Author: Dr. Guan Yue

Categories of Witnesses Prohibited from Testifying in Indonesian Civil Trials

Posted by Dr. Guan Yue on

In civil trials, a witness is someone who directly sees, hears, or experiences a legal event, and their testimony can serve as one of the considerations in resolving a case. According to Article 1866 of the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata, abbreviated as BW), the forms of evidence are as follows:

  • Written evidence;
  • Witness testimony;
  • Presumptions;
  • Confessions;
  • Oaths.

However, not everyone can serve as a witness in civil litigation. The Indonesian Civil Procedure Code (Hukum Acara Perdata), particularly Revised Indonesian Civil Procedure Code (H.I.R (Herzien Inlandsch Reglement)) Article 145, sets specific restrictions on who may testify as a witness.

Restrictions on Witnesses

Article 145 of H.I.R states that the following individuals cannot serve as witnesses in civil trials:

  1. Direct relatives and in-laws
    This includes direct family members or in-laws of the parties involved.
  2. Spouses
    Even if divorced, a former spouse cannot act as a witness against the other party.
  3. Minors under 15 years of age
    If it cannot be confirmed that the witness is at least 15 years old, their testimony is invalid.
  4. Mentally ill individuals
    Even if the individual occasionally has clear memory, their testimony is not considered valid evidence.

Exceptions

Despite these restrictions, there are exceptions where such witnesses may testify:

  1. Family disputes
    In cases involving family matters such as marriage, divorce, or child custody, direct relatives or in-laws may act as witnesses.
  2. Labor disputes
    For issues related to employment contracts (e.g., termination, severance pay, or labor rights), these restrictions may be waived.

Right to Refuse Testimony

Article 146 of H.I.R grants certain individuals the right to refuse to testify, including:

  1. Siblings and their spouses from either party;
  2. Direct blood relatives and siblings of the husband or wife of one of the parties;
  3. Any person who, by virtue of their job or position, is legally bound to maintain confidentiality; but only regarding matters entrusted to them.

This protects witnesses from being forced into difficult situations, ensuring their rights and privacy.

Legal Consequences

If a prohibited person is compelled to testify in a civil trial, their testimony is of limited legal value. While they may appear in court, they are not sworn in, and their testimony cannot be used as valid evidence.

Conclusion

The restrictions on witnesses in Indonesian civil trials reflect the legal system’s commitment to fairness and the reliability of evidence. By specifying who can and cannot testify, and allowing exceptions in particular circumstances, the law ensures that the evidence presented in court is both credible and appropriate for the case at hand.

PASAL 25 in Indonesia’s Corporate Tax System and Its Calculation Method

Posted by Dr. Guan Yue on

In Indonesia’s taxation system, PASAL 25 (Pajak Penghasilan Pasal 25, abbreviated as PPh Pasal 25) is an integral part of corporate income tax. It provides a mechanism for companies to pay their income tax in monthly installments, reducing the financial burden of a single annual payment and ensuring steady tax revenue for the government. This article will explain PASAL 25, its scope, and its calculation method.

What is PASAL 25?

PPh Pasal 25 refers to the tax regulation under Article 25 of Indonesia’s Income Tax Law, requiring taxpayers to pay their estimated annual income tax in monthly installments. It applies to:

  1. Corporate taxpayers (Badan Usaha), including limited liability companies (PT), cooperatives, and other business entities.
  2. Individual taxpayers (Wajib Pajak Orang Pribadi) whose income meets the taxable threshold.

PASAL 25 serves as a prepayment towards the final annual income tax liability (PPh Pasal 29), alleviating the financial burden during the annual tax return process.

How is PASAL 25 Calculated?

The monthly installments for PASAL 25 are based on the previous year’s tax filings, using the following formula:

Where:

  • Previous Year’s Tax Liability: The total income tax payable reported in the previous year’s tax return (PPh Pasal 29).
  • Previous Year’s Tax Credits: Tax amounts already paid through withholding taxes such as PPh Pasal 21 (employee income tax), PPh Pasal 23 (withholding tax on specific transactions), and PPh Pasal 22 (prepaid tax for imports).
  • 12: The number of months in a year, representing equal monthly installments.

Example Calculation

Suppose a company’s total tax liability for 2023 was IDR 1,200,000,000, and it had already paid IDR 400,000,000 through PPh Pasal 21, PPh Pasal 23, and PPh Pasal 22. Its monthly PASAL 25 payment for 2024 would be:

Thus, the company would need to pay IDR 66,666,667 monthly as its PASAL 25 obligation in 2024.

