Indonesia urged to enact more economic laws
Indonesia urged to enact more economic laws
JAKARTA (JP): Indonesia needs to continue its economic legal
reforms by producing more governing laws on economic activities
to anticipate the implementation of free trade in Southeast Asia
and the Pacific region, according to lawyers.
Kitty Sugondo, a lawyer from Sugondo-Kramadibrata law firm,
said yesterday that a number of Indonesia's economic laws still
need revision in order to give more legal certainty in the era of
trade and investment liberalization.
She pointed out that the investment laws, which differentiate
between foreign and domestic investment, are ones which need
revision.
"The World Trade Organization, whose establishment has been
ratified by Indonesia, does not recognize such different
treatments," she added.
But she welcomed the recent enactment of both the limited
liability company and stock market bills as they will improve the
economic law system in the country.
The two laws are expected to come into force early next year.
Kitty made the remarks at a news conference held to announce
the convening of a conference on economic law reform in Southeast
Asia at the Grand Hyatt hotel on Oct. 30 and Oct. 31 by the
Inter-Pacific Bar Association.
She noted that the introduction of a new investment law which
provides national treatment to foreign investors is timely to
accommodate the current influx of foreign investment in
Indonesia.
Other economic laws the government and the House of
Representatives need to produce soon are those on secured
transactions and on alternative dispute resolution law, which are
badly needed in the country's growing economic activities.
Normin S. Pakpahan, chairman of the Economic Law and Improved
Procurement System Project, said the most urgent matter to secure
legal certainty is improving law enforcement.
"Although the substance of a law may be very good, for
instance, if enforcement is still lacking, I believe it cannot
yet secure legal certainty," Normin said.
He stressed the importance of legal certainty in Indonesia to
sustain its high economic growth. Legal certainty through a well
functioning legal system will provide a conducive business
environment in which firms and industries compete.
Harjono Tjitrosoebono, chairman of the Indonesian Bar
Association, noted that Indonesia's economic legal reforms should
also adapt to multilateral and regional trade liberalization
initiatives.
Indonesia should look into its neighboring countries' legal
systems because they are also reforming their economic legal
systems by taking into account their respective economic
development, Harjono said.
He said the conference, which is being organized in
cooperation with the Indonesian Bar Association, will discuss
such topics as company law, investment, capital market. secured
transactions, alternative dispute resolution.
The conference will address the topics in relation to market
efficiency and productivity as they correlate with legal
certainty and predictability. (rid)