USU Law Professor: Businesses Require Legal Certainty

Professor of Law at Universitas Sumatera Utara (USU) Faculty of Law, Prof Dr Ningrum Natasya Sirait, stated that legal certainty is essential for businesses and companies. Prof Ningrum explained that as an academic who has studied law for decades, the law must pursue justice through its processes. Judicial institutions must be willing to justify, consider, and keep up with the latest developments. “Moreover, everyone knows Indonesia desperately needs investment, and President Prabowo Subianto is currently making strenuous efforts to attract both domestic and foreign investors. Investment is crucial to stimulate the economy, generate income, and improve societal welfare,” said the Professor of Competition Law during her teaching and supervision of master’s and doctoral students at USU campus. Prof Ningrum noted that law and economics are like oil and water—distinct but able to coexist without one superseding the other. She previously advised the government that to encourage business enthusiasm, the key is to provide legal certainty. “But you must be fair. When inviting people to do business, entrepreneurs are not hypocrites—their goal is profit. If they wish to appear socially conscious, that’s what foundations are for,” she said. Do not claim, Prof Ningrum stated, that companies seek profit—this is a misconception. Companies are inherently designed to maximise profits. She warned that businesses require legal certainty, benefits, and other factors to operate. Legal uncertainty in business operations, she noted, is a common concern among stakeholders. “If you want to attract investment, provide legal certainty for entrepreneurs. Don’t change the rules after they’ve committed—there are many examples of this. Be fair, because investors need to assess risks,” she explained. The USU Competition Law Professor stressed that law should not be wielded by authorities under the guise of policy without considering fairness, public benefit, and legal certainty. “Authorities use the law for economic goals. The fundamental issue is justice within the legal framework. Should we prioritise law or economics? Currently, it’s about economics, but legally, not illegally,” she clarified. In the past, she noted, people left unused land assets idle. But in modern times, no land is left unutilised—it is optimised. For example, during the 1998 monetary crisis. “It’s a shame—this is my complaint. All movements and changes lack strong legal backing, creating a gap,” she concluded.