Development of International Business Law

Lovata Andrean

Development of International Business Law Indonesian Advocates
Development of International Business Law Indonesian Advocates

Rancakmedia.com – The development of business law in Indonesia is also dominated by developments in international law. The work area of ​​Indonesian advocates is expanding, and they will also compete with foreign advocates.

The development of business law in Indonesia cannot be separated from related international agreements. Through Law no. 7 of 1994, Indonesia ratified the Agreement Establishing the World Trade Organization.

This ratification initiated a new world of international trade that greatly influenced the rule of law in each country. For Indonesia, the agreements reached by the ASEAN Economic Community increasingly eliminate national boundaries. Including the provision of legal services.

The provision of legal services across countries will become increasingly visible. Foreign advocates come to Indonesia, or conversely, Indonesian advocates provide legal services in other countries or collaborate with law firms across countries.

By referring to the definition of 'service trade and modes of supply' at the World Trade Organization, General Chair of the National Leadership Council of the Indonesian Advocates Association (DPN Peradi), Fauzie Yusuf Hasibuan, explained that the legal services subsector in global competition will cover many things.

First, from the territory of one member country to the territory of another member country (from the territory of one Member into the territory of any other Member). This is called cross-border trade, cross border trade. In this case, the provision of legal services crosses national geographic boundaries.

Second, what is called consumption abroad, within the territory of one country for service consumers from other member countries (in the territory of one member to the service consumer of other members). Third, the commercial presence mode, in the sense of a service supplier in one member country, through the presence of a service supplier business in the territory of another member country (by a service vendor, through commercial presence in the territory of any other member).

Fourth, the mode of presence of natural persons, in the sense of the service supplier of one member country, through the presence of persons in the territory of any other member country (by a service vendor of one member, through the presence of natural persons of a member in the territory of any other member ).

According to Fauzie, it is impossible to avoid international trade now. The impact will be felt by several law enforcers, including lawyers. That is the reason, the responsibility for preparing all resources and infrastructure is not only in the hands of the Government, but also legal careers such as lawyers.

The human resources of Indonesian advocates must also be well prepared to enter the highway of legal services between countries. As an advocate organization, said Fauzie, Peradi plays a role in improving the quality of approximately 45 thousand members spread across 102 branches and 57 Legal Contribution Centers (PBHs).

"Peradi is committed to improving the quality of Indonesian advocates," said Fauzie in an international seminar held by DPN Peradi and the Faculty of Law, North Sumatra Campus in Medan, Monday (23/4) yesterday.

In line with Fauzie's vision, the Chancellor of the North Sumatra Campus, Runtung Sitepu, touched on the priority of the academic community group in preparing themselves to enter global competition. Competition between countries enters many fields, including several sectors of legal services and legal teaching.

For academics, for example, it is important to be able to act to produce creations that are considered international (international journals).

This problem also emerged in Peradi's international seminar on the topic 'Internationalizing Business Movement in the Globalization of Markets and Economics from the Perspective of the Indonesian Business Law'. Mention, for example, how to ensure that the international contracts made can truly protect mutual needs.

Technological developments have made it easier to carry out contracts across countries. One thing that needs to be emphasized, according to Nicholas M. Watson, Foreign Legal Consultant at Irianto Andreas and Partners Law Office, is the law that will occur in international agreements.

Another thing that came up and was asked by participants was the language in the agreement. The arrival of Law no. 24 of 2009 concerning the Flag, Language and National Symbols and the National Anthem and several cases decided by the court show the importance of making bilingual contracts.

If the contract is made in Indonesia, the contract must be in Indonesian. Even so, the power of foreign languages ​​for an advocate is truly important in this era of globalization.

Business law developments that are no less interesting on the global trade highway are mergers and acquisitions. The more intensively the Government opens up investment channels, the greater the number of mergers and acquisitions, whether involving shares or businesses.

There are several things that lawyers need to understand in implementing mergers and acquisitions, including the issue of disputes over needs.

Article 126 Law no. 40 of 2007 concerning Limited Liability Companies makes it clear that legal actions of merger, consolidation, takeover or division must take into account the needs of the company, minority shareholders, company employees, creditors and other business partners of the company, and citizens and healthy competition when conducting business.

Cross-border insolvency is another problem that must get the attention of lawyers in the era of global competition. Advocate Ricardo Simanjuntak explained that the markets of several Southeast Asian countries could become single because of the economic integration that had been approved at ASEAN Economic Community meetings.

Article 5 paragraph (1) of the Asean Charter firmly states that the highway of goods, people and capital cannot be avoided: "to create a single and production base which is stable, prosperous, highly competitive and economically integrated with effective facilitation for trade and investment in which there is free flow of goods, services and investment, facilitated movement of business persons, professionals, talents and labor, and freer flow of capital”.

Providing legal services in cross-border company bankruptcy plans is difficult to avoid because multinational companies have assets in a number of countries at once. The basic question is what can the assets of a company that has been declared bankrupt by an Indonesian court do if its assets are in another Southeast Asian country?

Articles 212 and 213 of Law no. 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations (PKPU) states that creditors who, after the bankruptcy decision is delivered, take payment of repayment or some of their receivables from objects including bankrupt assets located outside the territory of Indonesia, which are not attached to them with priority rights, must exchange them. to the bankrupt's estate all what he got.

A creditor who transfers all or some of his receivables to a bankrupt debtor to a 3rd party, with the intention that the 3rd party will take repayment payments on a priority basis compared to someone else for all or some of his receivables from the bankrupt's assets abroad, must exchange what he gets.

If bankruptcy occurs in which companies go bankrupt in a number of countries, the work of a curator and advocate becomes more complex. Allows Indonesian lawyers to carry out litigation or ask for contributions from local state advocates to handle it.

In the midst of competition and the highways of global trade, the increase in the quality of Indonesian advocates has become a reality. The Indonesian Advocates Association has frequently held international seminars to equip its members with knowledge and knowledge regarding developments in business law.

Most recently, it was held in Medan, April 23 yesterday. This is in line with Peradi's 2015-2020 mission, namely realizing quality legal services that are professional, fair and dignified. The General Chair of DPN Peradi, Fauzie Yusuf Hasibuan, explained that advocate organizations play a big role in preparing Indonesian advocates to enter an era of global competition which is affecting several legal services.

The first role is related to increasing the quality of legal services provided by advocates. Confidence is the key to providing attorney services to clients. The higher the quality of service provided by lawyers and law firms, the happier clients will be.

One of the homework for advocacy organizations that is still untouched in the latest developments in global business is to create tutorials regarding business and human rights. Referring to the tutorial made by the Human Rights Council of the Federation of Nations, International Bar Association (IBA) has issued the IBA Practical Guide on Business and Human Rights for Business Lawyers.

This tutorial explains what company advocates need to pay attention to and carry out when carrying out due diligence.

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks