Author: Dr. Guan Yue

Queen Law Firm Distributes Daily Needs To The Community In Pandemic

Posted by Dr. Guan Yue on 23/07/2021

The COVID-19 epidemic has been going on for more than one year, and Indonesia’s anti-epidemic situation has become increasingly severe. Starting on July 3, the Indonesian government has adopted Enforcement of Emergency Community Activity Restrictions (PPKM). More and more people have lost their source of livelihood because they can’t carry out normal activities so that they can’t guarantee the most basic life needs.

To this end, Queen Law Firm adheres to the concept of “take it from the people and use it for the people”, and prepares daily necessities for a certain number of people to alleviate their urgent needs.

Queen Law Firm hopes to help people in need to tide over the difficulties through this event.

Regarding the Establishment of A Representative Office of A Foreign Company in Indonesia

Posted by Dr. Guan Yue on 01/06/2021

With the rapid development of the Indonesian economy, more and more overseas companies plan to enter the Indonesian market. However, many companies are hesitant to set up a branch or representative office in Indonesia. Here, I will focus on the relevant situation of the representative office.

Restrictions on Representative Office

Indonesian laws and regulations allow foreign companies to open representative offices in Indonesia. However, allowing the establishment does not mean that there are no restrictions. In addition to being unable to freely conduct commercial operations, foreign company representative offices also have many other restrictions. According to the guidelines and procedures for permits and investment facilities in Article 37 of Regulation No. 13 of 2017 of the Indonesian Investment Coordination Board, the establishment of a representative office of a foreign company in Indonesia has at least five restrictions:

A representative office of a foreign company can only act as a supervisor, liaison, and coordinator and handle issues related to the parent company’s interests or its affiliates.
A representative office is limited only to prepare for establishing and developing a foreign investment company business in Indonesia or other countries and Indonesia.
Regarding the office location of a representative office of a foreign company. The Indonesian Investment Coordinating Commission Regulation No. 13 of 2017, Article 37(1) Subparagraph c stipulates that the office of foreign company representative offices is limited to office buildings located in provincial capital cities. In other words, representative offices of foreign companies are not allowed to be established in non-provincial capital cities. At the same time, you cannot use a virtual office address like a limited company.
The representative office of a foreign company is prohibited from seeking income from Indonesia. The Indonesian Investment Coordinating Board Regulation No. 13 of 2017 Article 37(1) Subparagraph d stipulates: (the activities of foreign company representative offices are restricted) shall not seek income from Indonesia, including agreements/transactions that are not allowed to carry out activities or buy or sell goods or services with companies or individuals in Indonesia.
Applicable to the handling of the relationship between a representative office of a foreign company and a subsidiary or branch. The Indonesian Investment Coordinating Commission Regulation No. 13 of 2017 Article 37(1) Subparagraph e stipulates: Foreign company representative offices shall not participate in the management of companies, subsidiaries, or branches in Indonesia in any form.

Obligations of A Representative Office of A Foreign Company

In addition to the above restrictions, the regulations also stipulate certain obligations for the representative office as an organization and the head and employees as individuals. For example, before operating, a representative office must obtain a representative office license from the Indonesian government. This is stipulated in Article 37(2) of Indonesian Investment Coordinating Board Regulation No. 13 of 2017.

The maximum period of validity of a representative office permit is three years unless the letter of an appointment indicates that it is less than three years, and it can be extended by the period of validity specified in the letter of appointment. The representative office must apply for an extension of the representative office license at least 30 days before the license expires.

Finally, there is the obligation of the person in charge of the representative office. The person in charge must live in Indonesia and take full responsibility for the normal operation of the representative office. The person in charge shall not engage in activities other than the related activities of the representative office, and shall not concurrently hold the position of the person in charge of the representative office of other companies and/or representative offices. If the person in charge of the representative office is a foreign citizen and/or has foreign employees, then according to Indonesian laws and regulations, the representative office must also employ Indonesian employees.

