Fri, 30 Mar 2001

Problems plague new online licensing system

JAKARTA (JP): The new online system for endorsing corporate bodies is still having problems, with only 11 approvals by the Ministry of Justice and Human Rights since it started on March 1.

The ministry's director general of general law administration, Romli Atmasasmita, when asked by the The Jakarta Post on Thursday, conceded that despite 720 notaries now authorized to use the system "there are still many problems".

These problems involved technical matters concerning the Internet Service Provider, or notaries who were not fully accustomed to the computerized system.

Several notaries contacted by the Post complained of problems such as the length of time to get online and sudden disconnection from the server.

Romli said these difficulties could be resolved gradually, and by next month he expected some 50 endorsements could be completed per day.

The Ministry of Justice and Human Rights announced the computerized system on Jan. 31 as a way of accelerating the licensing of corporate bodies.

Under the previous manual system, notaries filed and submitted endorsement applications through the ministry's administration.

Now, notaries submit applications online.

Romli said he had instructed his staff not to accept or process new applications filed using the manual system as of March 1.

The Indonesian Notary Public Association (INI) has complained that, despite its expected eventual benefits, the online system is expensive.

The association has called on its members not to register for authorization to use the new system.

The current rate charged by notaries to license companies ranges between Rp 5 million and Rp 7 million, depending on the firm's capital. This includes the fee for the notary's services.

Several notaries claim they have to charge at least Rp 7.5 million for the new process.

"It will burden the clients," a notary who asked to remain anonymous said, without detailing the service fee charged.

Several notaries also complained that they had been asked to buy new computer hardware.

The purchase of a new modem from PT Sarana Rekatama Dinamika (SRD), a company appointed by the ministry to provide computerized services for the new system, was said to be the minimum prerequisite.

But notaries said that despite already owning a relatively new computer, they had been forced to buy another computer with a system compatible with the modem.

The ministry has stated that, if notaries already own a computer, they only have to buy the modem at a cost of about Rp 300,000.

If not, PT Sarana Rekatama Dinamika offered a computer hardware set at a cost of US$699.(04)