Developments in International Business Law

Rancakmedia.com – The development of business law in Indonesia is also controlled by the development of international law. The working area of Indonesian advocates is expanding, and they will all 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 has ratified the Agreement Establishing the World Trade Organization.

This ratification initiated a new world of international trade that most influenced the rule of law in each country. For Indonesia, the agreements reached by ASEAN Economic Citizens are increasingly eliminating national boundaries. Calculated the provision of legal services.

Provision of legal services across countries will become increasingly visible. Foreign lawyers come to Indonesia, or vice versa Indonesian lawyers provide legal services in other countries or cooperate with law firms across countries.

By referring to the notion of 'service trade and modes of supply' at the World Trade Organization, Chairperson of the National Executive Board of the Indonesian Advocates Association (DPN Peradi), Fauzie Yusuf Hasibuan, explained that the legal services sub-sector in global competition will cover many things.

First, from the territory of one member country to the territory of another member (from the territory of one member to the territory of any other member). This is known as cross border trading. In this case, the provision of legal services crosses the geographical boundaries of the country.

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

Fourth, the mode of presence of natural persons, in the sense that the service supplier of one member country, through the presence of people in the territory of another 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 the government of international trade again at this time. The impact will be felt on several law enforcers including advocates. That is why, the responsibility for preparing all resources and infrastructure is not only in the hands of the government, but also for legal careers such as lawyers.

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

"Peradi is committed to improving the quality of Indonesian advocates," said Fauzie in an international seminar held by the Peradi DPN and the Law Faculty of the 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 civitas academica group to prepare themselves to enter global competition. Competition between countries enters into many fields, including several legal services and legal teaching sectors.

For academics, for example, it is important to be able to act to produce creations that are considered by the international community (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 international contracts that are made can really protect mutual needs.

Technological developments have made it easier to work on cross-border contracts. One thing that needs to be emphasized, according to Nicholas M. Watson, Foreign Legal Consultant at Irianto Andreas and Partners Law Office, is which law will occur in international agreements.

Another thing that emerged and was asked by the participants was the language in the agreement. Arrival of Law No. 24 of 2009 concerning Flags, Languages and National Symbols and the National Anthem and several cases decided by courts show the priority of making bilingual contracts.

If the contract is made in Indonesia, then the contract must use the Indonesian language. Even so, the ability to speak a foreign language for an advocate is really important in today's globalization era.

Business law developments that are no less interesting in the global trade highway are mergers and acquisitions. The more aggressively the Government opens investment faucets, the greater the number of mergers and acquisitions, whether involving shares or business, will take place.

There are several things that need to be understood by advocates 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 for merging, consolidating, taking over or dividing must pay attention to the needs of the company, minority shareholders, company employees, creditors and other business partners of the company, and residents and fair competition when doing business.

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

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

Provision of legal services in bankruptcy plans for companies across countries is hard to avoid because multinational companies have assets in a number of countries as well. The basic question is what can the assets of a company that has been confirmed bankrupt by an Indonesian court do if the assets are in another Southeast Asian country?

Articles 212 and 213 of Law no. 37 of 2004 concerning Bankruptcy and Postponement of Debt Payment Obligations (PKPU) states that creditors who, after the bankruptcy decision is submitted, take payment for repayment or some of their receivables from objects that are counted as bankrupt assets outside the territory of Indonesia, which are not tied to him with the right to prioritize, must exchange to the bankrupt treasure all what he got.

A creditor who transfers all or some of his receivables to a bankrupt debtor to a 3rd party, intends that the 3rd party takes priority over payment of settlement of payments over someone for all or some of his receivables from bankrupt assets abroad, must exchange what he gets.

If there is a bankruptcy that is bad for companies that go bankrupt in a number of countries, the work of a curator and an advocate becomes more complex. Allows Indonesian advocates to carry out litigation or ask for the contribution of state advocates on the spot to take care of it.

In the midst of competition and the highways of global trade, the increase in the quality of Indonesian advocates is one truth. The Indonesian Advocates Association has regularly held international seminars to equip its members with knowledge and understanding regarding the development of business law.

Most recently, it was held in Medan, last April 23. This is in line with Peradi's 2015-2020 mission, which is to realize quality legal services that are professional, fair and dignified. The Chairperson of the DPN Peradi, Fauzie Yusuf Hasibuan, explained that advocate organizations have played a major role in preparing Indonesian lawyers to enter the era of global competition which has affected several legal services.

The first role is related to increasing the quality of legal services provided by advocates. Confidence is the key to providing advocate services to clients. The higher the quality of the service provided by the lawyer and the law firm, the happier the client.

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

This tutorial points out what needs to be paid attention to and implemented by several company advocates when conducting due diligence.

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