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)