Maintain Rights is Everyone’s Obligation

Posted by Dr. Guan Yue on 28/05/2021

On May 19, 2021, after more than a year of hard work, the South Jakarta Court No. 1072 Chinese Citizens v. Indonesian Citizens Breached the first-instance verdict. In addition to returning the principal, the Indonesian defendant must also pay high compensation. Queen Law Firm once again helped the client get justice back.

Of course, before the Chinese clients decided to start the lawsuit, there was also a fierce ideological struggle. After all, the clients need to complete the notarization and certification of the power of attorney in China and pay high attorney fees. Moreover, the clients must also bear the risk of losing the case. However, clients ultimately choose to protect their legal rights through legal means, because many things cannot be measured solely by economic benefits. The psychological pain caused by torts often makes the victims fight back, even without worrying about the economic gains or losses. As the German jurist Rudolf von Jhering said:

“The aim of the plaintiff’s suit to defend his rights from despicable humiliation is not a trivial matter, but an ideal goal of affirming his own personality and sense of law. Compared to this end, all the sacrifice and pain it causes is nothing for the right-holder – the goal is compensating for the means. The victim’s cries for filing a lawsuit not for monetary gain, but for ethical suffering from suffering an illegal offense.” (Rudolf von Jhering, The Struggle for Law, p. 21)

Feelings of law are feelings that people in a healthy society should have. So, what is the feeling of the law? For example, when we are queuing at the supermarket and suddenly someone comes and doesn’t want to queue, do we feel uncomfortable in our hearts? So, what’s the level of this discomfort? And will this mental pain compel us to stand up and accuse his behavior? This is a feeling of law. In other words, the healthy feeling of the law will directly lead to community rejection of actions that violate their rights. The better the legal education and law enforcement environment of the whole society, the healthier the legal sense of the community, the more concerned they are about their own rights, and the more courageous they will be to fight against violations of their own rights.

Apart from their own material value, rights also have ideal values because of their combination with personality. Violation of rights will result in loss of property and insult to the victim’s personality. Personality is the most essential difference between humans and animals. If one’s personality was lost, then it would be no different from a walking corpse. In many of the cases we have handled, the actual amount of money involved is not very large, but the client insists on suing or reporting the case because the client believes that even though his rights have been violated, he has not only lost money but more of his personality. This is an insult to the victim by the perpetrator. If the victim chooses to remain silent, he will be subjected to mental torment for a long time at a later date. As a person of a complete and healthy personality, he must have a healthy feeling and awareness of the law. He must dare to fight when his rights are violated in order to safeguard human dignity and alleviate the emotional pain of the law. This is a kind of Spiritual self-protection. Then, maintaining rights becomes an obligation that must be carried out by individuals.

Likewise, many clients will say to us: “I’m not doing this for myself, but to teach others a lesson, so that she won’t do the same for others in the future.” These are citizens in a healthy society, I highly commend the necessary awareness. The progress of a society depends on the efforts of everyone. It is clearly unfair and immoral for people to just step back and expect others to stand up and face rights violations. The remaining people will endure a lot more pressure. This is clearly unfair and unethical. Of course, this also cannot be separated from the support of the national law enforcement apparatus. If the state law enforcement apparatus only tries to mediate differences by sacrificing principles or even reversing black and white, it will cause the whole society to misunderstand what is called “judicial murder.” People will not be sure what is right and what is wrong. People no longer dare to defend their rights. More and more people are choosing silence, choosing to flee, and choosing not to believe in the law anymore. Then the laws of this country will no longer be respected, the country has no international status at all, and its people will not be respected by the people of other countries. Only the healthy and strong sense of the law of each person is a very rich source of national strength and a sure guarantee for independence at home and abroad. Therefore, safeguarding rights is also an obligation that must be carried out by all levels of society.

Finally, end with a passage from Rudolf von Jhering:

“When law and justice are rejuvenating in a country, it is not enough for judges to wait for trial in court and police patrols. It is necessary for everyone to do their best to assist. Those who are protected by the law should do their best. What it can do to protect the power and prestige of the law. In the interests of society, everyone is a natural fighter who fights for rights.” (Rudolf von Jhering, The Struggle for Law, p. 56)

100% Closed and Open Business Fields for Foreign Capital Companies in Indonesia

Posted by Dr. Guan Yue on 09/04/2021

In order to accelerate economic growth, the Indonesian government has taken many major steps. One of them is to increase foreign investment by relaxing negative investment. This new policy allows foreign-funded enterprises to own only 64% of the shares at first, but now they can own 83% of the shares.