Payment Procedure and Deadlines

Taxpayers are required to pay PASAL 25 by the 15th of each month, using the following steps:

  1. Generate a tax payment slip (SSP) through Indonesia’s online tax system (e-Billing).
  2. Complete the payment at designated banks or through online payment systems.

Timely payment of PASAL 25 avoids penalties and late payment fines.

Relation to Other Taxes

PASAL 25 operates as a prepayment mechanism linked to the final annual income tax (PPh Pasal 29). If the total prepaid tax exceeds the actual annual tax liability, the taxpayer can apply for a refund. Conversely, if the prepayments fall short, the taxpayer must pay the difference during the annual tax reconciliation process.

Conclusion

PASAL 25 is a critical component of Indonesia’s corporate tax framework. Proper planning and timely compliance with PASAL 25 obligations help businesses manage their tax burden effectively while avoiding penalties. Companies should ensure accurate calculations based on their previous year’s tax data to stay compliant with the law.

The Three-tier Final Appeal System in Indonesia

Posted by Dr. Guan Yue on

Indonesia’s judicial system adopts a three-tier final appeal system. This means that every case can go through three levels of review, with the Supreme Court making the final ruling.

The first instance is usually heard in the district court. Here, the judge will examine the facts of the case and render a verdict. If either party is dissatisfied with the decision, they can appeal to the higher court.

The second level of appeal takes place in the provincial high court. The high court will re-examine the case and may either overturn or uphold the original judgment. If the parties are still not satisfied, they can further appeal to the Supreme Court.

The final appeal process happens at the Indonesian Supreme Court. The Supreme Court has the ultimate decision-making power, and its judgments are legally binding. This three-tier appeal system provides safeguards for judicial fairness and legal certainty.

This three-level judicial review system helps to fully protect the litigants’ right to appeal. Each stage offers an opportunity for examination and defense, ensuring the fairness and correctness of the final ruling. Even at the Supreme Court, the parties can continue to appeal until a satisfactory result is obtained.

Of course, the three-tier final appeal system also has its limitations. The entire litigation process may drag on for years, imposing a heavy burden on the parties and judicial resources. As a result, the Indonesian government has in recent years been exploring ways to streamline the review process and improve judicial efficiency.

Overall, Indonesia’s three-tier final appeal system reflects the judicial system’s pursuit of justice and certainty. It provides ample opportunities for redress to the parties, but at the same time, a balance needs to be struck between efficiency and fairness.

Eni Oktaviani and Dr. Guan Yue Awarded “Indonesia Most Trusted Lawyer Award 2024”

Posted by Dr. Guan Yue on

At the awards ceremony on July 5, 2024, lawyers Eni Oktaviani and Dr. Guan Yue of Queen Law Firm were honored with the prestigious “Indonesia Most Trusted Lawyer Award 2024”. This recognition not only acknowledges their outstanding achievements in the legal field but also affirms their profound discussions and contributions to trust, law, and justice.

During the awards ceremony, Dr. Guan Yue delivered a thought-provoking speech titled “How Trust, Law, and Justice Should Promote Each Other.” He delved deep into the importance of trust in the legal system and how law and justice are interdependent, mutually reinforcing concepts. Dr. Guan Yue’s speech not only captivated the audience but also sparked deep reflections on legal ethics, social justice, and the advancement of the rule of law.

As members of Queen Law Firm, Eni Oktaviani and Dr. Guan Yue have demonstrated exceptional professionalism and a passion for the legal profession. They have not only showcased superior legal skills in handling cases but have also contributed to advancing judicial fairness and the progress of the rule of law through active participation in social welfare activities and legal advocacy work.

The awarding of the “Indonesia Most Trusted Lawyer Award 2024” not only recognizes the personal achievements of Eni Oktaviani and Dr. Guan Yue but also acknowledges the values they represent and their dedication to the legal profession. Their efforts and dedication will continue to inspire more legal practitioners to work towards building a more just, transparent, and rule of law society.

On the path ahead, Eni Oktaviani and Dr. Guan Yue will continue to lead Indonesia’s legal community towards a brighter future with their lofty beliefs and professional spirit, providing solid legal protection and support for everyone seeking justice. Their achievements will be recorded in history, serving as role models for legal practitioners and the wider society to learn from and emulate.

