The new beginning

Practicing law in transforming Indonesia

Contract Drafting CourseFHUI, February 14, 2012

Indicators of the new beginning

• Transformation of Indonesia into a democratic country

• The free election systems• The freedom of expression resulted in a dynamic parliamentary systems,

quasi presidential systems • The free media• The continuing agenda of reformation of state institutions, creation of

new institutions required for a democratic society, blueprints and programs to improve and empower bureaucracy, parliament and judiciary are underway

• Active participation of middle class and civil society in the change process

• Human rights issues get a wide-spread attention, national and international

• The building and improvement of the pillars of the national integrity systems (free election, effective legislation by independent parliament, effective executive, clean judiciary, anti corruption body and courts, mechanism to submit complaint/grievance (ombudsman), independent constitutional court, oversight bodies (BPK, BPKP) and others)

Indicators of the new beginning

• The new growth center

• The 1998 crisis experience and application of the right policies to guard the financial/banking systems

• Fastest economic growth and significant increase of reserves• Lowest inflation rate, rupiah has been strong and capital market is

one of the most attractive markets in the region• Mild political issues and acceptable level of security conditions• Moving toward a more open society• Relatively better investment climate• Abundant natural resources and human resources• Spread of economic growing centers all over the country resulting

from the regional autonomy• International acknowledgement from international forum: G20,

leader of ASEAN, neutral position in regional and international conflicts, etc

• Commitment to develop infrastructure and public utilities and facilities

Indicators of the new beginning

• The constraints

• The legacy of corrupt bureaucracy, judiciary and parliament: the corruption perception index still places Indonesia as one of the most corrupt country in the world (TII corruption perception index)

• Weak political structure as legacy of the New Order repressive policy

• Weak national leadership: safe-play policy and influence of the New Order in the bureaucracy, parliament, judiciary, political parties and informal leaders

• Ineffective systems of dispute settling mechanism

• Ambiguity in finding where the power to make decision is: executive, parliament, central or local government, political party, business sector

Indicators of the new beginning

• The constraints

• Inconsistent and overlapping regulations and public policy

• The monopolistic media

• Inefficient work force

• Lack of infrastructure and public utilities/facilities

• Lack of first class education and training to produce skilled-manpower

• Lack of good health care systems

• Expensive financing and lack of funding access

• Fragile community systems – religion and social issues – horizontal conflicts

• Regional autonomy issues

Utilizing the momentum effectively

• To continue and improve democratization process

• Improve the general and local election systems by allowing independent candidates to run for the public offices with less formal requirements

• Improve the political party systems

• Improve the political funding/campaign systems to eradicate money politic practices

• Involve active participation of civil society, NGOs and citizens in making sure fair, direct and clean election practices

• Reposition and align the presidential and parliamentary systems so the executives could make and implement decisions under the checks and balances systems of the parliament

Utilizing the momentum effectively

• To continue and improve the development of national integrity systems

• Reforming the state institutions, improving the governance systems and reselecting the key persons who meets the requirements to lead the reformation efforts

• Improving the building capacity of the legislative body to enable it producing socially-responsible legislations

• Improving the capability of the oversight bodies to audit and supervise the utilization of the state finance and other state assets

• improving the capability of the judiciary to produce good and fair decision

• Eradicate corruption in all levels of bureaucracy, legislative and judiciary

• Improving the good corporate governance practices for business sector

• Involving civil society including NGOs in public policy making process and oversight activities

• Rebuilding fair and transparent business environment

The role of legal profession in

transformation process

Next week discussion: the role of the Indonesianlegal profession in the transformation process and how Indonesian lawyers have to adjust themselves to take that role

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