In fact, in Economic Policy Package XVI, the government has added 100% of the business areas that are open to foreign direct investment to the list. With this policy, the government expects that the industrial sector, especially small and medium-sized enterprises, will have significant growth.

Closed Business Fields for Foreign Capital Companies

In 2018, the government saw significant developments in the investment sector. Likewise, foreign investor confidence in Indonesia is considered to be increasing. That is why the government ensures that there are only eight business fields closed to foreign capital companies, namely:

Cannabis cultivation.
Catching certain types of fish.
Taking or utilizing live or dead corals from the wild.
Lifting of valuable objects on a sunken ship.
The chemical industry pollutes the environment.
Chemical weapons industry.
Liquor / alcoholic industry.
Gambling or casino business.

List of Business Fields that a Foreign Capital Company may Own

In the following business areas, foreign businessmen no longer need to have joint ventures with Indonesian residents, and can completely 100% own the company as a sole proprietorship, specifically involving 25 business areas, namely:

Business in the nature tourism sector takes the form of exploiting ecotourism activities and services as well as facilities in forest areas.
Survey and market research services.
The job training sector, including the development of work competencies, productivity, and work ethic. For example, in the fields of technology and engineering vocational, commerce, language, tourism, information technology, and agriculture with the aim of equipping the workforce to enter the world of work.
Art gallery area.
Performing arts field.
The human transportation business segment uses non-route land transportation, transportation with certain majors in the transportation sector, and tourism transportation.
Overseas sea transport for passengers (excluding cabotage) in the Transportation sector
Data communication system services sector.
Fixed telecommunications network operating sector.
The communication and information sector in the operation of mobile telecommunications networks.
Content services telecommunications services.
Information service center or call center services and other value-added telephone services.
Internet access service sector.
Internet telephone services for the public interest.
Internet interconnection services (NAP) and other multimedia services.
Provision, utilization, inspection, and submission of electrical power installations, including high voltage / extra high voltage electricity.
Finished drug pharmaceutical industry.
Acupuncture service facilities.
Pest control/fumigation service sector.
Oil and gas construction services.
Geothermal survey services sector.
Oil and gas drilling services at sea.
Geothermal drilling services.
Geothermal operation and maintenance services sector.
Power generation sector> 10 MW.

Therefore, for those foreigners who want to set up a foreign-funded enterprise, first of all, please make sure that the business area to be involved is no longer in the negative investment list, and determine whether it can be 100% sole proprietorship to ensure that your business can run normally.

Transnational Divorce Lawsuit in Indonesia

Posted by Dr. Guan Yue on 05/04/2021

As a well-known law firm in Indonesia, Queen Law Firm handles various kinds of cases, including commercial cases, civil cases, criminal cases, and so on. Among them, one type of case has been on the rise in recent years, namely transnational divorce suits. In such cases, the majority of divorce suits were filed by foreign women against Indonesian men. The reasons for divorce vary widely, of course, this is a matter of morality and we will not discuss it here. I will mainly discuss some of the legal issues related to divorce suits filed by foreign women against Indonesian men.

For litigation, in this kind of case, the main charges cover three things, namely: divorce, child custody, and distribution of joint assets.

1. Divorce

In accordance with Article 1 of Law No. 1 of 1974 concerning Marriage:
“Marriage is a physical and mental bond between a man and a woman as husband and wife with the aim of forming a happy and eternal family or household based on the One Godhead.”

Marriage is sacred and is an important factor for the continuity of human society. Moreover, for women in transnational marriages, it takes a lot of courage for women to leave their homeland and their families and choose to live in a country that is completely foreign to men. However, if the marriage cannot be continued for various reasons, divorce can bring new opportunities for both parties.

