the initials MLB declared that it had an office in Jakarta called PT MLB Indonesia. Furthermore, in business transactions in Jakarta, we can easily find much paperwork on Indonesian laws prepared by foreign lawyers under the name of a PT. This is clear evidence of the existence of foreign lawyers practicing Indonesian law.

Third, in terms of figures, it would be too naive to say that the number of foreign lawyers in Indonesia is small, without considering the possibility that they might use high-tech equipment such as facsimile, e-mail or tele-video conference, by which one foreign lawyer is actually supported by a group of his colleagues overseas. What is the result? Hugh amounts of money will flow overseas, and this will swallow Indonesia's foreign exchange and, perhaps, will also lessen the income tax of a country which is currently suffering economic turmoil.

We have noted from headlines in many Indonesian newspapers how other countries treat Indonesian illegal workers or Indonesians who misuse their work permits. It should be ironic that we are too ignorant and do not realize that our laws are not being honored by foreigners who are earning money here.

The authority's actions will be more fruitful if Indonesian lawyers actively participate. What participation? Perhaps, these approaches can be taken into consideration: First, Indonesian lawyers should report to the authorities (and to organizations of legal practitioners) whenever they find expatriates who, under a PT, render legal services in Indonesia. Second, every Indonesian lawyer should refrain from dealing with expatriates who misuse their work permits by acting as legal counsels.

Indeed, achievement of such approaches needs cooperation among and trust from all Indonesian lawyers.

IRIANTO HELDY

Jakarta