Understanding the Supreme Court's decision on Manulife

Understanding the Supreme Court's decision on Manulife

The Supreme Court has rectified the decision made by the Jakarta Commercial Court which declared PT Asuransi Jiwa Manulife Indonesia (AJMI) bankrupt. The court declared the Canadian- Indonesian insurance company solvent, hence allowing it to resume operation.

We are relieved to learn that the controversial decision declaring AJMI insolvent has finally been rectified.

However, do we truly feel relieved? Not at all. We feel sad that the Supreme Court has dismissed the Jakarta Commercial Court's decision.

Why should we feel sad? That is because the Supreme Court's decision does not reflect the spirit of truth and justice.

There has been strong pressure on the judicial institution.

As can be seen, the pressure came from two sides. First, there was political influence. We know of the objection expressed by the Canadian government as well as by other countries, to the Commercial Court's decision. The pressure was so strong that the Indonesian government did not have much choice but to intervene in the case.

Second, there was economic pressure. Many businessmen, both foreign and domestic, condemned the controversial decision. Foreign investors expressed their distrust toward Indonesia as well as their reluctance to do business in the country. At a higher level, there was the threat of the withdrawal of economic assistance.

-- Kompas, Jakarta