Bringing Justice into the Digital Age: The Transformation of Indonesia’s E-Court System

Posted by Dr. Guan Yue on

Indonesia, as a continuously developing nation, views technological innovation not only as a tool for economic and social progress but also as a means to enhance its judicial system. In an effort to provide easier, faster, and more transparent access to justice, Indonesia has launched the E-Court system aimed at reshaping the country’s judicial landscape.

What is the E-Court System?

E-Court is a service for Registered Users to Register Cases Online, Obtain Estimates of Case Deposit Fees Online, Make Online Payments, Summonings Conducted through Electronic Channels, and Electronic Hearings.

Benefits of the E-Court System

  1. Improved Accessibility: One of the primary benefits of the E-Court system is providing easier access to justice for the public. By enabling online submission of documents and monitoring of case progress, individuals no longer need to physically visit the court, saving time and travel costs.
  2. Faster Processes: By eliminating the need for manual handling of documents and other administrative processes, the E-Court system helps expedite the judicial process. This can reduce case backlogs and ensure that court decisions can be reached more quickly.
  3. Efficiency and Transparency: With all documents available online, both parties involved in a case and the public can access information more easily. This enhances the transparency of the judicial system and makes legal processes easier to monitor.
  4. Data Security: The E-Court system is designed with high standards of data security to protect sensitive data related to legal cases. With robust data encryption and strict access controls, the system provides better security to prevent data breaches.

Challenges and Future Development

While the E-Court system offers many benefits, its implementation is not without challenges. Some challenges include uneven technological infrastructure across Indonesia, the need for court staff training on technology usage, and ensuring that access to the system is not discriminatory against individuals who may lack internet access.

To address these challenges, the government and relevant stakeholders need to continue developing the E-Court system by allocating sufficient resources, providing adequate training, and ensuring that technological infrastructure is available evenly across Indonesia.

The future development of the E-Court system should also consider aspects such as integration with international judicial systems, the use of artificial intelligence for legal data analysis, and the development of mobile applications to enhance accessibility.

Conclusion

The E-Court system is a significant step forward in modernizing Indonesia’s judicial system. By providing better accessibility, expediting judicial processes, improving efficiency, and enhancing transparency, E-Court brings hope for greater justice to all segments of society. However, to realize its full potential, sustained efforts are needed from all stakeholders to address challenges and continuously develop the system towards a more inclusive and effective future.

“Civil Litigation” or “Criminal Reporting”?

Posted by Dr. Guan Yue on

In Indonesia, civil litigation and criminal reporting are two main avenues for resolving legal disputes. Although both are integral parts of the judicial system, they exhibit distinct differences and applicability in practice. This article will explore a comparison between using civil litigation and criminal reporting to resolve legal disputes in Indonesia, including their procedures, purposes, and impacts.

Civil Litigation

Civil litigation refers to disputes between individuals or entities involving contracts, property rights, damages claims, and the like. In Indonesia, civil litigation procedures are relatively formal, typically requiring parties to engage lawyers to represent them. The following are the general procedures of civil litigation:

  1. Filing of Lawsuit: The plaintiff submits a complaint to the court, stating their claims and factual basis.
  2. Defense: The defendant submits a defense within the specified period, stating their position and defense reasons.
  3. Exchange of Evidence: Both parties exchange evidence and present witness testimonies in court to support their claims.
  4. Trial: The court conducts a trial, hearing arguments, evidence, and debates from both parties, and eventually renders a judgment.

Criminal Reporting

Criminal reporting involves actions that violate criminal law such as theft, assault, fraud, and so forth. In Indonesia, the process of criminal reporting is led by the police and prosecutors, typically without direct involvement of the victim but represented by public institutions. The following are the general procedures of criminal reporting:

  1. Filing a Report: The victim reports the incident to the police, providing relevant evidence and testimonies.
  2. Investigation: The police conduct an investigation, gather evidence, and take necessary actions such as arresting suspects.
  3. Prosecution: Based on the investigation results, the prosecutor decides whether to prosecute the suspect in court or not.
  4. Trial: The court holds a trial, hears evidence and arguments from both parties, and eventually makes a judgment.