Based on Article 39 of Law Number 1 of 1974 concerning Marriage in conjunction with Article 19 letter (f) PP No.9 of 1975 concerning the Implementation of Law Number 1 of 1974 concerning Marriage, which reads as follows:
“Between husband and wife, there are continuous quarrels and fights and there is no hope of living in harmony again in the household.”

In other words, as long as the marriage can no longer maintain happiness, you can file a divorce suit in court. The reason for divorce can be for any reason, as long as it is in accordance with the facts and can provide evidence and valid witnesses for that reason in the next trial.

2. Child Custody

For those who are Muslims regulated in Article 105 Compilation of Islamic Law, it reads:
“In the event of a divorce:
a. Caring for children who are not yet 12 years old is the right of the mother;
b. Child care that is 12 years old is left to the child to choose between the father and mother as the holder of the right to care for him;
c. maintenance costs borne by his father. ”

For non-Muslims, based on the Decision of the Supreme Court of the Republic of Indonesia No. 102 K / Sip / 1973 dated 24 April 1975, reads as follows:
“Based on the jurisprudence regarding child guardianship, the rule is that the biological mother is prioritized, especially for young children, because the interests of the child are the criterion, unless it is proven that the mother is not fair to care for her child.”

Based on MARI Decision number 126 K / Pdt / 2001 dated August 28, 2003:
“If there is a divorce, the child who is still under the age of maintenance should be left to the closest and familiar person to the child, namely the mother.”

Therefore, for children under 12 years of age, custody of the child will automatically be granted to the mother. However, if the mother has bad habits and the judge believes that the woman does not have the ability to properly care for the child, then custody of the child will most likely be passed on to the father’s side. We want to remind all foreign women to pay attention to this. Indonesia is a Muslim country, and judges hate women for alcoholism, gambling, and smoking. If women have the bad habits mentioned above and men have enough evidence and witnesses, it will be a big obstacle to our fight for child custody.

3. Distribution of Joint Assets

Article 53 of the Marriage Law divides assets in marriage into three types, namely:
“Congenital assets, namely assets obtained by husband or wife from before the marriage. Each of them has the full right to carry out legal actions regarding their inherited assets.
The assets of each husband or wife obtained through inheritance or gifts in marriage. The right to this property fully rests with each husband or wife
Joint Assets or Gono-gini, namely assets obtained during marriage. ”

Gono-gini assets are joint property of husband and wife, even though only the husband or wife works. Regarding the formation time of the hessian property, it is usually determined based on rationality rather than the actual formation time. In principle, these assets must be distributed fairly so as not to cause injustice between the rights of the husband and the rights of the wife. However, if one party has a serious fault in the marriage, or the burden of caring for the child is heavy and the other party is unable to pay child support, then the distribution of assets will favor the innocent party or the party who has to look after the child. After all, justice is not the same as fairness.

Divorce, as the end of the marriage, not only hurts both parties, but also causes great psychological harm to the children. Therefore, anyone should consider carefully before making a divorce decision. Of course, if you choose to keep a marriage where there is absolutely no happiness for the sake of your children, it is meaningless, constant quarrels between husband and wife will only cause continuous harm to the children.

After you make a divorce decision, please contact Queen Law Firm, no matter what kind of dilemma, we will face it together with you.

Trial at Central Jakarta District Court

Posted by Dr. Guan Yue on 01/02/2021

The COVID-19 epidemic has lasted for more than a year, and this epidemic has caused severe damage to the world. Under the “large-scale social restriction” policy implemented by the Indonesian government, all normal activities in various sectors in Indonesia have been affected, and this also includes the speed at which the legal community handles cases. This is mainly because a large number of judges, registrars, and court staff were infected with the COVID-19 during the epidemic, which caused many courts to have to be temporarily closed.

However, regardless of the COVID-19 epidemic in Indonesia, as lawyers and legal advisers of Queen Law Firm, we will continue to provide the best service as always. On January 28, 2021, after a year of hard work, the case of an energy company in Beijing, China v. a mining company in Jakarta, Indonesia, was reopened in the Central Jakarta District Court. Even if the new crown epidemic is still not alleviated, we will still fight for our customers on the front line of the law.