Comparative Analysis

  1. Purpose: Civil litigation aims to restore the rights of the victim and compensate for losses through economic compensation or other civil remedies. On the other hand, criminal reporting aims to punish criminal behavior, maintain social order, and public interests.
  2. Evidence Standard: In civil litigation, the evidence standard is usually “balance of probabilities,” where the decision is based on the credibility of evidence. Whereas in criminal reporting, the evidence standard requires evidence to be conclusive, beyond reasonable doubt, proving the defendant’s guilt.
  3. Parties Involved: Civil litigation involves private disputes between parties, requiring active participation and self-bearing of litigation costs from the disputing parties. Conversely, criminal reporting is handled by public institutions such as the police and prosecutors, with minimal involvement from the victim.
  4. Impact of Judgments: Judgments in civil litigation typically result in economic compensation or injunctions, without involving the restriction of the defendant’s freedom. Whereas judgments in criminal reporting may lead to the defendant being convicted and facing imprisonment, fines, or other penalties.

Conclusion

Civil litigation and criminal reporting are two common ways to resolve legal disputes in Indonesia, each with different procedures, purposes, and impacts. The choice between the two depends on specific circumstances such as the nature of the dispute, the extent of harm, and the willingness of the disputing parties. Regardless of the chosen method, Indonesia’s judicial institutions are committed to resolving legal disputes fairly and effectively, to uphold the rights of citizens and maintain social order.

Indonesian Queen Law Firm Team Visits China, Paving the Way for New Chapter in Sino-Indonesian Legal Cooperation

Posted by Dr. Guan Yue on

In recent days, two distinguished lawyers from the Indonesian Queen Law Firm, Dr. Guan Yue and Eni Oktaviani, embarked on a crucial legal mission to Kunming, China. Simultaneously, they held a fruitful meeting with Lawyer Lin Yi from Shanghai Landing (Kunming) Law Firm.

Dr. Guan Yue expressed, “This journey is not only about handling cases but also strengthening legal cooperation between China and Indonesia. Our discussions with Lawyer Lin Yi will provide valuable legal insights, enhancing our ability to achieve better outcomes in case resolutions.”

Eni Oktaviani added, “Kunming is a vibrant city, and we look forward to gaining a deep understanding of China’s legal environment. Through collaboration with Lawyer Lin Yi, we aim to uncover legal solutions together.”

During the meeting with Lawyer Lin Yi from Shanghai Landing (Kunming) Law Firm, both parties delved into their respective legal systems, case experiences, and potential collaboration opportunities. This collaboration not only holds the promise of providing additional legal support for the ongoing cases but also solidifies a stronger bridge for legal cooperation between China and Indonesia.

This initiative of handling cases in China underscores the proactive role of the Indonesian Queen Law Firm on the international legal stage, injecting new vitality into Sino-Indonesian legal cooperation. Anticipating that both sides will jointly drive innovation and development in legal affairs through future collaborations.

Members of Queen Law Firm Head to North Maluku Province to Handle Major Cases

Posted by Dr. Guan Yue on

Today, a team from Queen Law Firm headed to the Nickel Mining and Industrial Park in Central Halmahera, North Maluku, Indonesia – the Indonesia Weda Bay Industrial Park (IWIP), to provide legal assistance in several significant cases. As one of the leading legal teams in Indonesia, they will strive to resolve the legal challenges currently facing the region.

Queen Law Firm is a prominent law firm in Indonesia known for its professional legal services and client commitment. In this assignment, they will deal with various types of cases, including debt disputes, land disputes, and labor rights. This action reaffirms Queen Law Firm’s commitment to providing legal support throughout Indonesia.

North Maluku province is an important industrial area in Indonesia, with its nickel mining resources attracting global attention. However, with the rapid development of industry in the region, several legal challenges have emerged, including those related to debt, land use, and labor rights. The arrival of Queen Law Firm brings hope to the region while reminding the industry of the importance of legal compliance.

Members of Queen Law Firm will collaborate with relevant government departments and companies at the Weda Bay Industrial Park, working to resolve current legal disputes and promote the development of a sustainable legal framework in the area.

Eni Oktaviani, SH., MH., CLA., a lawyer from Queen Law Firm, stated that they will actively collaborate with judicial institutions and the local community, striving to find solutions, ensure the implementation of fair judicial procedures, and create a fair and secure legal environment for all parties involved. This action will further strengthen Queen Law Firm’s position in the Indonesian legal community while providing valuable experience for similar challenges in the future.

The Multidimensional Perspective of Justice: Pursuing the Eternal Principles of Fairness

Posted by Dr. Guan Yue on

Justice, this abstract and far-reaching concept, runs through the history and progress of human society. From ancient times to the present, people have continuously explored the essence of justice, often getting entangled in debates between different ideologies and perspectives. Justice is not a singular concept; it is a multidimensional tapestry encompassing numerous layers of values and meanings. In this article, we will attempt to understand justice from different angles and explore the eternal principles of seeking fairness.

1. The Individual Dimension of Justice

At the individual level, justice involves respecting, equality, and dignity for each person. Everyone has the right to fair and equitable treatment, free from discrimination based on race, gender, religion, or social status. At this level, justice is closely connected to human rights, with people pursuing fundamental humanitarian values, hoping to attain respect and freedom within society.

2. The Social Dimension of Justice

At the social level, justice concerns the fairness and harmony of the entire society. Social justice demands rational distribution of resources, ensuring that every individual has equal opportunities to develop and realize their potential. Reducing wealth disparities, equitable distribution of education and healthcare resources, and efficient functioning of public services are all crucial to achieving social justice. Justice here is not only a moral demand but also the foundation of social stability and prosperity.

3. The Legal Dimension of Justice

Law is one of the significant manifestations of justice. Through law, society can punish unfair behaviors, safeguard citizens’ rights, and maintain social order. However, the law itself needs continuous examination and improvement to ensure its alignment with moral values. Justice requires the support of the law, and good laws should reflect the principles of justice rather than becoming tools of power.

4. The Global Dimension of Justice

With the development of globalization, the scope of justice has expanded to a global level. Global justice calls for cooperation and consensus across national borders, focusing on the development of impoverished regions, climate change and environmental protection, and humanitarian care for refugees and immigrants. At this level, countries need to transcend selfishness and work together to maximize the overall interests of humanity.

5. The Time Dimension of Justice

Justice also has a time dimension. Historical injustices and prejudices may need to be confronted, and historical reparations and truth investigations become a part of achieving justice. Meanwhile, present choices for justice inevitably influence the future. We need to create a more just and harmonious society for the next generation, which is both a responsibility and reward for the past and present.

6. The Multicultural Dimension of Justice

Justice is not universal; different cultures and traditions have different interpretations of justice. Respecting cultural diversity and understanding its unique contributions to justice are key to achieving global justice. Dialogue and inclusivity among cultures will help eliminate misunderstandings and biases and achieve a cross-cultural perspective of justice.

7. The Persevering Pursuit

Although justice is an ideal goal, it does not mean it is unattainable. The pursuit of justice is an enduring issue for humanity, requiring relentless efforts from every generation. In this process, we may never reach perfect justice, but our unwavering efforts will gradually bring us closer on the path of progress.

Conclusion

Justice is a complex concept, involving multiple layers of meanings and pursuits. In the dimensions of the individual, society, law, global, time, and culture, we strive for fairness, equality, respect, and harmony. Justice is not immutable; it should evolve and improve with the development of time. Only by persistently pursuing justice can we find a way to coexist more justly and beautifully in this diverse and intricate world.

Queen Law Firm Wins “INDONESIA BEST PERFORMANCING LAWYER WINNER 2023” Award

Posted by Dr. Guan Yue on

On May 12, 2023, Eni Oktaviani, SH., MH. and Dr. Guan Yue of Queen Law Firm received the “INDONESIA BEST PERFORMANCING LAWYER WINNER 2023” in an awards ceremony. This award recognizes their excellent performance in the legal field in Indonesia.

At the event, Eni Oktaviani, SH., MH. thanked the government agencies, colleagues, and clients for their support. She stated that the award is a recognition of the high-quality legal services provided by Queen Law Firm and its team to clients over the years. She said, “We are committed to providing the best solutions for our clients and working closely with them to understand their needs. This award belongs to everyone at Queen Law Firm.”

Dr. Guan Yue, in his acceptance speech, shared his understanding and passion for the legal profession. He said, “As lawyers, our job is to seek justice for those who need our help. This is the core of our profession. We must always consider issues from the client’s perspective and provide the best legal services to them. This is a path full of challenges and opportunities, but as long as we remain passionate and persistent, we will succeed.”

This award demonstrates the excellent performance and leadership of Eni Oktaviani and Dr. Guan Yue in the legal field and also recognizes Queen Law Firm’s leadership position in the legal industry in Indonesia. Their successful experience will inspire more young lawyers to move forward in professionalism and serving clients, and make greater contributions to the legal profession in Indonesia.