Here, because many legal affairs cannot proceed as smoothly as normally expected, Queen Law Firm hereby expresses a sincere apology to all clients and partners. At the same time, thank you for your continued trust and support. Let us work together to overcome difficulties together.

Queen Law Firm Win the Lawsuit Again

Posted by Dr. Guan Yue on 01/12/2020

Queen Law Firm once again successfully helped the Chinese company win the lawsuit, got the payment back, and obtained compensation.

Queen Law Firm will as always resolve all legal issues including commercial disputes for you, protect your legal rights to the maximum, and escort your business and personal activities in Indonesia.

Legal Services at New Normal of Indonesia

Posted by Dr. Guan Yue on 08/09/2020 with 0 Comment

Notice to all Queen Law Firm clients, we apologize for the time being we only serve ONLINE Consultations and have not been able to provide face-to-face consultations, due to the Covid-19 pandemic, so we carry out a Health protocol by social distancing.

For consulting services such as cases of Default, Unlawful Acts, Tax Disputes, Bankruptcy, Making and Reviewing Contracts, Crime, etc. It can still run online via e-mail, WhatsApp, and if necessary we can provide consultations with the Zoom application.

The legal services mentioned above will take effect from September 8, 2020, until the Covid-19 pandemic subsides, thus we convey this notification for your attention, we thank you, keep your health and continue to implement the Health protocol recommended by the government.

Member of Queen Law Firm Gets “License of Receiver and Administrator for Bankruptcy”

Posted by Dr. Guan Yue on 13/08/2020 with 0 Comment

Congratulations to lawyer Irfan Disnizar from Queen Law Firm who has obtained the “License of Receiver and Administrator for Bankruptcy”.

Receiver for Bankruptcy is a Heritage Hall or Individual appointed by the Court to manage and settle the assets of a Bankrupt Debtor under the supervision of the Supervisory Judge following UUK (Bankruptcy Law).

Administrator for Bankruptcy in Suspension of Debt Payment Obligations is a Legacy Hall and/or Individuals domiciled in the Territory of the Republic of Indonesia, who have special expertise needed in order to manage debtor’s assets in delaying debt payment obligations.

Indonesian e-commerce will need to pay income tax and VAT

Posted by Dr. Guan Yue on 18/05/2020 with 0 Comment

Prof. Sunaryati Hartono once said: Indonesia must run the law if it wants to advance.

Indonesia ’s Finance Minister Sri Mulyani recently emphasized that Indonesia ’s economic growth does not come from debt, but from investment by foreign private companies. Relying on investment, she is confident that Indonesia’s economic growth rate can reach 7%. In order to attract more foreign investment, the government should formulate facilitation measures in the financial field. One of them is to deregulate investment and promulgate Omnibus Law, such as the implementation of tax reduction and incentive policies, to attract large amounts of foreign investment. So despite the regulation of e-commerce taxation, its purpose is to attract foreign investment and promote economic development.

Among them, Article 14 of the Comprehensive Tax Law clearly stipulates that resolute action will be taken on all traders who participate in commercial activities in the form of e-commerce. In this case, the Ministry of Finance plans to impose income tax and value-added tax on e-commerce operators.

As mentioned in Article 14, paragraph 1, income tax will be levied on the income of tax bodies that conduct e-commerce activities in Indonesia.

The income tax levied on Indonesian e-commerce traders will follow the provisions mentioned in the Income Tax Law. The value-added tax levied on Indonesian domestic e-commerce traders will follow the provisions of the VAT Law on Goods and Services and the Luxury Sales Tax.

According to the “SEA e-Conomy 2019 Report”, Indonesia is expected to achieve a target of $ 82 billion in e-commerce transactions by 2025. On the other hand, Indonesia’s closest competitor is Vietnam. By 2025, Vietnam’s transaction volume is only 23 billion US dollars. From this fact, the efforts of the Indonesian government to pursue e-commerce taxes are largely meaningful because of the huge tax potential. This potential digital tax can also help the government achieve tax goals.

At the same time, this measure can further regulate the Indonesian e-commerce market, thereby better attracting foreign investment.